Sensex reclaims 16,000 mark on firm Asian cues, recovery in rupee

Buoyed by firm Asian cues and recovery in rupee, the domestic benchmarks have made a positive start with Sensex recapturing its crucial 16,000 mark. On the global front, all the Asian counters gained despite disappointing US factory orders data. Moreover, falling bond yields in Spain and Italy boosted confidence that Europe can avoid a messy breakup of its currency union. Back home, infrastructure stocks gained ahead of Finance Minister’s meeting to discuss issues about the sector on June 6, 2012. Reliance Infrastructure and BHEL were up 1.5-2%, Larsen & Toubro was up 0.5%. Moreover, Jaiprakash Associates gained 2% as Yamuna expressway is close to begin operation. UP government is expected to finalize toll rates soon. Meanwhile, the rupee gained 26 paise to 55.39 against the dollar also helping the sentiments. Banking witnessed the maximum gain in trade followed by metal and power while, auto remained the lone loser on the BSE sectoral space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 994 shares on the gaining side against 435 shares on the losing side while 69 shares remained unchanged.

The BSE Sensex opened at 16,065.37; about 77 points higher compared to its previous closing of 15,988.40, and has touched a high and a low of 16,095.24 and 16,023.44 respectively.

The index is currently trading at 16,046.95, up by 58.55 points or 0.37%. There were 23 stocks advancing against 7 declines on the index.

The overall market breadth has made a strong start with 66.36% stocks advancing against 29.04% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.83% and 0.66% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 1.25%, Metal up by 1.09%, Power up by 1.05%, PSU up by 0.77% and HC up by 0.45%. While, Auto down by 0.13% remained the lone loser on the index.

The top gainers on the Sensex were Hindalco up by 2.12 Sterlite Industries up by 1.68%, Maruti Suzuki up by 1.59%, SBI up by 1.51% and HDFC Bank up by 1.39%.

On the flip side, Bharti Airtel down by 1.82%, Tata Motors down by 1.51%, DLF down by 0.73%, ITC down by 0.50% and ONGC down by 0.39% remained the top losers on the Sensex.

Meanwhile, the government of India has set up Manufacturing Industry Promotion Board (MIPB) to oversee the implementation of the National Manufacturing Policy (NMP), in the backdrop of economic growth sliding to a 9-year low of 6.5% in 2011-12. Anand Sharma, Commerce and Industry Minister will chair MIPB and it will have three panels - Board of Approval, Green Manufacturing Committee and High Level Committee for the proper implementation of the NMP.

The 13-member MIPB will periodically review the overall situation of the manufacturing sector, which contracted to 0.3% during Q4 2011-12 compared to Q4 2010-11. The NMP aims to increase the manufacturing sector's share in GDP to 25% from the present 16% over the next decade, creating 100 million jobs.

The policy also intends to create world class industrial infrastructure, a favorable business environment, an ecosystem for technological innovation - particularly in the domain of green manufacturing, institutions for industry relevant skill up-gradation, and mechanisms for easy access to finance for entrepreneurs.

The S&P CNX Nifty opened at 4,869.45; about 21 points higher compared to its previous closing of 4,848.15, and has touched a high and a low of 4,883.90 and 4,864.25 respectively.

The index is currently trading at 4,872.90, higher by 24.75 points or 0.51%. There were 39 stocks advancing against 11 declines on the index.

The top gainers of the Nifty were JP Associates up by 2.40%, Hindalco up by 2.17%, RInfra up by 1.99%, Sterlite I ndustries up by 1.69% and HDFC Bank up by 1.63%.

On the flip side, Bharti Airtel down by 1.94%, Tata Motors down by 1.46%, Dr Reddy down by 1.14%, DLF down by 0.89% and Ambuja Cement down by 0.80% remained the top losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite rose 0.10 points or 0.01% to 2,308.65, Hang Seng Index climbed 152.75 points or 0.84% to 18,338.34, Jakarta Composite soared 63.46 points or 1.74% to 3,718.04, KLSE Composite advanced 6.06 points or 0.39% to 1,561.24, Nikkei 225 ascended 49.93 points or 0.60% to 8,345.56, Straits Times Index surged 22.06 points or 0.82% to 2,720.96, KOSPI Composite Index jumped 17.03 points or 0.96% to 1,800.16 and Taiwan Weighted spurted 118.51 points or 1.72% to 7,013.17.