Benchmarks trade in green after Barack Obama’s re-election

Indian equities continued to trade in fine fettle on back of strong buying in frontline counters in the late morning session after Barack Obama’s re-election. On the global front, most of the Asian equity indices were trading in the green after announcement of US Presidential election’s results where Obama will continue as 44th President for the second term President after winning a key victory in Ohio. Back home, traders were seen piling up position in Realty, Bankex and Metal sector while selling was witnessed in Oil and Gas sector. DLF, Unitech, HDIL, Oberoi Realty, Indiabulls Real Estate and Godrej Properties from Realty pack were seen trading in green, while Tata Steel, Jindal Steel, Sterlite Industries, Hindalco Industries, JSW Steel and NMDC from Metal pack were in green. However Oil and Gas majors Reliance Industries, Oil and Natural Gas Corporation, Bharat Petroleum Corporation, and Oil India were pressurizing the markets. Meanwhile, Media shares ZEE Entertainment Enterprises, Dish TV India and NDTV edged higher after Secretary, Information and broadcasting, has reviewed the preparedness for Phase II cities wherein the digitization deadline in 38 cities in 15 states expires on 31 March 2013.

In the scrip specific development, Elder Pharmaceuticals rose on receiving COS from EDQM for Diosmin API. Praj Industries jumped on accelerating 2nd generation Ethanol technology. SAIL surged on producing higher than expected 7.2 MT saleable steel for April-October period. BHEL gained on inking five-year EFA with Shell for supply of GTG packages. Rishi Laser surged on commissioning first of the three railway coach washing plants. Delta Corp edged higher as its arm increased equity holding in DHPL. Tamil Nadu Newsprint rose on reporting 75% jump in Q2 net profit.

The NSE Nifty and BSE Sensex were managing to hold their psychological 5,750 and 18900 levels. The market breadth on BSE was positive, in the ratio of 1381:713. The BSE Sensex is currently trading at 18918.62 by 101.24 points or 0.54% after trading in a range of 18922.22 and 18786.14. There were 24 stocks advancing against 6 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.52% and Small cap index was up by 0.34%.The top gaining sectoral indices on the BSE were, Realty up by 1.10%, Bankex up by 1.04%, Metal up by 0.99%, CG up by 0.84% and HC up by 0.76% while Oil and Gas down by 0.10% was the only losers on the index.

The top gainers on the Sensex were Jindal Steel up by 1.89%, SBI up by 1.71%, Sterlite Industries up by 1.43%, Tata Steel up by 1.38% and Hindalco Industries up by 1.33%.

On the flip side, Tata Power was down by 1.36%, HUL was down by 0.71%, Bharti Airtel was down by 0.44%, RIL was down by 0.24% and Coal India was down by 0.19% were the top losers on the Sensex.

 Meanwhile, Food Minister, K V Thomas, is hopeful that the government, which is currently assessing the Rangarajan Committee report on sugar decontrol, would take a decision for removal of atleast some of the curbs on the sector by next month. Food Minister stated that Prime Minister Office (PMO) has sent the report on sugar decontrol, which Food Ministry is currently studying, the view of which would be taken by December.

Last month, the Rangarajan Committee floated a report recommending dispensing immediately with the levy sugar obligation and administrative control on non-levy sugar for the sector, which is still regulated, thereby moving it towards a new era called “reforms”. Further, apart from two key regulations with respect to fixing sugarcane price and sharing of 70 per cent revenue by sugar firms with farmers, the Rangarajan Committee’s report has pitched for giving freedom to mills to sell sugar in the open market and having a stable export and import policy among other recommendations.

It has recommended removal of obligation on part of mills to supply 10% of sugar at cheaper rate to the government to meet the ration shops demand. Further, the committee suggested the removal of the concept of a minimum distance of 15 km between any two sugar mills, obligating a mill to purchase cane from growers within the reservation area. Instead, mills must enter into pact with farmers.

However, the fate of the sector still remains hanging as the Rangarajan panel is not the first committee set up by the government to study reforms in the sugar industry, as recommendations of the Tuteja Committee and Thorat Committee have not yet been implemented.

 The S&P CNX Nifty is currently trading at 5,757.40, up by 33.00 points or 0.58% after trading in a range of 5,758.55 and 5,711.40. There were 39 stocks advancing against 11 declines on the index.

The top gainers of the Nifty were JP Associates up by 2.42%, Jindal Steel up by 1.79%, SBI up by 1.77%, ICICI Bank up by 1.45% and Hindalco up by 1.42%.

On the flip side, Tata Power down by 1.32%, HUL down by 0.69%, Bharti Airtel down by 0.68%, Lupin down by 0.58% and ACC down by 0.37%, were the major losers on the index.

Asian markets were trading mostly in the green; Kospi Composite was up by 0.15%, Taiwan Weighted up by 0.61%, Jakarta Composite up by 0.50%, Straits Times was up by 0.48%, KLSE Composite up by 0.01%, Hang Seng was up by 0.21% and Nikkei 225 up by 0.06%. While, Shanghai Composite was down by 0.30%  was the lone loser.