Benchmarks trade marginally in the green; March IIP expands by 2.5%

The Indian benchmarks were trading marginally in the green in the late morning session despite factory output numbers which jumped 2.5 per cent in March this year against a contraction of 2.8 per cent in the same period last year. The Indices are around major resistance levels at 20200 Sensex from where they fell more than 8% in January, thus investors are cautious to infuse more money into the markets at this point. On the global front, Asian equity indices were trading in mixed led by Japanese equities which soared to fresh five-year highs as the dollar breaks above the symbolic 100 yen level.

Back home, In a pleasant surprise, India's annual industrial output growth measured by index of industrial production (IIP) grew by 2.5% for the month of March 2013, not only higher than the previous month’s figure of 0.6%, but also higher than street’s expectation. The three sectors that constitute the index, i.e., mining, manufacturing and electricity sectors for the month of February grew by -2.9%, 3.2% and 3.5% respectively. The traders were seen piling up positions in Consumer Durables, Auto and PSU. In scrip specific actions, Piramal Enterprises surged after on acquiring about 10% stake in Shriram Transport Finance Company through bulk deals on BSE today, 10 May 2013. HT Media spurted after the company said its board will meet on 14 May 2013, to consider a proposal for buyback of equity shares of the company. New Delhi Television jumped after the company reported consolidated net profit of Rs 27.81 crore in Q4 March 2013, as against net loss of Rs 41.33 crore in Q4 March 2012. Escorts rose after net profit jumped 61.58% to Rs 37.47 crore on 2.86% decline in net sales to Rs 997.13 crore in Q2 March 2013 over Q2 March 2012.

Meanwhile, the NSE Nifty and BSE Sensex were trading just above their psychological 6,000 and 19,900 levels respectively. The market breadth on BSE was showing negative trend with advances to declines in ratio of 845: 587.

The BSE Sensex is currently trading at 20006.76, up by 67.72 points or 0.34% after trading in a range of 20021.41 and 19908.80. There were 23 stocks advancing against 7 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.40% and Small cap index was up by 0.55%. The top gaining sectoral indices on the BSE were, Consumer Durables up by 1.83%, Auto up by 1.21%, PSU up by 0.54%, Bankex up by 0.47% and Power up by 0.46% while there was no loser on the BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.03%, Mahindra & Mahindra up by 1.79%, Hero MotoCorp up by 1.60%, Dr Reddys Lab up by 1.49% and Hindalco Inds up by 1.06%. On the flip side, Sun Pharma was down by 1.21%, Coal India was down by 1.15%, Cipla was down by 1.00%, HDFC was down by 0.81% and  Jindal Steel was down by 0.74% were the top losers on the Sensex.

Meanwhile, the government has approved Rs 3,436.16 crore for the implementation of Phase IV of the Unique Identification Authority of India (UIDAI) scheme, which will commence immediately. The proposed UIDAI Phase IV expenditure comprises Rs 1,600 crore towards cost of enrolments for additional 40 crore residents; Rs 1,049 crore towards cost of printing and dispatch of Aadhaar letters; Rs 490 crore towards cost of updating services; Rs 247.16 crore towards additional cost for construction of buildings for headquarters, data centres and non-data centres of UIDAI.

Unique identification project was initially conceived by the Planning Commission as an initiative that would provide identification for each resident across the country and would be used primarily as the basis for efficient delivery of welfare services. UID numbers will also help marginalized sections of the society by enabling better delivery of services and effective governance.

Since the inception of the project on September 29, 2010, UID numbers have been issued to more than 31 crore residents. The enrolment for additional 40 crore residents allotted to UIDAI will be completed by March 2014. UID numbers will also be issued in respect of enrolment data packets received through Registrar General of India (RGI) as per their committed time lines.

The CNX Nifty is currently trading at 6,071.20 up by 21.05 points or 0.35% after trading in a range of 6,074.65 and 6,045.60. There were 35 stocks advancing against 13 declines while 2 stocks remains unchanged on the index.

The top gainers of the Nifty were Maruti Suzuki up by 2.88%, Indus Ind BK up by 2.21%, M&M up by 1.74%, Hero Moto Co up by 1.61% and BPCL up by 1.57%. On the flip side, Sun Pharma down by 1.27%, PNB down by 1.26%, Coal India down by 1.17%, Cipla down by 1.11% and Asian Paint down by 0.98% were the major losers on the index.

Asian equity indices were trading in mixed; Shanghai Composite rose 2.57 points or 0.12% to 2,235.54, KLSE Composite jumped 1.62 points or 0.09% to 1,767.69, Nikkei 225 soared 386.96 points or 2.73% to 14,578 and Straits Times was up by 6.92 points or 0.23% to 3,440.07.

On the flip side, Hang Seng declined 60.52 points or 0.26% to 23,150.96, KOSPI Composite dropped 30.35 points or 1.53% to 1,949.10, Taiwan Weighted was down by 18.42 points or 0.22% to 8,267.47 and Jakarta Composite decreased marginally by 2.11 points or 0.04% to 5,087.23.