Benchmarks end higher buoyed by firm global cues

Buoyed by firm regional cues, Indian equity markets snapped the volatile day of trade near intraday high with both the frontline gauges re-conquering their crucial 5,950 (Nifty) and 19,650 (Sensex) levels. The frontline gauges started the session on a positive note supported by firm trade across the Asian region but pared almost all of their gains couple of time during the trade as sentiments turned choppy after global credit rating agency Standard & Poor’s though ruling out rating upgrade for India at the current juncture, indicated improvement in rating outlook. The agency also said, India could maintain a sustainable 7-8% growth rate if it is able to bring down its fiscal and current account deficits (CAD) to 3% of GDP level. Sentiments in the early deals also remain dampened after selling was witnessed in banking space after investigative website Cobrapost accused 23 public and private financial institutions for facilitating money laundering. Weaker than expected services PMI data too played the spoilsport for the markets as HSBC services Purchasing Managers’ Index (PMI), based on a survey of around 400 companies, fell to its slowest pace in one and half years to 50.7 in April from 51.4 in March. 

Sluggish opening in European counters also took their toll on domestic markets due to which Sensex and Nifty turned slightly in red for a brief period. Meanwhile Asian markets ended the session mostly in green after data showed that US employment rose at a faster pace than expected in April and hiring was much stronger than previously thought in the prior two months, a relief to investors nervous about a US slowdown.

The domestic markets, however, picked up speed in the last leg of trade supported by continued buying in software and technology stocks. Scrips like, Infosys, Wipro and TCS edged higher after a strong US job report for April 2013. Sentiments also got some support after Prime Minister Manmohan Singh, assuring international investors that India is committed to its economic growth agenda said, the government is taking steps to make India a more attractive investment destination with a view to achieve over 8% economic growth in the 12th Five Year Plan.

Buying in metal space also supported the up-move as stocks like Hindalco Industries, Sterlite Industries, Tata Steel, Sesa Goa, NMDC and Hindustan Zinc edged higher after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), rose over 5% on Friday, after a better than expected US non-farm payrolls data. Power stocks too remained on the buyers’ radar after the power Minister Jyotiraditya Scindia said that the country's electricity generation capacity will surge to nearly 315 gigawatts by fiscal year 2016-17 with an estimated investment of about Rs 5 lakh crore.

The NSE’s 50-share broadly followed index Nifty rose by about thirty points to end above its psychological 5,950 support level, while Bombay Stock Exchange’s Sensitive Index - Sensex surged by about one hundred points to finish above its psychological 19,650 mark. The broader markets too traded with traction during the session and snapped the trade with a gain of about a percent.

The market breadth remained in favour of advances as there were 1,339 shares on the gaining side against 1,006 shares on the losing side, while 142 shares remain unchanged.

Finally, the BSE Sensex gained 98.00 points or 0.50% to settle at 19,673.64 while the CNX Nifty rose by 27.05 points or 0.46% to end at 5,971.05.

The BSE Sensex touched a high and a low of 19,694.29 and 19,554.31, respectively. The BSE Mid cap index up by 1.17% and Small cap index was up by 0.96%.

The top gainers on the Sensex were, Tata Steel up by 3.58%, Hindalco up by 3.52%, TCS up by 3.25%, Reliance up by 2.53% and Hero Motocorp up by 2.32%, while ONGC down by 1.67%, NTPC down 1.48%, ITC down 1.35%, HDFC Bank down 0.91% and Coal India down by 0.79% were the top losers on the index. 

The top gainers on the BSE Sectoral space were Metal up 1.98%, IT up 1.88%, TECk up 1.55%, Consumer Durables up 1.51% and Auto up 1.39%, while FMCG down 0.77%, PSU down 0.25%, Capital Goods down 0.09% and Bankex down 0.01% were the top losers on the sectoral space.

Meanwhile, assuring international investors that India is committed to its economic growth agenda, Prime Minister Manmohan Singh said, the government is taking steps to make India a more attractive investment destination with a view to achieve over 8% economic growth in the 12th Five Year Plan. While inaugurating the 46th annual general meeting of the Asian Development Bank (ADB), Singh assured the international audience, comprising Finance Ministers and central bank governors of several countries, that India is taking strong measures to achieve fiscal consolidation and high economic growth.

Recently, the government set up a Cabinet Committee on Investment (CCI) to accord approvals to projects of over Rs 1,000 crore, which were held up due to various regulatory nods. It also unveiled a fiscal consolidation roadmap with an aim to bring fiscal deficit to the level of 3% of GDP by 2016-17. Regarding the steps to promote inclusive growth, Singh said that government has introduced legal entitlements to work, education and information from public authorities.

Moreover, the government also plans to provide people a legal entitlement to food at affordable cost. The Direct Benefits Transfer (DBT) programme will make it simpler for the beneficiaries to have access to benefits besides eliminating corruption and wastage in the public distribution system, he added.

Referring to India-Asian Development Bank (ADB) ties, the Prime Minister said that expanding infrastructure financing and investment through the intermediation of the ADB could help to lower the cost of financing for long-term infrastructure projects and hope that ADB will continue moving in this direction and propel growth in the region.

The CNX Nifty touched a high and a low of 5,976.50 and 5,928.45 respectively. 

The top gainers on the Nifty were Hindalco up by 3.72%, Tata Steel up 3.63%, Asian Paints up 3.30%, TCS up 3.28% and NMDC up by 2.77%.

On the flip side, the top losers of the index were, Kotak Bank down 1.49%, ONGC down 1.44%, ITC down 1.39%, Ambuja Cement down 1.35% and ACC down by 1.21%.

The European markets were trading mixed, France’s CAC 40 down by 0.29%, the United Kingdom’s FTSE 100 up by 0.94% and Germany’s DAX down by 0.05%.

Most Asian stock markets ended notably higher on Monday as investors were busy picking up stocks, following a positive lead from Wall Street where the major averages hit new highs on Friday following upbeat jobs data. Chinese markets went home with smart gains with constant buying on the first trading day of the weak. Meanwhile, South Korean shares were trading in green after refiners shares rebounded from their recent sharp declines.

Japanese market remained shut for the trade today on account of Children’s Day.