Markets trade with traction on positive global cues; Sensex reclaims 17,000 mark

After a day of consolidation, sentiments turned bullish on Wednesday’s morning trade and benchmarks, after a decent opening are trading with great traction with Sensex recapturing 17,000 mark ahead of the F&O expiry due tomorrow. Sentiments were also supported by positive global cues as the US markets closed higher overnight on getting upbeat data on home prices, major indices managed to recover some of their losses of last session while, Asian markets bounced back ahead of critical European Union summit that scheduled for June 28-29 in Brussels. Back home, buying in mostly all the index heavyweights along with broader indices helped Sensex and Nifty to regain 17,000 and 5,150 levels respectively. On the sectoral front, stocks in the consumer durables, realty, banking, power, metal, software and technology sectors led the rally while, auto remained the lone loser on the BSE sectoral space. Meanwhile, Reliance Infrastructure and Tata Power rallied in the early trade after Delhi Electricity Regulatory Commission hiked power tariffs in Delhi that would be effective from July 1. Domestic prices went up by 24% and commercial prices up by 19.5%. The broader indices were trading in-line with benchmarks. The market breadth on the BSE was positive; there were 989 shares on the gaining side against 407 shares on the losing side while 68 shares remained unchanged.

The BSE Sensex opened at 16,975.76; about 69 points higher compared to its previous closing of 16,906.58, and has touched a high of 17,029.27 while low remained its opening.

The index is currently trading at 17,014.81, up by 108.23 points or 0.64%. There were 25 stocks advancing against 5 declines on the index.

The overall market breadth has made a strong start with 67.55% stocks advancing against 27.80% declines. The broader indices too were trading in-line with benchmarks; the BSE Mid cap and Small cap indices rose 0.50% and 0.54% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.09%, Bankex up by 1.05%, Power up by 1.04%, IT up by 0.79% and Metal up by 0.74%. While, Auto down by 0.17% remained the lone loser on the index.

The top gainers on the Sensex were Tata Power up by 2.83%, ICICI Bank up by 1.35%, GAIL up by 1.13%, HDFC Bank up by 1.13% and Tata Steel up by 1.12%.

On the flip side, Tata Motor down by 0.91%, ONGC down by 0.60%, Bajaj Auto down by 0.27%, M&M down by 0.12% and HUL down by 0.09% remained the top losers on the Sensex.

Meanwhile, Indian government has assured global investors that it is taking efforts to implement its decision to allow foreign direct investment (FDI) in multi brand retail.  While addressing the Global India Business Meeting 2012, Commerce and Industry Minister Anand Sharma, said, ‘we know that partisan politics delayed the implementation or notification (of FDI in multi-brand retail). We had to press the pause button, but we have not pressed the reverse button.’

Sharma had also written to three non-UPA chief ministers - Odisha’s Naveen Patnaik, Punjab’s Prakash Singh Badal and Uttar Pradesh’s Akhilesh Yadav seeking their support for early implementation of the government's decision. By adding further he said, the decision to open multi-brand retail to FDI has been taken in the best interest of farmers and consumers. Earlier, the government has allowed 100% FDI in single-brand retail.

The government’s contentious decision to liberalize FDI in multi-brand retail, which would open immense opportunities for domestic masses, had not gone down well with the BJP led NDA and other opposition parties while Trinamool Congress, one of the key allies of the ruling UPA government, too came out strongly criticizing government’s policy decision in the open, leading the government to defer the proposal to allow FDI in multi-brand retail.

The S&P CNX Nifty opened at 5,149.45; about 29 points higher compared to its previous closing of 5,120.80, and has touched a high and a low of 5,159.10 and 5,148.60 respectively.

The index is currently trading at 5,152.70, higher by 31.90 points or 0.62%. There were 44 stocks advancing against 6 declines on the index.

The top gainers of the Nifty were Tata Power up by 2.66%, Reliance Infra up by 2.37%, IDFC up by 1.84%, GAIL up by 1.58% and ICICI Bank up by 1.47%.

On the flip side, Tata Motors down by 0.89%, ONGC down by 0.69%, BPCL down by 0.56%, Bajaj Auto down by 0.33% and Ambuja Cement down by 0.06% remained the top losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite amassed 7.64 points or 0.34% to 2,229.70, Hang Seng Index soared 223.78 points or 1.18% to 19,205.62, Jakarta Composite surged 49.77 points or 1.28% to 3,931.17, KLSE Composite rose 4.16 points or 0.26% to 1,598.26, Nikkei 225 gained 28.69 points or 0.33% to 8,692.68, Straits Times Index advanced 19.32 points or 0.69% to 2,824.95 and Taiwan Weighted climbed 55.66 points or 0.78% to 7,193.59.

On the flipside only KOSPI Composite Index declined 5.32 points or 0.29% to 1,812.49.