Benchmarks remain range bound in the green

Local equity markets continue to trade in the green on the back of cooling of crude oil prices which is providing much needed support to the markets. Crude prices have plunged by around two percent in today's session as pessimist traders squared off positions on expectations that the pace of economic recovery may take a hit globally in the wake of Japan's biggest earthquake followed by the massive tsunami that killed over 10,000 people. Reports of moderating tensions from the Middle East and North African nations coupled with ample oil supplies too undermined the oil prices which hit 2-1/2-year high levels of almost $120 a barrel recently. On the global front, rest of the Asian markets are trading in the mixed range with Nikkei 225 losing more than six percent. US index futures too are showing down-tick in screen trade at this point of time. Back home, though BSE Sensex was holding onto its crucial 18,300 level, NSE Nifty was a tad below its psychological 5,500 mark. Among sectoral indices, oil & gas, consumer durables, metal, power and banking stocks continue to trade firm; while auto and realty stocks continue to reel under the selling pressure. Index heavyweights such as Reliance Industries, NTPC, HDFC, Infosys, ICICI Bank, Wipro and L&T were trading in upwards direction. However, leading carmaker Maruti Suzuki, a unit of Suzuki Motor Corp, dropped more than one percent on worries over the impact from Japan's disaster as yen appreciation will have major dent on its profits. The broader markets are trading in the green with notable gains; the BSE Mid-cap and Small-cap indices gained 0.26% and 0.29%, respectively. The market breadth on the BSE was positive; the gainers outpaced the losers in a ratio of 1341:1261 while 125 shares remained unchanged. Meanwhile, India's wholesale price index (WPI) rose an annual 8.31% in February on higher fuel and manufactured product prices, government data showed. The figure was well above the median forecast for a 7.79% rise and was higher than the annual rise of 8.23% in January.

The BSE Sensex rose 144.55 points or 0.80% at 18,318.64. 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 0.26% and 0.29%, respectively.

In the BSE sectoral space Oil & Gas up 1.68%, Consumer Durables (CD) up 1.18%, Metal up 1.15%, Power up 0.75% and Bankex up 0.70% were the major gainers; while Auto down 0.46% and Realty down 0.05% were the only losers in the BSE sectoral space.

Meanwhile, 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 policy 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 top gainers on the Sensex were Tata Steel up 2.34%, Reliance Infra up 2.29%, Tata Power up 2.16%, RIL up 1.79% and HDFC up 1.54%.

On the other hand, Maruti Suzuki down 1.12%, Bajaj Auto down 0.75%, Tata Motors down 0.61%, Bharti Airtel down 0.59% and Hero Honda down 0.43% were the major losers on the index.

The ruling Left Front in West Bengal has introduced 149 new faces in the list of candidates as well as 46 women candidates the highest ever for the April-May Assembly polls. Around 56 Muslims are also in the fray for this election for the party.

The Left Front, undefeated in the last seven assembly elections in West Bengal has dropped nine ministers and a sizable number of sitting MLAs in the list of candidates announced for the elections. The list, which has a blend of experience and youth, shows that a little over 60% of the 230 Left Front sitting MLAs, a majority of whom belonged to the CPI(M), have been denied tickets for the crucial elections to the 294-member House.

Chairman of the Left Front committee and member of the CPI (M) politburo Biman Bose said that the ministers who do not figure in the list are needed for strengthening the party organization given their seniority in politics, adding that the ministers' performance has anything to do with the denial of tickets.

Of the total 294 seats, the CPM is contesting 210 seats, Forward Bloc has fielded its candidates in 34 seats, RSP is fighting 23 seats and CPI is in fray in 14 assembly constituencies. Rest of the seats is being shared by minor Left Front partners like the Marxist Forward Bloc and others.

The S&P CNX Nifty advanced 45.85 points or 0.84% at 5491.30. The index touched high of 5505.45 and a low of 5434.25 respectively.

The top gainers on the Nifty were Reliance Capital up 5.71%, GAIL up 3.63%, Reliance Power up 2.56%, Tata Steel up 2.53% and Tata Power up 2.43%.

On the other hand, Suzlon Energy down 2.10%, Tata Motors down 0.91%, Maruti Suzuki down 0.87%, Bajaj Auto down 0.72% and IDFC down 0.62% were the major losers on the index.

The other Asian markets were trading in the mixed range. Shanghai Composite added 0.01%, Hang Seng advanced 0.19%, Jakarta Composite surged 1.02%, KLSE Composite rose 0.19% and Seoul Composite gained 0.80%; while, Nikkei 225 plunged 6.18%, Straits Times trimmed 0.16% and Taiwan Weighted plummeted 0.56%.

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