Benchmarks trade jubilantly buoy by firm global cues

Indian equity indices, extending their previous session’s rally, have started the new series on a jubilant note with both the frontline gauges re-capturing their crucial 5,750 (Nifty) and 19,150 (Sensex) bastions, buoyed by firm global cues. Risk appetite across the globe has improved after three US Federal Reserve officials eased investor concerns over tapering off the bond-buying programme. The US markets rallied for the third consecutive day supported by few more positive economic reports while, all the Asian markets were trading higher led by rally in Japanese market after the nation’s core consumer prices came flat in May compared with a year earlier, marking the first time they have stopped falling in seven months.

Back home, sentiments also remained up-beat after Government, late evening, approved a complex formula that would double the price of gas to $8.4 per unit from all domestic fields operated by government and private oil firms, a move which will result in rise in power tariff, urea cost and CNG prices. This will be the first revision in gas prices in 3 years. Moreover, positive data from the Reserve Bank of India (RBI) on the value of the country’s transactions with the rest of the world propped up the domestic sentiments.

On the sectoral front, oil and gas witnessed the maximum gain in trade followed by public sector undertaking and capital goods, while consumer durables, software and technology remained the few losers on the BSE sectoral space. The broader indices too were trading in fine fettle in early deals, while the market breadth on the BSE was positive; there were 893 shares on the gaining side against 353 shares on the losing side while 49 shares remain unchanged.

The BSE Sensex opened at 19093.18; about 217 points higher compared to its previous closing of 18875.95 and has touched a high and a low of 19209.09 and 19093.18 respectively.

The index is currently trading at 19158.90, up by 282.95 points or 1.50%. There were 26 stocks advancing against 4 declines on the index.

The overall market breadth has made a strong start with 68.96% stocks advancing against 27.26% declines. The broader indices were trading in green; the BSE Mid cap and Small cap indices down by 0.93% and 0.83% respectively. 

The top gaining sectoral indices on the BSE were, Oil & Gas up by 3.24%, PSU up by 1.86%, Capital Goods up by 1.86%, Metal up by 1.76% and Auto up by 1.73%, while Consumer Durables down by 1.06%, IT down by 0.73% and Teck down by 0.26% were the only losers on the sectoral index.

The top gainers on the Sensex were ONGC up by 4.70%, Tata Motors up by 3.15%, RIL up by 2.96%, Coal India up by 2.86% and BHEL up by 2.64%.

On the flip side, Infosys was down by 0.87%, Wipro was down by 0.81%,  Hindustan Unilever was down by 0.58% and TCS was down by 0.36% were the only losers on the Sensex.

Meanwhile, as per United Nation Conference on Trade and Development (UNCTAD), India received FDI inflows of $26 billion in 2012, which is 29% less compared to $36.19 billion of 2011. The investor confidence and FDI inflows to India were badly affected in 2012 because of the slowest economic growth coupled with high inflation.

The UNCTAD World Investment Report 2013 stated that in 2012 Indian investor confidence was affected and FDI inflows declined significantly. However, the report stated that the expansion of the economy and creation of manufacturing zones for Japanese and Korean companies is helping in improving the country’s FDI. Further it said that inflows into the services sector are likely to grow, backed by ongoing efforts to open up key economic areas such as retailing. Flows to manufacturing too are expected to increase as a number of countries, including Japan and Republic of Korea have established country or industry-specific industrial zones in the Delhi-Mumbai industrial corridor.

The Indian FDI outflows declined 30.92% to $8.6 billion from $12.45 billion due to shrinking value of cross-border mergers and acquisitions (M&As) by Indian companies. At the same time, India invested about $ 4.38 billion in least developed economies (LDCs) in 2012. Indian companies contributed 20% of the share for Greenfield projects in LDCs in 2012. The Indian LDC investments were diversified in the geographical and sectoral basis. In Africa, India focused at the east and southern regions of the continent.

The CNX Nifty opened at 5,749.50; about 67 points higher as compared to its previous closing of 5,682.35, and has touched a high and a low of 5,784.30 and 5,749.50 respectively.

The index is currently trading at 5,767.55, up by 85.20 points or 1.50%. There were 44 stocks advancing against 6 declines on the index.

The top gainers of the Nifty were ONGC up by 4.89%, BPCL by 3.28%, Reliance Industries up by 3.11%, BHEL up by 2.92% and Tata Motors up by 2.92%.

On the flip side, HCL Tech down by 1.68%, Ranbaxy down by 1.57%, Infosys down by 1.02%, Hindustan Unilever down by 0.53% and TCS down by 0.47% were the major losers on the index.

The Asian equity indices were trading in green; Shanghai Composite rose 15.26 points or 0.78% to 1,965.27, Hang Seng surged 238.51 points or 1.17% to 20,678.59, Jakarta Composite soared 79.24points or 1.69% to 4,754.99, KLSE Composite jumped 14.78 points or 0.84% to 1,766.35, Nikkei 225 zoomed 479.13 points or 3.63% to 13,692.68, Straits Times increased 29.11 points or 0.93% to 3,147.14, KOSPI Composite added 26.35 points or 1.44% to 1,861.05 and Taiwan Weighted was up by 50.99 points or 0.65% to 7,934.89.