Benchmarks off day’s high on caution ahead of GDP data

Benchmarks have come off substantially from day’s high on account of mounting caution ahead of release of April-January fiscal deficit figures and Oct-Dec quarter GDP data later in the session that kept investors on the edge. Nevertheless, mostly positive regional counterparts have kept the sentiment positive for Indian equity markets, which despite off day’s high are holding near the crucial 21,050 (Sensex) and 6150 (Nifty) levels respectively. Meanwhile, broader indices also paring some of early gains are trading with gains in the range of 0.20%-0.35%.

On the global front, Asian pacific shares were trading mostly positive on account of overnight gains on Wall Street and a raft of positive Japanese economic data. However, latest economic data indicating that the world's third largest economy was off to a great start for 2014, did little to lift Japan's benchmark Nikkei index, which falling for a third consecutive session was in a slumber on Friday. Additionally, lingering worry ahead of China's official purchasing managers index (PMI) due for release on Saturday, had capped any massive gains.

Closer home, stocks from Healthcare, Capital Goods and Information Technology counters stole the show, fertilizer stocks too were buzzing hard. Fertilizer stocks were on buyers’ radar Thursday as ministerial panel recommended increase in fixed cost paid to urea by Rs 350 per tonne. However, there will be no increase in the rate of crop nutrient for farmers as government will subsidise the additional cost, pegged at Rs 900 crore. On the flip side, Consumer Durables Power and Oil and Gas counters were trading in red. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1006:788; while 55 shares remained unchanged.

The BSE Sensex is currently trading at 21050.35, up by 63.36 points or 0.30% after trading in a range of 21,120.25 and 20,989.66. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices too have pared some of the gains in line with larger peers; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.19%.

The gaining sectoral indices on the BSE were Healthcare up by 1.85%, Capital Goods up by 1.09%, IT up by 0.86%, TECk up by 0.76% and Metal up by 0.51%. While, Consumer Durables down by 0.95%, Power down by 0.57% and Oil and Gas down by 0.32% were the only losing indices on BSE.   

The top gainers on the Sensex were Hindalco Inds up by 3.86%, Tata Motors up by 3.66%, TCS up by 3.17%, Dr Reddy’s Lab up by 2.70% and Sun Pharma up by 2.15%. On the flip side, Maruti Suzuki down by 4.91%, NTPC down by 1.99%, HDFC Bank down by 1.39%, RIL down by 1.37% and Hero MotoCorp down by 1.32%.

Meanwhile, the agriculture dependent population in India grew by 50% during 1980-2011, highest for any country during this period, followed by China with 33 per cent, as per the latest report of the Worldwatch Institute. However, the share of agriculture sector in Indian economy has declined to around 14 percent in 2012-13 on account of structural changes due to a shift from a traditional agrarian economy to industry and service sectors.

On the other hand, the report highlighted that economically active agricultural population of the US declined by 37 percent on the back of improved crop varieties, fertilisers, pesticides, and federal subsidies, contributing significantly to economies of scale and consolidation in US agriculture. The global agricultural dependent population includes individuals dependent on agriculture, hunting, fishing, and forestry for their livelihood accounted for over 37 per cent of the world’s population. Meanwhile, there is a decrease of 12 percent from 1980, when world’s agricultural and non-agricultural populations were roughly in same size. However, the world’s population grew numerically from 2.2 billion to 2.6 billion people during this period, the report highlighted.

As per the Worldwatch Institute report, Africa's agricultural population between 1980 and 2011 grew by 63 percent, and its non-agricultural population grew by 221 percent. Asia's agricultural population grew by 20 percent, and its nonagricultural population grew by 134 percent, while, Oceania's agricultural population grew by 49 percent, and its nonagricultural population grew by 65 percent, it said. Agriculture dependent population in Europe and Americas has declined in the reported period due to factors like movement of people towards cities and agricultural consolidation. 

The CNX Nifty is currently trading at 6,249.50, up by 10.70 points or 0.17% after trading in a range of 6,274.25 and 6,228.10. There were 25 stocks advancing against 25 declining on the index.

The top gainers of the Nifty were Hindalco up by 4.12%, Tata Motors up by 3.53%, TCS up by 3.26% JP Associates up by 2.96%, and Dr Reddy’s Lab up by 2.72%. On the flip side, Maruti Suzuki down by 4.99%, Ranbaxy down by 2.43%, NTPC down by 2.08%, Power Grid down by 1.79% and Hero MotoCorp down by 1.54% were the major losers on the index.

The Asian equity indices were trading in green; Jakarta Composite up by 0.61%, KLSE Composite was up by 0.14%, Seoul Composite up by 0.08%, Shanghai Composite up by 0.33% and Hang Seng up by 0.12%, while Nikkei 225 down by 0.55% and Straits Times down by 0.02% were the only losers amongst Asian pack.