Benchmarks make gap-up start; HUL gains over 15%

Extending their bull run, Indian equity indices have made a gap up opening and are trading with great traction with the Sensex surpassing its crucial 19,500 bastion. Gains in the domestic markets came on the back of positive global cues coupled with the strength in FMCG names like Hindustan Unilever and ITC after Unilever Plc, the parent of Hindustan Unilever said it would make an open offer for an additional 22.52% stake in the company at Rs 600 per share. Some strength also came in after the industry body CII said that reforms in governance as well as innovation across businesses is needed to bring the slowdown-hit economy back to higher growth rate trajectory.

Global cues too remained supportive as the US markets edged higher overnight, lifting the S&P 500 to a record close, as investors embraced the latest corporate earnings reports. Asian markets too traded mostly in the positive terrain in Tuesday’s morning deals tailing record close on Wall Street. Sentiments also remained higher on hopes for political stability in Italy and expectations for global central banks to continue their growth-supporting monetary stimulus.

Back home, stocks of Aviation sector viz. Jet Air India and Spicejet also remained on the buyers’ radar as the civil aviation ministry allowed domestic airlines to unbundle services such as carrying check-in baggage, serving meals and allotting preferential seats, and charge separately for them. On the sectoral front, fast moving consumer goods witnessed the maximum gain in trade followed by metal and healthcare while, oil and gas, auto and capital goods remained the top 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 807 shares on the gaining side against 372 shares on the losing side while 52 shares remain unchanged.

The BSE Sensex opened at 19,492.83; about 105 points higher compared to its previous closing of 19,387.50, and has touched a high and a low of 19,622.68 and 19,492.83 respectively.

The index is currently trading at 19,531.80, up by 144.30 points or 0.74%. There were 18 stocks advancing against 12 declines on the index.

The overall market breadth has made a strong start with 65.56% stocks advancing against 30.22% declines. The broader indices were trading in green; the BSE Mid cap and Small cap indices up by 0.73% and 0.51% respectively. 

The top gaining sectoral indices on the BSE were, FMCG up by 4.30%, Metal up by 1.03%, Health Care up by 0.79%, Realty up by 0.75% and Consumer Durables up by 0.50% while, Oil & Gas down by 0.19%, Auto up by 14% and Capital Goods down by 0.12% were the only losers on the sectoral index.

The top gainers on the Sensex were Hindustan Unilever up by 15.76%, Sterlite Industries up by 2.83%, Sun Pharma up by 1.68%, Coal India up by 1.39% and Tata Steel up by 1.36%.

On the flip side, BHEL was down by 0.86%, Bharti Airtel was down by 0.77%, HDFC Bank was down by 0.60%, ONGC was down by 0.55% and Hero MotoCorp was down by 0.52% were the top losers on the Sensex.

Meanwhile, the centre, as a relief for the domestic tyre manufacturers who had been urging Finance Minister P. Chidambaram to retain the current import duty structure on natural rubber imports, has refrained from increasing customs duty on natural rubber imports for now. Pressure was also mounted on the Finance Ministry to hike the specific duty component of import duty on natural rubber.

The proposal for natural rubber duty hike was mooted at a time when domestic rubber prices were lower than international by Rs 18-20 a kg. Since the second half of December 2012 and early January this year, the pitch was getting louder for review of import duty on natural rubber. Currently, import duty on natural rubber is pegged at 20 per cent or Rs 20 a kg, whichever is lower.

Also, there are issues of shortfall in domestic availability, imperatives of import for reasons of quality of natural rubber required by the tyre sector and continuing tightness in domestic natural rubber supplies due to lean season.

The CNX Nifty opened at 5,932.60; about 28 points higher as compared to its previous closing of 5,904.10, and has touched a high and a low of 5,962.30 and 5,932.60 respectively.

The index is currently trading at 5,935.05, up by 30.95 points or 0.52%. There were 31 stocks advancing against 19 declines on the index.

The top gainers of the Nifty were Hindustan Unilever up by 15.80%, Sun Pharma up by 1.82%, Sesa Goa up by 1.42%, Coal India up by 1.47% and JP Associate up by 1.30%.

On the flip side, IndusInd Bank down by 1.19%, IDFC down by 1.18%, BHEL down by 1.10%, UltraTech Cement down by 0.96% and HDFC Bank down by 0.88%, were the major losers on the index.

Most of the Asian equity indices were trading in Green; Hang Seng rose 181.95 points or 0.81% to 22,762.72, KLSE Composite increased 1.08 points or 0.06% to 1,709.05, Straits Times surged 18.66 points or 0.56% to 3,380.58, KOSPI Composite soared 23.74 points or 1.22% to 1,964.44 and Taiwan Weighted was up by 61.84 points or 0.77% to 8,091.58.

Jakarta Composite declined 14.62 points or 0.29% to 4,985.13 and Nikkei 225 was down by 18.65 points or 0.13% to 13,865.48.

Mainland Chinese markets remained shut for a holiday.