Markets get a gap-up opening on good global cues

Indian equity markets have made a good gap up start on Thursday supported by the positive global sentiments. As, the US markets surged overnight on getting good earnings announcements and pledge by IMF that it will seek to boost its war chest by $600 billion to help countries reeling from the crisis, while the Asian counterparts made a jubilant start tailing the US markets and helped the domestic markets go for a big leap. The benchmark indices in the very early trade have surpassed the crucial levels of 5000 (Nifty) and 16600 (Sensex). All the rate sensitives’ have surged with metal counter taking the lead on expectation of demand revival from the Europe. However, the IT and technology stocks have extended their somber run and were down by about half a percent in early trade. Power sector has gained marginally after the top honchos of power industry met Prime Minister yesterday and were assured of a practical, pragmatic and viable solution to the industry's problems. Meanwhile, Bharti Airtel was trading lower by about a percent after the income-tax department has slapped a 1,067-crore demand notice on Bharti Airtel, for its alleged non-payment of Tax Deducted at Source (TDS) dues in the last four financial years in relation to its overseas operations.

The BSE Sensex opened at 16573.87; about 122 points higher compared to its previous closing of 16,451.47, and has touched a high and a low of 16662.06 and 16573.87 respectively. The index is currently trading at 16610.91, up by 159 points or 0.95%. There were 29 stocks advancing against just one decline on the index.

The broader were trading in green; the BSE Mid cap and Small cap index were up by 0.19% and 0.80% respectively.  The market breadth on BSE was in favor of advances in the ratio of 1236:470 while 71 scrips remained unchanged.

All BSE sectoral indices were trading in positive zone, the top gainers were, Realty up by 2.42%, Metal up by 2.01%, Bankex up 1.78%, CG up by 1.66%, Power up by 1.50%.

The top gainers of the Sensex were DFL up by 3.16%, Tata Steel up by 3%, Hindalco Industries and ICICI Bank up by 2.30%, Maruti Suzuki up by 2.26% while Bharti Airtel down by 1.42% was the lone loser on the index.

Amid a plethora of problems facing the Indian power generation and distribution sector, Prime Minister Manmohan Singh has pledged that a practical, pragmatic and viable solution will be carved out to address the growing concerns of private power sector players. The prime minister has set up a secretary level committee chaired by his Principal Secretary which will lay out the roadmap to a time-bound solution to the short term problems impinging on the power sector.

The industry representatives drew Prime Minister’s attention to key issues that faced the power sector such as shortage of domestic coal, increase in prices of imported coal, inadequate availability of gas, need for distribution reforms and financing of power projects. The committee set up by Manmohan Singh is expected to look into the vital issues raised by a delegation of Association of Power Producers and suggest the way forward.

The development has come as top honchos of the industry led by Ratan Tata met Manmohan Singh at his residence where Planning Commission Deputy Chairman and the Union Ministers of Finance, Power, Environment and Coal were present from the government side. The Prime Minister has promised the delegation an immediate action while he also assured that his Principal Secretary will meet the representatives after one month to apprise the private power players of the progress made.

Underscoring the fact that the power sector is involved in the process of nation building and there is a need to reduce risks to make the power projects viable, Singh affirmed that his government is committed in taking all possible steps to mitigate the problems being faced by power sector. Referring the issue as a national challenge, the Prime Minister asked the industry captains to not to lose heart and directed his cabinet colleagues present at the meeting to make all out efforts to resolve the key issues impacting the power sector.

The S&P CNX Nifty opened at 4,995.00; about 39 points higher compared to its previous closing of 4,955.80, and has touched a high and a low of 5,014.85 and 4,995.00 respectively.

The index is currently trading at 5,002.20, up by 46 points or 0.94%. There were 45 stocks advancing against 4 declines while one stock remained unchanged on the index.

The top gainers of the Nifty were Tata Steel up by 3.48%, DLF up by 2.78%, Axis Bank up by 2.44%, JP Associates up by 2.39%, Hindalco Industries up by 2.29%.

On the flip side, Bharti Airtel down by 1.11%, Infosys down by 0.61%, ITC down by 0.10%, TCS down by 0.02% were the only losers on Nifty.

All the Asian equity indices were trading in the green; Shanghai Composite up by 20.51 points or 0.90% Hang Seng rose 219.47 points or 1.11%, Jakarta Composite climbed 48.26 points or 1.23%, Nikkei 225 ascended 99.51 points or 1.61%, Straits Times increased by 14.67 points or 0.52%, Seoul Composite soared 21.14 points or 1.12%.

Markets in Taiwan remained close for a public holiday.