Benchmarks add gains; IT, TECK lead

Indian equities added gains to continue firm trade in the late afternoon session on account of buying in frontline counters taking cues from European counterparts. The buying continued across the board from the early trade after IT bellwether Infosys formally began the earning season on optimistic note by reporting better than expected Q3FY14 earnings. The sentiments got a push, as on macro front India’s trade deficit narrowed to $10.14 billion in December from $17.59 billion a year earlier with exports registering growth of 3.49% to $26.35 billion. Traders were seen piling positions in IT, TECK and Oil & Gas stocks while selling was witnessed in Auto, Metal and Bankex sector stocks. In scrip specific development, Mahanagar Telephone Nigam (MTNL) was trading in green after the Cabinet took crucial decisions yesterday granting some relief to state-run company. Jubilant FoodWorks was trading in red as index provider MSCI excluded the stock from its small cap indices.

On the global front, the Asian markets were trading on a mixed note, while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 6,250 and 20,900 levels respectively. The market breadth on BSE was positive in the ratio of 1258:1071 while 147 scrips remained unchanged.

The BSE Sensex is currently trading at 20885.96, up by 172.59 points or 0.83% after trading in a range of 20971.23 and 20625.17. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were too trading in green; the BSE Mid cap index was up by 0.18%, while Small cap index up by 0.59%.

The gaining sectoral indices on the BSE were IT up by 2.50%, TECK up by 2.14%, Oil & Gas up by 1.68%, FMCG up by 1.55% and Capital Goods up by 0.43%. While, Auto down by 0.73%, Metal down by 0.72%, Bankex down 0.40% and Power down by 0.18% were the only losing indices on BSE.  

The top gainers on the Sensex were Infosys up by 2.87%, ONGC up by 2.53%, TCS up by 2.38%, ITC up by 2.31% and Wipro up by 2.21%. On the flip side, M&M down by 1.63%, ICICI Bank down by 1.49%, Coal India down by 1.37%, Axis Bank down by 1.36% and Hindalco Industries down by 1.24%. 

Meanwhile, buoyed over the firm growth witnessed in the Indian exports, Commerce Ministry has expressed confidence of meeting the export target of $325 billion adding that all efforts should be made to accelerate exports so that target is easily achieved.

Commerce Minister Anand Sharma has recently reviewed the foreign trade policy and asked officials to engage with all stakeholders to boost exports in the remaining 3-odd months of the current fiscal, 2013-14. Further, the minister has expressed satisfaction over diversification of exports markets and underscored that South America and Africa would contribute more to the growth of India's exports.

In last fiscal, Indian exports fell by 1.82% to $300.4 billion due to a slowdown in global demand. Meanwhile, in current fiscal, Indian exports has been increasing at a significant pace on the back reviving demand in the US and European markets, rupee depreciation and favorable measures taken by the government. During April-November, 2013, the value of exports increased by 6.27% to $203.98 billion as against $191.96 billion in the corresponding period of last year.

However, the country’s most export orientated sectors are facing some issues. Pharmaceuticals export posted a growth of 3% in the April-November 2013 period to $9.77 billion against 11% growth in 2011-12 owing to marked slowdown in the segment, especially due to EU and the US regulatory issues. In gems & jewellery sector, although export of diamonds and coloured stones has increased, gold exports declined due to curbs imposed on imports of the yellow metal. 

The CNX Nifty is currently trading at 6,224.25, up by 55.90 points or 0.91% after trading in a range of 6,239.10 and 6,224.25. There were 28 stocks advancing against 22 declining on the index.

The top gainers of the Nifty were Infosys up by 2.92%, TCS up 2.65%, ONGC was up by 2.57%, Wipro up by 2.42% and ITC up by 2.39%. On the flip side, M&M down by 1.72%, Power Grid down by 1.67%, Coal India down by 1.40%, ICICI Bank down by 1.28% and Axis Bank down by 1.27% were the major losers on the index.

The Asian equity indices were trading on a mixed note; Nikkei 225 up by 0.20%, Hang Seng up by 0.26%, Taiwan Weighted up by 0.17% and Jakarta Composite up by 1.38%.

While, Shanghai Composite down by 0.71%, KLSE Composite down by 0.11%, Seoul Composite down by 0.39% and Straits Times inched down by 0.12%.

The European markets were trading in green; France’s CAC 40 was up 0.67%, Germany’s DAX added 0.52% and UK’s FTSE 100 gained 0.42%.