Benchmarks lure additional traction; Sensex reclaims 18,800 level

Enticing further traction, benchmark equity indices have added some ground in the positive territory, thanks to the prominent buying interest in Realty, Health Care and Power counters. However, a bit of nervousness ahead of outcome of the knife-edge US presidential election, also reflecting amongst Asian pacific shares, has kept the gains in check at D-Street. Markets are keeping a close eye on the neck-and-neck race between President Barack Obama and Republican challenger Mitt Romney for the White House, with results due out on Wednesday morning in Asia. Meanwhile, Asian shares are also trading downbeat on renewed doubts over Greece's ability to push through severe fiscal reforms and ahead China's Party Congress meet, scheduled to start on Thursday, as the country with Asia's largest economy is expected to unveil the next generation of Chinese leaders.

Closer home, benchmark index of Bombay Stock Exchange (BSE), Sensex, gaining over quarter percent, reclaimed its 18,800 bastion, while 50 share index of National Stock Exchange (NSE), Nifty, adding over 0.15%, was trading above 5700 crucial level. Broader indices too lured further gains. Some sense of disappointment trickled in Indian equity markets after Andhra Bank stocks lost momentum after state-run bank's gross non-performing assets ratio edged up to 3.48% as on 30 September 2012, from 2.72% as on 30 June 2012. The overall market breadth on BSE is in the favour of advances which thumped declines in the ratio of 1337:1166, while 130 shares remained unchanged.

The BSE Sensex is currently trading at 18802.45, up by 39.58 points or 0.21% after trading in a range of 18813.03 and 18739.82. There were 16 stocks advancing against 14 declines on the index.

The broader indices too added some traction; the BSE Mid cap and Small cap indices were trading higher by 0.56% and 0.34% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.42%, Health Care (HC) up by 0.72%, Power up by 0.58%, Information Technology up by 0.55% and TECk up by 0.48%. While, Auto down by 0.45%, Capital Goods down by 0.31%, Metal down by 0.30%, Oil & Gas down by 0.28% were few losers on the index.

The top gainers on the Sensex were Cipla up by 3.33%, Jindal Steel up by 1.59%, HDFC up by 1.14%, SBI up by 1.05% and GAIL India up by 0.86%.

On the flip side, Hindalco down by 1.96%, Maruti Suzuki down by 1.67%, Coal India down by 1.02%, Hero MotoCorp down by 0.75% and Tata Steel down by 0.77% were the top losers on the Sensex.

Meanwhile, amid slowing economy with sluggish investments and industrial growth, the Finance Ministry might scale down the financial growth forecasts to 5.7-6% in its mid-term review of the state of economy to be tabled in Parliament by December.

The Reserve Bank of India (RBI), in its half yearly review of the monetary policy, had lowered the financial growth projection of the country to 5.8%, from the previous forecast of 6.5%, albeit in 2012-13 budget the envisaged estimate was 7.6% growth. The RBI had blamed global and domestic factors like poor investments and subdued demand for the scale down.

Even though, the first quarter of the current financial year has registered a sluggish economic growth of 5.5%, the Planning Commission officials has expressed confidence that the economy is likely to pick up growth in the second half of 2012-13. The financial growth had slipped to nine-year low of 6.5% in 2011-12.

It is also likely to revise the fiscal deficit target, which was pegged at 5.1% of the Gross Domestic Product (GDP) in the financial budget 2012-13. The Finance Ministry had revised the fiscal deficit projection to 5.3%, considering various adverse global and domestic developments, though various global rating agencies opined that it is likely to peak to 6.1%. The panel will also consider various measures to improve the Current Account Deficit (CAD) situation. While, Chidambaram has stressed that it could improve to 3.5% of the GDP in the current fiscal, from 4.2% a year ago.

The review will also consider the peaking inflation, considering current price situation amid global and domestic factors, including the impact of monsoon on crops. RBI had recently revised the March-end inflation estimate to 7.5%, from previous projected 7%. Amid continuing attempts to promote investments to contain inflation and take India to high growth trajectory, Chidambaram last week had come up with a five-year road map for fiscal consolidation. The S&P CNX Nifty is currently trading at 5,715.75, up by 11.55 points or 0.20% after trading in a range of 5,721.30 and 5,693.65. There were 30 stocks advancing against 20 declines on the index.

The top gainers of the Nifty were Cipla up by 3.37%, Power Grid up by 2.18%, Asian Paints up by 1.92%, DLF up by 1.73% and Jindal Steel up by 1.64%.

On the flip side, IDFC down by 2.10%, Hindalco down by 1.70%, Maruti down by 1.63%, Coal India down by 1.26% and Reliance down by 0.87%, were the major losers on the index.

All the Asian equity indices were trading in the red; Kospi Composite surged 1.05%, Taiwan Weighted advanced 0.71% and  Jakarta Composite rose 0.07% while Straits Times declined by 0.15%, KLSE Composite lost 0.83%, Hang Seng edged lower by 0.17%, Shanghai Composite descended 0.58% and Nikkei 225 was trading lower by 0.36%.