Benchmark indices continue its northward journey

The benchmark equity indices continued its northward journey in late afternoon session as sustained buying interest shown by investors lifted the mood though the global market were not that much encouraging. On the other hand, the other Asian markets settled in mixed note while European markets were also trading in red and US index futures were also  showing down tick in screen trade. Back home, in the BSE Secoral space, Oil & Gas and Metal shares are pacing the rally today followed by steady gains in Consumer Durables, IT and Power shares; while Auto and Realty counters on the BSE have posted moderate loses. Maruti Suzuki India has declined amid concerns that Friday's earthquake in Japan and the consequent Tsunami might hurt its imports. This is also likely to affect timely delivery of its luxury sedan Kizashi from Japan. The company imports its Kizashi from Japan and it has received 400 bookings in the first month of its launch. Apart from this, the major concerns is that it is expecting an appreciation in Japan's yen following Friday's devastating earthquake which would hurt the car maker's margins this year. It has expected that 1% strengthening of the yen impacts Maruti Suzuki's margins by 27 basis points, as it imports technology and equipment from Japan, apart from the royalty payments it makes to its Japanese parent. The market breadth on the BSE was slightly negative; the losers outpaced the gainers in a ratio of 1405:1363 while 127shares remained unchanged. The broader markets are trading in green, the BSE Mid-cap and Small-cap indices gained 0.27% and 0.13%, respectively.

Kingfisher Airlines surged 2.86%, Jet Airways (India) advanced  4.84% and Spicejet climbed  3.70%. Airline stocks were trading higher after crude prices have plunged by around two percent in today's session as pessimists squared off position on expectations that the pace of economic recovery may take a hit globally in the wake of Japan's biggest earthquake followed by the overwhelming tsunami that killed over 10,000 people. 

The BSE Sensex climbed 178.57 points or 0.98% at 18,174.09. The index touched a high and a low of 18,367.51 and 18,155.43, respectively.

The BSE Mid-cap and Small-cap indices gained 0.27% and 0.13%, respectively.

In the BSE sectoral space Oil & Gas up 2.08%, Metal up 1.40%, Consumer Durables (CD) up 1.10%, IT up 0.93% and Power up 0.76%  were the major gainers; while Auto down 0.26% and Realty down 0.03% were the only losers in the BSE sectoral space.

The top gainers on the Sensex were Tata Power up 3.63%, RIL up 2.51%, Tata Steel up 2.41%, Reliance Communications up 2.34% and JP Associates up 1.83%.

On the other hand, Maruti Suzuki down 1.01%, BHEL 0.80%, Bharti Airtel down 0.79%, Tata Motors down 0.44% and Hero Honda down 0.39% were the major losers on the index.

India's inflation has surprisingly quickened in the month of February after showing signs of decline in last few months, making the task of the Reserve Bank of India (RBI) tougher.

According to the data released by the ministry of commerce and industry on Monday, the wholesale price index (WPI) inflation, more closely watched than the consumer price index (CPI), advanced 8.31% in the month of February versus 8.23% in January after prices of fuel and manufactured products went higher. The rise in the monthly inflation numbers was unexpected as economists and experts forecasted February inflation number to come at around 7.8% against the annual rise of 8.23% in January. Meanwhile, the ministry revised up December's inflation figure to 9.41% from 8.43% reported initially.

The higher than expected numbers has put the central bank in dilemma after a weak IIP numbers, it has been accused of being 'behind the curve' in fighting inflation and is widely expected to hike the policy rates for the eighth time since last March by at least 25 basis points on March 17 in its mid-quarterly policy review. RBI's Deputy Governor Subir Gokarn had already expressed concerns over high oil prices and indicated that it would put pressure on the RBI's strategy to manage inflation.

The S&P CNX Nifty surged 57.30 points or 1.05% at 5,502.75. The index touched high of 5,506.85 and a low of 5434.25 respectively.

The top gainers on the Nifty were Reliance Capital up 7.02%, GAIL up 4.98%, Tata Power up 3.77%, BPCL up 3.74% and Reliance up 2.60%.

Reliance Capital spurts as Nippon inks pact to acquire 26% stake in Reliance Life Insurance.

On the other hand, Suzlon Energy down 2.84%, Maruti Suzuki down 0.87%, Tata Motors down 0.71%,  Bharti Airtel down 0.70% and BHEL down 0.47% were the major losers on the index.

The other Asian markets settled in the mixed range. Shanghai Composite added 0.17%, Hang Seng advanced 0.41%, Jakarta Composite surged 0.78% and Seoul Composite gained 0.56%; while, Nikkei 225 plunged 6.18%, KLSE Composite shed  0.02%, Straits Times trimmed 0.26% and Taiwan Weighted plummeted 0.56%.

European markets were trading in red. FTSE shed 0.04%, DAX declined 1.48% and CAC-40 trimmed 0.04%.

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