Indian equities continue firm trade in late afternoon session

Indian equity markets added gains to continue firm trade in the late afternoon session on account of buying in frontline counters. The sentiments were on optimistic mood, despite negating any hopes of a rebound in the revenue growth for India Inc in the quarter ending March 2013, CRISIL Research projected that the top-line growth for the quarter is likely to decelerate to 6-7% as against a growth of 17.5% clocked in the corresponding period last year. The projections do not factor in banks and companies in the oil and gas sectors. Traders were seen piling some position in Consumer Durables, FMCG and TECK sector stocks while selling was witnessed in Realty, Capital Goods and Oil & Gas sector stock. 

In scrip specific development, Tech Mahindra was trading in red after the company extended the proposed merger of Mahindra Satyam with itself for six months. Indian Overseas Bank (IOB), Syndicate Bank and Oriental Bank of Commerce (OBC) were trading under pressure after Moody’s Investors Service downgraded its standalone bank financial strength ratings (BFSR) for the three public sector banks. Kingfisher Airlines  was trading in red after aviation regulator DGCA deregistered 15 aircraft operated by the airline company, paving the way for global leasing companies to take them back and easing worries that the dispute might hurt purchases by other Indian carriers.

On the global front, the Asian markets were trading in green barring Shanghai Composite and Nikkei 225 while the European markets were trading on a mixed note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,600 and 18,700 levels respectively. The market breadth on BSE was negative in the ratio of 1143:1443 while 112 scrips remain unchanged.

The BSE Sensex is currently trading at 18,715.75, up by 34.33 points or 0.18% after trading in a range of 18,758.88 and 18,612.37. There were 14 stocks advancing against 16 declines on the index.

The broader indices slipped into negative terrain; the BSE Mid cap index and Small cap index were trading lower by 0.49% and 0.11% respectively.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.13%, FMCG up by 0.94%, TECk up by 0.50%, IT up by 0.45% and Auto up by 0.38% while Realty down by 2.52%, Capital Goods down by 1.68%, Oil & Gas down by 1.51%, Power down by 0.79% and Metal down by 0.70% were the top losers on the BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.29%, Tata Motors up by 1.87%, HDFC up by 1.84%, HUL up by 1.79% and ITC up by 1.31%.

On the flip side, Gail India down by 3.93%, RIL down by 2.16%, L&T down by 1.93%, Tata Steel down by 1.80% and BHEL down 1.20% were the top losers on the Sensex.

Meanwhile, with the Planning Commission expressing strong reservations over giving the power to change highway contracts or alter the way projects are implemented, setting up of a regulator for the road sector could be delayed. Planning Commission officials voiced their concerns at the first inter-ministerial meeting held to discuss the setting up of the regulator.

However, officials from road transport and highways ministry are of the view that the sector was facing many contract management issues that are best resolved by an independent regulator, something which was also highlighted by the finance minister in his Budget speech. The road sector is struggling with contractual problems as over Rs 11,000 crore of developers' dues from over 1600 claims are held up in courts, arbitration tribunals and dispute resolutions boards.

The representatives from the finance ministry, law ministry, road ministry and the planning commission were part of the meeting. However, the road ministry will meet concessionaires and lenders on April 10 to seek their views on the proposed regulator.

The CNX Nifty is currently trading at 5,646.30, up by 12.45 points or 0.22% after trading in a range of 5,654.50 and 5,612.05. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were HUL up by 2.35%, Ranbaxy up by 2.33%, Bharti Airtel up by 2.30%, Tata Motors up by 2.05% and HDFC up by 1.86%.

On the flip side, Gail India down by 4.14%, Reliance Infrastructure down by 4.09%, Siemens down by 3.65%, Ambuja Cements down by 3.01% and DLF down by 2.91% were the major losers on the index.

Most of the Asian equity indices were trading mixed; Jakarta Composite rose 1.66%, Hang Seng inched up 0.27%, KLSE Composite strengthened 0.49%, Straits Times increased 0.54%, KOSPI Composite added 0.30% and Taiwan Weighted was trading flat with positive bias. On the flip side, Shanghai Composite tumbled 1.25% and Nikkei 225 was down 0.60%.

The European markets were trading on a mixed note; France’s CAC 40 added 0.50%, Germany’s DAX ascended 0.20% and United Kingdom’s FTSE 100 slipped 0.02%.