Benchmarks rally tracking positive cues from Asian markets

The Indian equity markets are trading firm in the early trade after a flat to positive start tracking positive cues from Asian markets and ease in crude oil prices. Most of the Asian peers were trading in the positive terrain at this point of time, indicating strong investors' sentiments. However, the US markets closed lower overnight under jitters of rise in crude prices. Back home, sustained buying in all the heavyweights barring Hero Honda along with broader indices supported NSE's -- Nifty -- and BSE's -- Sensex -- to regain its crucial 5,500 and 18,400 mark, respectively. Capital Goods witnessed the maximum gain in trade followed by auto and metal with no losers on the BSE sectoral space. Meanwhile, Insurance Regulatory and Development Authority (IRDA) is planning to permit insurers to trade in equity futures and options contracts, which will help the companies protect returns from equity-linked products against sharp stock market declines. The broader indices were going neck to neck with benchmarks. The market breadth on the BSE was positive; there were 1,112 shares on the gaining side against 371 shares on the losing side while 51 shares remained unchanged.

The BSE Sensex opened at 18,277.34; about 5 points higher compared to its previous closing of 18,222.67, and has touched a high and a low of 18,423.24 and 18,266.62, respectively.

The index is currently trading at 18,402.10, up by 179.43 points or 0.98%. There were 29 stocks advancing against just 1 decline on the index.

The overall market breadth has made a strong start with 72.49% stocks advancing against 24.19% declines. The broader indices were performing in line with benchmark; the BSE Mid cap and Small cap indices surged 0.92% and 0.81% respectively. 

The top gaining sectoral indices on the BSE were, CG up by 1.33%, Auto up by 1.20%, Metal up by 1.19%, Realty up by 1.18% and HC was up by 1.08%. While there were no losers on the index.

The top gainers on the Sensex were Jaiprakash Associates up by 3.77%, Reliance Infra up by 2.31%, Tata Motors up by 1.74%, L&T up by 1.71% and Tata Steel was up by 1.63%.

Hero Honda down by 0.14%, was the lone loser on the index

Meanwhile, in the wake of high food inflation and food security concerns, India is not likely to lift the ban on export of wheat and non-basmati rice, according to a recent report by US Department of Agriculture (USDA). The export ban on wheat was imposed in the year 2007 and on non basmati rice in 2008 due to high inflation in the country.

According to the USDA report, India's wheat output is pegged at 83 million tonne (MT) and rice output at 94.5 MT in 2011-12 marketing year, i.e. April-March. It also added that "Despite forecasted record production, strong government procurement and abnormally high stocks, the government is unlikely to lift the ban on wheat exports due to continued food inflation concerns."

Despite such high expectations of wheat and rice output, the double digit inflation is still ruling the policy initiatives of the government as despite taking several measures to tame it, it has not been able to achieve much on this front.

The S&P CNX Nifty opened at 5,466.10; about 3 points higher compared to its previous closing of 5,463.15, and has touched a high and a low of 5,516.75 and 5,464.75 respectively.

The index is currently trading at 5,510.10, higher by 46.95 points or 0.86%. There were 45 stocks advancing against just 5 declines on the index.

The top gainers of the Nifty were Jaiprakash Associates up by 3.83%, Reliance Infra up by 2.29%, HCL Tech up by 2.14%, Sun Pharma up by 2.11% and Sesa Goa up by 1.80%.

Reliance Power down by 0.73%, Cairn down by 0.25%, Hindalco down by 0.05%, Hero Honda down by 0.05% and Dr Reddy was down by 0.04%, were the major losers on the index.

National Thermal Power Corporation (NTPC) has commenced operations of its 500 MW unit -I of the Indira Gandhi Super Thermal Power Project at Jhajjar with effect from March 05, 2011. This project is set by its joint venture Aravali Power Company (P) (APCPL), along with the national grid. Aravali Power Company (APCPL) is a joint venture of NTPC, Haryana Power Generation Corporation, government of Haryana, government of Delhi and Indraprastha Power Generation Company.

The company has successfully synchronized the Unit-VI of 500 MW of Farakka Super Thermal Power Station on coal on March 07, 2011. During the quarter IV of 2010-2011, this is the second unit synchronized, after the synchronization of Unit-I of Sipat Super Thermal Power Station, Sipat-I (3x660MW) on February 18, 2011.

Asian equity indices were trading mostly in the green; Hang Seng was up 53.83 points or 0.23% to 23,367.02, KLSE Composite was up 1.52 points or 0.10% to 1,517.26, Nikkei 225 was up 29.17 points or 0.28% to 10,534.19, Straits Times was up 14.05 points or 0.46% to 3,080.57, Seoul Composite was up 21.15 points or 1.07% to 2,001.42 and Taiwan Weighted was up by 33.00 points or 0.38% to 8,746.79.

On the flip side, Jakarta Composite was down 4.79 points or 0.13% to 3,556.93 and Shanghai Composite was down by 12.07 points or 0.40% to 2,984.14.

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