Benchmarks pare some gains; trades in the green

Key benchmark indices, which started the day on a weak note but subsequently bounced back in the green, though have pared some gains, are trading in the positive zone at this point of time. Meanwhile, food inflation in the country drifted lower over the week-ended Feb 19 after the marginal rise seen in previous week. According to the data released by the ministry of commerce and industry on Thursday, food price index rose 10.39% on annual basis during week-ended Feb 19, better than the 11.49% recorded in the previous week. On the global front, taking cues from the positive developments in the Middle East, where Libyan leader Muammar Gaddafi has reportedly agreed to a peace plan to end the crisis; all the Asian markets, with an exception of Shanghai Composite, which was down by 0.10%, were trading in the green. US index futures too were trading in positive territory in trade at this point of time. Back on the D-Street, capital goods, realty, auto, fast moving consumer goods and power counters have edged higher; while, metal, information technology, and technology stocks are among the most prominent losers. Oil & gas and healthcare too have tumbled in trade. The broader markets traded on a flat note with BSE Mid-cap and Small-cap indices gaining 0.32% and 0.25%, respectively. The market breadth on the BSE was positive; the gainers thrashed the losers in a ratio of 1389:1205 while 90 shares remained unchanged.

The BSE Sensex advanced 61.82 points or 0.34% at 18,508.32. The index touched a high and a low of 18,603.57 and 18,253.62, respectively.

The BSE Mid-cap and Small-cap indices gained 0.32% and 0.25%, respectively.

In the BSE sectoral space, Capital Goods (CG) up 2.16%, Realty up 1.54%, Auto up 0.96%, Fast Moving Consumer Goods (FMCG) up 0.54% and Power up 0.48% were the top gainers.

On the flip side, Metal down 0.81%, Information Technology down 0.70%, TECk down 0.59%, Oil & Gas down 0.32% and Healthcare (HC) down 0.08% were the major losers in the BSE sectoral space.

Meanwhile, food inflation in the country drifted lower over the week-ended Feb 19 after the marginal rise seen in previous week. According to the data released by the ministry of commerce and industry on Thursday, food price index rose 10.39% on annual basis during week-ended Feb 19, better than the 11.49% recorded in the previous week. The wilt in prices of onions, potatoes and pulses has led to the ease in inflation numbers.

The inflation for primary articles for the week ended February 19, 2011 came at 14.85% as compared to 15.77% seen in the previous week. Fuel group inflation for the period stood at 12.56% against 12.14% seen in previous week. The wholesale price index, the most widely watched gauge of prices in India, advanced 8.23% in January from a year earlier, compared with 8.43% in December.

The top gainers on the Sensex were L&T up 3.54%, Tata Power up 3.18%, HDFC up 2.90%, HDFC Bank up 2.58% and JP Associates up 2.53%.

On the flip side, Hindalco Inds down 1.60%, Infosys down 1.56%, Tata Steel down 1.36%, Sterlite Inds down 1.35% and Wipro down 1.12% were the major losers on the index.

In what is seen as another major blow to the Congress-led United Progressive Alliance Government, the Supreme Court (SC) has annulled the appointment of P J Thomas as Central Vigilance Commissioner (CVC). The apex court said that the committee failed to consider relevant material recommending action against Thomas. Also, it rejected government's contention that vigilance clearance given by the CVC in 2008 was the basis for empanelment of Thomas as a candidate for the post of CVC.

A three-judge bench headed by the Chief Justice of India (CJI) SH Kapadia delivered its verdict on a Public Interest Litigation (PIL) that sought Thomas' removal from the position of CVC. According to the SC, the appointment of the bureaucrat was not done in a correct fashion and he person holding a CVCs post should be a person of impeccable institutional and personal integrity.

Thomas' appointment was carried out by a high-powered committee that included the Prime Minister Manmohan Singh, Home Minister, P Chidambaram and Opposition leader Sushma Swaraj.

Meanwhile, Thomas was in the center of controversy over his alleged involvement in the Palmolein scam that rocked Kerala during his tenure as State Secretary in the State Ministry of Food and Civil Supplies between 2000 and 2004.

The S&P CNX Nifty added 19.65 points or 0.36% to 5541.95. The index touched a high and a low of 5570.75 and 5468.25, respectively. 

The top gainers on the Nifty were L&T up 3.62%, Tata Power up 3.43%, HDFC up 3.23%, JP Associates up 2.83% and Cairn India up 2.78%.

On the flip side, IDFC down 3.42%, Suzlon Energy down 2.72%, Hindalco Inds down 1.72%, HCL Tech down 1.56% and Infosys down 1.54% were the major losers on the index.

Rest of the Asian markets, with an exception of Shanghai Composite, which was down by 0.10%, are trading in the green. Hang Seng rose 0.99%, Jakarta Composite added 0.59%, KLSE Composite gained 0.68%, Nikkei 225 surged 0.89%, Straits Times soared 0.83%, Seoul Composite jumped 2.20% and Taiwan Weighted increased 1.37%.

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