Sensex slams triple century; trades at day’s highs in noon session

Stock markets in India have continued their jubilation in Wednesday afternoon trades with the benchmark equity indices extending their skyward journey and attaining session’s highs. After the gap-up opening in morning, the frontline gauges managed to capitalize on the momentum and sailed beyond the important psychological 4,950 (Nifty) and 16,300 (Sensex) levels. Sentiments remained sanguine since the start of trade as domestic markets rallied in tandem with their regional peers on the back of a slew of encouraging economy reports. The unexpectedly encouraging US services sector growth data and Australian GDP expansion numbers along with reports that the Group of Seven nations agreed to coordinate their response to avert an onerous financial turmoil Europe Union, together fortified sentiments globally, prompting tentative recovery in investors’ risk appetite. The European markets too got off to a positive start as all major equity indices traded with notable gains as investors awaited outcome of ECB meeting in which they hope the central bank to announce some policy easing measures to stimulate the economy and stem the debt crisis.

Back home, market participants remained in cheerful mood hoping that the Reserve Bank of India and the central government would announce aggressive policy measures to reinvigorate the deteriorating economic growth. The rate sensitive Automobile counter witnessed relentless buying in the session as it jumped over three percent and remained the top gainer in the BSE sectoral space on increasing hopes of monetary easing by RBI in its forthcoming mid-quarter policy review on 18 June. While other rate sensitive sectors like Banking and Realty too traded with handsome gains of over two percent. While the defensive FMCG counter too spurted close to three percent as investors hoped just about timely arrival of annual monsoon rains in India would brighten the prospects of higher farm output. Investors also drew some solace after Indian rupee, which has so far been the worst performing currency in Asia, appreciated against the US dollar. Though largely across the board buying was evident, investors were seen exerting some selling pressure on individual names like Bharti Airtel and Cipla which traded with slight losses.

Moreover, the broader markets continued to trade on a positive note with notable gains of over a percent, but underperformed their larger peers. The bourses rallied on good volumes of over Rs 0.6 lakh crore while the market breadth on BSE was in favor of advances in the ratio of 1630:777 while 104 scrips remained unchanged.

The BSE Sensex is currently trading at 16,333.76 up by 313.12 points or 1.95% after trading as high as 16,333.83 and as low as 16,100.36. There were 28 stocks advancing against 2 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index surged 1.23% and Small cap index soared 1.12%.

On the BSE sectoral space, Auto up 3.23%, FMCG up 2.78%, Power up 2.45%, Metal up 2.35% and Realty up 2.27% were the major gainers, while there was no laggard in the space.

Tata Motors up 5.42%, Hero Moto up 4.78%, ITC up 3.74%, Jindal Steel up 3.54% and Sterlite up 3.06% were the major gainers on the Sensex, while Bharti Airtel down 0.12% and Cipla down 0.06% were the major losers in the index.

Meanwhile, a move that is expected to add inflationary pressure on the economy, railways have once again hiked the parcel and luggage rates by 25% on all goods with immediate effect, barely 2 months after increasing the freight rates. With the recent hike, the railways aim additional revenue of Rs 370 crore in the current financial year. In 2011-12, from parcel and luggage, railways earned Rs 1,600 crore.

The new rates would be applicable on all goods including newspapers and magazines. Among the goods generally booked in parcel service of the railway are tyres, newspapers and magazines, pharmaceuticals, pulses and flour. On the other hand, the hike will not be applicable on special parcel trains.

On the whole, there are 3 types of parcel rates - Standard, Premium and Rajdhani. Standard rates are valid on goods booked in parcel service of non-express trains whereas premium rates are applicable in express and mail trains. Rajdhani rates are valid for goods booked in Rajdhani and Shatabdi.

Before the hike, standard rate was Rs 1.31 per 10 kg for 50 km and for the same weight and distance, the rate has now been increased to Rs 1.61. Similarly, premium rate is raised to Rs 3.28 per 10 kg for 50 km whereas Rajdhani rates are at Rs 4.92 for the same weight and distance.

The S&P CNX Nifty is currently trading at 4,959.05, higher by 95.75 points or 1.97% after trading as high as 4,959.10 and as low as 4,886.15. There were 44 stocks advancing against 6 declines on the index.

The top gainers on the Nifty were Tata Motors up 5.48%, Hero Moto up 4.99%, ITC up 4.25%, Ambuja Cement up 4% and R Infra up 3.74%.

BPCL down 0.58%, Cipla down 0.58%, Ranbaxy down 0.50%, Grasim down 0.28% and Dr Reddy’s down 0.13% were the major losers on the index.

In the Asian space, Hang Seng surged 1.26%, Jakarta Composite jumped 2.96%, KLSE Composite advanced 0.62%, Nikkei 225 soared 1.81%, Straits Times Index ascended 1.10% and Taiwan Weighted climbed 0.80%.

On the flipside only Shanghai Composite declined 0.38%.

Stock markets in South Korea remained closed on Wednesday on account of a national holiday.

The European markets got off to a positive start as France’s CAC 40 climbed 0.73%, Germany’s DAX advanced 0.90% and the United Kingdom’s FTSE 100 surged 0.83%.