Excitement recedes; benchmark indices retreat from day’s high point

Excitement at Dalal Street seems to have cooled off a bit as the benchmark indices have retreated from the high point of the day on account of the lingering nervousness which was witnessed ahead of the release of third quarter GDP numbers. However, barometer gauges in the light of positive global set up for second consecutive session managed to make some headroom for the gains. Buoyed by the upbeat industrial production data, which led to the overnight gains at Wall Street amidst firm regional counterparts, local bourses too have succeeded to build upon previous session’s gigantic gains.

Regional sentiment across Asia pacific region received a boost from oil's continued retreat from nine-month highs and Wall Street's positive showing Tuesday, where the Dow Jones Industrial Average closed above 13000 points for the first time in nearly four years. Back home, however, demand for equities also enhanced on expectations the European Central Bank's long-term refinancing operation later in the day will attract a large take-up from euro area banks, which would in turn boost liquidity in the global financial system.

On the BSE sectoral chart, stocks from Oil & Gas, Public Sector Undertaking and Metal counters topped the list of the gainers, however, stocks from Bankex counters were the weak spell in the trade. Both Oil & Gas and PSU stocks were trading up on the reports of government potentially hiking prices before the start of the parliament session on March 12, given the volatile international crude oil prices, which has been exerting pressure on the oil companies’ balance sheets. However, Metal stocks too rose as LMEX, a gauge of six metals traded on the London Metal Exchange, gained 0.33% on Tuesday, 28 February 2012.

On the Macro front, the pace of economic growth slowed substantially in the October-December quarter as GDP growth rate slipped to lowest levels in last ten quarters at 6.1 percent. Growth in GDP at factor cost during Q3, 2011-12, at 2004-05 prices, is estimated at 6.1 percent as compared to the growth rate of 8.3 percent in Q3, 2010-11.

The growth in GDP at factor cost during Q3, 2011-12, at 2004-05 prices, is estimated at 2.7 percent in ‘agriculture, forestry and fishing’ sector, 2.6 percent in industry and 8.9 percent in services sector. The ‘agriculture, forestry and fishing’ sector has shown a growth of 2.7 percent in its GDP during Q3, 2011-12, as against the 11 percent growth rate of corresponding period last year.

GDP growth in mining and quarrying declined to (-) 3.1 percent during Q3, 2011-12. The GDP in manufacturing sector is estimated at 0.4 percent during Q3, 2011-12. GDP in electricity sector is estimated at 9 per cent during Q3, 2011-12.

The BSE Sensex is currently trading at 17,877.09, up by 145.97 points or 0.82%. The index has touched a high and a low of 18,001.35 and 17,863.30 respectively.  There were 26 stocks advancing against just 4 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose by 0.73% and 0.98% respectively.

The top gaining sectoral indices on the BSE were Oil and Gas up by 2.63%, PSU up by 1.55%, Metal up by 1.10%, Realty up by 0.97% and FMCG up by 0.90%. While, Bankex down by 0.24% was the lone loser on the index.

The top gainers on the Sensex were ONGC up by 4.25%, RIL up by 3.08%, Bajaj Auto up by 2.65%, Sun Pharmaceuticals up by 2.25% and Tata Steel up by 1.67%.

On the flip side, ICICI Bank down by 0.85%, HDFC Bank down by 0.67%, L&T down by 0.62% and Tata Motors down by 0.61% were the only losers on the Sensex.

The S&P CNX Nifty is currently trading at 5,433.25, higher by 57.75 points or 1.07%. The index has touched a high and a low of 5,458.80 and 5,424.50 respectively.  There were 43 stocks advancing against just 7 declines on the index.

The top gainers of the Nifty were ONGC up by 4.53%, Bajaj Auto up by 3.20%, SAIL up by 3.16%, Reliance up by 3.13% and BHEL up by 2.37%.

On the flip side, Cairn down by 0.89%, Siemens down by 0.67%, Dr Reddy’s Lab down by 0.64%, Tata Motors down by 0.27% and Reliance Infra down by 0.27% were the only losers on the index.

Most of the Asian equity indices were trading in the green; Hang Seng gained 0.52%, Jakarta surged 1.48%, KLSE Composite spurts 0.76%, Nikkei 225 added 0.78%, Straits Times expanded by 0.82%, Seoul Composite registered gains of 1.49% and Taiwan Weighted was up by1.64% 

On the flip side, Shanghai Composite down by 0.58% was the lone loser amongst the Asian pack.