Markets extend gains on strong global cues

Positive global markets and a stronger rupee helped the benchmarks to gain some footing in the late morning session as it snapped its losing streak of three consecutive sessions. Investors will now take cues from WPI inflation data today and the Reserve Bank of India's policy meet early next week. Sentiments have turned better on revival of buying by funds and retail investors after the Finance Minister signaled more reforms to boost economic growth. Further, a firming trend in the Asian region following overnight gains at the US market on the back of upbeat economic data, too, influenced the sentiment.

On the global front, The Asian markets too were trading in green at this point of time with the Japanese market surging by about two and a half percent in early deals, rebounding from their biggest drop in three weeks as the yen fell overnight. Meanwhile, South Korean shares too traded higher in morning deals after slumping to a seven-month closing low on Thursday on selling by foreign investors.

The traders were seen piling up positions in Consumer Durables, Realty and Metal sectors. In scrip specific actions, Ranbaxy Laboratories soared after India's No.1 drugmaker by sales, plans to file three to four generic drug applications every year that can earn it a six-month marketing exclusivity in the United States, the company's chief executive said on Thursday. Tata Motors zoomed after JLR May global retail sales came at 32,477 units for the month of May, as compared to 28,915 units reported in the year ago period. Jet Airways surged ahead of Foreign Investment Promotion Board meet to decide on the Rs 2,058 crore Jet-Etihad deal, the largest foreign investment in the Indian aviation sector. Infosys soared after India's second-largest software exporter announced salary increments of an average 8% for the financial year 2014. The increment will be for all eligible employees of the IT firm. Apollo Hospitals rose after Apollo Group of Hospitals said that they will spend Rs 2,200 crore on expanding its facilities and will add 2,700 beds in the next three years. Wipro dropped after India's third largest software firm has been slapped with an over Rs 816 crore claim by tax department, becoming the latest IT company to have got such a notice after Infosys, WNS and iGate.

Meanwhile, the NSE Nifty and BSE Sensex were trading just above their psychological 5,700 and 19,000 levels respectively. The market breadth on BSE was showing positive trend with advances to declines in ratio of 1263:424. The BSE Sensex is currently trading at 19065.86, up by 238.70 points or 1.27% after trading in a range of 19088.16 and 18952.09. There were 26 stocks advancing against 4 declines on the index. The broader indices were trading in green; the BSE Mid cap index was up by 1.17% and Small cap index was up by 1.14%.

The top gaining sectoral indices on the BSE were, Consumer Durables up by 2.12%, Realty up by 2.12%, Metal up by 1.77%, Capital Goods up by 1.74% and Oil & Gas up by 1.67% while, there was no loser on the BSE.

The top gainers on the Sensex were Tata Motors up by 3.71%, Maruti Suzuki up by 3.22%, Tata Steel up by 2.86%, Hindalco Inds up by 2.84% and Tata Power up by 2.69%. On the flip side, Wipro was down by 2.18%, Cipla was down by 1.21%, Hindustan Unilever was down by 0.21%  and TCS was down by 0.09% were the top losers on the Sensex.

Meanwhile, as per the Chief Economic Advisor Raghuram Rajan, the country’s Current Account Deficit (CAD) is likely to be around 4 percent of the gross domestic product (GDP) for the fourth quarter of FY13. The CAD, which represents the difference between the export and import of goods, services and transfers, widened to a record high of 6.7 percent in the third quarter of FY13 on the back of rising oil and gold imports and is expected to be around 5 percent for the previous financial year. Meanwhile, the high CAD is impacting the rupee value, which has hit 58.50/$ level recently. 

India’s gold imports touched 162 tonnes in May, while in April, it were around 100-120 tonnes, higher than the average monthly import level of 70-80 tonnes. Further, the recently released World Gold Council (WGC) report highlighted that India’s gold imports in April-June quarter of 2013 may increase by 200 percent y-o-y to around 300-400 tonnes, which would be almost half the imports of whole of 2012. However, to curb the gold import, the government has been taking steps regularly, including raising import duty. Further, the RBI too had put in place regulations under which gold can only be imported on a consignment basis to meet the genuine demands of jewellery exporters. It has also increased margin money to 100 percent. The CNX Nifty is currently trading at 5,769.80 up by 70.70 points or 1.24% after trading in a range of 5,780.40 and 5,739.40. There were 45 stocks advancing against 5 declines on the index.

The top gainers of the Nifty were Tata Motors up by 3.71%, IDFC up by 2.99%, Hindalco up by 2.94%, Maruti up by 2.84% and Tata Steel up by 2.69%. On the flip side, IndusInd Bank down by 1.68%, Cipla down by 1.25%, HCL Tech down by 0.59%, HUL down by 0.27% and TCS down by 0.16% were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 5.36 points or 0.25% to 2,153.72, Hang Seng surged 219.19 points or 1.05% to 21,106.23, Jakarta Composite zoomed 138.21 points or 3.00% to 4,745.87, KLSE Composite increased 12.63 points or 0.72% to 1,755.50, Nikkei 225 soared 419.82 points or 3.37% to 12,865.20, Straits Times added 26.15 points or 0.84% to 3,156.84 and KOSPI Composite was up by 3.00 points or 0.16% to 1,885.73.

On the flip side, Taiwan Weighted was down by 18.05 points or 0.23% to 7,933.61.