Markets continue the rally mood in early trade on Monday

The Indian equity markets have extended their Friday's pullback rally in the new week, and the benchmarks have got a gap-up start. The global cues are supportive as all the Asian markets have started in positive terrain and are trading considerably higher, the US markets too closed higher in previous session, while at the domestic front the dismal IIP numbers seems to have been already factored in that's why the markets are continuing their jubilant mood. The good part of the early trade is that the broader indices are seen more active than benchmarks and are providing good support to the market momentum. All the sectoral indices too are showing good amount of traction today while the Auto sector stocks are continuing their momentum for the third consecutive day. However, some of the Anil Ambani group companies are still under the shadow of charges leveled against it in the 2G scam. The Anil Ambani group has said it has identified the stockbrokers behind the spread of malicious rumours and 'baseless sensational charges' against it and sought immediate action by Sebi against the perpetrators. The group said that it was 'bringing matter to immediate attention of SEBI/cyber crime/police for seizure of electronic and dealing room records.' It also sought a 'full-fledged SEBI investigation and punitive interim orders against guilty brokers".

The BSE Sensex opened at 17,940.16; about 210 points higher compared to its previous closing of 17,728.61, and has touched a high and low of 17,941.55 and 17,857.12 respectively.  The index is currently trading at 17,938.27, up by 209.66 points or 1.18%. There were 28 stocks advancing against just 2 declines on the index.

The overall market breadth has made a strong start with 87.01% stocks advancing against 11.67% declines. The broader indices were outperforming the benchmarks; the BSE Mid cap and Small cap indices were up by 1.75% and 2.15% respectively.

In BSE sectoral indices, Auto up by 2.81%, Realty up by 2.01%, CG up by 1.96%, Metal up by 1.64% and Bankex up by 1.59 were the main gainers in the BSE sectoral space.

The top gainers of the BSE Sensex were Tata motors up by 6.01%, L&T up by 3.14%, Tata Steel up by 2.68%, SBI up by 2.33% and JP Associates was up by 2.14%.

The three losers on the BSE were, Hindalco Industries down by 1.07%, RCom down by 0.57% and Wipro was down 0.12%.

Meanwhile, the cement industry, facing a slowdown in domestic demand, has put forwarded its various demands in its Pre Budget Memorandum to the finance ministry to help it sustain a healthy growth. The industry has demanded uniform rate of excise duty be levied on cement. Further, while there is no duty on cement import, all the three inputs -- coal, pet coke and gypsum attract 5% import duty. The established principle is that import duty on Inputs should not be higher than on the finished product, the industry wants these duties to be totally abolished.

Another demand of the industry is that it wants rationalization of stamp duties across all the states which will bring down the overall project cost to benefit end-users. The industry has also requested the government to bring the value-added tax (VAT) on cement on a par with other building materials like steel as while steel attracts 4% VAT, for cement it is as high as 12.5%.

The industry is also expecting to be granted 'declared goods' status like steel, which would enable the sector to reduce expenditure on taxes. Re-imposition of import duty on imported cement will be another major relief for the cement industry as zero import duty on cement is extremely detrimental for the domestic cement industry. The cement industry pays a royalty of Rs 45 per tonne of Limestone which is much higher than what the steel industry pays for iron ore, despite iron ore being a high value product. Thus, the industry expects a reduction in royalty paid on limestone.

Meanwhile, the apex industry body, ASSOCHAM has suggested to the government that it should consider allowing 'abatement' in respect of cement that is subjected to valuation with reference to its retail sale price, as the government is empowered to grant abatement at fixed percentage in respect of goods that are subjected to charging of duty on valuation with reference to 'Retail Sale Price'. The industry body also said that 4% of excise duty on asbestos cement roofing sheets, pipes and allied products should be restored.

The S&P CNX Nifty opened at 5,340.25; about 30 points higher compared to its previous closing of 5,310, and has touched a high and a low of 5,373.10 and 5,340.25 respectively.  The index is currently trading at 5,369.60, up by 59.60 points or 1.12%. There were 44 stocks advancing against 6 declines.

The top gainers of the Nifty were Tata Motors up by 6.20%, IDFC up by 3.07%, Sesa Goa up by 2.91%, Maruti Suzuki up by 2.68% and L&T was up by 2.45%.

The top losers of the index were RCom down 2.57%, Hindalco down by 1.40%, Reliance Infra down by 0.87%, RIL down by 0.43% and Wipro down by 0.01%.

All the Asian markets were trading with good gains; Shanghai composite surged by 49.48 or 1.75% to 2876.81, Hang Seng was up by 254.29 or 1.11% to 23,091.05, Jakarta Composite was up by 33.78 points or 0.98% to 3,425.55, KLSE Composite was up by 15.23 points or 1.02% to 1,509.75, Straits Times was up by 33.48 points or 1.09% to 3,110.75 and Seoul Composite was down 34.84 points or 1.76% to 2,011.99.

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