Jubilation continues on D-Street; Nifty gains 125 points

Indian equities continued its jubilation mood on back of strong buying in frontline counters in the late afternoon session. 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. Traders were seen piling up position in Auto, FMCG and Power sector. Also, 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. Telecom stocks Idea Cellular, TTML, Bharti Airtel, Reliance Communications and MTNL were seen trading firm in green on reports that a panel of ministers has decided to sell up to 13.75 MHZ of spectrum in the 1800MHZ band in the upcoming auction. Industry heavyweight, Reliance Industries was seen trading in green on reports that it has drawn big plans for its 4G and retail venture and is likely to pump $3-4 billion in its 4G and retail business over the next two years.

On the global front, the Asian markets were largely trading in green while the European markets were too trading in green on optimistic note. The sentiments turned optimistic on reports that the Group of Seven nations agreed to coordinate their response to avert an onerous financial turmoil prompting tentative recovery in investors’ risk appetite. Besides, investors are also awaiting 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. On the home turf, the NSE Nifty and BSE Sensex were trading above their psychological 4,850 and 16,400 levels respectively. The market breadth on BSE was positive in the ratio of 1675:871 while 115 scrips remained unchanged.

The BSE Sensex is currently trading at 16,429.47 up by 408.83 points or 2.55% after trading as high as 16,440.02 and as low as 16,100.36. All the 30 stocks were seen advancing on the index.

The broader indices were trading on a positive note; the BSE Mid cap index surged 1.46% while Small cap index soared 1.22%.

On the BSE sectoral space, Auto up 3.59%, FMCG up 3.48%, Power up 3.41%, Capital Goods up 3.23% and Metal up 2.79% were the major gainers, while there was no laggard in the space.

Tata Motors up 6.07%, Hero MotoCorp up 5.12%, Jindal Steel up 4.60%, ITC up 4.58% and L&T up 4.18% were the major gainers on the Sensex, while there were no losers in the index.

Meanwhile, in its attempt to revitalize the dwindling growth in Asia’s third largest economy, industry body Confederation of Indian Industry (CII) has come up with a 10-point measures for economic revival that include monetary, fiscal and administrative actions. The industry body is of the belief that the government has to come out of the policy paralysis and take strong actions cohesively to avoid further deterioration the economy.

Expressing their concerns over sharp slowdown in GDP growth in the fourth quarter, CII felt that various measures like fast-tracking the implementation of Goods and Services Tax (GST) and simplifying foreign direct investment (FDI) regulations along with lifting FDI caps in the aviation, retail, defence and insurance sectors would be imperative for the economic revival.

The body also batted for strong monetary stimulus measures from the Reserve Bank of India and called for sharp reduction in both repo rates and CRR. It also supported the idea that government must take serious efforts to correct the current account deficit by encouraging exports and containing imports, arresting rupee slide, reducing subsidies, implementing financial sector reforms and removing bottlenecks in infrastructure growth.

Targeting an economic growth rate of 7.5% for the current financial year 2012-13 and 9 percent in 2013-14, the body expressed confidence in the nation’s growth potential and avowed that it is not impossible to achieve higher growth rates, provided the government takes corrective and timely measures to support the economic recovery.

The S&P CNX Nifty is currently trading at 4,989.00, higher by 125.70 points or 2.58% after trading as high as 4,992.90 and as low as 4,886.15. There were 47 stocks advancing against 3 declines on the index.

The top gainers on the Nifty were Tata Motors up 6.07%, Hero MotoCorp up 5.40%, Jindal Steel up 4.76%, ITC up 4.69% and Sesa Goa up 4.41%.

Grasim down 0.88%, Cipla down 0.21% and BPCL down 0.12% were the only losers on the index.

In the Asian space, Hang Seng surged 1.43%, Jakarta Composite jumped 2.91%, KLSE Composite advanced 0.66%, Nikkei 225 soared 1.81%, Straits Times Index ascended 1.57% and Taiwan Weighted climbed 0.80%. On the flipside only Shanghai Composite declined 0.10%.

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

The European markets were seen trading in green with, France’s CAC 40 climbed 1.87%, Germany’s DAX advanced 1.71% and the United Kingdom’s FTSE 100 surged 1.24%.