Indian equities add gains; trade continues in green

Indian equities added gains to continue its firm trade in the late afternoon session hovering near the highest point of the day on account of buying in frontline counters on hopes of more reforms by the government and taking cues from European counterparts. The mood in the market was so optimistic that investors paid no heed towards the World Bank report that it had lowered economic growth forecast for India to 6.0% due to infrastructure problems and slow policy reform, and warned there is a high risk that growth could slow further if economic conditions in Europe deteriorate. Market-men are also eyeing Infosys Q2 September 2012 earnings, which is scheduled for tomorrow i.e. October 12, 2012 which will further determine the direction for the market. Traders were seen piling position in Realty, Capital Goods and Power sectors. Fertilizer stocks were seen trading firm after the government today i.e. October 11, 2012, announced modification in the procedure for release of fertilizer subsidy by end of this year and hiked the prices of urea-based fertilizers by Rs 50 per tonne. In the scrip specific development, Sulzon Energy was trading in red after its bondholders refused to extend the deadline for redemption of two series of foreign currency convertible bonds amounting $220.8 million which is due today. Unitech was seen in jubilant mood after the company stated that it has settled amicably all disputes with Norway’s Telenor over their telecom business Uninor and will exit the joint venture.

On the global front, Asian markets were trading in red barring Hang Seng while the European markets were trading on optimistic note. The International Monetary Fund stated in its latest assessment that risks to global financial stability have increased and revised higher the amount of assets banks may have to sell to complete the deleveraging process. Besides, Standard & Poor’s downgraded Spain’s long-term credit rating to one notch above junk, to BBB- from BBB+, because of mounting risks to the country’s public finances. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,650 and 18,700 levels respectively. The market breadth on BSE was positive in the ratio of 1483:1170 while 106 scrips remain unchanged.

The BSE Sensex is currently trading at 18,768.79 up by 137.69 points or 0.74% after trading in a range of 18,772.58 and 18,581.49. There were 24 stocks advancing against 6 declines on the index.

The broader indices were too trading in green; the BSE Mid cap index was up by 0.92% and Small cap index was up by 0.71%.

The top gainers on the BSE sectoral space were, Realty up by 3.36%, Capital Good up by 1.31%, Power up by 1.18%, Bankex up by 1.12% and TECk up by 0.94%. While, there were no losers in this space.

The top gainers on the Sensex were Bharti Airtel up by 2.14%, Tata Motors up by 1.96%, Tata Power up by 1.60%, BHEL up by 1.57% and L&T up by 1.51%. On the other hand, Maruti Suzuki down by 1.18%, Gail India down by 0.73%, M&M down by 0.63%, Hero MotoCorp down by 0.55% and Wipro down by 0.55% were top losers on the Sensex. 

Meanwhile, with India’s growing appeal in the apparel industry, and considering the fact that India's textile and apparel exports were at $31 billion in 2011 and are growing at an annual rate of 10 per cent since 2005, the industry body FICCI and research firm Technopak has projected India's total textile and apparel industry size both domestic and exports to grow at a CAGR of 9.5 per cent to reach $223 billion by 2021.

India's total textile and apparel industry size is estimated at $89 billion in 2011.The apparel exports has contributed most to the overall exports in terms of value, followed by contributions from fiber, yarn and fabrics, while fibre exports have the highest CAGR with substantial growth in recent years.

In conjunction with the increasing shift of textile and apparel production to Asian nations and the deteriorating export-competitiveness of China, India's share of the world's textile and apparel exports is expected to grow to 8% by 2020 from the present 4.5% share, and estimates to have a total exports value of about $82 billion. The looming crisis in Euro zone and USA is also eyed, while China and India are considered to be emerging hubs in apparel industry.

The S&P CNX Nifty is currently trading at 5,694.80, up by 42.65 points or 0.75% after trading in a range of 5,700.85 and 5,636.95. There were 40 stocks advancing against 10 declines on the index.

The top gainers of the Nifty were JP Associates up by 2.80%, DLF up by 2.32%, Tata Motors up by 2.22%, Bharti Airtel up by 2.06% and PNB up by 1.86%. While, Maruti down by 1.23%, Hero MotoCorp down by 0.86%, Lupin down by 0.82%, Ambuja Cement down by 0.76% and Gail India down by 0.68% were top losers on the index

All the Asian equity indices were trading in the red barring Hang Seng which was up by 0.38%; Straits Times was down by 0.06%, Kospi Composite was down by 0.78%, Nikkei 225 was down by 0.58%, Jakarta Composite down by 0.23%, Shanghai Composite was down by 0.81%, Taiwan Weighted was down by 1.85% and KLSE Composite was down by 0.25%.

The European markets were trading in green, France’s CAC 40 gained 0.27%, Germany’s DAX ascended 0.47% and the United Kingdom’s FTSE 100 jumped 0.30%.