Markets ascend to day’s high on broad based buying activities

Going from strength to strength, local equity markets were trading at day’s high point, with massive gains of over 2.25% which heaved both Sensex and Nifty above psychologically crucial 28,000 and 8,450 levels respectively. Meanwhile, broader indices also participating into the rally were up with gains of around a percent.Markets turned jubilant after Reserve Bank of India (RBI) surprised markets with a 25 basis point cut in interest rates on Thursday and signaled it could do more amid signs of slowing inflation and what it said was a government commitment to contain the fiscal deficit. The central bank lowered the repo rate - its key lending rate - to 7.75% from 8.0%, where it had been for the past year. Besides, positive global set-up also added to upbeat mood of markets.

On the global front, Asian stock markets traded mostly higher amid choppy trade on Thursday, as a rebound in energy prices provided some reprieve for oil-related counters. Meanwhile, China’s benchmark stock index rebounded from this year’s low after the broadest measure of new credit exceeded estimates in December.

Closer home, with across the board gains, most of the sectoral indices on BSE were trading into positive territory, nevertheless topping the charts were the stocks from rate sensitive Realty and Banking counters, while Capital Goods and Infrastructure counters followed suit. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1583:940; while 117 shares remained unchanged.

The BSE Sensex is currently trading at 27963.21, up by 616.39 points or 2.25% after trading in a range of 27703.70 and 27984.14. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.26%, while Small cap index up by 1.14%.

The gaining sectoral indices on the BSE were Realty up by 6.11%, Bankex up by 3.07%, Capital Goods up by 2.29%, INFRA up by 2.22% and Power up by 2.14%

The top gainers on the Sensex were HDFC up by 4.58%, ICICI Bank up by 4.26%, Mahindra & Mahindra up by 3.83%, Tata Power up by 3.74% and SBI up by 3.66%. On the flip side, Hindustan Unilever down by 0.30% were the top losers.

Meanwhile, all India Gems and Jewellery Trade Federation (GJF), the national nodal and the largest single trade body in India for the promotion and growth of trade in gems and jewellery across India,  has suggested government to lower down the duty on gold to ‘2%’ from current ‘10%’. The Federation, while drawing out its budget wish-list suggested that the government should cut the custom duty of gold to help check the smuggling of the precious metal, which was impacting the government coffers, now that the current account deficit (CAD) remains under control.

At present, the current account deficit (CAD) has been under control due to reduction in global gold prices, which is 40% lower to $1,200 from $1,900. Additionally, crude prices (which account for the highest bill for imports) also have reduced by 60% in last six months.

According to GJF, high import duty on gold has neither helped the government nor the trade and instead smuggling has increased. The industry body also reiterated its demand for the government to formulate a comprehensive gold policy for India and make the country a global jewellery hub.

Besides, it asked the government to exclude jewellery from all bilateral or multi-lateral free trade agreements (FTAs) and create a comprehensive gold mining policy for domestic exploration and for cluster development for 'Make in India' fashion jewellery.

The CNX Nifty is currently trading at 8459.05, up by 181.50 points or 2.19% after trading in a range of 8380.55 and 8468.95. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were DLF up by 9.41%, IDFC up by 4.82%, HDFC up by 4.67%, ICICI Bank up by 4.42% and Mahindra & Mahindra up by 3.99%. On the flip side, Tech Mahindra down by 0.60% and Hindustan Unilever down by 0.46% were the only losers.

Asian markets were trading higher; with KOSPI Index trading higher by 0.48 points or 0.03% to 1,914.14; FTSE Bursa Malaysia KLCI edging up by 3.92 points or 0.23% to 1,745.93; Straits Times advancing by 10.14 points or 0.3% to 3,336.30;  Jakarta Composite adding up 24.8 points or 0.48% to 5,184.47; Shanghai Composite spurting by 76.73 points or 2.38% to 3,299.17; Hang Seng gaining by 98.28 points or 0.41% to 24,210.88 and  Nikkei 225 rallying by 312.74 points or 1.86% to 17,108.70. On the flip side, Taiwan Weighted down by 15.14 points or 0.16% to 9,165.09 was the lone loser on the index.