Equity markets trade higher despite rise in WPI inflation; Sensex gain more than 150 points

The local equity markets are trading higher in late morning session though India's wholesale price index (WPI) rose slightly to an annual 8.31 per cent in February on higher fuel and manufactured product prices. The figure was well above the median forecast for a 7.79 per cent rise and was even higher than the annual rise of 8.23 per cent in January. Meanwhile today's sharp bounce in the local markets is mainly on the back of drop in global oil prices that helped ease inflation worries, and investors saw no major impact for companies from Japan's devastating earthquake. The other Asian markets were trading mixed while US index futures were showing down tick in screen trade. Back home, the NSE Nifty and BSE Sensex gained almost 50 pints and 150 points respectively amid volatility, supported by Oil and Gas, Metal, Bankex, Power and PSU companies' shares. The broader indices were trading in line with benchmarks, the BSE Mid cap and Small cap indices were up 0.37% and 0.44% respectively. The market breadth on BSE was in the favour of advances which outpaced declines in the ratio of 1348:1101, while, 120 shares remained unchanged.

PSU oil marketing companies (OMC) were trading higher after 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 overwhelming tsunami that killed over 10,000 people.

The BSE Sensex surged 157.27 points or 0.875 at 18,331.36. The index has touched a high of 18,367.51 and a low of 18,155.43 respectively. 

The BSE Mid cap and Small cap indices were up 0.37% and 0.44% respectively. 

All the  sectoral indices on the BSE  with an exception  of Auto, down by 0.31%  were trading in green  Oil and Gas was up by 1.42%, Metal up by 1.32%, Bankex up by 0.91%, Power up by 0.75% and PSU was up by 0.75%.

The top gainers on the Sensex were Reliance Infra up by 2.24%,Tata Steel up by 2.23%, Tata Power up by 1.82%, Reliance Communication up by 1.77% and HDFC was up by 1.58%.

Maruti Suzuki down by 1.17%, Bajaj Auto down by 0.97%, Bharti Airtel down by 0.36%, HUL down 0.31% and Tata Motors down by 0.28% were the top losers on the index.

Reliance capital surged after Nippon Life Insurance Company  inked definite agreement to acquire 26% stake in Reliance Life Insurance, one of the India's largest private insurers. Nippon Life Insurance for this will invest close to Rs 3,062 crore. This transaction pegs the total valuation of Reliance Life Insurance at approximately Rs 11,500 crore.Nippon Life Insurance is a 121 year old Global fortune 100 company, 6th largest insurer in the world, and the No.1 private life insurer in Asia and Japan. Reliance Capital currently holds a 100 per cent stake in Reliance Life. As per the current rules, a foreign entity can hold up to a 26 per cent stake in an Indian insurance firm.

The S&P CNX Nifty advanced 47 points or 0.86% and at 5,492.45. The index has touched a high of 5,505.45 and a low of 5,434.25 respectively.

The top gainers of the Nifty were Reliance Capital up by 6.13%, GAIL up by 3.66%, Tata Steel up 2.44%, and Reliance Infra up 2.35% and BPCL up by 2.21%.

The top losers of the index were Suzlon down by 2.94%, Bajaj Auto down 1.11%, Maruti Suzuki down by 1.11%, Tata Motors down by 0.72% and Bharti Airtel down 0.43%.

The other Asian markets were trading mixed; Shangai Composite down 0.08%, Nikkei 225 was down by 6.18%, Straits Times was down by 0.27% and Taiwan Weighted down by 0.56%.

On the flip side, Hang Seng surged 0.09 %, Seoul Composite gained 0.80% and Jakarta Composite added 0.75% and KLSE Composite advanced 0.11%.

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