Barometer gauges puff up gains as investors scoop cyclical; Metal stocks shine

Besides, sustaining above the crucial psychological level, barometer gauges have puffed up additional gains as market men have scoped up cyclicals ahead of the important events, such as RBI’s monetary policy review and Union Budget 2012-13. Riding high on the back of Metal, Realty and Power stocks, the 30 share barometer index of Bombay Stock Exchange (BSE)-Sensex-has amassed colossal gains of over 200 points to oscillate above the crucial 17800 mark. Immense support came to the 30 share volatile index at the 17600 level, which was marked as its intra-day low, however, recuperation post to that was just paranormal.

Similarly, the National Stock Exchange’s Nifty continued to linger above psychological resistance level of 5400 on the back of supportive cues from global peers. However, even the broader indices made significant contribution to the second consecutive day rally, as both midcap and smallcap index registered gains of over a percentage points. On the global front, after the overnight gains of Wall Street, Asian stocks too rose, with the benchmark index set to gain for a third day in four, amid optimism euro-area finance chiefs will complete a second Greek bailout, and before policy announcements by the Bank of Japan and the U.S. Federal Reserve today.

Back on the home turf, the BSE Sensex is currently trading at 17,811.66, up by 223.99 points or 1.27%. The index has touched a high and a low of 17,827.43 and 17,680.23 respectively. There were 28 stocks advancing against only 2 declines on the index. The overall market breadth on BSE was in the favour of advances which thumped advances in the ratio of 1520:664, while 112 shares remained unchanged.

The broader indices too were trading in fine fettle; the BSE Mid cap and Small cap indices spurted by 1.20% and 1.04% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 2.31%, Realty up by 2.16%, Power up by 1.92%, Capital Goods up by 1.87% and Oil and Gas up by 1.72%.

The top gainers on the Sensex were Sterlite Industries up by 4.06%, BHEL up by 3.07%, DLF up by 2.81%, Maruti Suzuki up by 2.80% and Jindal Steel up by 2.69%. Meanwhile, Wipro down by 1.54% and Mahindra & Mahindra down by 0.69% remained the lone loser on the Sensex.

Meanwhile, passenger cars sales recorded a robust growth of 13.12% in February 2012 as compared to February 2011, as customers feared a hike in excise duty in the upcoming budget, according to the figures released by the Society of Indian Automobile Manufacturers (SIAM).

Domestic passenger car sales increased to 2,11,402 units in February against 1,86,890 units in the year-ago period. This is the first time ever that the monthly car sales crossed the two lakh units’ mark. The increase in sales is also indicative of the improvement in the market sentiment as no further interest rate hikes are expected.

Demand for cars in India fell for the first time in three years last July and the trend continued for the next four months due to high interest rates and rising fuel costs. This had led to fears of negative growth for the current fiscal.

Vans and Utility Vehicles recorded growth of 25.34% and 30.04% respectively. Growth in overall Passenger Vehicles stood at 16.07% for February 2012. Two-wheeler sales increased by 11.96% (month-on-month). Mopeds, motorcycles and scooters grew by 10.86%, 13.12% and 23.28% respectively. The commercial vehicle segment registered an overall growth of 18.70% in February 2012. Three Wheelers registered de-growth at (-) 13.58% in the month of February 2012.

Overall automobile exports registered a growth of only 5.70% in February 2012 as compared to February 2011, with commercial vehicle exports rising 34% and passenger vehicles dipping 19% on slow European demand, as per SIAM. Moreover, the top three carmakers, Maruti, Hyundai and Tata Motors, who together account for 69% of the passenger vehicle market, posted 6%, 13% and 15% growth, respectively.

The S&P CNX Nifty is currently trading at 5,431.40, higher by 71.85 points or 1.34%. The index has touched a high and a low of 5,435.35 and 5,390.80 respectively.  There were 48 stocks advancing against just 2 declines on the index.

The top gainers of the Nifty were Sesa Goa up by 4.50%, Sterlite Industries up by 3.88%, Ambuja Cements up by 3.48%, JP Associate up by 3.20% and BHEL up by 3.18%.

On the flip side, Wipro down by 1.68% and Mahindra & Mahindra down by 0.90% remained the only losers on the index.

All the Asian equity indices were trading in the green; Hang Seng gained 1.26%, Jakarta Composite added 0.26%, KLSE Composite also added 0.26%, Nikkei 225 spurted by 0.91%, Straits Times rose 0.76%, Seoul Composite surged by 1.24% and Taiwan Weighted firmed up by 1.36%.