Benchmarks trade firm on supportive global cues; Sensex surpasses 20,100 mark

Buoyed by firm global cues, Indian equity markets have made a positive start with Sensex surpassing its crucial 20,100 level while Nifty inching towards psychological 6,100 mark. Overnight, the US stocks rallied on getting some upbeat economy reports, the number of US workers filing for jobless benefits fell to the lowest level in five years, while the US housing starts jumped 12% last month, raising hopes of a better outlook for the still-tepid economic recovery. Asian markets too were trading mostly higher on Friday, as Chinese fourth quarter growth data came out slightly better than expected, while Japanese stocks soared following a marked overnight decline in the yen.

Back home, both the frontline indices hit their two-year highs supported by buying in oil and gas counters as shares of three state-run oil marketing firms rallied after diesel prices were raised by 45 paise per litre after a go ahead from the Centre. Some strength came in from PSU sector, which rose about one and a half percent after government authorized the National Investment Fund (NIF) to buy shares of public sector enterprises, including banks and insurance companies. The NIF will also be used to re-capitalize PSU banks and public sector insurance companies. Gains in stocks of CDMA operators too aided the sentiments as scrip like Reliance Communication and Tata Teleservices (Maharashtra) edged higher after the Union Cabinet approved reduction in reserve price for the auction of spectrum for CDMA by 50% from the previous reserve price.

On the sectoral front, oil and gas witnessed the maximum gain in trade followed by public sector undertaking and capital goods while, auto, technology and software remained the only losers on the BSE sectoral space. The broader indices too were trading with traction while, the market breadth on the BSE was positive; there were 1,078 shares on the gaining side against 674 shares on the losing side while 74 shares remain unchanged.

The BSE Sensex opened at 20,038.67; about 74 points higher compared to its previous closing of 19,964.03, and has touched a high and a low of 20,126.55 and 20,037.23 respectively.

The index is currently trading at 20,106.23, up by 142.20 points or 0.71%. There were 19 stocks advancing against 11 declines on the index.

The overall market breadth has made a positive start with 59.40% stocks advancing against 36.13% declines. The broader indices too were trading in the green; the BSE Mid cap and Small cap indices rose 0.37% and 0.31% respectively.

The top gaining sectoral indices on the BSE were, Oil & Gas up by 3.29%, PSU up by 3.10%, CG up by 0.87%, Metal up by 0.81% and Bankex up by 0.78%. While, Auto down by 0.67%, TECk down by 0.50% and IT down by 0.46% were the few losers on the index.

The top gainers on the Sensex were ONGC up by 9.48%, Gail India up by 3.68%, Maruti Suzuki up by 2.46%, SBI up by 1.73% and Hindalco Industries up by 1.60%.

On the flip side, Hero MotoCorp was down by 4.21%, Wipro was down by 3.56%, Mahindra & Mahindra was down by 2.14%, Dr Reddys Lab was down by 1.17% and Bharti Airtel was down by 1.16% were the top losers on the Sensex.

Meanwhile, the Cabinet has approved the decision to raise cap on subsidized LPG cylinders from six to nine, effective from April, 2013. The cabinet also allowed the oil companies to increase the diesel prices by a ‘small quantum’ periodically. For the current financial year, consumers will get a quota of five subsidized cylinders between September 2012 and March 2013 and from April 1, 2013, they will be entitled to nine cylinders per annum.

After the cabinet meeting, Petroleum Minister Veerappa Moily said, the decision to increase the number of subsidised liquefied petroleum gas (LPG) cylinder to each household comes immediately into effect. Further, petroleum minister added that oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover present loss of Rs 9.60 per litre on the fuel. However, no decision was taken about hiking price of kerosene and LPG cylinder. 

The S&P CNX Nifty opened at 6,059.85; about 20 points higher compared to its previous closing of 6,039.20, and has touched a high and a low of 6,083.40 and 6,059.20 respectively.

The index is currently trading at 6,074.65, up by 35.45 points or 0.59%. There were 28 stocks advancing against 22 declines on the index.

The top gainers of the Nifty were ONGC up by 9.79%, BPCL up by 6.00%, GAIL up by 3.48%, Maruti Suzuki up by 2.66% and Hindalco Industries up by 1.76%.

On the flip side, Hero MotoCorp down by 4.24%, Wipro down by 3.76%, Mahindra & Mahindra down by 2.05%, Dr Reddys Lab down by 1.23% and ACC down by 1.16%, were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 12.78 points or 0.56% to 2,297.69, Hang Seng surged 174.34 points or 0.75% to 23,514.10, Jakarta Composite soared 42.31 points or 0.96% to 4,440.69, Nikkei 225 jumped 264.16 points or 2.49% to 10,873.80, Straits Times increased 14.92 points or 0.47% to 3,210.02, KOSPI Composite added 6.64 points or 0.34% to 1,980.91 and Taiwan Weighted was up by 77.32 points or 1.02% to 7,693.96

KLSE Composite was down 2.17 points or 0.13% to 1,678.92.