Markets get a good start tracking positive global cues

Indian markets after making a gap-up start are managing to hold their gains in early deals with benchmark indices trading near their psychological levels of 6100 (Nifty) and 20500 (Sensex). The cheers of the overnight surge in US markets has spread to the other global indices, which taking cues from the dovish tone of the Federal Reserve Chairwoman Janet Yellen pledge to keep interest rates low and to continue to taper the pace of bond purchases if the economy keeps improving. She also reiterated that accommodative policy will remain appropriate for a considerable time after the asset purchases end. On the domestic front traders are awaiting the announcement of industrial output data, which likely contracted for the second consecutive month in December on weak manufacturing demand. Industrial production had fallen by 2.1 percent in November. Today, the railways related stocks are buzzing since morning ahead of the interim rail budget. Kalindee Rail Nirman was up by over 2 percent, Titagarh Wagons was up by about 3 percent and Texmaco Rail Engineers was up by about half a percent. Sectorally, rate sensitives have taken the lead and banking, realty and auto were trading up by over a percent each, while there was some weakness in the metal sector.

The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 937 shares on the gaining side against 538 shares on the losing side while 68 shares remain unchanged.

The BSE Sensex opened at 20449.83; about 86 points higher compared to its previous closing of 20363.37, and touched a high and a low of 20493.66 and 20429.83 respectively. The index is currently trading at 20493.50, up by 130.13 points or 0.64%. There were 21 stocks advancing against 9 declines on the index.

The overall market breadth has made a strong start with 61.02% stocks advancing against 34.62% declines. The broader indices too were trading in green; the BSE Mid cap index up was by 0.44% and Small cap gained 0.38%. 

The top gaining sectoral indices on the BSE were, Capital Goods up by 1.22%, Bankex up by 1.11%, Auto up by 1.02%, Realty up by 0.92% and IT up by 0.65%, while Metal down by 0.80% was the only loser index.

The top gainers on the Sensex were Tata Motors up by 2.08%, ICICI Bank up by 2.05%, Sun Pharma up by 1.66%, Gail India up by 1.62% and BHEL up by 1.58%. On the flip side, Tata Steel was down by 2.47%, Coal India was down by 0.89%, SSLT was down by 0.69%, NTPC was down by 0.64% and Maruti Suzuki was down by 0.59% were the top losers on the Sensex.

Meanwhile, improving the outlook for the country’s current account balance, trade deficit narrowed in January at $9.91 billion as compared to $10.14 billion in December and way lower than $18.98 billion in the corresponding month of the previous year, mainly on account of sharp drop of 18.07% in imports for January, as compared to year earlier at $36.67 billion. However, merchandise exports grew by just 3.79% at $26.75 billion as against $25.78 billion.

Total imports recorded an 18% contraction on account of sharp drop of 77% in gold and silver imports on the year. Cumulatively, exports during April-January grew by 5.71% at $257.088 billion, while imports slid by 7.81% at $377.044 billion, leaving the cumulative trade deficit at $ 119.956 billion.

Meeting the export target of $325 billion for fiscal 2013-14 could be now tough, but the Commerce Ministry is optimistic of achieving the target with signs of recovery in global economy. Meanwhile, the government expects to keep the current account deficit down under $50 billion in the fiscal year to March 2014. The shortfall was a record $87.8 billion in the previous fiscal which had precipitated a record fall in the value of the rupee against the dollar last summer.The CNX Nifty opened at 6,085.35; about 22 point higher as compared to its previous closing of 6,062.70, and has touched a high and a low of 6,097.25 and 6,080.35 respectively. The index is currently trading at 6,096.50, up by 33.80 points or 0.56%. There were 33 stocks advancing against 17 declines on the index.

The top gainers of the Nifty were Tata Motors up by 2.08%, ICICI Bank up by 2.02%, HCL Tech up by 1.96%, Sun Pharmaceuticals up by 1.67% and Gail up by 1.58%. On the flip side, Tata Steel down by 2.46%, Asian Paint down by 1.66%, Ranbaxy down by 1.34%, Coal India down by 1.07% and Ambuja Cements down by 1.00% were the top losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite added 1.24 points or 0.06% to 2,104.91, Hang Seng spurted 232.77 points or 1.06% to 22,195.75, Jakarta Composite gained 15.78 points or 0.35% to 4,485.97, Nikkei 225 increased by 95.10 points or 0.65% to 14,813.44, Straits Times strengthened by 14.38 points or 0.47% to 3,043.48, Seoul Composite rose 7.23 points or 0.37% to 1,939.29 and Taiwan Weighted was up 69.70 points or 0.83% to 8,500.26.

On the flip side, KLSE Composite declined by 1.38 points or 0.08% to 1,822.79.