Sensex, Nifty touches 2-year high; Metal, Bankex lead

Indian benchmarks- Sensex, Nifty were trading over 0.15% in the late morning session to touch a new two-year high on sustained buying by funds on strong third quarter earnings posted by corporates amid affirming trend in the Asian region. Street got some support from steady capital inflows by foreign funds driven by the government's decision to deregulate diesel prices in a key economic reform measure, and better-than- estimated third quarter earnings by some blue-chip companies. The Asian equity indices too were trading cautiously but, mostly in the green ahead of outcome of a Bank of Japan (BOJ) meeting in which it was expected to adopt an aggressive monetary easing policy. The BOJ will announce its decision after it ends its two-day meeting later on Tuesday. Back home, the traders were seen piling up position in Metal, Bankex and Power while selling was seen in Consumer Durables, IT and TECk sectors. In scrip specific development, Reliance Communications was trading in green on reporting that the company was in preliminary talks with Reliance Industries for a mobile network sharing deal. NTPC surges after the company stated that its board of directors has accorded approval for equity investment of up to Rs 2269.75 crore in a 50:50 joint venture company with Bihar State Electricity Board. Pantaloon Retail (India) surged after the RBI has eased restrictions on the purchase of shares in the company by foreign institutional investors and by non-resident Indians as well as persons of Indian origin. However, stocks of gold trading companies such as Titan Industries, P C Jewellers, Rajesh Exports and Gitanjali Gems were trading under pressure after the government hiked the import duty on gold and platinum to 6% from 4%. The banking stocks was trading in green despite the global ratings agency Moody’s in its Asia-Pacific Banking Outlook has stated  that it has a “negative” outlook on the country’s banking system due to concerns over asset quality and the high interest rates.  It further stated that in India, impaired loans are yet to peak among public sector banks. The NSE Nifty and BSE Sensex were managing to hold their psychological 6,000 and 20,000 levels respectively.

The market breadth on BSE was positive; advances: declines in the ratio of 1211:917.

The BSE Sensex is currently trading at 20137.26 up by 35.44 points or 0.18% after trading in a range of 20150.58 and 20090.22. There were 19 stocks advancing against 11 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.47% and Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Metal up by 0.67%, Bankex up by 0.60%, Power up by 0.59%, Realty up by 0.51%, and Health Care up by 0.39%. While, Consumer Durables down by 0.33%, IT down by 0.31%, TECk down by 0.20% and FMCG down by 0.09% were the top losers on the index.

The top gainers on the Sensex were Sun Pharma up by 2.04%, NTPC up by 1.79%, Hindustan Unilever up by 1.23%, ICICI Bank up by 1.19% and RIL up by 0.99%.

On the flip side, Gail India was down by 2.69%, Hero MotoCorp was down by 0.74%, ONGC was down by 0.71%, ITC was down by 0.52% and Dr Reddys Lab was down by 0.49% and were the top losers on the Sensex.

Meanwhile, a notice has been issued by the Supreme Court to the Centre and the Goa Government on a plea alleging that State Government, in violation of its order, has allowed export of iron ores, purportedly extracted from Maharashtra. The court has asked all parties to file replies and the Forest Bench of SC headed by Justice Aftab Alam listed the matter for February 15.

The court gave the order while hearing a plea filed by an NGO, Goa Foundation, which alleged that the State Government allowed the export without verifying the correctness of the statement made by the exporter who had claimed that the ores were extracted in Maharashtra and not in Goa. A three-judge bench headed by Justice Aftab Alam also sought the replies of the Central Empowered Committee (CEC) and various private companies to the allegation and has asked CEC to submit its report on the illegal mining in the State.

Moreover, the apex court-appointed committee in its report has recommended that resumption of mining operations, halted by the apex court, may be not be permitted till the State Government notifies rule to regulate storage, transportation and shipment of mineral ore.

The Chief Minister said that the order has come in State government’s favour as the Court finds no seriousness in the plea and hence has not issued a stay on export. Meanwhile, the Directorate of Geology and Mines has not issued any stop order on the export and the trading company has exported around 60,000 metric tones of ore from the Panjim port. 

The S&P CNX Nifty is currently trading at 6,095.05 up by 12.75 points or 0.21% after trading in a range of 6,101.30 and 6,078.80. There were 33 stocks advancing against 17 declines on the index.

The top gainers of the Nifty were Asian Paint up by 2.80%, Sun Pharma up by 2.01%, NTPC up by 1.95%, ACC up by 1.46% and JP Associate up by 1.32%.

On the flip side, Gail down by 2.81%, BPCL down by 1.19%, HCL Tech down by 1.05%, ITC down by 0.77%, and Lupin down by 0.72% were the major losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite rose 2.10 points or 0.09% to 2,330.32, Hang Seng jumped 42.72 points or 0.18% to 23,633.63, KOSPI Composite added 3.79points or 0.19% to 1,990.66, Straits Times was up by 0.74 points or 0.02% to 3,222.64 and Taiwan Weighted was up by 17.17 points or 0.22% to 7,742.09.

On the flip side, Jakarta Composite declined 28.91 points or 0.65% to 4,411.06, KLSE Composite dropped 12.50 points or 0.76% to 1,623.13 and Nikkei 225 declined 63.59 points or 0.59% to 10,684.15.