Markets continue firm trade; Sensex off day's high as fuel price hike hope wanes

Tracking global rally, Indian equity markets continued trading firm in the late morning session on Friday amid strong buying across the board. The 30-share BSE Sensex remained strong but erased marginal gains after hopes of fuel price hike waned. It is reported that the government has not taken decision yet on fuel prices. Easing worries about European economy following the European Central Bank's bond-buying program supported domestic market to a great extent. In currency markets, Indian rupee continued to trade in positive territory against dollar on Friday amid dollar sales and fresh capital inflows. On sectoral front all were up in positive territory with impressive gains. In global markets, Asian shares too were trading in green with handsome gains. Back home, the market breadth favoring positive trend; there were 1,674 shares on the gaining side against 784 shares on the losing side while 104 shares remained unchanged.

The BSE Sensex is currently trading at 17,637.72 up by 291.45 points or 1.68% after touching a high of 17,675.76 and low of 17,575.79. All the 30 stocks on the Sensex were on advance side.

The broader indices were trading in green; the BSE Mid cap index was up by 1.08% and Small cap index was up by 0.98%.

On the BSE sectoral space, Metal up by 2.08%, Bankex up by 1.82%, Auto up by 1.81%, CG up by 1.81% and Realty up by 1.72% were the gainers. While, there was no loser on the index.

The top gainers on the Sensex were Tata Steel up by 4.09%, Tata Motors up by 3.93%, ICICI Bank up by 3.45%, RIL up by 2.18% and Hindalco Industries up by 2.16%. On the flip side, there was no loser on the Sensex. 

Meanwhile, industry body, Associated Chambers of Commerce (ASSOCHAM) pointing the frail power condition of the country has said that nearly 80 per cent of the coal-based power projects in the private sector are far behind the schedule of commissioning. It has specifically said that barring some projects undertaken by the renowned industrial houses including the Tatas, Reliance Power, O P Jindal and India Bulls, most other projects are running behind schedule.

In its study ASSOCHAM has also said that the rest of 20 per cent, which are on schedule so far, too are threatened with delay if various issues relating to policy framework and uncertainty over coal linkages continue to prevail.

The industry body’s data showed that out of the total capacity addition to be achieved by the private sector projects, only about 7,000 mega watt (MW) could be commissioned on time , i.e. by the end of this year and next year, while there could be long delays for the rest of about 44,000 MW planned in the 11th Plan. The country's coal demand in 2011-12 was 640 million tonnes against local production of 540 million, while import was at 90 million tonnes. The study also pointed out that power sector including both the generation and distribution segments, continues to operate under several inefficiencies, which are low level of the plant load factor and high level of transmission and distribution losses.

The study is more disturbing as India is already power deficit, even the government has noted that power deficit which was 8.5% in 2011-12 is one of the obstacles in the process of economic development and limits the ability of the economy to grow. Against the electricity requirement of 936,568 million units (MU) in the country during 2011-12 the availability was 857,239 MU resulting in deficit of 79,329 MU.

The S&P CNX Nifty is currently trading at 5,321.30, up by 82.90 points or 1.58% after trading in a range of 5,334.45 and 5,309.20. There were 47 stocks advancing against 3 declines on the index.

The top gainers of the Nifty were Tata Steel up by 4.14%, Tata Motors up by 3.88%, ICICI Bank up by 3.30%, JP Associates up by 3.22% and DLF up by 3.04%. On the flip side, BPCL down by 2.62%, Ranbaxy down by 0.77% and Ambuja Cement down by 0.21% were the top losers on the index.

All the Asian indices were trading  in green; Nikkei 225 up by 2.08%, Hang Seng index up by 2.49%, , Taiwan Weighted up by 1.34%, Straits Times up by 0.89%, KLSE Composite up by 0.40%, Shanghai Composite up by 3.70%, Kospi Composite Index up by 2.49% and Jakarta Composite up by 1.12%.