Indian equity markets continue firm trade in late afternoon session

Indian equity markets continued its firm trade in the late afternoon session on account of buying in frontline counters. The sentiments on the street were on euphoric mood despite India’s annual industrial output growth measured by index of industrial production (IIP), contracting by 0.6% at 179.3 for the month of December 2012 against contraction of 0.1%, later revised to a reading of -0.8% in the previous month. On the other hand, this recent reading is expected to pile up some more pressure on the Reserve Bank of India (RBI) to cut its policy rate by a further 25 basis points, in its next policy review on March 19. Traders were seen piling some position in Oil & Gas, Health Care and PSU sectors while selling was witnessed in Realty, IT and Metal sector. In the scrip specific development, Coal India was trading firm after UBS Securities raised the price target of the company citing reports that the company’s independent directors are opposed to price pooling for domestic and imported coal. ONGC was trading in green after better-than-expected numbers in the third quarter of financial year 2012-13. The research firm Jeferries has also recommended a buy rating on the stock. Unitech and DB Realty were trading in red with deep cuts on reports that CBI suspected its own prosecutor of aiding Unitech MD Sanjay Chandra, one of the accused in the 2G case. DB Realty’s Shahid Balwa's name is also mentioned in the telephonic conversation between Singh and Unitech’s Chandra.

On the global front, majority of the Asian markets were closed barring Jakarta Composite and Nikkei 225 which were trading in green while the European markets were trading on pessimistic note.  Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,900 and 19,500 levels respectively. The market breadth on BSE was negative in the ratio of 899:1751 while 118 scrips remain unchanged.

The BSE Sensex is currently trading at 19,516.55, up by 55.98 points or 0.29% after trading in a range of 19,547.13 and 19,438.53. There were 14 stocks advancing against 15 declines on the index, while one stock remains unchanged.

The broader indices were trading in red; the BSE Mid cap and Small cap index were trading lower by 0.69% and 0.83% respectively.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.13%, Health Care up by 0.89%, PSU up by 0.43%, Auto up by 0.24% and Bankex up by 0.12%. While, Realty down by 4.42%, IT down by 0.78%, Metal down by 0.66%, TECk down by 0.54% and Power down by 0.46% were the top losers on the index.

The top gainers on the Sensex were Sun Pharma up by 2.57%, ONGC up by 2.50%, Bharti Airtel up by 1.68%, Coal India up by 1.30% and HDFC Bank up by 1.10%,.

On the flip side, Jindal Steel down by 2.92%, Sterlite Industries down by 1.79%, Infosys down by 1.46%, Hero MotoCorp down by 0.98% and Tata Power down by 0.87% were the top losers on the Sensex.

Meanwhile, with an aim to push banks to pursue its twin objectives of enhancing financial literacy and achieving financial inclusion, Deputy Governor RBI K C Chakrabarty said, arbitrary pricing of banking products and services must be avoided to bring these within the reach of the common man, which will help bring the marginalized sections of society to the mainstream.

While addressing an event on ‘Banking as a Fundamental Right of People’, Chakrabarty said, banking services have to be made accessible close to where the individual needs them, at prices he can afford, and in a transparent manner.

Concerned over the banks’ financial inclusion efforts, he said the banking system despite being in existence for more than 200 years and several banks credited with more than 100 years of service, financial inclusion drive have not achieved the desired results. Way back in 2005, the RBI had launched a drive to extend banking services to all inhabitations in the country, considering the widespread exclusion of people from financial mainstream.

Banking services are now available in over two lakh villages, but about four lakh villages still have no access to the services. Further, as per Chakrabarty, banking services can be extended to un-banked centres in both rural and urban areas by leveraging on technology. Moreover, on taxation policies, he wants a complete restructuring of the policies taking away unnecessary and unreasonable exemptions and concessions.

The S&P CNX Nifty is currently trading at 5,905.05, up by 7.20 points or 0.12% after trading in a range of 5,916.75 and 5,886.45. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were Sun Pharma up by 2.74%, ONGC up by 2.58%, HCL Tech up by 2.18%, Bharti Airtel up by 1.69% and Coal India up by 1.39%.

On the flip side, JP Associate down by 4.60%, Jindal Steel down by 2.97%, IDFC down by 2.60%, DLF down by 2.28% and ACC down by 1.80% were the major losers on the index.

Most of the Asian equity indices were closed for trading; while Jakarta Composite jumped 0.77% and Nikkei 225 soared 1.94% were trading in green. On the flip side, KOSPI Composite was trading lower by 0.26%.

Meanwhile, Hong Kong, China, Taiwan, Singapore and Malaysia are all closed close for trade. Hong Kong and Singapore will resume trading on February 13 and Taiwan will reopen on February 14.

The European markets were trading in red with; France’s CAC 40 lost 0.24%, Germany’s DAX slip 0.29% and United Kingdom’s FTSE 100 edged lower by 0.16%.