Markets make gap-up opening ahead of inflation data

Indian equity benchmarks have made a gap-up start and are trading with traction in early deals on Wednesday ahead of inflation data, slated to be announced later in the day. Wholesale price index-based (WPI) inflation data is likely to cool a bit from a 14-month high of 7.52 percent in November and may strengthen hopes that RBI will maintain a status quo in its upcoming monetary policy review. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Both the benchmarks scaled past to the psychological levels of 21,100 (Sensex) and 6,250 (Nifty).

Supportive cues from US markets provided the much-needed support to local markets in early deals. Sentiments also remained up-beat on the back of better-than-expected U.S. retail sales data for the month of December. Moreover, most of the Asian equity benchmarks were trading in the green at this point of time with the Nikkei bouncing by over one and a half percent after suffering its sharpest daily drop in five months on Tuesday.

Back home, on the sectoral front, metals witnessed the maximum gains in trade followed by software and technology, while fast moving consumer goods remained the top losers on the BSE sectoral space. The broader indices too were trading with traction, while the market breadth on the BSE was positive; there were 1000 shares on the gaining side against 543 shares on the losing side while 82 shares remain unchanged.

The BSE Sensex opened at 21091.46; about 58 points higher compared to its previous closing of 21032.88, and touched a high and a low of 21181.30 and 21091.46 respectively.

The index is currently trading at 21155.12, up by 122.24 points or 0.58%. There were 26 stocks advancing against 4 declines on the index.

The overall market breadth has made a strong start with 61.54% stocks advancing against 33.42% declines. The broader indices too were trading in green; the BSE Mid cap index up was by 0.25% and Small cap gained 0.51%. 

The top gaining sectoral indices on the BSE were, Metal up by 1.20%, IT up by 0.98%, Teck up by 0.93%, PSU up by 0.71% and Capital Goods up by 0.64%, while FMCG down by 0.48% was the only loser on the sectoral index.

The top gainers on the Sensex were Coal India up by 2.36%, Hindalco Industries up by 2.05%, TCS up by 1.67%, Hero MotoCorp up by 1.48% and Cipla up by 1.07%. On the flip side, ITC was down by 0.68%, ONGC was down by 0.38% and Axis Bank was down by 0.28% were the top losers on the Sensex.

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 opened at 6,265.95; about 24 point higher as compared to its previous closing of 6,241.85, and has touched a high and a low of 6,286.80 and 6,265.30 respectively. The index is currently trading at 6,278.10, up by 36.25 points or 0.58%. There were 40 stocks advancing against 10 declines on the index.

The top gainers of the Nifty were Coal India up by 2.54%, Hindalco up by 2.06%, NMDC up by 1.92%, HCL Tech up by 1.67% and TCS up by 1.56%. On the flip side, Ranbaxy down by 1.04%, ITC down by 0.60%, ONGC down by 0.48%, Cairn down by 0.42% and Axis Bank down by 0.36% were the top losers on the index.

Most of the Asian equity indices were trading in green; Hang Seng rose 71.38 points or 0.31% to 22,862.66, Jakarta Composite surged 41.18 points or 0.94% to 4,431.96, Nikkei 225 soared 259.91 points or 1.69% to 15,682.31, Straits Times increased 18.99 points or 0.61% to 3,142.74, Seoul Composite added 5.20 points or 0.27% to 1,951.27 and Taiwan Weighted was up by 67.07 points or 0.78% to 8,615.21.

On the flip side, Shanghai Composite declined 12.74 points or 0.63% to 2,014.10 and KLSE Composite was down by 5.89 points or 0.32% to 1,829.08.