Firm global cues lift benchmarks higher; Nifty reclaims 5,200 mark

After a fall of over two percent last week, the domestic bourses have bounced back on the back of strong global cues post the Italian Senate backed austerity package. Indian benchmark indices have made a gap-up opening after positive economic news lifted global sentiments. The US markets extended gains on Friday on getting good domestic economic reports while, all the Asian markets were trading up by 1-2 percent at this point of time. Moreover, Japanese economy grew for the first time in four quarters since the massive earthquake in March too added the sentiments. Back home, BSE’s Sensex and NSE’s Nifty recaptured their crucial 17,300 and 5,200 level respectively. Realty remained the top gainer on the sectoral front as Godrej Properties, Prestige Estates, DLF and Anant Raj Industries, up by 2-3 percent each while, Financial Technologies, Tech Mahindra, Infosys and HCL Technologies, up 2 percent each, are the major gainers among the IT stocks. However, there were no losers on the BSE sectoral index. Moreover, traders will be closely eyeing the inflation data for the month of Octobers to be announced later in the day, which is being estimated to remain flat as of the previous month. The market breadth on the BSE was positive; there were 1,071 shares on the gaining side against 567 shares on the losing side while 54 shares remained unchanged. However, PSU oil marketing companies viz. HPCL, BPCL and IOC declined in the early trade as crude oil boils. Benchmark crude for December delivery gained $0.11, or 0.12% to $99.10 a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery rose $0.27 or 0.25% to $114.43 a barrel, on the ICE Futures exchange.

The BSE Sensex opened at 17,348.52; about 155 points higher compared to its previous closing of 17,192.82, and has touched a high of 17,391.99 while low remain its opening.

The index is currently trading at 17,353.46, up by 160.64 points or 0.93%. There were 26 stocks advancing against just 4 declines on the index.

The overall market breadth has made a strong start with 63.30% stocks advancing against 33.51% declines. The broader indices too were trading in the green; the BSE Mid cap and Small cap indices surged 0.50% and 0.53% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.45%, TECk up by 1.39%, IT up by 1.37%, Auto up by 1.21% and HC was up by 1.20%. While, there were no losers on the index.

The top gainers on the Sensex were Sun Pharma up by 2.65%, Bharti Airtel up by 2.10%, HDFC Bank up by 1.95%, Hero MotoCorp up by 1.91% and Bajaj Auto was up by 1.84%.

On the flip side, Coal India was down by 1.43%, BHEL was down by 0.69%, Tata Power was down by 0.69%  and Maruti Suzuki was down by 0.08% were the only losers on the Sensex.

Meanwhile, pointing the approach to reconsider the price hike effected recently to the softening of global crude oil prices, officials in the Petroleum and Natural Gas Ministry said the recent rupee depreciation and crude oil prices would be taken up for discussion on November 14 to look at the options of reducing petrol prices.

Global oil prices declined sharply on November 11 and if rates sustain and the rupee does not depreciate any further, a reduction of Rs 0.80 per litre in petrol prices (excluding taxes) is possible, the Indian Oil Corporation official said. Government-owned oil firms last week hiked the petrol price by Rs 1.80 per litre, the fourth increase this year, as the rupee fell from Rs 46.29 a dollar to Rs 49.40 a dollar. If the cut is effected, it would be the first reduction in petrol prices since January 2009.

Earlier this week, IOC Chairman R S Butola had said, 'Gasoline (petrol) prices have come down from $125 per barrel to $115 per barrel. But this has to sustain together with rupee stabilizing against the US dollar.' Moreover, New York's main contract, light sweet crude for delivery in December, also declined 23 cents to $97.55 per barrel. Brent North Sea crude for December delivery fell by 61 cents to $113.10.

In the further development, the finance ministry is also likely to grant another Rs 15,000 crore as compensation to loss-making OMCs for selling fuel below market rates. State-run OMCs have reported combined losses of over Rs 23,000 crore in the first half of the current fiscal and have said that they will not have money to import enough crude oil after December. The oil ministry has already sought a meeting of the empowered group of ministers (EGoM) on fuel prices. 

The S&P CNX Nifty opened at 5,217.35; about 49 points higher compared to its previous closing of 5,168.85, and has touched a high and a low of 5,228.90 and 5,217.10 respectively.

The index is currently trading at 5,218.85 higher by 50.00 points or 0.97%. There were 46 stocks advancing against just 4 declines on the index.

The top gainers of the Nifty were Sun Pharma up by 2.53%, DLF up by 2.35%, JP Associates up by 2.11%, Bharti Airtel up by 2.10% and HDFC Bank up by 2.09%.

On the flip side, Coal India down by 0.95%, Tata Power down by 0.88%, BHEL down by 0.79% and BPCL down by 0.52%, were the major losers on the index.

All the Asian equity indices were trading in the green, Shanghai Composite was up 40.35 points or 1.63% to 2,521.44, Hang Seng was up 458.44 points or 2.40% to 19,595.61, Jakarta Composite was up 38.78 points or 1.03% to 3,817.67, KLSE Composite was up 10.53 points or 0.72% to 1,479.28, Nikkei 225 was up 89.25 points or 1.05% to 8,603.72, Straits Times was up 49.58 points or 1.78% to 2,840.52, Seoul Composite was up 37.69 points or 2.02% to 1,901.14 and Taiwan Weighted was up by 167.07 points or 2.27% to 7,534.36.