Markets trim early gains amid listless movements

Following a firm start, Indian equity markets trimmed some gains and trading quite listless as investors reacting to various proposals that are being spelt out in the budget. Meanwhile, in the budget speech, Finance Minister P Chidambaram announced approval of Rs 50,000 crore tax-free bonds in FY14. The government expects to raise Rs 25,000 crore via tax-free bonds in FY13. In currency market, rupee appreciated against dollar amid US currency’s selling by banks and exporters. On sectoral front, stocks from healthcare, education, fertilizer and infrastructure sector were seeing some strong buying on the back of positive proposals for these sectors. Moreover, banking sector gained some interest of investors as the FM promised to provide Rs 14,000 crore for public sector bank recapitalization. He also proposed to launch an all women’s bank to be set up via public sector, which will boost PSU banks. On global front, Asian shares extended earlier session’s gains for a second day on Thursday as sentiment improved after US Federal Reserve chairman Ben Bernanke reaffirmed his commitment to strong stimulus, while Italy found investor confidence in its debt despite political situation. Back home, the market breadth favoring positive trend; there were 1,271 shares on the gaining side against 1,081 shares on the losing side while 94 shares remain unchanged.

The BSE Sensex is currently trading at 19,188.84, up by 36.43 points or 0.19% after trading in a range of 19,322.28 and 19,182.77. There were 17 stocks advancing against 13 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.23% and Small cap index has gained 0.55%.

The top gaining sectoral indices on the BSE were, Realty up by 1.79%, Capital Goods up by 0.93%, Power up by 0.50%, TECk up by 0.43% and Metal up by 0.43% while, Oil & Gas down by 0.15% and Bankex down by 0.13% were top losers on the BSE.

The top gainers on the Sensex were Coal India up by 3.53%, L&T up by 1.32%, BHEL up by 1.28%, Wipro up by 1.27% and Cipla up by 1.17%.

On the flip side, ICICI Bank down by 1.51%, Maruti Suzuki down by 1.28%, Tata Steel down by 0.55%, ONGC down by 0.52% and Gail India down by 0.46% were the top losers on the Sensex.

Meanwhile, expressing confidence over the economy recovery, chief economic advisor to the finance ministry Raghuram Rajan said with the improved sentiments like moderate inflation and better external factors, the economic outlook is expected to improve and growth will remain in the range of 6.1-6.7%. Addressing a press conference on the Economic Survey 2012-13, Rajan said 'India is in a difficult but not impossible situation, we are at or beyond the turning point of the economy.’

By adding further he said, a wide range was put in the growth figure because of uncertainty prevailing in the economy. The annual document authored by Rajan and tabled in parliament by Finance Minister P Chidambaram pegged the GDP growth rate for the financial year beginning April 1, 2013, in the range of 6.1-6.7%.

On the global macro-economic situation, he said, it is likely to improve in 2013, which would help to improve economic situation in India. 'Last year throughout we had constant worries about Europe; we had constant worries about the US. External side will not be drag this year,’ Rajan added.

The CNX Nifty is currently trading at 5,808.85 up by 11.95 points or 0.21% after trading in a range of 5,849.90 and 5,800.50. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were Coal India up by 3.53%, DLF up by 3.14%, JP Associates up by 2.49%, L&T up by 1.39%, and Wipro up by 1.30%

On the flip side, BPCL down by 2.05%, ICICI Bank down by 1.61%, Maruti Suzuki down by 1.33%, Power Grid down by 1.29% and Lupin down by 1.18% were the major losers on the index.

All of the Asian equity indices were trading in the green; Shanghai Composite surged 2.17%, Hang Seng soared 1.38%, Jakarta Composite strengthened 1.18%, KLSE Composite rose 0.25%, Nikkei 225 zoomed 2.71%, Straits Times added 0.32%, KOSPI Composite increased 1.12% and Taiwan Weighted was up by 0.22%.