Sentiments turn bullish in morning trade; Nifty recaptures 5,300 mark

Sentiments turned bullish in the morning trade after falling the most in five months on Monday spooked by crude oil prices. Overnight, the US markets ended flat with the Dow Jones Industrial Average and the S&P 500 indices closing 0.1 percent higher. While, most of the Asian equity indices were trading in the positive terrain at this point of time. Back home, BSE’s -- Sensex -- and NSE’s -- Nifty -- were trading near their crucial, 17,600 and 5,350 mark respectively, supported by pull back in the banking stocks while, Reliance Industries, Reliance ADAG, ICICI Bank and ONGC edged higher in opening trades too aided the sentiments. On sectoral front, realty witnessed the maximum gain in trade followed by consumer durables and power while, software and technology remained the only losers on the BSE sectoral space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,207 shares on the gaining side against 431 shares on the losing side while 51 shares remained unchanged.

The BSE Sensex opened at 17,545.11; about 100 points higher compared to its previous closing of 17,445.75, and has touched a high and a low of 17,646.80 and 17,530.44 respectively.

The index is currently trading at 17,598.33, up by 152.58 points or 0.87%. There were 28 stocks advancing against just 2 declines on the index.

The overall market breadth has made a strong start with 71.21% stocks advancing against 25.43% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 1.39% and 1.36% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 2.39%, CD up by 2.25%, Power up by 1.59%, Bankex up by 1.58% and Auto up by 1.46% while, IT down by 0.38% and TECk down by 0.02% remained the only losers on the index.

The top gainers on the Sensex were Hindalco up by 2.61%, Tata Motors up by 2.33%, DLF up by 2.27%, ICICI Bank up by 2.15% and BHEL up by 2.02%.

On the flip side, TCS was down by 1.59% and ITC was down by 0.28% were the only losers on the Sensex.

Meanwhile, the government in the upcoming Budget is expected to revert to its earlier policy of using 25% of the disinvestment proceeds for reviving sick PSUs and recapitalizing the profitable ones. Before 2009, as per government policy, funds received through disinvestment in PSUs were used for social programmes and for recapitalization and revival of sick and profitable units in the ratio of 75:25 respectively. 

However, in view of the global financial crisis of 2008 and the subsequent fiscal pressures, the government changed the policy and decided to use the entire proceeds from this route for funding social sector schemes for a period of three years (2009-10 to 2011-12). Since the three year period is coming to an end on March 31, 2012, it is being expected that the government may revert to its earlier policy.

In 2009-10 and 2010-11 fiscals, the government had raised Rs 23,553 crore and Rs 22,145 crore respectively through disinvestment. However, so far in this fiscal, the government has been able to raise just Rs 1,145 crore through stake sale in PSUs instead of the budgeted Rs 40,000 crore. This has primarily been due to a delay in disinvestment plans because of volatile stock market conditions.

PSUs lined up for stake sale include Hindustan Copper, SAIL, BHEL and Oil India. 

The S&P CNX Nifty opened at 5,310.50; about 29 points higher compared to its previous closing of 5,281.20, and has touched a high and a low of 5,343.00 and 5,306.45 respectively.

The index is currently trading at 5,334.80, higher by 53.60 points or 1.01%. There were 46 stocks advancing against 4 declines on the index.

The top gainers of the Nifty were Reliance Infra up by 3.24%, ACC up by 2.68%, RPower up by 2.64%, RCom up by 2.62% and DLF up by 2.58%.

On the flip side, HCL Tech down by 2.15%, TCS down by 1.47%, Cairn down by 1.44% and ITC down by 0.38%, were the major losers on the index.

Most of the Asian markets were trading in the green; Hang Seng was up 84.79 points or 0.40% to 21,302.65, Jakarta Composite was up 2.22 points or 0.06% to 3,863.23, Straits Times was up 6.39 points or 0.22% to 2,953.17 and Seoul Composite was up by 3.53 points or 0.18% to 1,994.69.

On the flip side, Shanghai Composite was down 9.59 points or 0.39% to 2,437.47, KLSE Composite was down 4.84 points or 0.31% to 1,554.20 and Nikkei 225 was down by 46.86 points or 0.49% to 9,587.07.

Stock markets in Taiwan remained closed on Tuesday on account of Peace Memorial Day holiday.