Benchmarks trade near day’s high on bullish regional risk sentiment

Benchmarks are trading near day’s high point on bullish regional risk sentiment amidst hopes for more monetary easing in RBI’s May 3 policy meeting.  The RBI is likely to cut interest rates next week for a third time this year, drawing comfort from a fall in inflation, as it seeks to lift the economy from its lowest growth in a decade. Nevertheless, bourses’ gains remain restricted on prevailing caution ahead of April derivatives expiry. 50 share index, Nifty, is comfortably cruising above 5900 psychological mark, while Sensex is above 19350 level, with gains of around a percent each. Broader indices too are in comfortable place with gains of over 0.75% for Midcap index.

Additionally, positive global cues too were aiding the sentiment, Asian shares edged higher supported by views that a run of weak global economic data will encourage major central banks to keep or deepen their monetary stimulus, While European shares edged higher for their fifth straight session of gains, helped by M&A speculation and expectations of more central bank action to support the economy. Closer home, sentiment were also driven by Chidambaram pledge of more economy reforms in the offing. Meanwhile, on BSE sectoral front, Oil & Gas, Auto and Health Care counters were top performers, while Information Technology, Consumer Durable and Realty counters were the laggards. The overall market breadth on BSE was in the favour of advances which outperformed declines in the ratio of 1184:925, while 113 shares remained unchanged.

The BSE Sensex is currently trading at 19362.71, up by 183.35 points or 0.96% after trading in a range of 19364.95 and 19192.11. There were 24 stocks advancing against 6 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.82% and Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were, Oil & Gas up by 2.09%, Auto up by 2.06%, Health Care and PSU up by 1.19%, Bankex up by 1.15%, while, IT down by 1.16%, TECk down by 0.48%, Consumer Durables down by 0.39% and Realty was down by 0.09% were the top losers on the BSE.

The top gainers on the Sensex were Dr Reddys Lab up by 4.05%, NTPC up by 3.29%, Tata Motors up by 3.06%, RIL up by 2.61% and Maruti Suzuki up by 2.56%.

On the flip side, Wipro down by 1.91%, Hindustan Unilever down by 1.40%, TCS down by 1.32%, Infosys down by 0.85% and HDFC Bank down by 0.46% were the top losers on the Sensex

Meanwhile, in view of Indian economy growing only by around 5 percent in the FY13, global rating agency Moody's has said that India's infrastructure shortages have hurt its growth potential as well as the competitiveness of its export and import-competing sectors, contributing to its trade and current account deficits.

Moody’s, in its report has said that infrastructure shortages are a constraint on India's Baa3 sovereign rating, which indicates investment grade, with a stable outlook. Further, it added that India's recent reforms do not address all the regulatory, financial and pricing constraints on infrastructure investment. 

However, on the positive side, the rating agency has said that the country could attract private investments in the sector over the next 12-18 months despite slowdown in growth, as the demand for infrastructure remains strong and the interest rates are declining. Moreover, to spur infrastructure growth, the government has set-up the Cabinet Committee on Investment (CCI) to accord fast track clearances to mega projects. India's medium term demand for infrastructure remains robust despite the recent slowdown in GDP growth, it added. 

The government has identified the development of infrastructure as a most critical prerequisite to boost the economy’s growth. The pace of development in the infrastructure sector lingers to a great extent on the investments made and timely execution of the projects. For the 12th Five Year Plan (2012-17), the government has set the $1-trillion investment target for the infrastructure sector. 

The CNX Nifty is currently trading at 5,901.20 up by 64.30 points or 1.10% after trading in a range of 5,906.70 and 5,853.30. There were 42 stocks advancing against 8 declines on the index.

The top gainers of the Nifty were Dr Reddy up by 4.11%, Axis Bank up by 3.39%, NTPC up by 3.25%, Grasim Industries up by 3.23% and Cairn up by 3.08%.On the flip side, HCL Tech down by 1.54%, TCS down by 1.41%, Hindustan Unilever down by 1.34%, Infosys down by 0.98% and Ranbaxy down by 0.83%, were the major losers on the index.

Most of the Asian equity indices were trading in Green; Hang Seng surged 0.90%, Nikkei 225 jumped 0.60%, Straits Times strengthened 0.28%, KOSPI Composite was up by 0.84%.

On the flip side, KLSE Composite declined 0.06%, Shanghai Composite declined by 0.76%, Jakarta Composite declined 0.49% and Taiwan Weighted was down by 0.02%.