Markets extend gains amid strong buying

Following a steady start and moving in a tight band for a while, Indian equity markets extended gains in the late morning session on Thursday amid strong buying across the counters. The Sensex was up by 120 points, while Nifty holding 5,700 mark. Decline in global crude oil and gold prices is expected to reduce the pressure on the country's record current account deficit and increase hopes of a rate cut by the RBI in the monetary policy early May, also boosted the market sentiments. In currency market, Indian rupee appreciated against greenback amid dollar selling by banks and exporters. On the sectoral front, stocks from capital goods, banking and FMCG sectors were trading firm. Select stocks from realty, healthcare, oil and power sectors were also up with smart gains, while consumer durables, information technology and metal stocks were trading weak. Meanwhile Indian oil marketing companies were trading up on hopes that recent slump in crude prices will lower the cost of under-recoveries.

On the global front, most Asian stock markets were trading lower on Thursday, amid losses on Wall Street, while investors’ sentiments were dampened by a warning from Germany's central bank that Europe's debt crisis could continue for a decade. Back home, the market breadth was favoring positive trend; there were 1,063 shares on the gaining side against 839 shares on the losing side while 117 shares remain unchanged.

The BSE Sensex is currently trading at 18,852.37, up by 121.21 points or 0.65% after trading in a range of 18,860.75 and 18,691.61. 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 0.38% and Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were, Capital Goods up by 1.34%, Realty up by 0.74%, Bankex up by 0.70%, Oil & Gas up by 0.69% and FMCG up by 0.54%, while, Metal down by 0.59%, Consumer Durables down by 0.29% and IT down by 0.05% were the top losers on the BSE.

The top gainers on the Sensex were Bharti Airtel up by 3.09%, L&T up by 2.09%, HDFC up by 1.63%, NTPC up by 1.21% and GAIL India up by 1.04%.

On the flip side, Hero MotoCorp was down by 1.24%, Wipro was down by 1.19%, Jindal Steel was down by 0.88%, Sterlite Industries was down by 0.79% and TCS was down by 0.45% were the top losers on the Sensex.

Meanwhile, stepping back from its stance on imposing a total ban on mining in Karnataka State on account of environmental concerns, the Supreme Court (SC) has cleared the long awaited verdict on the Category A and B iron ore mining in Bellary district of Karnataka. However, the ban continues to remain in the Category C mining in Bellary and post this ruling about 49 mining leases in Category C stand cancelled.

The SC, back in September 2012, allowed 18 mines in Karnataka to resume operations on the basis of the recommendations of the Central Empowered Committee (CEC). This time around also accepting the committee’s recommendations, Category B mines were allowed to restart mining subject to necessary statutory clearances. Thus, after this decision, iron ore production in nine Karnataka mines will resume operations.

In July last year, the court had banned all mining operations holding that right to life under Article 21 of the Constitution would include a pollution-free environment. It had also ordered a CBI probe into alleged illegal mining activities of former Karnataka Minister G Janardhana Reddy in Obulapuram, Andhra Pradesh and former Karnataka Chief Minister B S Yeddyurappa.

However, country’s iron ore exports to China shrank to just over 30 million tonnes last year as a clampdown on illegal mining, and exports from Karnataka slashed output and shipments, prompting steelmakers to operate below capacity.

The CNX Nifty is currently trading at 5,726.55 up by 37.85 points or 0.67% after trading in a range of 5,726.95 and 5,681.85. There were 33 stocks advancing against 17 declines on the index.

The top gainers of the Nifty were Bharti Airtel up by 3.20%, Ranbaxy up by 2.75%, L&T up by 1.87%, HDFC up by 1.85%, and Bank of Baroda up by 1.54%.

On the flip side, NMDC down by 2.48%, Hero Moto Co down by 1.21%, JP Associates down by 1.01%, Power Grid down by 0.94% and Jindal Steel down by 0.77% were the major losers on the index.

Most of the Asian equity indices were trading in red; Hang Seng slipped 0.07% KLSE Composite decreased 0.05%, Nikkei 225 dropped 1.01%, KOSPI Composite contracted 1.24%, Straits Times declined 0.15% and Taiwan Weighted was down by 0.23%.

On the flip side, Shanghai Composite up by 0.18% and Jakarta Composite up by 0.04% were the only losers.