Benchmarks hold early gains; Realty, TECk lead

Indian benchmarks- Sensex, Nifty were trading higher by about 0.65 % in the late morning session on sustained buying by funds and retail investors amid firm Asian cues, ignoring the lower industrial data and higher retail inflation. Sentiments some support from firming trend at the US market. Meanwhile, investor eyes are now on January WPI data, due on Thursday, which is expected to have eased to its lowest level in three years, due to a smaller rise in prices of manufactured goods. On the global front, Asian markets were trading mostly higher on late morning trade with earnings providing a tailwind for Australian firms and pulling the local share benchmark close to three-year highs. The traders were seen piling up position in Realty, TECk and IT while selling was seen FMCG sector. In scrip specific development, Motherson Sumi Systems gained on plans to raise funds by issuing equity shares to qualified institutional buyers and promoters of the company on preferential basis. Fortis Healthcare soared on reporting 26-fold rise in consolidated net profit at Rs 705 crore for the quarter ended December 31 2012, mainly on account of exceptional one-time net gain of Rs 1,005 crore on dilution of stake in Religare Health Trust. It had posted net profit of Rs 27.02 crore for the same quarter of last fiscal. PI Industries rallied on reporting more-than-double net profit at Rs 23.96 crore for the third quarter ended December 31, 2012 on back of higher operational income. Kingfisher Airlines slumped after its lenders decided to start the process of recovering Rs. 7,500 crore outstanding loans. Jindal Steel and Power extended losses on account of weak Q3 earnings. Tata Steel and Coal India traded lower ahead of Q3 earnings. The NSE Nifty and BSE Sensex were managing to hold their psychological 5950 and 19,700 levels respectively.

The market breadth on BSE was positive; advances: declines in the ratio of 1297: 826.

The BSE Sensex is currently trading at 19701.16 up by 140.12 points or 0.72% after trading in a range of 19721.67 and 19601.69. There were 21 stocks advancing against 9 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.86% and Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were, Realty up by 1.28%, TECk up by 1.23%, IT up by 1.19%, Auto up by 1.16% and Oil & Gas up by 0.73%. While, FMCG down by 0.05% was the sole loser on the index.

The top gainers on the Sensex were Tata Motors up by 2.92%, Bharti Airtel up by 1.80%, TCS up by 1.74%, HDFC up by 1.59% and Mahindra & Mahindra up by 1.50%.

On the flip side, Dr Reddys Lab was down by 1.40%, Tata Power was down by 0.67%, Hindustan Unilever was down by 0.65%, Jindal Steel was down by 0.45% and Maruti Suzuki was down by 0.41% were the top losers on the Sensex.

Meanwhile, concerned over the decline in industrial production, the Federation of Indian Chambers of Commerce and Industry (FICCI) said a high level committee under the Prime Minister should look into the issue of industrial slowdown and monitor its progress for the next few months. Muted activities in manufacturing and mining sectors led the industrial output contract by 0.6% in December, the second consecutive month of decline.

As per the FICCI president, Naina Lal Kidwai, recently released IIP data has diminished the hopes of recovery in manufacturing in the near future. It is seriously a cause of concern as both consumer goods and investments have witnessed negative growth.

Indicating a need for improving and strengthening implementation in order to ensure project completion, Naina said despite the new project announcements have tapered off, the existing projects are suffering with cost and time overruns. 'The new Cabinet Committee on Investments also needs to consider and clear the pending projects within the shortest possible time' Naina added. She also asked the Reserve Bank to further reduce interest rates.

Sharing the similar views, the Confederation of Indian Industry (CII) said ‘sentiments are already reflected in the IIP figures and it does not want to see any announcements which would hurt industry's confidence’. Further, it has also asked the government not to raise any tax or duties in the forthcoming Union Budget and hope that the budget would take bold decisions to rejuvenate demand and boost investor confidence. Moreover, ASSOCHAM president, Rajkumar N Dhoot, said the continued fall in intermediate and capital goods production indicates that the revival is in a distant dream.

The S&P CNX Nifty is currently trading at 5,963.30 up by 40.80 points or 0.69% after trading in a range of 5,969.50 and 5,938.25. There were 34 stocks advancing against 16 declines on the index.

The top gainers of the Nifty were JP Associate up by 3.32%, HCL Tech up by 3.01%, Tata Motors up by 2.80%, TCS up by 1.77% and Bharti Airtel up by 1.71%.

On the flip side, Dr Reddy down by 1.45%, Lupin down by 0.77%, Hindustan Unilever down by 0.72%, Jindal Steel down by 0.52% and Tata Power down by 0.41% were the major losers on the index.

 Most of the Asian markets were trading in the green, Jakarta Composite rose 31.97 points or 0.70% to 4,580.21, KLSE Composite surged 7.92 points or 0.49% to 1,631.72, Straits Times strengthened 29.06 points or 0.89% to 3,299.64 and KOSPI Composite soared by 28.71points or 1.48% to 1,974.29.

On the flip side, Nikkei 225 was down 134.05 points or 1.17% to 11,235.83.

China, Hong Kong and Taiwan are closed for trade today.