Benchmarks rally tracking positive cues from global indices

The Indian equity markets are trading firm in the early trade after a flat to positive start tracking positive cues from global indices and ease in crude oil prices. All the Asian peers barring Shanghai Composite were trading in the positive terrain at this point of time, indicating strong investors' sentiments. While, the US markets closed on the higher note overnight as the consumer confidence fell less than feared also aided the sentiments. Back home, sustained buying in all the heavyweights with broader indices supported keeping the market on the positive side. Realty witnessed the maximum gain in trade followed by consumer durables and auto with no losers on the BSE sectoral space. The broader indices were out performing benchmarks. Meanwhile, Paper stocks viz., AP Paper, JK Paper, Tamil Nadu Newsprint and Seshasayee Paper all rallied in the early trade as in a surprising deal of International Paper Company, the US based paper and packaging giant, has bought 53.5% in Andhra Pradesh Paper Mills from its promoters for around Rs 1160 crore. However, PTC India Financial Services, the new listing today, made a sluggish debut and trading with a cut of about 10 percent. The market breadth on the BSE was positive; there were 1,294 shares on the gaining side against 334 shares on the losing side while 51 shares remained unchanged. Trade may remain volatile this week as it being the expiry week for the March F&O series.

The BSE Sensex opened at 19,178.77; about 58 points higher compared to its previous closing of 19,120.80, and has touched a high and a low of 19,307.32 and 19,178.77, respectively.

The index is currently trading at 19,299.62, up by 178.82 points or 0.94%. All the stocks on the index are on advancing side at this point of time.

The overall market breadth has made a strong start with 77.07% stocks advancing against 19.89% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 1.05% and 1.41% respectively. 

The top gaining sectoral indices on the BSE were, Realty up by 1.73%, CD up by 1.63%, Auto up by 1.24%, CG up by 1.19% and HC was up by 1.16%. While there were no losers on the index.

The top gainers on the Sensex were DLF up by 2.21%, Sterlite Industries up by 1.93%, TCS up by 1.58%, HDFC up by 1.57% and Reliance Communication was up by 1.55%. While there were no losers on the index.

Meanwhile, the Indian government has received 74 bids for 33 oil and gas exploration blocks which were on offer under the ninth round of New Exploration and Licensing Policy (Nelp-IX), with majority of the blocks going to state-owned companies such as ONGC. There were hardly any bids from global energy players.

While the ONGC managed major chunk of the blocks on offer, its share has nonetheless come down compared with last few rounds. The company has won 10 blocks, while another state-owned company Oil India (OIL) won three. Together, the two PSUs had placed bids for a total of 29 blocks. In the last round of NELP, ONGC had got nearly two-thirds of the blocks on offer.

Private sector major Reliance Industries, which had skipped last round of NELP, has won two of the six blocks it bid for in the latest round. Another private player Deep Industries has won four blocks. Sankalp Oil and Natural Resources and Ishar Gas Oil too were awarded three blocks each.

The final award of the rights to explore the blocks will be given by the oil ministry in about 3-4 months after it scrutinizes the 33 winning bids. So far, NELP rounds have generated 87 oil and gas discoveries in 26 exploration blocks with proven hydrocarbon reserves of at least 642 million tonne of crude oil equivalent.

A total of 37 companies, comprising eight foreign companies and 29 Indian, had bid either on their own or as part of a consortium. The government contended that its policy to enhance the number of players in the exploration sector had been achieved as was evident from the fact that 10 new companies (two foreign and eight Indian) had bid. "Evaluation of the bids received under NELP-IX will be undertaken by the Government and the blocks are expected to be awarded within three months. The entire process, including signing of contracts, is expected to be completed in four months," said the Union Oil and Gas Minister S Jaipal Reddy. 

The S&P CNX Nifty opened at 5,755; about 19 points higher compared to its previous closing of 5,736.35, and has touched a high and a low of 5,788.85 and 5,753.90 respectively.

The index is currently trading at 5,787.55, higher by 51.20 points or 0.89%. There were 47 stocks advancing against just 3 declines on the index.

The top gainers of the Nifty were Sesa Goa up by 2.39%, DLF up by 2.29%, Dr Reddy up by 2.29%, Sterlite Industries up by 1.81% and TCS up by 1.72%.

BPCL down by 0.48%, Bharti Airtel down by 0.31% and Kotak Bank was down by 0.09%, were the only losers on the index.

Hang Seng was up 393.24 points or 1.71% to 23,453.60, Jakarta Composite was up 27.26 points or 0.76% to 3,618.78, KLSE Composite was up 8.72 points or 0.57% to 1,528.81, Nikkei 225 was up 197.60 points or 2.09% to 9,656.68, Straits Times was up 39.12 points or 1.28% to 3,096.07, Seoul Composite was up 19.22 points or 0.93% to 2,091.35 and Taiwan Weighted was up by 69.91 points or 0.81% to 8,666.48.

On the flip side, Shanghai Composite was down by 14.23 points or 0.48% to 2,943.85.

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