Markets open positive on firm global cues; Sensex reclaims 17,000 mark

The Indian equity markets have made a decent start tracking firm cues from global equity indices. The US markets climbed again overnight, on expectations that Europe would manage its debt trouble and on positive domestic earnings expectations while, all the Asian equity indices were trading in the positive terrain at this point of time. Back home, sustained buying in most of the key heavyweights along with broader indices supported BSE’s -- Sensex -- and NSE’s -- Nifty -- to regain their crucial 17,000 and 5,100 mark respectively. Banking witnessed the maximum gain in trade followed by software and technilogy while, oil and gas and healthcare remained the only losers on the BSE sectoral space. Meanwhile, IT stock extended their rally triggered by good Q2 results from IT bellwether Infosys, which also raised its full year earnings guidance. Stocks like Infosys, TCS, Wipro and HCL Tech all edged higher in the trade. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,175 shares on the gaining side against 571 shares on the losing side while 66 shares remained unchanged.

The BSE Sensex opened at 17,048.00; about 90 points higher compared to its previous closing of 16,958.39, and has touched a high and a low of 17,084.07 and 16,998.53 respectively.

The index is currently trading at 17,044.77, up by 86.83 points or 0.51%. There were 18 stocks advancing against 12 declines on the index.

The overall market breadth has made a strong start with 64.85% stocks advancing against 31.51% declines. The broader indices were out performing benchmarks; the BSE Mid cap and Small cap indices surged 0.67% and 0.68% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 1.40%, IT up by 1.29%, TECk up by 0.99%, CD up by 0.72% and Power was up by 0.68%. While, Oil and Gas down by 0.08% and HC down by 0.04% remained the only loser on the index.

The top gainers on the Sensex were SBI up by 2.82%, BHEL up by 1.69%, ICICI Bank up by 1.69%, Infosys up by 1.40% and TCS was up by 1.31%.

On the flip side, Jindal Steel was down by 1.53%, Maruti Suzuki was down by 1.40%, Sun Pharma was down by 0.86%, Coal India was down by 0.72% and DLF was down by 0.51% were the top losers on the Sensex.

Meanwhile, India’s exports have maintained their growth momentum, during September it grew by 36.3% to $24.8 billion. However, because of the slowdown in the United States and European nations, the pace of growth has decelerated.

Commerce Secretary Rahul Khullar said, India's exports maintained their growth momentum in September, 2011, rising by 36.3% year-on-year to $24.8 billion, though there was a 'deceleration' due to uncertainty in the US and Europe.

For the month of September, India’s imports surged by 17.2% to $34.6 billion, making trade deficit of $9.8 billion. In the first half of the current financial year, India’s exports increased by 52.1% to $160 billion. On the other hand, country’s imports surged by 32.4% to $233.5 billion. As a result, the India’s trade deficit for the April to September 2011 stood at $73.5 billion.

Khullar said there is growth in country's exports, but a deceleration is clear. 'Good news is back. Exports continue to grow over last year, but the heady numbers have gone, it is clear there is deceleration,' he added.

In the first half of current financial year, the sectors like engineering, gems and jewellery and petroleum performed well. Engineering exports surged by 103% to $46.4 billion, petroleum shipments increased by 53% to $27 billion and gems and jewellery consignments jumped by 23% to $18.5 billion in comparison with the April to September 2010. During April to September 2011, import of petroleum products surged by 42% to $70.4 billion.

The S&P CNX Nifty opened at 5,130.80; about 31 points higher compared to its previous closing of 5,099.40, and has touched a high and a low of 5,136.95 and 5,110.40 respectively.

The index is currently trading at 5,124.50, higher by 25.10 points or 0.49%. There were 29 stocks advancing against 21 declines on the index.

The top gainers of the Nifty were SBI up by 2.80%, HCL Tech up by 2.52%, ICICI Bank up by 1.76%, BHEL up by 1.46% and Infosys up by 1.41%.

On the flip side, Jindal Steel down by 1.39%, Maruti Suzuki down by 1.37%, Sun Pharma down by 1.03%, Sesa Goa down by 0.76% and Cairn down by 0.72%, were the major losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up 12.19 points or 0.50% to 2,432.19, Hang Seng was up 350.62 points or 1.91% to 18,680.08, Jakarta Composite was up 56.23 points or 1.55% to 3,692.16, KLSE Composite was up 13.79 points or 0.97% to 1,442.29, Nikkei 225 was up 77.80 points or 0.89% to 8,816.70, Straits Times was up 10.54 points or 0.38% to 2,748.29, Seoul Composite was up 20.23 points or 1.12% to 1,829.73 and Taiwan Weighted was up by 37.18 points or 0.50% to 7,419.53.