Benchmarks trade jubilantly on firm global cues; Nifty regains 6,100 level

Buoyed by strong global cues, Indian equity benchmarks are trading jubilantly in early deals on Friday with frontline gauges recapturing their crucial 6,100 (Nifty) and 20,600 (Sensex) bastions. Some support to the markets came in with a study commissioned by market regulator Securities and Exchange Board of India (Sebi) suggesting lowering of securities transaction tax (STT) to boost the capital market. Appreciation in Indian rupee too supported the markets positively. The rupee was trading at Rs 60.93 compared with previous close of Rs 61.22 per dollar on the back of positive sentiments in the market and dollar sales by banks.

Global cues too remained supportive with the US markets ending higher overnight on report of decline in initial jobless claims and rise in regional manufacturing activity. Moreover, most of the Asian equity benchmarks too were trading in the green at this point of time with Chinese Shanghai was trading with a gain of around half a percent after the nation’s economy grew 7.8% in the third quarter, its fastest pace this year and in line with expectations, as firmer foreign and domestic demand lifted factory production and retail sales.

Back home, all the sectoral indices on the BSE were trading in the green with banking and oil and gas segments gaining the most. Realty, public sector undertaking, consumer durables, metal, power and healthcare too were trading with significant gains. The broader indices were going neck-to-neck with benchmarks, while the market breadth on the BSE was positive; there were 961 shares on the gaining side against 283 shares on the losing side while 42 shares remain unchanged.

The BSE Sensex opened at 20486.78; about 71 points higher compared to its previous closing of 20415.51, and has touched a high and a low of 20661.24 and 20486.78 respectively.

The index is currently trading at 20651.05, up by 235.54 points or 1.15%. There were 28 stocks advancing against 2 declines on the index.

The overall market breadth has made a strong start with 74.73% stocks advancing against 22.01% declines. The broader indices too were trading in green; the BSE Mid cap index up by 0.89% and Small cap index up 0.71%. 

The top gaining sectoral indices on the BSE were, Bankex up by 2.06%, Oil & Gas up by 1.28%, Realty up by 1.20%, PSU up by 1.16% and Consumer Durables up by 1.14%, while there were no losers on the sectoral index.

The top gainers on the Sensex were ICICI Bank up by 2.84%, SBI up by 1.79%, HDFC up by 1.72%, SSLT up by 1.68% and Dr Reddys Lab up by 1.64%. On the flip side, Bajaj Auto was down by 0.32% and TCS was down by 0.22% were the few losers on the Sensex.

Meanwhile, with an aim to contain the fiscal deficit at 4.8 percent of GDP in the current financial year, Finance Ministry may seek higher dividend payments from state-owned companies in sectors such as steel, coal, mines and power. The move will help the government to contain the fiscal deficit within the target limit by making up part of the shortfall from disinvestment and lower revenue receipts on account of slowing economic growth. So far this fiscal, the government has raised only Rs 1,400 crore against the set disinvestment target of Rs 40,000 crore.

Finance Minister P Chidambaram will meet the chiefs of public sector units (PSUs) soon and will discuss various issues, including dividend payment and investment of surplus funds. Meanwhile, the government has already asked the PSUs to invest their surpluses funds or give special dividend. Recently, Chidambaram has said that the government is committed to the path of fiscal consolidation and will take difficult decisions soon to check country’s widening deficits. The government has set target to contain fiscal deficit at 4.8 percent of GDP in the current financial year.

Country’s fiscal deficit has touched around three-fourths of the budget estimate in the first five months of the fiscal. Meanwhile, the government is taking measures to check fiscal deficit. Recently, it has announced a slew of austerity measures including banning government departments for holding meetings in 5-star hotels among others to cut spending in non-critical areas.

The CNX Nifty opened at 6,070.90; about 25 point higher as compared to its previous closing of 6,045.85, and has touched a high and a low of 6,118.30 and 6,070.90 respectively.

The index is currently trading at 6,116.80, up by 70.95 points or 1.17%. There were 48 stocks advancing against 1 declines and one stock remains unchanged on the index.

The top gainers of the Nifty were JP Associate up by 3.46%, ICICI Bank up by 3.12%, Bank of Baroda up by 3.00%, IndusInd Bank up by 2.74% and SSLTup by 1.98%. On the flip side, Asian Paints down by 1.62% was the sole loser on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 9.49 points or 0.43% to 2,198.03, Hang Seng surged 148.58 points or 0.64% to 23,243.46, KLSE Composite gained 0.11 points or 0.01% to 1,797.53, Jakarta Composite increased 2.19 points or 0.05% to 4,521.12, Straits Times strengthened 6.94 points or 0.22% to 3,193.56, Seoul Composite added 2.81 points or 0.14% to 2,043.42 and Taiwan Weighted was up by 38.15 points or 0.46% to 8,412.83.

On the flip side, Nikkei 225 was down by 24.86 points or 0.17% to 14,561.65.