Firm trade persists; Sensex above 19,400 mark

Indian equity markets added gains to continue their firm trade hovering near the highest point of the day on account of buying in frontline blue chip counters and taking cues from the European counterparts. Investors’ sentiments improved after measures taken by the central bank and the market regulator to curb speculative trading in foreign exchange derivatives and arrest rupee’s slide. Firm trade in Asian counterparts also improved the sentiments. The frontline gauges continued to trade above their crucial 5,850 (Nifty) and 19,400 (Sensex). Traders were seen piling positions in consumer durables, power, healthcare and capital goods stocks. In scrip specific development, Sun pharma, BHEL, Bajaj auto and Sterlite industries were trading over 2 percent higher, while Jindal steel, Mahindra and Mahindra and HUL were trading lower. The market breadth on BSE was positive in the ratio of 1204: 913, while 118 scrips remain unchanged. 

The BSE Sensex is currently trading at 19452.63, up by 127.86 points or 0.66% after trading in a range of 19486.00 and 19380.25. There were 22 stocks advancing against 8 declines on the index.

The broader indices were too trading in green; the BSE Mid cap index was up by 0.59% while the Small cap index was up by 0.61%.

The top gaining sectoral indices on the BSE were, Consumer Durables up by 2.23%, Power up by 2.06%, Health Care up by 1.61%, Capital Goods up by 1.44%, and Bankex up by 1.08%, while there were no losers on the sectoral index.

The top gainers on the Sensex were Sun Pharma up by 3.79%, BHEL up by 2.68%, Bajaj Auto up by 2.28%, Sterlite Industries up by 1.88% and Dr Reddys Lab up by 1.66%. On the flip side, Jindal Steel down by 1.24%, Mahindra & Mahindra down by 0.88%, Hindustan Unilever down by 0.71%, Maruti Suzuki was down by 0.49% and ONGC down by 0.49% were the top losers on the Sensex.

Meanwhile, amid the talk of government increasing import duty on pulses and Commission for Agriculture Costs and Prices (CACP) suggesting 10% import duty hike on pulse import to boost domestic production, the Food Ministry has favoured a 7.5% import duty on pulses. The pulses imports have been permitted at zero import duty since 2006. CACP, which recommends support price for agriculture commodities, had recommended 10% import duty on pulses in its report on kharif 2013-14 crops.

The government is of the view that import duty hike is necessary at this point to protect the domestic production because imported pulses have become cheaper compared to domestic pulses, especially after the hike in the minimum support price (MSP). As per the industry data, traders are now importing tur pulse at Rs 3,300-3,500 per quintal from Myanmar, while domestic prices are ruling at Rs 4,300 per quintal. 

Although India is the largest producer of pulses but it imports about three million tonnes of pulses every year to fulfill its domestic demand. In last few years, the government has made progress in increasing the pulses production through higher MSP, which boosts confidence of Indian farmers to produce more pulses.

The CNX Nifty is currently trading at 5,857.15, up by 45.60 points or 0.78% after trading in a range of 5,864.95 and 5,834.60. There were 40 stocks advancing against 10 declines on the index.

The top gainers of the Nifty were Sun Pharmaceuticals was up by 3.91%, Power Grid up by 3.80%, Bank of Baroda up by 3.03%, Reliance Infrastructure up 2.73% and BHEL up by 2.71%. On the flip side, Jindal Steel down by 1.65%, M&M down by 0.85%, Hindustan Unilever down by 0.79%, Cairn down by 0.58% and Coal India down by 0.52% were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 0.37%, Hang Seng increased 0.49%, KLSE Composite jumped 0.21%, Nikkei 225 surged 2.58%, Straits Times gained 0.82%, KOSPI Composite added 0.74%and Taiwan Weighted was up by 1.08%.

On the flip side, Jakarta Composite declined by 0.36% was the lone loser amongst Asian pack.

European markets too got off to a positive start; with CAC 40 inching higher by 0.75%, DAX rising by 1.09% and FTSE 100 advancing by 1.12%.