Sensex holds early gains; Nifty inches towards 5,400 mark

Indian equity markets holding early gains amid consistent buying across the board. The BSE benchmark remained higher with more than 100 points gain, while NSE benchmark was inching towards the 5,400 mark.  In currency markets, rupee reversed yesterday’s losses and currently trading marginally higher against American currency tracking dollar’s weakness against other overseas currencies. On sectoral front all were trading in green except consumer durables. ITC gained more than 1.5% after falling 3% yesterday on the news that Australian court approved logo ban on cigarette packs, while Tata Motors rises over 2.5% after global sales increased by 21% in July over the same period last year. Sales of luxury brands from Jaguar Land Rover were up 41% in July from the same month last year. In global markets, Asian shares pared some early gains. Back home, the market breadth favoring positive trend; there were 1,449 shares on the gaining side against 940 shares on the losing side while 139 shares remained unchanged.

The BSE Sensex is currently trading at 17,783.30 up 126.09 points or 0.71% after touching a high of 17795.81 and low of 17696.98. There were 19 stocks advancing against 10 declines on the index, while one remained unchanged.

The broader indices were trading on a positive note; the BSE Mid cap index was up by 0.74%, while Small cap index was up by 0.69%.

The top gainers on the BSE sectoral space were, FMCG up by 1.66%, Auto up by 1.17%, IT up by 1.12%, TECk up by 0.87% and CD up by 0.86%, while CG down by 0.46% was the only loser on the sectoral space.

Tata Motors up by 2.78%, ITC up by 1.80%, Hindustan Unilever up by 1.78%, Infosys up by 1.45%, M&M up by 1.26% were major gainers on the Sensex, while L&T down by 1.02%, Hindalco down by 0.98%, Tata Steel down by 0.73%, Sterlite Industries down by 0.55% and Tata Power down by 0.54% were the major losers on the index.  

 Meanwhile, in light of deteriorating global economic environment, Private Equity (PE) investments in India have dwindled by 35% to $1,616 million across 97 deals in the second quarter of 2012 over the same period a year ago. For the second quarter of the previous year, PE firms pumped in $2,477 million by way of 126 transactions.

A host of factors like slowing growth, depreciating currency, volatility in equity markets, elevated interest rates and a sense of 'policy paralysis' have clouded the economic sentiment domestically in the recent past. However, the prominent issue, which drew foreign investors’ flak, was the introduction of GAAR in Budget 2012 to check tax evasion, which was later deferred to April, next year.

Sector-wise, IT and IT-enabled Services (ITe’S) space took the lead during the quarter as the leader in both volume and value with 38 deals worth $ 321 million in the June quarter of this year. The space was closely followed by the energy sector, which attracted $290 million worth of investments in April-June 2012, while the healthcare sector too enticed an investment worth $243 million. Additionally, investments in the education sector recorded nearly 100 per cent growth to $71 million in April-June 2012, from $37 million in the second quarter of calendar year 2011. 

The S&P CNX Nifty is currently trading at 5,392.65, up by 29.70 points or 0.55% after trading in a range of 5,398.70 and 5,367.55. There were 28 stocks advancing against 22 declines on the index.

The top gainers on the Nifty were Tata Motors up by 2.78%, Hindustan Unilever up by 2.01%, ITC up by 1.70%, Infosys up by 1.50% and M&M up by 1.20%. While, L&T down by 1.21%, Ambuja Cement down by 1.20%, BPCL down by 0.96%, Hindalco down by 0.90% and ACC down by 0.82% were top losers on the index.

Most of the Asian indices were trading in red; Nikkei 225 up 0.77%, Hang Seng index up by 0.52%, Straits Times up by 0.15% while Shanghai Composite down by 0.25%, Kospi Composite Index down 0.58% ,KLSE Composite down by 0.07%, Taiwan Weighted down  by 0.30%.

Jakarta Composite was not trading as Indonesian banks, the stock exchange and other financial institutions will be closed for five days, from Friday until Wednesday, due to public and Idul Fitri holidays.