Markets extend early gains; Nifty holds 6,000 mark

Indian equity markets extended early gains in the late morning session amid alternate bouts of buying and selling across the board. The Sensex was up by 44.43 points, while Nifty still holding the 6,000 mark. Investors were cashing in on recent strong gains snubbing global cues, which were quite positive. In currency markets, rupee snapped earlier sessions gaining streak against US dollar on Thursday amid appreciation of the American currency against the other currencies in overseas markets. On sectoral front information technology stocks, which were quite subdued in recent sessions, were edging higher on the back of rupee depreciation. Select oil, metal, automobile, power and healthcare stocks were up in positive territory with notable gains, while consumer durables and FMCG stocks were a bit weak. In global markets, Asian stock markets were trading mostly positive as the US manufacturing report added to optimism that the global economic recovery will accelerate. Back home, the market breadth favoring positive trend; there were 1,652 shares on the gaining side against 909 shares on the losing side while 91 shares remain unchanged.

The BSE Sensex is currently trading at 19,758.67 up by 44.43 points or 0.23% after trading in a range of 19,786.30 and 19,693.29. 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 0.89% and Small cap index was up by 0.90%.

The top gaining sectoral indices on the BSE were, TECk up by 0.92%, IT up by 0.89%, Oil & Gas up by 0.70%, PSU up by 0.54% and Metal up by 0.45%. While, FMCG down by 0.35%, Consumer Durables down by 0.12% and Capital Goods down by 0.07% were the top losers on the index.

The top gainers on the Sensex were Dr Reddys Lab up by 2.57%, Sterlite Industries up by 1.11%, TCS up by 1.08%, ONGC up by 0.91% and Tata Steel up by 0.87%.

On the flip side, Tata Power was down by 0.63%, Sun Pharma was down by 0.60%, ITC was down by 0.49%, Maruti Suzuki was down by 0.48% and Cipla was down by 0.37% were the top losers on the Sensex.

Meanwhile, as per the Prime Minister's Economic Advisor Council Chairman C Rangarajan, current account deficit is likely to be around the last year's level of 4.2 percent of the GDP for 2012-13 financial year. Expressing view on the contraction of current account deficit in second half of current fiscal, Rangarajan said, 'the export sector will be much better in the second half of this fiscal than the first half'.

Further, Rangarajan believes for the year as whole capital inflows will be adequate to cover CAD of the current fiscal year. In the past capital inflows though FDI, FII, external commercial borrowings or NRI deposits have been adequate to cover the current account deficit. On the rupee movement, he said that the mismatch between capital flows and current account deficit added pressure on the currency and so far this fiscal, capital inflow has remained adequate therefore, the downward pressure on the rupee is unlikely.

India’s current account deficit (CAD) hit an all time high of 5.4% of gross domestic product or $22.3 billion in the July-September period of 2012, mainly on the back of declining exports. The CAD represents the difference between exports and imports after considering cash remittances and payment. CAD was $18.9 billion in the same period a year ago and $16.4 in the first quarter of 2012.

The S&P CNX Nifty is currently trading at 6,009.30 up by 16.05 points or 0.27% after trading in a range of 6,017.00 and 5,986.55. There were 34 stocks advancing against 16 declines on the index.

The top gainers of the Nifty were Dr Reddys Lab up by 2.66%, Cairn up by 1.78%, Ambuja Cement up by 1.74%, IDFC up by 1.29% and Tata Steel up by 1.05%.

On the flip side, Tata Power down by 0.94%, Punjab National Bank down by 0.76%, Lupin down by 0.72%, Sun Pharma down by 0.59% and ITC down by 0.46% were the major losers on the index.

Most of the Asian equity indices were trading in the green; Jakarta Composite surged 1.17%, KLSE Composite increased 0.61%, Straits Times added 0.29% and Taiwan Weighted was up by 0.57%.

On the flip side, Hang Seng down by 0.18% and KOSPI Composite was down by 0.48%.

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