Markets holding early gains; Nifty up over 0.5%

Indian equity markets hold early gains amid sustained buying in several front line stocks. BSE Sensex and NSE Nifty stayed up 0.5% each led by buying interest in some blue chip counters. In currency markets, Indian rupee bounced backed from early trade’s all-time low of 55.09 against dollar following improved global risk appetite and RBI initiatives. On sectoral front all sectors were trading in green except health care. On the global front, Asian shares were too trading in green. However, European shares were likely to start positive on increased hopes that European leaders may agree on some measures to boost investor confidence this week and that China will invest in infrastructure projects to combat slowing growth. Back home, the market breadth favoring positive trend; there were 1,265 shares on the gaining side against 881 shares on the losing side while 113 shares remained unchanged.

The BSE Sensex is currently trading at 16,278.20, up by 94.94 points or 0.59%. The index has touched a high and low of 16,366.72 and 16,252.19 respectively. There were 20 stocks advancing against 10 declines on the index.

The broader indices, too pared some gains; the BSE Mid cap and Small cap indices were trading up by 0.37% and 0.38% respectively.

The top gaining sectoral indices on the BSE were, PSU up by 1.00%, Oil and Gas up by 0.89%, Fast Moving Consumer Goods up by 0.79%, Auto up by 0.75% and Metal up by 0.72%. While, Health Care down by 0.26% remained as lone loser on the index.

The top gainers on the Sensex were BHEL up by 2.76%, Tata Motors up by 2.66%, Gail India up by 1.39%, ITC up by 1.38% and Tata Steel up by 1.37%.

On the flip side, Sun Pharma down by 2.20%, Tata Power down by 1.88%, Maruti Suzuki down by 1.28%, Hero MotoCorp down by 1.06% and L&T down by 0.65% remained the top losers on the Sensex.

Meanwhile, the government has decided to give Rs 38,500 crore as subsidy to oil companies who have been suffering heavy losses due to the increase in the prices of global crude oil and their inability to raise the domestic prices in tandem with it. The additional compensation will take the total subsidy payout to oil companies for the last fiscal to Rs 83,500 crore.

This subsidy is being provided for the fourth quarter of the last fiscal and is in addition to the Rs 45,000 crore already provided for the first nine months. However it is much lesser than the Rs 49,000 crore which the Petroleum Ministry had been asking for.  

Amongst the oil companies Indian Oil Corporation will get Rs 20,861 crore, Hindustan Petroleum Corporation Rs 8,486 crore, and Bharat Petroleum Corporation shall receive Rs 9,153 crore. With this addition, the government have shared about 60% of the Rs 138,500 crore loss incurred by the oil marketing companies.

The upstream oil companies - ONGC, Oil India and GAIL (India) are expected to pitch in an additional Rs 18,106 crore taking its contribution to Rs 55,000 crore for the fiscal. These companies have already given out Rs 36,894 crore towards fuel subsidy.  With the addition, the share of upstream companies in the total compensation works out to be 39.7% in 2011-12, up from 36.7% in the previous year.

The amount of Rs 55,000 crore will be split between the three oil companies as Indian Oil Corporation -Rs 29,961 crore, Bharat Petroleum Corporation- Rs 12,951 crore and Hindustan Petroleum Corporation -Rs 12,082 crore.

The S&P CNX Nifty is currently trading at 4,933.20, higher by 27.15 points or 0.55%. The index has touched a high and low of 4,956.35 and 4,925.05 respectively. There were 33 stocks advancing against 17 declines on the index.

The top gainers of the Nifty were BHEL up by 2.73%, Tata Motors up by 2.65%, SAIL up by 2.47%, ITC up by 1.51% and ONGC up by 1.40%. On the flip side, Sun Pharma down by 2.25%, Tata Power down by 2.14%, Maruti Suzuki down by 1.41%, Sesa Goa down by 1.08% and L&T down by 1.03% remained the top losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite advanced 0.89%, Hang Seng Index climbed 1.13%, Jakarta Composite surged 1.22%, KLSE Composite up by 0.23%, Nikkei 225 soared 1.04%, Straits Times Index amassed 1.36%, KOSPI Composite Index jumped 1.74% and Taiwan Weighted gained 1.15%.