Benchmarks trade at intra-day high levels amid firm trade deficit data

Indian equity benchmarks paired all early losses and were trading near at their intra-day high levels in the afternoon session amid buying witnessed in IT, teck and capital goods stocks. Investors’ sentiments got a support as trade deficit for December narrowed to $10.14 billion in December 2013 compared with $17.59 billion in the same month last year. Sentiments also got support as the Reserve Bank of India (RBI) gave foreign investors an option to exit their investments by selling their holdings of equity or debt. The central bank’s move is likely to enhance foreign investment into the country. Furthermore, the ZyFin Business firm highlighted that Indian economic growth is likely to improve in the coming future on the back of increasing exports and industrial activity in the country. ZyFin Research's Business Cycle Indicator (BCI) has registered 4.7 percent growth in December 2013 compared to the same period in the previous year. IT was top gainer on BSE trading up by 2.20% as IT major Infosys Q3 results beat expectations with 21 percent rise in quarterly net profit as stronger economic growth in Europe and the United States revived demand for outsourcing services. Shares of NBFCs firms such as Manappuram Finance and Muthoot Finance are trading higher by over 7%, extending their previous day’s 20% rally after the Reserve Bank of India (RBI) has revised upwards loan-to-value (LTV) to 75% from 60% earlier.

On global front, Asian shares were trading mixed with Nikkei 225 up by 0.17% and Shanghai Composite down by 0.57% as weak trade data from China reflected that economic growth in the second world's largest economy is struggling. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,200 and 20,800 levels respectively. The market breadth on BSE was positive, out of 2,111 stocks traded, 1,128stocks advanced, while 871 stocks declined on the BSE.

The BSE Sensex is currently trading at 20,856.86 up by 143.49 points or 0.69% after trading in a range of 20,902.21 and 20,625.17. There were 15 stocks advancing against only 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.26%, while Small cap index up by 0.57%.

The gaining sectoral indices on the BSE were IT up by 2.20%, Teck up by 1.83%, Capital Goods up by 0.74%, Consumer Durables up by 0.66% and Realty up by 0.63%. While, Auto down by 0.67%, Metal down by 0.63% and Power down by 0.14% were the only losing indices on BSE.  

The top gainers on the Sensex were Infosys up by 3.11%, Wipro up by 2.08%, TCS up by 1.46%, RIL up by 1.43% and ONGC up by 1.16%. On the flip side, Hindalco Inds down by 1.86%, M&M down by 1.56%, Coal India down by 1.42%, Bajaj Auto down by 1.12% and SSLT down by 0.92%.

Meanwhile, in view of substantial drop in bulk fuel sales, Oil ministry is mulling a partial rollback of bulk diesel prices. In January 2013 government had decided to raise the price of subsidized diesel in small amounts every month and also asked bulk buyers to pay market rates for diesel. However, since then, the sales of bulk diesel had gone down from 18% of the overall diesel sales to 10%. As, all state transport utilities are depending on retail outlets, leaving railways and defense as the only bulk consumers in the country.

Meanwhile, the Petroleum Secretary Vivek Rae has underscored that suggestions put forward by Kirit Parikh panel for a higher dose of monthly diesel price would also be taken up before the Cabinet soon. The Parikh committee, among other things, had suggested Rs 5 hike on diesel prices, Rs 250 a cylinder increase in the price of domestic cooking gas and Rs 4 a litre in kerosene oil, with immediate effect.

Oil Ministry too has highlighted that there was a need to review the subsidy sharing mechanism to ensure that upstream companies get about $65 a barrel on sale of crude oil, which is currently in the range of $40-42 a barrel. This move would be a big positive for upstream oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India, while the Parikh panel has suggested keeping GAIL India out of subsidy sharing mechanism.

The CNX Nifty is currently trading at 6,206.15 up by 37.80 points or 0.61% after trading in a range of 6,222.75 and 6,139.60. There were 28 stocks advancing against 22 declining on the index.

The top gainers of the Nifty were Infosys up by 3.14%, Wipro up by 2.08%, JP Assocaites up by 1.94%, Indusind Bank up by 1.84% and TCS up by 1.56%. On the flip side, Hindalco Inds down by 1.86%, Power Grid down by 1.67%, M&M down by 1.63%, Coal India down by 1.37% and Bajaj Auto down by 1.28% were the major losers on the index.

The Asian equity indices were trading mixed; Nikkei 225 up by 0.17%, Hang Seng up by 0.40%, Taiwan Weighted up by 0.17% and Jakarta Composite up by 0.68%. While, Shanghai Composite down by 0.57%, KLSE Composite down by 0.04%, Straits Times down by 0.04% and Seoul Composite down by 0.25%.