Benchmarks trade slightly in the green in early deals

Indian equity benchmarks have made a positive start and are trading slightly in the green in early deals on Friday as investors opted to buy beaten down but fundamental strong stocks after seven days of consecutive drubbing. Meanwhile, IT shares remained in focus after reports suggest that global IT major Accenture has raised its revenue growth forecast for the current year. Moreover, Telecom shares were extending their gains following the end of the spectrum auction. Idea Cellular has gained after the firm won back crucial 900MHz spectrum across 9 service areas which contribute 73% to the revenue. However, gains remained capped on reports that, foreign portfolio investors (FPIs) sold shares worth a net Rs 521.23 crore yesterday, as per provisional data.

Global cues too remained sluggish, the US markets continued their bearish trend and ended lower in last session, though the major averages managed to come off the worst levels, they ended in red. The geopolitical concerns erupting from Middle East kept weighing on the sentiments. However, the Asian markets were trading mostly in the green at this point of time led by Japanese market, up by around half a percent in early deals as the nation’s core consumer prices rose 2 percent from a year earlier in February.

Back home, on the sectoral front, software, technology and metal witnessed the maximum gain in trade, while healthcare, fast moving consumer goods and realty remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1032 shares on the gaining side against 841 shares on the losing side while 81 shares remain unchanged.

The BSE Sensex is currently trading at 27515.81, up by 58.23 points or 0.21% after trading in a range of 27471.32 and 27694.41. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.09%, while Small cap index up by 0.37%.

The gaining sectoral indices on the BSE were IT up by 1.89%, TECK up by 1.36%, Metal up by 0.83%, Capital Goods up by 0.80% and Power up by 0.34% while, Healthcare down by 0.92%, FMCG down by 0.73%, Realty down by 0.55%, Auto down by 0.22% and Infrastructure down by 0.08% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.64%, Hindalco up by 2.39%, TCS up by 2.06%, Sesa Sterlite up by 1.33% and Larsen & Toubro up by 1.25%. On the flip side, Dr. Reddys Lab down by 1.79%, Sun Pharma down by 1.57%, Hero MotoCorp down by 1.49%, Axis Bank down by 1.42% and Mahindra & Mahindra down by 1.39% were the top losers.

Meanwhile, the union Cabinet, with a view to improve the power situation in the country has approved the supply of cheap liquefied natural gas (LNG) for power plants, it will help to rescue investments worth Rs 60,000 crore that was on the verge of sinking because of fuel scarcity. 31-gas fired power plants that have been lying idle for a while now and for which the government has squarely blamed the fall in output from the KG-D6 field of Reliance Industries, may get out of their misery with the new policy.

As per the new formula, pooling of imported gas and domestic gas for gas based power plants has been approved. The formula incorporates support from pipeline companies such as GAIL which have agreed for a cut in pipeline tariff and marketing margins. Gas transporters and re-gasification terminals have agreed to reduce their transportation tariff, marketing margin and re-gasification charges on the incremental RLNG (Re-Gasified Liquefied Natural Gas). On the other hand, State governments have agreed on a cut in duties on gas and will provide a subsidy up to the power tariff of Rs 5.5 per unit for purchasing gas based power.

Piyush Goyal, Union minister for power and coal has further elaborated that companies that need fuel will compete in a reverse auction by bidding the lowest amount of subsidy they need to supply electricity at Rs 5.50 per unit. The ministry has also decided that gas-based power plants will be allowed to run at 30 per cent capacity by using expensive imported gas. However, no changes would be made in the existing allocation of natural gas.

The government will organise a reverse bidding process in the next 30-35 days, while an empowered committee will have the power to revise the power purchase price as well as the limit to which the plant load factor of the subsidised plants can be increased after an initial assessment of the requirements at the plants is made.

The CNX Nifty is currently trading at 8352.20, up by 10.05 points or 0.12% after trading in a range of 8345.90 and 8413.20. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.62%, Infosys up by 2.40%, TCS up by 2.09%, ONGC up by 1.79% and Sesa Sterlite up by 1.46%. On the flip side, Idea Cellular down by 1.69%, Dr. Reddys Lab down by 1.67%, Bharti Airtel down by 1.63%, Sun Pharma down by 1.62% and Axis Bank down by 1.51% were the top losers.

Asian markets were trading mostly in the green; Hang Seng rose 4.9 points or 0.02% to 24,501.98, Shanghai Composite gained 10.9 points or 0.3% to 3,692.99, Straits Times increased 12.68 points or 0.37% to 3,444.27, Jakarta Composite jumped 17.33 points or 0.32% to 5,386.13 and Nikkei 225 was up by 48 points or 0.25% to 19,519.12.

On the flip side, Taiwan Weighted decreased 83.43 points or 0.87% to 9,535.69, KOSPI Index shed 3.71 points or 0.18% to 2,018.85 and FTSE Bursa Malaysia KLCI was down by 0.39 points or 0.02% to 1,818.03.