Markets hold early gains; Sensex rises over 150 points

Indian equity markets hold early gains supported by positive cues from the US and European markets where stocks posted strong gains overnight. Investors now expecting a rate cut from the RBI during its mid-April meeting, while rising global equities are raising confidence of foreign investors. However traders awaiting Supreme Court ruling regarding petitions to review its February order revoking the 2G telecom licenses granted in a scandal-tainted 2008 sale, to the rest of the session. On sectoral front metal, banking, capital goods and oil stocks were mostly trading higher. Select stocks from auto and IT sectors were down with some losses. On the global front, Asian shares rose on Tuesday on the back of strong gains in global equities overnight, after solid manufacturing data from the United States, and as leading Asian exporters offset signs of mild recession in Europe. Back home, the market breadth favoring the positive trend; there were 1,591 shares on the gaining side against 802 shares on the losing side while 116 shares remained unchanged.

The BSE Sensex is currently trading at 17,629.75, up by 151.60 points or 0.87%. The index has touched a high and low of 17,652.72 and 17,570.27 respectively. There were 23 stocks advancing against 7 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices shot up by 0.94% and 1.21% respectively.

The top gaining sectoral indices on the BSE were, Oil & Gas up by 1.91%, Bankex up by 1.58%, CD up by 1.55%, CG up by 1.30% and Metal up by 1.28%. While, IT down by 0.11% and Auto down by 0.01% remained the only losers on the index.

The top gainers on the Sensex were RIL up by 2.47%, Sterlite Industries up by 2.28%, Hindalco up by 2.23%, ICICI Bank up by 1.98% and GAIL India up by 1.86%.

On the flip side, Hero MotoCorp down by 0.89%, TCS down by 0.84%, Maruti Suzuki down by 0.62%, Sun Pharma down by 0.61% and M&M down by 0.32%, were the top losers on the Sensex.

Meanwhile, reeling under the pressure of high international oil prices, the state owned oil companies have decided to hike auto Liquefied Petroleum Gas (LPG) prices yet again by a substantial Rs 6 per litre, the third hike in a year. Auto LPG will now cost Rs 49.72 per litre as against Rs 43.65 per litre last month.

Oil firms revise auto LPG rates every month based on average of international benchmark prices. For the past month, crude oil has remained above the $120 per barrel mark, necessitating the hike in prices.  Auto LPG prices were hiked by almost Rs 3 per litre on March 1 when rates were increased from Rs 40.7 per litre to Rs 43.65 a litre.

Cooking gas, or LPG used in households is yet another item on which oil firms are losing a record Rs 570.50. The current price of LPG hovers around Rs 400 a cylinder. Oil companies are typically reimbursed by the government on the losses they make, but this leads to ballooning of the subsidy bill of the government. Of late the government has been criticized for its huge subsidy bill which has led to a large fiscal deficit. Estimated LPG subsidy for FY12 is Rs 27,000 crore.

The S&P CNX Nifty is currently trading at 5,364.85, higher by 46.95 points or 0.88%. The index has touched a high and low of 5,374.00 and 5,344.45 respectively. There were 40 stocks advancing against 10 declines on the index.

The top gainers of the Nifty were Cairn up by 4.16%, JP Associates up by 3.66%, Reliance up by 2.88%, Sterlite Industries up by 2.56% and Hindalco up by 2.51%.

On the flip side, TCS down by 1.21%, Hero MotoCorp down by 0.91%, Maruti Suzuki down by 0.66%, M&M down by 0.66% and Dr Reddy down by 0.62% were the major losers on the index.

Most of the Asian markets were trading in the green; Hang Seng gained 0.84%, Jakarta Composite surged 1.24%, KLSE Composite added 0.24%, Seoul Composite firmed up by 0.99% and Straits Times up by 0.08%

On the flip side, Nikkei 225 lost 0.59% and Taiwan Weighted plunged by 1.30%.

Markets in mainland China will remain closed for a three day public holiday starting from Monday on account of Qingming Festival and will reopen on Thursday.