Sensex, Nifty hold gains on Greece bailout and inflation numbers

Aided by global cues, benchmarks are holding early gains as investors cheered the long-awaited agreement for a crucial second bailout package for debt-stricken Greece. Meanwhile provisional annual inflation for January 2012 stood at 7.65% as compared to January 2011, based on the consumer price index (CPI) for the first time. Inflation in rural areas was up 7.38% and for the urban areas it was at 8.25%, as per data released by the Ministry of Statistics and Programme Implementation. However, Euro zone finance ministers concluded 13 hours of talks by sealing a bailout for the country that will resolve its immediate financing needs with a 130-billion-euro rescue package and measures to cut its debt to 121% of GDP by 2020. On the global front, Asian shares were moving into green on hopes of an easing of global economic turmoil by the Greek bailout and China's central bank’s decision to cut its reserve requirement ratio for banks, freeing up funds for loans. Back home, the market breadth favoring the positive trend; there were 1,606 shares on the gaining side against 997 shares on the losing side while 124 shares remained unchanged.

The BSE Sensex after rallying by 95.21 points or 0.52% is currently trading at 18,384.56. The index has touched a high and a low of 18,417.08 and 18,293.80 respectively. There were 22 stocks advancing against 8 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.84% and 1.17% respectively.

The top gaining sectoral indices on the BSE were, Power up by 1.96%, Realty up by 1.82%, Metal up by 1.57%, CG up by 1.35% and Public Sector Undertaking up by 1.02%. While, Consumer Durable down by 0.74%, Information Technology down by 0.41%, TECk down by 0.10% were the top losers on the index.

The top gainers on the Sensex were BHEL up by 4.61%, ONGC up by 3.57%, Tata Steel up by 3.42%, Hindalco Industries up by 3.21% and SBI up by 1.71%.

On the flip side, HDFC Bank down by 0.76%, TCS down by 0.71%, Maruti Suzuki down by 0.61%, Wipro down by 0.49% and Gail India down by 0.42% were the top losers on the Sensex.

Meanwhile, the government has proposed setting up of a specialised body to promote sustainable development of the Indian auto sector called the National Automotive Board (NAB). The body which is expected to be set up by April 2012, will succeed the National Automotive Testing and R&D Infrastructure Project (NATRIP). It is being set up with a view to facilitate communication between the government and the industry, promote research and development activities and have a larger role in developing skills for the growing automobile sector. Besides, it is also expected to act as a think-tank for the government, especially for the growth of hybrid and electric vehicles in the country.

The proposal for setting up the board is being finalised by the Department of Heavy Industry and is likely to be cleared by the Cabinet in a month. The board will have members from the Department of Heavy Industry, Planning Commission and from various ministries, including Road Transport and Highways, Science and Technology, Environment and Forests. It would also include scientists and industry representatives.

NAB is expected to succeed NATRIP, which was formed to set up new auto testing and R&D centres along with upgrading the existing ones. It was set up for upgradation of three existing automotive testing and R&D centres -- the Vehicle Research and Development Establishment (VRDE) at Ahmednagar, Automotive Research Association of India (ARAI) at Pune and International Centre for Automotive Technology (ICAT) at Manesar. In addition, NATRIP's mandate was to set up four greenfield centres at Chennai, Indore, Silchar and Rae Bareilly for automotive testing, homologation and R&D. As per government officials, these centres are now established and some of them have been upgraded and therefore the role of NATRIP has been completed.

The S&P CNX Nifty is currently trading at 5,598.15, higher by 33.85 points or 0.61%. The index has touched a high and a low of 5,604.15 and 5,561.75 respectively.  There were 38 stocks advancing against 11 declines and one remained unchanged on the index.

The top gainers of the Nifty were BHEL up by 4.68%, ONGC up by 3.72%, Tata Steel up by 3.46%, Hindalco Industries up by 3.31% and Reliance Infra up by 2.66%.

HDFC Bank down by 0.81%, HCL Tech down by 0.78%, Maruti Suzuki down by 0.77%, TCS down by 0.71% and GAIL down by 0.42% were the major losers on the index.

Most of the Asian equity indices were trading mixed, Hang Seng shed 0.11%, KLSE Composite inched lower by 0.06%, Nikkei 225 trimmed 0.12%, Seoul Composite surrendered 0.05% and Taiwan Weighted descended by 0.42%.

On the flip side, Shanghai Composite up by 0.03%, Jakarta Composite gained 0.46%, Straits Times inched up by 0.12%, were top gainers amongst the Asian pack.