Benchmarks extend previous session's rally

Prolonging their previous session’s northward journey, Indian equity benchmarks are trading firm with frontline gauges recapturing their crucial 19,700 (Sensex) and 5,800 (Nifty) bastions supported by sharp appreciation in Indian rupee as against dollar, tracking global dollar weakness. The rupee rose to near one-week high, and traded at 61.91/92 versus Tuesday’s close of 62.46/47. Some support also came in after Finance Minister P Chidambaram has expressed his confidence of closing the fiscal with a better set of numbers than initially projected. However, investors remained little cautious after the Asian Development Bank (ADB) lowered India’s growth projection for 2013-14 to 4.7 percent from 6 percent earlier, saying the recent rupee depreciation and capital outflows could adversely impact the country’s economy.

On the global front, the US markets despite a good come back, could not manage to end in green overnight as the ongoing government shutdown kept weighing the sentiments and traders remained concerned about the economic impact of a prolonged government shutdown. Moreover, Asian equity markets were exhibiting mixed trend at this point of time amid concerns about the US government shutdown and weak private sector jobs data.

Back home, on the sectoral front, software witnessed the maximum gain in trade followed by metal and technology, while fast moving consumer goods, realty and power remained the top losers on the BSE sectoral space. The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 804 shares on the gaining side against 346 shares on the losing side while 47 shares remain unchanged.

The BSE Sensex opened at 19585.79; about 68 points higher compared to its previous closing of 19517.15, and has touched a high and a low of 19733.58 and 19583.97 respectively. The index is currently trading at 19704.12, up by 186.97 points or 0.96%. There were 26 stocks advancing against 4 declines on the index.

The overall market breadth has made a strong start with 67.17% stocks advancing against 29.05% declines. The broader indices were trading in green; the BSE Mid cap up by 0.73% and Small cap indices up by 0.65%. 

The top gaining sectoral indices on the BSE were, IT up by 2.06%, Metal up by 2.04%, Teck up by 1.80%, Auto up by 1.45% and Consumer Durables up by 1.35%, while FMCG down by 0.44%was the only loser on the sectoral index.

The top gainers on the Sensex were TCS up by 3.52%, Wipro up by 2.88%, Sesa Goa up by 2.85%, Coal India up by 2.47% and Tata Steel up by 2.38%.  On the flip side, Hindustan Unilever was down by 1.48%, Bharti Airtel was down by 1.01%, ITC was down by 0.70% and SBI was down by 0.39% were the top losers on the Sensex.

Meanwhile, In order to bring transparency in tainted coal sector of the country, the government may set up proposed coal regulator before the auctioning of coal mines scheduled in January. Earlier, in June, the Cabinet had given approval for the independent coal regulatory bill that needs to be cleared by Parliament before it becomes a law. At present, government is seeking few legal clarifications from the Law Ministry and can issue an executive order soon for immediately set up of a coal regulator.

Meanwhile, the need to set up the regulator was felt long-time back and once the regulator is set up, it will discontinue monopolistic practices of the Coal India. Further, the regulator will have powers to adjudicate on disputes related to price, quality, and supplies and also supervise the supply and demand of coal in the country. Moreover, the regulator will be empowered to resolve disputes including those arising out of fuel supply agreements (FSAs), however, it will not determine fuel rates, a job that will continue to be vested with the producers.

Recently, the government has approved the new methodology for auctioning coal blocks in order to provide upfront and production-linked payments and benchmarking of coal sale prices. The move will ensure greater transparency in auctioning the fully explored coal blocks and will also enable the government to allot coal mining licences through competitive bidding for the first time.The CNX Nifty opened at 5,819.10; about 39 points higher as compared to its previous closing of 5,780.05, and has touched a high and a low of 5,848.10 and 5,802.70 respectively.

The index is currently trading at 5,841.60, up by 61.55 points or 1.06%. There were 45 stocks advancing against 5 declines 5 on the index.

The top gainers of the Nifty were Ranbaxy up by 3.40%, TCS up by 3.31%, Ambuja Cements up by 3.17%, HCL Tech up by 3.16% and NMDC up by 3.11%. On the flip side, Hindustan Unilever down by 1.53%, Bharti Airtel down by 1.19%, ITC down by 0.77%, SBI down by 0.51% and DLF down by 0.29% were the major losers on the index.

The Asian equity indices were trading mixed; Hang Seng surged 222.56 points or 0.97% to 23,207.04, Jakarta Composite rose 24.29 points or 0.55% to 4,411.90 and Taiwan Weighted was up by 139.78 points or 1.70% to 8,356.30.

On the flip side, KLSE Composite slipped 0.14 points or 0.01% to 1,770.21, Nikkei 225 dipped 9.11 points or 0.06% to 14,161.38 and Straits Times was down by 4.40 points or 0.14% to 3,148.18.

South Korea and China are closed for National Foundation Day and National Day, respectively.