Markets remain in green on hopes of more reforms and rate cut

Indian markets are keeping their gains firm in the late morning session, the mood remains jubilant since morning on hopes of government going for more reform measures. Buying by funds has emerged at the markets on expectations of a better IIP data followed by rate cut by the Reserve Bank in its monetary policy review next week. Traders are betting on the blue-chip companies, and the Nifty and Sensex were trading in close vicinity to their crucial levels of 5950 and 19500, while the broader markets are showing some profit booking. On the sectoral front, despite the strength in rupee, the IT sector stocks are showing sign of recovery along with the top gaining defensive sectors FMCG and healthcare. On the other hand there is profit booking in high flier realty and power sector stocks. The PSU sector too was slightly in somber mood ahead of the NMDC share sales. The government will be selling 10 percent stake in the company and has fixed a price band of Rs 145-150 per share, at a discount from its previous closing.  

The market breadth on the BSE was positive; there were 1315 shares on the gaining side against 1195 shares on the losing side while 140 shares remain unchanged.

The BSE Sensex is currently trading at 19545.31 up by 135.62 points or 0.70% after trading in a range of 19612.18 and 19466.29. There were 20 stocks advancing against 10 declines on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.18% and Small cap index has gained 0.23%.

The top gaining sectoral indices on the BSE were FMCG up by 1.13%, Healthcare up by 1.08%, Bankex up by 0.62%, IT up by 0.53% and CD was up by 0.50%, while Realty down by 0.51%, Power down by 0.39% and Auto down by 0.11were the only losers on the BSE.

The top gainers on the Sensex were Sun Pharma up by 2.90%, Bajaj Auto up by 2.22%, Hindustan Unilever up by 2.03%, HDFC up by 1.93% and Jindal Steel was up by 1.71%.

On the flip side, BHEL down by 1.56%, Tata Motors down by 1.29%, Tata Power down by 1.01%, Hindalco Inds down by 0.77% and Maruti Suzuki down by 0.53% were the top losers on the Sensex.

Meanwhile, the net direct tax collection in November stood at Rs 19,863 crore, while the net direct tax collection has shown a growth of 15.04% to Rs 2,70,731 crore during April-November period of the current fiscal in which 60% tax revenue come from the corporate sector. Though, the growth in direct tax collection was slow in first half of the current fiscal but the government expects it to pick up in the second half of 2012-13.

According to a Finance Ministry, net corporate tax collection stood at Rs 1,62,897 crore during April-November, 2012.The personal tax mop-up stood at Rs 1,07,215 crore and wealth tax collection was at Rs 619 crore during the same period. Despite slowdown in the economic activities, the government has expressed confidence in meeting direct tax target of Rs 5.70 lakh crore for FY13 which include income tax, corporate tax and wealth tax. In the 2011-12 fiscal, the government has collected taxes of over Rs 4.93 lakh crore as per provisional estimates, against a budgeted target of Rs 5.32 trillion.

The S&P CNX Nifty is currently trading at 5,942.80, up by 33.90 points or 0.57% after trading in a range of 5,965.15 and 5,923.65. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were Ambuja Cement up by 2.92%, Sun Pharma up by 2.68%, Bajaj-Auto up by 2.24%, Ultra Cement up by 2.22% and ACC up by 2.20%.

On the flip side, BHEL down by 1.77%, Tata Motors down by 1.29%, Cairn down by 1.19%, Hindalco down by 1.02 and Tata Power down by 1.01% were the top losers on the Nifty.

Majority of the Asian indices were trading in the green; Shanghai Composite was up by 0.10%, Hang Seng gained 0.15%, Jakarta Composite was higher by 0.37%, KLSE Composite was up by 0.34%, Taiwan Weighted was trading marginally up by 0.06%, Seoul Composite was up by 0.37 points and Straits Times was up by 0.45%.

On the other hand, Nikkei 225 down by 0.09% was the lone loser in Asian pack.