Benchmark continue to trade higher; Auto, Bank and PSU lead

The benchmark equity indices continued their northward journey in the late morning session on the back of strong global cues.  All other regional peers were trading in green and the US index futures too were in green in the screen trade. A Senior World bank official said on Monday that a surge in the oil price could dent economic growth in developing countries by somewhere between 0.2 and 0.4 percentage points if it remained high for a year or longer. He stated that if prices remain high for a significant period of time, say a year, then you're looking at an impact on GDP that is significant and measurable, but which is unlikely to be large enough to derail the recovery in the growth we are observing in developing countries. Meanwhile, India's infrastructure sector output grew by 7.1% in January from a year earlier, faster than an downwardly revised annual growth of 6.1% in December, government data showed on Tuesday.  The infrastructure sector accounts for 26.7% of India's industrial output which weighed positive sentiment for the local bourses. All the BSE sectoral indices were trading in green .Auto, Bankex , PSU , and Metal  counters were the main gainers .

Oil marketing firms such as IOC, BPCL and HPCL are trading higher on proposal to raise petrol prices by up to Rs 4 per litre this week. This move is aimed at offsetting rising crude oil costs. The Union Budget 2011-12 announced yesterday had ignored their demand to cut duties on the fuel. The excise duty, a central levy on domestic production on petrol, is Rs 14.35 a litre. The government had deregulated petrol prices in June last year.

The broader indices too were performing well at this point of time, the BSE Mid cap and Small cap indices surged 1.74% and 1.28% respectively.The overall market breadth on BSE is strongly in the favour of advances which have overtaken declines in the ratio of 1712:738, while, 91 shares remained unchanged on the index.

Auto stocks like, M&M, Tata Motors and Ashok Leyland surged 4.16%, 3.60% and 4.92% respectively as Finance Minister, Pranab Mukherjee kept excise duties on automobiles unchanged in Union Budget 2011-2012.

Meanwhile, Tata Motors is about to unveil a new compact car called Pixel exclusively for the European market. The car is based on its micro-car Nano platform. The three door gull-winged (doors that open towards the sky) small car is currently at concept stage. This new brand will be an experimental model for the European market. It is expected to have Nano dimension of size, which is a little over 3 metre. But the car will have much larger interiors and the design would be developed keeping in mind the demanding European customers.

The BSE Sensex surged 333.04 points or 1.87% at 18,156.44. The index has touched a high of 18,177.77 and 17,964.39 respectively.

The BSE Mid cap and Small cap indices surged 1.74% and 1.28% respectively. 

The top gaining sectoral indices on the BSE were, Auto up by 3.62%, Bankex up by 2.78%, CG up by 2.40%, PSU up by 1.66% and Metal was up by 1.65%. While there were no losers on the index.

The top gainers on the Sensex were M&M up by 4.31%, Bajaj Auto up by 4.22%, Tata Motors up by 3.74%,HDFC Bank up 3.33% and  Maruti Suzuki up 3.18%.

Bharti Airtel down by 1.37%, Wipro down 0.755 and TCS down by 0.47 % were the only losers on the index.

The S&P CNX Nifty advanced 104.55 points or 1.96% at 5437.80.The index has touched a high of 5,437.80 and a low of 5,373.55 respectively.

The top gainers of the Nifty were Suzlon up by 6%, M&M up by 5.15%, Bajaj Auto up by 4.16%, Sunpharma up by 3.78% and Tata Motors up by 3.60%.

Reliance Capital down by 1.60%, Bharti Airtel down 1.15%, TCS down by 0.77%, Wipro down by 0.67% and Reliance Communication down by 0.58% were the major losers on the index.

All the  other  regional  peers were trading in the green; Shanghai Composite gained 0.23%,, Hang Seng added 0.06%, Jakarta Composite rose 0.86%, KLSE Composite increased 0.42%, Nikkei 225 bagged 1.22%, Straits Times  gathered 1.47% and Taiwan Weighted  advanced 1.49%.

Unit-8, 3rd Floor, First Mall, The Mall, Ludhiana-141001, Punjab (INDIA).

To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0nEwMrKxsjA==