Frontline equity indices trade near high point of the day; Sensex surpasses 18100 level

Frontline equity indices after getting an optimistic start are currently trading near the day’s high point. Bounce back in the Oil & Gas stocks has led to an additional spurt in the 30 share volatile index of Bombay Stock Exchange (BSE)-Sensex, which is currently trading above the 18100 level. Stocks from interest rate sensitive suck as Auto, Realty counters combined with Capital Good counters are performing well post the release of January month’s inflation data, which pacing down to a 2 year’s low level, rekindled hopes that the RBI will start cutting interest rates sooner rather than later to battle the country's economic slowdown. However, the plunge of market bellwether- Reliance Industries along with Hindustan Unilever remains a drag in the market.  The 50 share index of National Stock Exchange (NSE)- Nifty- currently too amassing gains over a percent is approaching the 5500 level. The broader indices too are trading with splendid gains of over a percent.

On the global front, swayed by a late-day rally on Wall Street, Asian stock markets too are trading higher as Greece indication of willingness to commit for spending cuts demanded by lenders in exchange for a bailout vital to the country's solvency, has led to a boost in the risk appetite. The Nikkei 225 is poised to close at the highest level since August. The Bank of Japan unexpectedly added 10 trillion yen ($128 billion) to an asset-purchase program yesterday and set a 1 percent goal for inflation to boost the economy. Meanwhile, the US future indices too were showing an uptick in the screen trade. Back on the home turf, the overall market breadth is well adjusted in the favour of advances which have thrashed declines in the ratio of 1711:651, while 93 shares remain unchanged.

The BSE Sensex is currently trading at 18,100.32, up by 251.75 points or 1.41%. The index has touched a high and a low of 18,109.07 and 18,000.30 respectively. There were 28 stocks advancing against just 2 declining one’s on the index.

The broader indices too were outperforming frontline equity indices; the BSE Mid cap and Small cap indices surged by 1.60% and 1.11% respectively.

All the sectoral indices were trading in green on BSE, however, the top gaining sectoral indices on the BSE were, Auto up by 3.53%, Realty up by 2.96%, CG up by 2.77%, CD up by 2.19% and Bankex up by 1.79%.

The top gainers on the Sensex were Tata Motors up by 6.76%, Maruti Suzuki up by 4.41%, Sterlite Industries up by 4.07%, L&T up by 3.53% and DLF up by 3.24%. On the flip side, RIL down by 0.53% and HUL down by 0.42% were the only losers on the Sensex.

Meanwhile, taking cognizance of the recent demands made by the domestic power equipment manufacturers, the Department of Economic Affairs (DEA) has asked the Revenue Department to take decision on increasing import duty on power equipment. It has proposed that the duty be increased to 10-12% as compared to the demanded 14% by domestic players.

On the other hand, the Department of Heavy Industry (DHI) and the Power Ministry are in favour of 14% import levy, DEA believes that 10-12% duty is adequate, they said, adding the specifics are being worked out. By adding further it said, higher duty structure would not only send a wrong signal to the global investors, but may also lead to increased cost of generation.

Domestic power equipment manufacturing companies such as BHEL and L&T have been facing stiff competition from cheaper imports of power gear from foreign nations, especially China. Many private entities such as Reliance Power and Adani Power have placed orders for cheap equipment from China and other countries and hence domestic companies are keen that import duty be hiked to 14% to protect national players.

Currently projects with less than 1,000 MW generation capacity attract a 5% import duty while the rest enjoy duty-free import of equipment.

The S&P CNX Nifty is currently trading at 5,491.90, higher by 75.85 points or 1.40%. The index has touched a high and a low of 5,494.70 and 5,460.60 respectively. There were 46 stocks advancing against just 4 declines on the index.

The top gainers of the Nifty were Tata Motors up by 6.77%, Maruti Suzuki up by 4.43%, Sterlite Industries up by 4,30%, L&T up by 3.86% and Axis Bank up by 3.48%.

On the flip side, HUL down by 0.74%, Reliance Industries down by 0.64%, NTPC down by 0.14% and HCL Technologies down by 0.04% were the major losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite up by 0.85%, Hang Seng surged by 1.97%, Nikkei 225 added 2.54%, Straits Times rose 0.84%, Seoul Composite expanded by 1.06% and Taiwan Weighted zoomed 1.61%.

On the flip side, Jakarta Composite down by 0.17% was the lone loser amongst the Asian pack.