Firm trade prevails in late afternoon session

Indian equity markets continued their firm trade in the late afternoon session on buying in frontline counters. The sentiments on the street were upbeat after Finance Minister P Chidambaram stated that India will limit fiscal deficit for 2013-14 to below 4.8% of gross domestic product. The street also strengthened amid hopes for more monetary easing by RBI in its 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. Traders were seen piling position in Auto, Oil & Gas and Metal stocks, while selling was witnessed in IT, Consumer Durables and TECK sector stock.

In scrip specific development, Havells India was trading in green after Reserve Bank of India (RBI) allowed the company to raise FII investment limit. Dish TV was trading in green after foreign brokerage house recommended a buy on the stock. Axis Bank gained after posting better-than-expected March quarter results. Mahindra & Mahindra Financial Services touched 52-week high after reporting strong fourth quarter numbers.

On the global front, Asian markets were trading mixed, while the European markets too were trading mixed. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,850 and 19,300 levels respectively. The market breadth on BSE was positive in the ratio of 1197:1031, while 126 scrips remained unchanged.

The BSE Sensex is currently trading at 19,353.92, up by 174.56 points or 0.91% after trading in a range of 19,389.50 and 19,192.11. There were 23 stocks advancing against 6 declines, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.59% and Small cap index was up by 0.24%.

The top gaining sectoral indices on the BSE were, Auto up by 2.09%, Oil & Gas up by 1.87%, Metal up by 1.34%, Health Care up by 1.30% and Bankex up 1.21% while, IT down by 1.28%, Consumer Durables down by 0.81%, TECK down by 0.63% and FMCG down by 0.11% were the top losers on the BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 5.00%, Tata Motors up by 3.70%, NTPC up by 3.39%, Sterlite Industries up by 3.07% and Maruti Suzuki up by 2.41%.

On the flip side, Wipro down by 2.65%, TCS down by 1.72%, Hindustan Unilever down by 1.09%, Infosys down by 0.84% and HDFC Bank down by 0.29% were the top losers on the Sensex

Meanwhile, Deputy Chairman of Planning Commission Montek Singh Ahluwalia has said that the much-awaited fuel supply arrangement (FSA) for power plants is likely to be in place in the next two weeks. He further stated that all power projects which are going to be completed by March 2015, will have fuel supply agreements within two weeks.

For the coal supply to power producers, Coal India Ltd (CIL) has so far entered into fuel supply agreement (FSAs) with 60 power plants. A total of 143 FSAs are to be signed by CIL for identified power projects of 60,000 MW capacity, which have been assured of coal supply in the next five years. As per the FSA, Coal India has to provide an assured supply of minimum 80 percent of the total quantity, failing which it would be penalized.While for gas based power projects, the import of LNG and production of shale gas could be the options for gas-based power generating stations in the long term.

The country faced a huge power deficit of over 12,000 MW in the FY13. The growing electricity scarcity in the country is due to fuel shortage of gas and coal as various power plants in the country have been stranded due to fuel scarcity.

The CNX Nifty is currently trading at 5,895.80 up by 58.90 points or 1.01% after trading in a range of 5,909.75 and 5,853.30. There were 41 stocks advancing against 8 declines while 1 stock remained unchanged on the index.

The top gainers of the Nifty were Dr. Reddy’s Lab up by 5.04%, Grasim Industries up by 3.95%, Tata Motors up by 3.73%, NTPC up by 3.32% and Cairn India up by 3.22%.

On the flip side, TCS down by 1.79%, HCL Tech down by 1.44%, Ranbaxy down by 1.18%, Hindustan Unilever down by 1.12% and Infosys down by 0.88% were the major losers on the index.

The Asian equity indices were trading on a mixed note; Hang Seng surged 0.98%, Nikkei 225 jumped 0.60%, Straits Times strengthened 0.20% and KOSPI Composite was up by 0.84%.

On the flip side, KLSE Composite declined 0.04%, Shanghai Composite declined by 0.86%, Jakarta Composite declined 0.81% and Taiwan Weighted was down by 0.02%.

The European markets were trading mixed; France’s CAC 40 lost 0.30%, Germany’s DAX added 0.01% and United Kingdom’s FTSE 100 edged lower by 0.11%.