Sensex, Nifty holding early gains; FMCG leads rally

Indian equity markets pared some early gains but still holding strong gains in late morning session following Asian markets gains. The BSE benchmark moved up 145 points, while NSE benchmark holding 4,900 mark. On sectoral front FMCG, power, realty, bank and PSU stocks were mostly up with notable gains. Several stocks from metal, healthcare, automobile and oil stocks were also trading higher. Information technology and capital goods stocks were a bit subdued. In currency markets, rupee recovered from yesterday’s record low against American currency on the back of selling of dollar by banks. On the global front, Asian shares bounced back on Thursday from the previous day's sell-off, but investors were bit cautious to take risk looking at disorder in Greece and fears of contagion to other stressed euro zone economies. However, European shares were likely to start mixed on the back of financial instability in Greece's banking sector. Back home, the market breadth favoring positive trend; there were 1,461 shares on the gaining side against 802 shares on the losing side while 110 shares remained unchanged.

The BSE Sensex is currently trading at 16,175.85, up by 145.76 points or 0.91%. The index has touched a high and low of 16,240.18 and 16,104.64 respectively. 25 stocks on the Sensex were on advancing side, while 5 on declining end.

The broader indices also following the benchmarks; the BSE Mid cap and Small cap indices gained 0.69% and 0.80% respectively.

The top gaining sectoral indices on the BSE were, FMCG up by 2.14%, Realty up by 1.64%, Metal up by 1.25%, Bankex up by 1.07%, and PSU up by 1.03%, while CG down by 0.37%, CD down by 0.30% and IT down by 0.08% were the top losers on the BSE sectoral space.

The top gainers on the Sensex were ITC up by 2.85%, DLF up by 2.81%, HDFC Bank up by 2.00%, Tata Motors up by 1.91%, and Jindal Steel up by 1.88%. On the flip side, Bajaj Auto down by 1.24%, L&T down by 1.19%, Cipla down by 0.64%, TCS down by 0.54% and M&M down by 0.33% were the top losers on the index.

Meanwhile, Power Ministry is planning to increase the country’s power generation capacity by 18,000 MW in the current fiscal. Out of this, 2000 MW is expected to be added as nuclear power capacity. These figures were discussed in a meeting between the Power Ministry officials and the Principal Secretary to the Prime Minister, Pulok Chatterji.

In the last five years, i.e. from 2007-2012, the government has been successful in adding about 53,000 MW power generation capacity, 9,000 MW short of the planned target of 62,000 MW. The initial target set by the government was 78,000 MW, which was curtailed to 62,000 MW in the absence of environment clearance for the coal blocks allotted. However, the Power Ministry is hopeful of achieving this target by the end of this fiscal.

In the coming five years, 2012-17, the government plans to add 76,000 MW, as against the Planning Commission’s proposed target of above 90,000 MW.  The target has been lowered on account of shortages in the supply of coal and gas.

The supply of power is essential for the growth of the Indian economy. It has been estimated that power generation needs to grow by 6.5% if the country wants to achieve the growth target of 9% annually. The Working Group on Power has estimated an allocation of Rs 13,72,580 crore for the power sector in the 12th Five Year Plan. Out of this, Rs 638,600 crore has been earmarked for power generation and Rs 306,235 crore for distribution.

The S&P CNX Nifty is currently trading at 4,899.80, higher by 41.55 points or 0.86%. The index has touched a high and low of 4,922.25 and 4,878.60 respectively. There were 35 stocks advancing against 15 declines on the index.

The top gainers of the Nifty were ITC up by 3.12%, Ambuja Cement up by 2.86%, Bank of Baroda up by 2.85%, DLF up by 2.67% and SAIL up by 2.54%.

On the flip side, BPCL down by 1.55%, L&T down by 1.53%, Bajaj Auto down by 1.05%, ACC down by 1.00% and Cipla down by 0.81% were the few losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite amassed 1.25%, Hang Seng Index ascended 0.37%, KLSE Composite climbed 1%, Nikkei 225 rose 0.65%, Straits Times Index gained 0.58%, KOSPI Composite Index advanced 0.44% and Taiwan Weighted surged 1.69%.

Stock markets in Indonesia remained closed on Thursday owing to a public holiday on account of Ascension Day of Jesus Christ.