Markets recover amid volatile trade

Indian equity markets were showing some resistance after early morning’s losses and currently extended gains amid volatile trade with support from some banking and capital goods stocks. However, markets were on track for its second weekly fall in a row as the markets plunged sharply on Friday morning after a muted response to government’s stake sale in Oil and Natural Gas Corp raised concerns about divestment programmes. On the global front, Asian shares inched up on Friday after a flood of cheap European Central Bank funds this week eased fears of a meltdown in the euro zone financial sector, overriding some weak data and concerns about surging oil prices. Back home, the market breadth favoring the positive trend; there were 1,555 shares on the gaining side against 905 shares on the losing side while 115 shares remained unchanged.

The BSE Sensex is currently trading at 17,676.32, up by 92.35 points or 0.53%. The index has touched a high and a low of 17,694.53 and 17,504.38 respectively. There were 21 stocks advancing against 9 declining ones on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices were up by 0.76% and 0.67% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 2.43%, HC up by 1.42%, Metal up by 1.29%, CG up by 1.18% and Power up by 0.94%. While, Realty down by 0.94%, FMCG down by 0.43%, IT down by 0.25%, Oil & Gas down by 0.11% and TECk down by 0.02% were the top losers on the index.

The top gainers on the Sensex were ICICI Bank up by 2.67%, Sun Pharma up by 2.59%, SBI up by 2.31%, Jindal Steel up by 2.13% and Tata Steel up by 2.04%.

On the flip side, DLF down by 4.31%, ONGC down by 1.96%, Bajaj Auto down by 1.25%, ITC down by 0.65% and Hindustan Unilever down by 0.57% were the top losers on the Sensex.

Meanwhile, India’s trade deficit widened to $14.7 billion in January 2012 as compared to $10.3 billion in January 2011. As per provisional data released by the Ministry of Commerce & Industry, trade deficit for April-January, 2011-12 was estimated at $148.667 billion which was 40.39% higher than the deficit of $105.895 billion during April-January, 2010-11.

India’s exports in dollar terms grew by 10.10 % year-on-year, during January, 2012. Cumulative value of exports for the period April-January 2011 -12 registered a growth of 23.47% in dollar terms.

India’s imports during January, 2012 grew by 20.25% (in dollar terms).  Cumulative value of imports for the period April-January, 2011-12 registered a growth of 29.40%. Oil imports during January, 2012 were valued at $12.325 billion which was 26.78% higher than imports valued at $9.721 billion in the corresponding period last year.  Oil imports during April-January, 2011-12 were valued at $117.914 billion which was 38.83% higher than $84.933 billion in the corresponding period last year.

Non-oil imports during January, 2012 were estimated at $ 27.782 billion which was 17.56% higher from January, 2011.  Non-oil imports during April - January, 2011-12 were valued at $ 273.545 billion, up by 25.71% than the level of such imports in April - January, 2010-11.

The S&P CNX Nifty is currently trading at 5,370.90, up by 31.15 points or 0.58%. The index has touched a high and a low of 5,378.30 and 5,315.05 respectively. There were 36 stocks advancing against 13 declines while one stock remained unchanged on the index.

The top gainers of the Nifty were Axis Bank up by 3.96%, Kotak Bank up by 2.86%, IDFC up by 2.81%, ICICI Bank up by 2.55% and Sum Pharma up by 2.50%.

On the flip side, DLF down by 4.20%, ONGC down by 2.15%, Bajaj Auto down by 1.36%, ITC down by 0.89%, and Infosys down by 0.59% were the major losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite gained 1.05%, Hang Seng added 0.86%, Jakarta Composite rose 0.57%, KLSE Composite expanded by 0.72%, Nikkei 225 shot up by 0.72%, Straits Times was up by 0.40%, Seoul Composite soared by 0.22% and Taiwan Weighted also accumulated gains of 0.32%.