Markets cheer on Obama’s victory; Nifty above 5,750 level

Indian equity markets continued its positive journey after President Barack Obama won the US Presidential Elections and was re-elected for the second term, as this is expected to be a positive move for the capital market by increasing flow of FII money into India. The BSE barometer recovered by 82 points while, NSE 50-share Nifty also moved up by 30 points. In currency markets, Indian rupee appreciated against dollar following American currency's losses versus most other Asian currencies. On sectoral front, realty, bank, healthcare, metal and auto stocks were trading in green, while FMCG and oil stocks were trading in red. On the global front, Asian stock markets reversed early losses to move higher on Wednesday after President Barack Obama’s victory. Back home, the market breadth favoring positive trend; there were 1,525 shares on the gaining side against 906 shares on the losing side while 113 shares remain unchanged.

The BSE Sensex is currently trading at 18,899.45 up by 82.07 points or 0.44% after trading in a range of 18,927.82 and 18,786.14. 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 0.91% and Small cap index was up by 0.77%.

The top gaining sectoral indices on the BSE were, Realty up by 1.83%, Bankex up by 1.10%, HC up by 0.91%, Metal up by 0.88% and Auto up by 0.80% while, FMCG down 0.24% and Oil & Gas down by 0.19% were the only losers on the index.

The top gainers on the Sensex were SBI up by 2.35%, Jindal Steel up by 1.54%, HDFC up by 1.46%, Sterlite Industries up by 1.43% and BHEL up by 1.33%.

On the flip side, Tata Power was down by 1.36%, Bharti Airtel was down by 1.30%, HUL was down by 0.88%, ITC was down by 0.43% and Reliance was down by 0.40% were the top losers on the Sensex.

Meanwhile, not happy with the proposed fuel supply agreements, the Association of Power Producers accused Coal India for its discriminatory treatment to private power producers. The APP blamed that the draft is giving undue benefits to State-owned companies and possess many of the provisions which the industry had opposed.

It also pointed that the option for arbitration regarding FSAs is only allowed to public sector companies, The clauses where Coal India has made separate rules for private and state owned companies include right to terminate FSA, security deposit, suspension of coal supplies and settlement of disputes. While, the centre affirmed that the differentiation in norms are made in order to mitigate risks born by Coal India.

APP also noted that before 2009, FSA for public and private sector generating stations were the same. While the Coal Ministry countered that during 2009, there were hardly one or two power players and all electricity selling power producers were government owned.

The S&P CNX Nifty is currently trading at 5,754.75, up by 30.35 points or 0.53% after trading in a range of 5,759.45 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 4.90%, SBI up by 2.29%, Reliance Infra up by 2.04%, Bank of Baroda up by 1.83% and DLF up by 1.77%.

On the flip side, Bharti Airtel down by 1.41%, Tata Power down by 1.32%, Lupin down by 1.01%, HUL down by 0.86% and Siemens down by 0.75%, were the major losers on the index.

Asian markets were trading mostly in the green; Kospi Composite was up by 0.49%, Taiwan Weighted up by 0.70%, Jakarta Composite up by 0.50%, Straits Times was up by 0.50%, KLSE Composite up by 0.01 points and Hang Seng was up by 0.25%. While, Shanghai Composite was down by 0.16% and Nikkei 225 down by 0.03% were only losers.