Benchmarks hold early gains; IT, TECk lead

Indian equities continued to trade in fine fettle on back of strong buying in frontline counters in the late morning session. On the global front, the Asian markets have continued their rally with most of the indices trading higher by about half a percent as sentiments got some boost after China’s official purchasing managers’ index (PMI) for the non-manufacturing sector rose to a four-month high of 56.1 in December from 55.6 in November, adding to signs of a revival in the world’s second-largest economy. Back home, the traders were seen piling up position in IT, TECk and Health Care while selling was seen in FMCG, Capital Goods and Consumer Durables sector. Power Finance Corporation gained after the company stated that a total of four SPVs have been incorporated as wholly owned subsidiaries by PFC Consulting for the development of transmission systems in the country. Geometric jumped after the company has stated that the acquisition of 3Cap Technologies GmbH for Euro 11 million. Metal stocks such as Tata Steel, Sail, Sterlite Industries (India), Jindal Steel & Power, Hindustan Zinc, Sesa Goa, Bhushan Steel edged higher as LMEX, a gauge of six metals traded on the London Metal Exchange, jumped 3.68% to 3,581.70 on January 02, 2013. Dr Reddy's Laboratories zoomed after the company has stated that it has launched Finasteride Tablets 1 mg in the US market on January 02, 2013. The NSE Nifty and BSE Sensex were managing to hold their psychological 6000 and 19700 levels respectively. The market breadth on BSE was positive, in the ratio of 1422:781.

The BSE Sensex is currently trading at 19744.24 up by 30.00 points or 0.15% after trading in a range of 19786.30 and 19693.29. There were 18 stocks advancing against 12 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.62% and Small cap index was up by 0.78%.

 The top gaining sectoral indices on the BSE were, IT up by 1.07%, TECk up by 0.91%, HealthCare up by 0.38%, Oil & Gas up by 0.37% and Metal up by 0.29%. While, FMCG down by 0.21%, Capital Goods down by 0.10%, Consumer Durables down by 0.07%,and Bankex down by 0.05%were the top losers on the index.

The top gainers on the Sensex were Dr Reddy’s Lab up by 2.19%, Infosys up by 1.18%, TCS up by 1.01%, ONGC up by 0.95%, and Tata Steel up by 0.82%.

On the flip side, Sun Pharma was down by 0.47%, Tata Power was down by 0.45%, Maruti Suzuki was down by 0.43%, ITC was down by 0.42%, and Hindalco Industries was down by 0.41% were the top losers on the Sensex.

Meanwhile, to discuss modalities about the spectrum sale due this fiscal, the Empowered Group of Ministers (EGoM) on spectrum, headed by Finance Minister P Chidambaram, is scheduled to meet on January 3. The EGoM will discuss the auction plan prepared by the Department of Telecom (DoT) after Cabinet approved the sale of unsold GSM spectrum in 1800 Mhz band and in the premium 900 Mhz spectrum band.

As per the proposal, the government is expected to get around Rs 25,316 crore from the auction in the premium 900 Mhz band, and Rs 14,579 crore from auction of unsold spectrum in the 1800 Mhz band. While in CDMA (800 Mhz) band, DoT may propose either to recommend the matter to Telecom Regulatory Authority of India or auction the radiowaves after the successful GSM spectrum auction.

DoT may auction more spectrum in Delhi, Mumbai, Karnataka and Rajasthan in the 1800 Mhz band, as compared to the spectrum it had put earlier for auction that ended on November 14. DoT may also put 15 Mhz of spectrum in 900Mhz and 1800 Mhz band in Delhi and Mumbai for auction and 12.5 Mhz airwaves in Kolkata.

For the premium 900 Mhz band, the government is learnt to have fixed minimum price of Rs 970.30 crore per block for Delhi, Rs 949.84 crore per block for Mumbai and Rs 227.44 crore per block for Kolkata circle. Premium 900 Mhz band provides double coverage of the signals compared to signals in 1800 Mhz band.

As per the DoT draft proposal, new players may be required to bid for minimum of 4 blocks in both 1800 Mhz and 900 Mhz band in Delhi and Mumbai region. While, the spectrum held by the existing operators, whose licenses are coming up for renewal, is also being put for auction.

 The S&P CNX Nifty is currently trading at 6,003.30 up by 10.05 points or 0.17% after trading in a range of 6,017.00 and 5,986.55. There were 31 stocks advancing against 19 declines on the index. The top gainers of the Nifty were Dr Reddys Lab up by 2.10%, Ambuja Cement up by 1.74%, Cairn up by 1.48%, ACC up by 1.36% and Infosys up by 1.20%.

On the flip side, Lupin down by 1.22%, Punjab National Bank down by 1.03%, Bank of Baroda down by 0.62%, Sun Pharma down by 0.58% and Tata Power down by 0.58% were the major losers on the index.

Most of the Asian equity indices were trading in the green; Hang Seng rose 31.25 points or 0.13% to 23,343.23, Jakarta Composite surged 50.75 points or 1.17% to 4,397.23, KLSE Composite increased 10.15 points or 0.61% to 1,684.87, Straits Times added 13.54 points or 0.43% to 3,215.29 and Taiwan Weighted was up by 41.92 points or 0.54% to 7,821.190.

On the flip side, KOSPI Composite was down by 9.58 points or 0.47% to 2,021.25.

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