Indian markets trade higher in early deals; Software pack up over 1%

Key domestic benchmarks have made a positive start to the new week with both the frontline indices inching towards their crucial 5,900 (Nifty) and 19,400 (Sensex) levels ahead of Reserve Bank of India’s (RBI) annual monetary policy review later this week. Buying in software and technology stocks too supported the up-move with both the sectoral indices on the BSE rising over a percentage point after rupee depreciated 15 paise to close at 54.37 on April 26, 2013 on month-end dollar demand from importers and heavy capital outflows. Realty and infra stocks too remained on the buyers’ radar as the government is considering a relaxation in external commercial borrowing (ECB) norms for raising funds through the ECB window, particularly for low-cost housing and infrastructure sectors like telecom and ports.

Global cues too remained supportive as Asian stock markets are trading in fine fettle in Monday’s morning session ahead of slew of economic data and central bank policy meetings in the euro zone and United States. Sentiments also remained jubilant on expectation that central banks will continue with their loose monetary policy stance. Though, the US markets made a mixed closing on Friday after the GDP growth numbers came lower than expected, also the consumer sentiments eased, making the investors cautious.

Back home, on the sectoral front, software witnessed the maximum gain in trade followed by technology and power while, metal and capital goods remained the only losers on the BSE sectoral space. The broader indices were going neck-to-neck with benchmarks while, the market breadth on the BSE was positive; there were 804 shares on the gaining side against 486 shares on the losing side while 60 shares remain unchanged.

The BSE Sensex opened at 19,306.67; about 19 points higher compared to its previous closing of 19,286.72, and has touched a high and a low of 19,387.90 and 19,294.60 respectively.

The index is currently trading at 19,356.11, up by 69.39 points or 0.36%. There were 21 stocks advancing against 9 declines on the index.

The overall market breadth has made a strong start with 59.56% stocks advancing against 36.00% declines. The broader indices were trading in green; the BSE Mid cap and Small cap indices up by 0.45% and 0.30% respectively. 

The top gaining sectoral indices on the BSE were, IT up by 1.23%, Teck up by 1.01%, Power up by 1.00%, Auto up by 0.70% and Realty up by 0.67% while, Metal down by 0.30% and Capital Goods down by 0.02% were the only losers on the sectoral index.

The top gainers on the Sensex were Hero MotoCorp up by 4.15%, Wipro up by 1.48%, Bajaj Auto up by 1.10%, Infosys up by 1.04% and TCS up by 1.01%.

On the flip side, Jindal Steel was down by 2.38%, Hindalco Industries was down by 1.06%, Hindustan Unilever was down by 0.64%, L&T was down by 0.54% and Tata Motors was down by 0.25% were the top losers on the Sensex.

Meanwhile, expressing confidence that India’s economy will get back to its potential growth rate, President Pranab Mukherjee has said that the country would be able to return to the 7 to 8 percent growth level in the next two to three years on the back of measures taken by the government. 

Mukherjee said that India's strategy of inclusive economic growth has shown positive results and we have to make economic growth work for the betterment of our people, especially those at the bottom of the socio-economic pyramid.

Emphasizing the need for innovation, president said that India lags behind major economies in terms of innovation, while, the country's economic progress will depend on its capability to innovate.

Regarding the deteriorating education quality, he said that it is matter of concern that no Indian university is ranked within the top 200 universities in the world. Therefore, there is the need for developing Indian universities to meet global benchmarks by the way of innovative teaching and improving education infrastructure. He also said that our academic environment must be conducive for promotion of research.

The CNX Nifty opened at 5,877.60; about 6 points higher as compared to its previous closing of 5,871.45, and has touched a high and a low of 5,899.15 and 5,871.15 respectively.

The index is currently trading at 5,894.50, up by 23.05 points or 0.39%. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were Hero MotoCorp up by 4.39%, HCL Tech up by 2.15%, Cairn up by 2.08%, Grasim up by 1.84% and Lupin up by 1.59%.

On the flip side, Jindal Steel & Power down by 2.38%, Ambuja Cements down by 1.52%, Hindalco Industries down by 0.96%, Kotak Bank down by 0.88% and Axis Bank down by 0.82%, were the major losers on the index.

Most of the Asian equity indices were trading in Green; Hang Seng rose 20.44 points or 0.09% to 22,568.15, Jakarta Composite increased 9.90 points or 0.20% to 4,988.41, Straits Times added 5.27 points or 0.16% to 3,354.14 and Taiwan Weighted was up by 1.51 points or 0.02% to 8,023.57.

On the flip side, KLSE Composite slipped 0.35 points or 0.02% to 1,710.94 and KOSPI Composite was down by 3.27 points or 0.17% to 1,941.29.

Markets in mainland China and Japan were closed for holidays.