Benchmarks add some more gain; Sensex trades above 18500 level

Reflecting global risk-on sentiment, benchmark equity indices, have added some more ground. Buzz of Sensex regaining the 20,000 mark soon has augured well for local equities. Asian counterparts are trading mostly higher, following fresh record highs on Wall Street overnight. However, a soft start of European indices could reverse some of the gains of local bourses. European shares got off to cautious start. Closer home, Sensex and Nifty, are trading above the psychological 18500 and 5550 respective marks, with gains of close to half a percent. Broader indices too were reflecting the positive trend. Sectorally, Information Technology, Realty and Bankex counters were the major pillar of strength, while stocks from Oil & Gas, Power and Public Sector Undertaking (PSU) counters, were the weak spells. IT shares gained for a second day in a row, as previous losses were overdone, with Infosys gaining over a percent ahead of fiscal 2013 earnings on Friday. The overall market breadth on BSE continued to be in the favour of advances, thumping declines in the ratio of 1091:783, while 104 shares remained unchanged.

The BSE Sensex is currently trading at 18507.27, up by 92.82 points or 0.50% after trading in a range of 18595.12 and 18469.83. There were 14 stocks advancing against 15 declines on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap and Small cap index were trading up by 0.29% and 0.73% respectively.

The top gaining sectoral indices on the BSE were, IT up by 1.67%, Realty up by 1.23%, Bankex up by 1.12%, TECK up by 1.08% and Health Care up by 0.68% while, Oil & Gas down by 0.82%, Power down by 0.55%, PSU up 0.23% and Metal down by 0.16% were the top losers on the BSE.

The top gainers on the Sensex were Tata Motors up by 3.87%, ICICI Bank up by 2.92%, Infosys up by 2.51%, Cipla up by 1.56% and Sun Pharma up by 0.88%.

On the flip side, Bharti Airtel was down by 2.47%, HDFC was down by 2.00%, Reliance was down by 1.84%, Mahindra & Mahindra was down by 1.52% and NTPC was down by 1.51% were the top losers on the Sensex.

Meanwhile, coal and power ministries are likely to meet again to come up with the best possible model for coal price pooling by which the prices of domestic and imported coal are averaged to get a uniform price for the fuel in the country. The proposed model will be then taken to the Cabinet Committee on Economic Affairs (CCEA) for its consideration.

Earlier, in February, CCEA had given its in-principle approval to coal price pooling and had asked coal and power ministries to work out for a formula. It is reported that the various thermal power plants in the country have been stranded due to scarcity of coal and the decision on coal price pooling will help these plants.   

The decision on price pooling has been pending for long time because of the conflict between the coal and power ministries on how the impact of higher imported coal prices will be shared between state miner Coal India (CIL) and power companies. Earlier, the power ministry after consultation with the Central Electricity Authority (CEA) has suggested the Coal Ministry that the difference in cost of imported and domestic coal should be added to the cost of indigenous fuel at the time of finalising proposal for pooling coal prices.

On the other hand, coal India had said that price pooling was a mechanism to implement fuel supply agreement (FSA) and if price pooling is approved then 15 percent supply of imported coal ‘will be not in the cost plus method, but in pooling mechanism’. Coal India board had earlier approved the modified FSA without price-pooling with 65 percent domestic coal and 15 percent imported coal at cost plus basis. Till now, Around 50 companies have entered into fuel supply pacts with Coal India for receiving the fuel. As per the FSA, Coal India has to provide an assured supply of minimum 80 percent of the total quantity, if failing to which would be penalized.

The CNX Nifty is currently trading at 5,580.25, up by 21.55 points or 0.39% after trading in a range of 5,610.60 and 5,566.85. There were 25 stocks advancing against 25 declines on the index, and one remains unchanged. 

The top gainers of the Nifty were Tata Motors up by 3.90%, ICICI Bank up by 3.05%, DLF up by 2.70%, Infosys up by 2.63% and HCL Tech up by 2.50%.

On the flip side, Bharti Airtel down by 3.18%, Reliance Infra down by 2.64%, HDFC down by 1.93%, Kotak Bank down by 1.52% and Grasim down by 1.44% were the major losers on the index.

Most Asian equity indices were trading in green; Hang Seng surged 0.44%, Jakarta Composite increased 0.78%, KLSE Composite jumped 0.72%, Nikkei 225 soared 1.96%, Straits Times strengthened 0.52%, KOSPI Composite added 0.73% and Taiwan Weighted was up by 1.36%, while Shanghai Composite down by 0.26%, was the lone loser.

European markets got off to a soft start; with CAC 40 gained 0.14%, DAX adding 0.04% and FTSE 100 turned positive with gains of 0.07%.