Markets continue outperforming the Asian peers

Faring comparatively better than their regional counterparts, the Indian markets have recovered a great deal from their early fall and were trading with good gains in the early noon session. Markets are once aging getting good support from the rate senstives banking and auto, while the capital goods sector has taken the lead, surging by around two percent at this point of time. There is big action in power sector after the Central Electricity Regulatory Commission (CERC), the electricity regulator allowed Tata Power to raise tariffs and receive compensation to make up for losses incurred at its flagship Mundra plant in Gujarat. Tata Power was in jubilant mood since beginning, up by over 5 percent, however NTPC reacting negatively to the development has fallen by over 10 percent to its lowest level since Nov 21, 2008. However, the overall gains were capped due to the weakness in other Asian markets, which rekindling safe-haven demand for the yen, as plunging property stocks took a toll on China with traders worried over impact of the further cut in US stimulus.

The BSE Sensex is currently trading at 20756.85, up by 56.10 points or 0.27% after trading in a range of 20770.80 and 20637.30. There were 23 stocks advancing against 7 declines on the index.

The broader indices were outperforming the benchmarks; the BSE Mid cap index was up by 0.36% and Small cap index gained 0.42%.The top gaining sectoral indices on the BSE were, Capital Goods up by 2.06%, Auto up by 0.94%, Healthcare up by 0.91%, Bankex up by 0.66% and FMCG was up by 0.25%. On the other hand the top losers included Power down by 1.44%, Metal down by 0.60%, IT down by 0.56%, Teck down by 0.48%, and Consumer Durables down by 0.37%.

The top gainers on the Sensex were Tata Power up by 5.21%, Axis Bank up by 3.42%, L&T up by 2.46%, BHEL up by 1.99% and Gail India was up by 1.61%. On the flip side, NTPC down by 10.52%, Tata Steel down by 1.81%, TCS down by 1.23%, RIL down by 0.55% and Infosys down by 0.26% were the top losers on the Sensex.

Meanwhile, satisfied with the outcome of G20 meeting, Finance Minister P Chidambaram has stated that India's concern with regards to the US Fed tapering and IMF quota reforms were addressed during the G20 meet. The G20 Summit 2014 on February 22-23 was attended by Finance Ministers of several important countries including the US, Japan, France and Australia along with the representatives of global bodies like the International Monetary Fund (IMF) and European Central Bank. Collectively G20 nations represent 85 per cent of the global economy.

Chidambaram has expressed concern over the impact of monetary easing by the US Federal Reserve on the developing countries and highlighted the need to expedite IMF quota reforms to extend more benefits to emerging economies in the multilateral lending body. Emerging economies favored the IMF quota, however, it hit a roadblock as the US refused to increase its contribution. The IMF’s 14th round of quota reforms began in 2010 and will be completed by April 2014. Further, Finance Minister, during the G20 summit, asserted that developed nations should cooperate with developing countries during the economic recovery. Chidambaram has further stated that developing countries require more and better infrastructure, therefore India has strongly supported the World Bank’s proposal to set up a global infrastructure facility.

The G20 Summit adopted a soft target of raising the global GDP by 2 percent in the next five years. Central banks of G20 nations also maintained their commitment that monetary policy settings will continue to be carefully calibrated and communicated, considering the impacts on the global economy.

The CNX Nifty is currently trading at 6,169.15, up by 13.70 points or 0.22% after trading in a range of 6,172.40 and 6,130.80. There were 35 stocks advancing against 15 decliners on the index.

The top gainers of the Nifty were Tata Power up by 5.08%, Axis Bank up by 3.20%, L&T up by 2.36%, BHEL up by 2.03% and Lupin was up by 1.82%. On the flip side, NTPC down by 10.68%, Tata Steel down by 1.88%, Jindal Steel down by 1.67%, NMDC down by 1.31% and TCS down by 1.28% were the top losers on the index.

Most of the Asian equity indices were in red; Shanghai Composite shed 1.75%, Hang Seng declined by 0.92%, Jakarta Composite was down by 0.12%, KLSE Composite was lower by 0.21%, Nikkei 225 declined by 0.19%, KOSPI Composite was down by 0.45% and Taiwan Weighted lost 0.48%.

On the flip side, Straits Times up by 0.02% was only gainer among Asian pack.