Markets get a positive start; moves higher on global support

Indian equity markets got a marginal gap-up start and have strengthened further in the morning trade; the better than expected numbers of IT major HCL Technology has boosted the morale of the investors. The company has posted a 15.4% growth in consolidated net profit at Rs 572.7 crore, its revenue were up by 12.8% to Rs 5,425 crore. The company has garnered 18 deals across the sector with total contract value exceeding $1 billion this quarter that has helped in a better performance. Also the gains in the regional markets have supported the local indices, the Chinese market that was looking a bit worried ahead of its Oct-Dec GDP data has made a good bounce back. Though China's gross domestic product grew at its weakest in two and half years in the fourth quarter, slowing to an annual rate of 8.9 percent from 9.1 percent in the previous quarter, but it beat expectations of 8.7 percent rise. Back home, all the 13 sectoral indices are showing bullish move in early trade and the rate sensitives’ have taken the lead with auto index taking the top slot. In non sectoral gauges airlines stock are buzzing as a group of ministers will consider a proposal to allow foreign airlines to buy stake into domestic carriers. The ministers will also discuss the group of secretaries' recommendation to allow domestic carriers to import fuel directly rather than buying it from oil marketing companies.

The BSE Sensex opened at 16,270.87; about 81 points higher compared to its previous closing of 16,189.36, and has touched a high and a low of 16,388.98 and 16,270.87 respectively. The index is currently trading at 16,375.18, up by 185.82 points or 1.15%. All 30 stocks were on advancing side on the index.

The broader indices following benchmarks were in green; the BSE Mid cap and Small cap indices were up by 0.90% and 1.04% respectively. The market breadth was strongly in favour of advances, 75.54 stocks were advancing against 21.33% declines.

All BSE sectoral indices were in positive zone, the top gainers were, Auto up by 1.86%, CG up by 1.78%, Realty up by 1.76%, Metal up by 1.60%, Bankex up by 1.46%.

All 30 stocks were in green, the top gainers of the Sensex were Maruti Suzuki up by 2.97%, Hindalco Industries up by 2.83%, Tata Motors up by 2.76%, Sterlite Industries up by 2.45%, DLF up by 2.30%.

Meanwhile, Ministry of Chemicals and Fertilizers has gone on to rubbish the reports that emerged on January 16, 2012, which claimed that the government is contemplating the idea of decontrolling urea prices and hiking prices of urea, the most commonly used fertilizer, by 40 percent. Srikant Kumer Jena, the Minister of State (MoS) for Chemicals and Fertilizers, clarified that the retail price of urea is notified by the government, which is currently prevailing at Rs 5,310/MT and that the reports in the media are factually incorrect and baseless, as no such proposal is under consideration.

Fertilizer Secretary Ajay Bhattacharya too elucidated that there is no plans to decontrol the urea sector while the ministry is not looking into any such proposal to hike urea prices as sharply as 40 percent. The government has full control over the prices of urea only while prices of all other fertilizer products like phosphatic and potassium fertilizer were partially freed in the last fiscal by announcing the Nutrient-Based Subsidy (NBS) Policy.

The fertilizer ministry is currently seeking different views from various ministries on the draft NBS policy prepared by the Committee of Secretaries (Cos), which recommended partial decontrol of urea prices but the final decision will be taken at the Cabinet level. The government has of-late remained apprehensive over the move to partially decontrol the urea prices especially because prices of phosphatic and potassium fertilisers have been rising at a steady pace post the partial decontrolling, adversely affecting the end users like farmers.

The S&P CNX Nifty opened at 4,904.50; about 30.6 points higher compared to its previous closing of 4,873.90, and has touched a high and a low of 4,935.20 and 4,904.00 respectively.

The index is currently trading at 4,930.65, up by 56.75 points or 1.16%. There were 48 stocks advancing against 2 declines on the index.

The top gainers of the Nifty were HCL Tech up by 3.26%, Hindalco Industries up by 2.68%, Tata Motors and Reliance Infrastructure were up by 2.67%, JP Associates 2.58%. On the flip side, TCS down by 0.12% and GAIL down by 0.04% were the only losers on the index.

All Asian equity indices were trading in the green; Shanghai Composite was up by 20.47 points or 0.93%, Hang Seng surged 357.71 points or 1.88%, Jakarta Composite soared 19.55 points or 0.50%, Nikkei 225 increased 67.62 points or 0.81%, Straits Times climbed by 23.91 points or 0.87%, Seoul Composite advanced 29.11 points or 1.57%, Taiwan Weighted ascended 88.06 points or 1.24%.