Benchmarks make gap up opening on firm global cues

Extending their previous session’s rally, key Indian benchmarks have made a gap-up start with the BSE’s Sensex re-conquering 19,700 mark in early trade while, NSE’s Nifty inched closer to its crucial 6,000 level on increased buying by funds as well as retail investors on the back of jubilant global cues as most of the Asian equity indices made a strong start of the new year, after a day of break, as US Senate passed a budget bill to avoid the looming fiscal cliff of $600bn tax hikes and spending cuts. Hong Kong market is the top performer so far, garnering gains of about two per cent, responding to a third straight monthly expansion in China’s manufacturing sector.

Back home, sustained buying in key heavyweights along with the broader indices kept the markets on the positive side. Sentiments also got some support after jewellery stocks like Tribhovandas Bhimji Zaveri, Thangamayil Jewellery and PC Jeweller edged higher as the government slashed the import tariff value of gold and silver to $ 539 per 10 gm and $979 per kg, respectively. PSU stocks too were trading with traction after government initiated the process of appointing merchant bankers for managing the 12.5 per cent stake sale in Rashtriya Chemicals and Fertilisers. However, traders are eyeing the HSBC India Manufacturing PMI data to be released later in the day. India's manufacturing sector growth improved in November, registering the fastest pace in five months.

All the sectoral indices opened higher with the Capital Goods and Consumer Durables leading with over 1 per cent gains. Metal, banking, power, realty, PSU, auto and technology indices were the other notable movers in the opening trades, while there was no loser on the BSE sectoral space. The broader indices were going neck-to-neck with benchmarks while, the market breadth on the BSE was positive; there were 1349 shares on the gaining side against 446 shares on the losing side while 83 shares remain unchanged.

The BSE Sensex opened at 19693.30; about 112 points higher compared to its previous closing of 19580.81, and has touched a high and a low of 19731.65 and 19686.50 respectively.

The index is currently trading at 19713.18, up by 132.37 points or 0.68%. There were 28 stocks advancing against just 2 declines on the index.

The overall market breadth has made a positive start with 72.10% stocks advancing against 23.71% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.61% and 0.85% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.04%, Bankex up by 1.03%, Metal up by 1.00%, Power up by 0.99% and PSU up by 0.91%. While, there were the no losers on the index.

The top gainers on the Sensex were BHEL up by 2.26%, Maruti Suzuki up by 1.83%, Sterlite Industries up by 1.64%, Hero Moto Corp up by 1.57% and Bharti Airtel up by 1.53%.

On the flip side, Wipro was down by 0.29% and Mahindra & Mahindra was down by 0.17% were the top losers on the Sensex.

Meanwhile, Surge in prices of food items, cooking gas, medicines and bus fares mainly pulled the consumer price index (CPI) for industrial workers higher to 9.55% in November against 9.34% increase in the same month a year ago and 9.60% recorded in the previous month. Similarly, food inflation stood at 10.85% against 9.91% of the previous month and 7.61% during the corresponding month of the previous year. 

As per the government data, the largest upward contribution came from food items which contributed 1.01 percentage points to the total change in CPI index and prices of food items increased by 0.86%. At item level, largest upward pressure came from rice, wheat Atta, goat meat, milk, onion, potato, tea (readymade), Snack Saltish etc. The other items like cooking gas, medicine, bus fare, auto rickshaw fare, etc. also added upward pressure in total change.

The largest downward contribution to the change in current index came from Pulses and Products with a decline of 0.38%, contributing (-) 0.03 percentage points to the total change in CPI index. However, at item level, vegetable & fruit items like cauliflower, radish, palak, brinjal and orange put downward pressure on the index.

At centre level, the CPI indices of 41 centres are above All-India Index and other 36 centres’ indices are below national average. Puducherry’s index remained at par with all-India index. Mysore recorded the largest increase of 7 points followed by Vijaywada of 6 points and Guntur, Tiruchirapally, Coimbatore and Bengaluru recorded 5 points each. However, Nagpur centre reported a decline of 2 points and other 9 centres registered a fall of 1 point each. Rest of the 19 centres’ indices remained stationary.

The S&P CNX Nifty opened at 5,982.60; about 32 points higher compared to its previous closing of 5,950.85, and has touched a high and a low of 5,997.75 and 5,982.00 respectively.

The index is currently trading at 5,992.60, up by 41.75 points or 0.70%. There were 47 stocks advancing against 3 declines on the index.

The top gainers of the Nifty were JP Associate up by 2.64%, Punjab National Bank up by 2.61%, BHEL up by 2.34%, Maruti Suzuki up by 1.96% and Ambuja Cements up by 1.93%.

On the flip side, Mahindra & Mahindra down by 0.35%, Wipro down by 0.34% and HCL Technologies down by 0.05%, were the only losers on the index.

Most of the Asian equity indices were trading in green; Hang Seng soared 433.02 points or 1.91% to 23,089.94, Jakarta Composite rose 33.15 points or 0.77% to 4,349.84, Straits Times surged 34.46 points or 1.09% to 3,201.54, KOSPI Composite added 28.28 points or 1.42% to 2,025.33 and Taiwan Weighted was up by 83.69 points or 1.09% to 7,783.19.

On the flip side, KLSE Composite was down by 12.09 points or 0.72% to 1,676.86.

Markets in Japan and China remained shut for public holidays and will reopen on Friday.