Benchmarks oscillate comfortably in green; Sensex hovers above 20,000 mark

After clinching substantial gains in early deals, benchmark equity indices continue to comfortably trade in positive terrain, on account of sustained buying activity in Public Sector Undertaking, Oil & Gas and Capital Goods counters. Besides, positive global cues are also adding to further upside chances of the bourses. Better than expected China's fourth quarter growth data; mainly lifted Asian pacific shares higher, as latest economic data helps confirm the view that China is recovering from the slowdown it experienced last summer, a belief that has created a strong run in Chinese shares in recent months . China's gross domestic product growth figures for the fourth quarter, showed a 7.9% on-year rise compared with expectations for a 7.8% rise. The data release also included industrial production figures, which increased by 10.3% in December.

Back home, 30-share barometer index-Sensex and 50-share widely followed index-Nifty, are currently trading above the crucial 20,050 and 6,050 respective levels. Support has been also rendered from Banking counter, whose shares rose on re-ignited hopes of rate cut in RBI’s third quarter monetary policy review on January 29. As government’s decision of partially deregulating diesel prices, a move towards fiscal consolidation, may help ease the apparent hawkish stance of RBI, which puts fiscal consolidation as a pre-condition for rate cuts. However, stocks from Information Technology, Auto and Consumer Durable, witnessing massive profit-booking, were languishing at the bottom. Meanwhile, Fast Moving Consumer Goods counter, could witness some more traction, as India's largest cigarette maker, ITC, beating market expectations, has posted a 21 percent jump in quarterly net profit on Friday. The market breadth favoring positive trend; there were 1,290 shares on the gaining side against 1,193 shares on the losing side while 128 shares remain unchanged.

The BSE Sensex is currently trading at 20,080.39 up by 116.36 points or 0.58% after trading in a range of 20,126.55 and 20,037.23. There were 17 stocks advancing against 12 declines on the index and one remains unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.39% and Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were PSU up by 3.13%, Oil & Gas up by 3.07%, Capital Goods up by 0.95%, Bankex up by 0.88% and Realty up by 0.74%. While, TECk down by 0.71%, IT down by 0.54%, Auto down by 0.36%, Consumer Durables down by 0.30% and Health Care down by 0.26% were the top losers on the index.

The top gainers on the Sensex were ONGC up by 8.00%, Maruti Suzuki up by 4.19%, Gail India up by 1.94%, ICICI Bank up by 1.75% and SBI up by 1.71%.

On the flip side, Wipro was down by 4.96%, Hero Moto Corp was down by 3.68%, Bharti Airtel was down by 2.08%, Mahindra & Mahindra was down by 1.79% and Hindustan Unilever was down by 1.51% were the top losers on the Sensex.

Meanwhile, Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh has decided to align the National Investment Fund (NIF) operation to enhance the disinvestment policy and  has approved that income from disinvestment can be used for recapitalization of public sector banks and for subscribing to rights issues of Central Public Sector Undertakings (CPSUs).

The NIF will be used for recapitalisation of public sector banks and insurance companies and for preferential allotment of shares of CPSE to promoters so that government holding does not go below 51 per cent, in all cases where CPSE is going to raise fresh equity to meet its capital expenditure programme.

According to the government, with effect from FY14, the disinvestment proceeds will be credited to the public account under the head NIF, and they would remain there until withdrawn or invested for the approved purposes. So far, NIF money was used to meet the capital expenditure needs of selected social sector schemes. Further, the fund managers presently managing the NIF will stand discharged of their responsibility from the date the funds and the interest income are transferred to the fund.

The S&P CNX Nifty is currently trading at 6,073.85 up by 34.65 points or 0.57% after trading in a range of 6,083.40 and 6,059.20. There were 28 stocks advancing against 22 declines on the index.

The top gainers of the Nifty were BPCL up by 9.57%, ONGC up by 8.06%, Maruti Suzuki up by 4.42%, Bank of Baroda up by 3.11%, and ICICI Bank up by 1.85%.

On the flip side, ACC down by 1.91%, Wipro down by 4.93%, Hero Moto Corp down by 3.67%, Bharti Airtel down by 2.01%, Mahindra & Mahindra down by 1.76% and Hindustan Unilever down by 1.59% were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite up by 1.32%, Hang Seng up by 0.90%, Nikkei 225 up by 2.68%, Straits Times up by 0.24%, Jakarta Composite was up by 0.96%, KOSPI Composite up by 0.69% and Taiwan Weighted was up by 1.53%.

On the flip side, KLSE Composite down by 0.21%