Markets make gap up start; Nifty regains 5,300 level

Key domestic bourses have made a gap up opening on firm global cues on reports of Greece having clinched a debt swap deal and a positive US jobs data. The US markets edged higher overnight while, all the Asian counters were trading in the positive terrain at this point after Greece moved closer to a bond swap with private creditors to avoid a default. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported BSE’s -- Sensex -- and NSE’s -- Nifty -- to regain their crucial 17,400 and 5,300 mark respectively. Metal share are up with Sterlite and Tata Steel gaining over 3 percent each. Tata Steel is looking to foray into merchant mining, a move that could mark the emergence of a new metals and mining powerhouse. All the sectoral indices are in green on the BSE this morning. Realty, banking, metal and capital goods indices have moved up around over 2 percent each. The broader indices too were trading on a firm note. The market breadth on the BSE was positive; there were 1,319 shares on the gaining side against 327 shares on the losing side while 41 shares remained unchanged.

Meanwhile, Multi-Commodity Exchange (MCX), which received bids worth Rs 35,000 crore for its Rs 660-crore initial public offering (IPO), listed at a premium of 35 percent at Rs 1,400 on the Bombay Stock Exchange. MCX is the first Indian exchange to be listed on the bourses. The IPO price was Rs 1,032.

The BSE Sensex opened at 17,325.82; about 180 points higher compared to its previous closing of 17,145.52, and has touched a high of 17,464.89 while low remain its opening.

The index is currently trading at 17,441.96, up by 296.44 points or 1.73%. There were 29 stocks advancing against only 1 decline on the index.

The overall market breadth has made a strong start with 78.19% stocks advancing against 19.38% declines. The broader indices too were trading firm note; the BSE Mid cap and Small cap indices rose 1.75% and 1.59% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 2.76%, Bankex up by 2.69%, CG up by 2.51%, Metal up by 2.51% and CD up by 1.82%. While, there were no losers on the index.

The top gainers on the Sensex were ICICI Bank up by 3.99%, Tata Steel up by 3.42%, L&T up by 3.29%, Sterlite Industries up by 3.29% and SBI up by 3.18%. While, Hindalco down by 0.08% remained the lone loser on the Sensex.

Meanwhile, major oil marketing companies (OMCs) - Indian Oil, Bharat Petroleum and Hindustan Petroleum have demanded the government that they be allowed to increase the price of petrol effective tonight given that the crucial assembly elections are over. The state-owned oil companies are pushing for raising petrol price by over Rs 5 per litre but the actual increase would depend on the government nod. However, as per recent development, the hike may be stalled till after March 8.

Oil firms had last revised the petrol prices on December 1, 2011. Since then the prices had not been hiked despite the rise in international prices, due to the assembly polls scheduled in five states, including the critical Uttar Pradesh. As a result, OMCs have suffered losses to the tune of Rs 900 crore since then and have been pressing the government to allow a hike.

Even though petrol prices have been deregulated, any price hikes by the PSUs is done after consultations with the government. Petrol price were freed from government control in June 2010 but rates have not moved in tandem with imported cost.

Oil firms also want a hike in the prices of diesel and cooking gas but that call would have to be taken by an Empowered Group of Ministers, where key allies like Trinamool Congress and DMK are represented. Mamata Banerjee-led TMC is opposed to any fuel price hike. Oil companies are facing losses to the tune of Rs 450 crore per day on sale of diesel, domestic LPG and kerosene.

The S&P CNX Nifty opened at 5,294.10; about 39 points higher compared to its previous closing of 5,220.45, and has touched a high and a low of 5,317.35 and 5,291.60 respectively.

The index is currently trading at 5,310.25, higher by 89.80 points or 1.72%. There were 47 stocks advancing against just 3 declines on the index.

The top gainers of the Nifty were ICICI Bank up by 4.05%, Tata Steel up by 3.96%, Sterlite Industries up by 3.90%, Cairn up by 3.70% and Sesa Goa up by 3.45%.

On the flip side, BPCL down by 0.96%, RPower down by 0.75% and HUL down by 0.10% remained the only losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up 9.68 points or 0.40% to 2,429.95, Hang Seng was up 220.79 points or 1.06% to 21,121.52, Jakarta Composite was up 24.52 points or 0.62% to 3,992.19, KLSE Composite was up 1.55 points or 0.10% to 1,579.91, Nikkei 225 was up 219.21 points or 2.24% to 9,988.17, Straits Times was up 14.04 points or 0.47% to 2,984.42, Seoul Composite was up 10.31 points or 0.52% to 2,011.07 and Taiwan Weighted was up by 32.66 points or 0.41% to 8,017.22.