Local equity markets continue to trade firm

Local equity markets are managing hold their early splendid gains for the second straight session on sustained buying by funds in fundamentally strong shares influenced by a firm Asian trend even as Japan Nikkei 225 trimmed all its losses after a soft start. The investors have picked up bargains in a market that has underperformed so far this year on the hopes that the India's economic growth story will stay intact which in turn boosted demand for loans which pushed the financial sector stocks higher. Further, markets also turned optimistic on the news that the foreign funds have turned net buyers of Indian equities in March, after dumping them in the first two months of 2011. As per the last available data from the market regulator, they have injected a net of around $305 million in Indian stocks in March, leading the benchmark index 2.1 percent higher. On the global front, Asian shares were mostly higher on bargain hunting, while Japan Nikkei 225 after declining on the news that the authorities in the capital had found dangerously high levels of radiation in the water but the index soon rebounded as traders picked up cheap stocks. The US future indices are trading in green on the screen trade.

Back on Dalal Street, on the BSE Sectoral front, stocks from Realty, Capital Goods and Auto counters were trading graciously above 1% each. The benchmark index on Bombay Stock Exchange --Sensex-- was trading well above the physiological level of 18000 mark while Nifty too continued to trade above the secured 5500 mark respectively. The Midcap index fared better than its larger peers while small pocket index too were garnering modest gains. The overall market breadth on BSE was in the favour of advances which thrashed declines in the ratio of 1456:757, while, 96 shares remained unchanged.

The BSE Sensex is currently trading at 18,339.87, up by 133.71 points or 0.73%. The index has touched a high of 18,373.97 and a low of 18,286.42 respectively. There were 27 stocks advancing against 2 decline on the index, while 1 stock remained unchanged.

The broader indices were performing in line with benchmarks; the BSE Mid cap and Small cap indices surged 0.73% and 0.85% respectively. 

All the sectoral indices were trading in green, however, the top gaining sectoral indices on the BSE were, Realty up by 2.24%, Capital goods up by 1.11%, Auto up by 1.07%, Bankex up by 1.05% and Metal up by 1.04 %.

The top gainers on the Sensex were Hindalco Industries up by 2.47%,  BHEL up by 1.94%, TCS up by 1.87%, ICICI Bank up by 1.85% and M&M was up by 1.79%.while, Hindustan Unilever down by 0.24 % was the lone loser on the index.

Meanwhile, based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on March 11, 2011, Government of India has approved 14 Proposals of Foreign Direct Investment (FDI) amounting to Rs. 1289.85 crore approximately.

Among those that got the green signal, the biggest one is by the Dhunseri Investments, Kolkata which has been allowed to issue equity shares to the non-resident shareholders consequent upon demerger to the tune of Rs 715 crore. Another major project is by Ghir Investments which got the approval of the FIPB for induction of foreign equity in an investing company. The Mauritius based company proposes to bring in FDI worth Rs 530 crore.

Among others, Gremach Infrastructure Equipments and Projects got the ex-post facto approval for issue of warrants.  The company is engaged in the business of providing equipments on rental for infrastructure projects. Similarly, PCRD Services, Singapore has got approval from the finance ministry to increase the foreign equity percentage in an investing company.

The finance ministry deferred a decision on 27 proposals which include one by Forbo Holding AG, Lindenstrasse, Switzerland to set up a new WoS to undertake the business of manufacturing, sale, distribution, lease, import and export of power transmission belts. Similarly, a proposal by Punj Lloyd for bringing in FDI to undertake additional activities of manufacture, assembly and repair of defence equipment has been postponed too.    

The S&P CNX Nifty is currently trading at 5,515.25, higher by 35.00 points or 0.64%. The index has touched a high of 5,528.25 and a low of 5,500.75 respectively. There were 40 stocks advancing against just 10 declines on the index.

The top gainers of the Nifty were Hindalco up by 2.67%, BHEL up by 2.14%, Punjab National Bank up by 1.96%, ICICI Bank up by 1.89% and M&M up by 1.78%.

GAIL down by 1.39%, DR Reddy down by 0.49%, Cairn India down by 0.48%, Hindustan Unilever down 0.33% and  JP Associate down by 0.17% were the major losers on the index.

Asian markets were trading mostly in the green; Shanghai Composite  gained 0.09%, Hang Seng  added 0.76%, Jakarta Composite surged 1.07%, KLSE Composite tad up 0.03%, Straits Times increased 0.83% , Seoul Composite rose by 0.82% and Taiwan Weighted was up by 0.53%.Further Nikkei 225 after slipping 14.18 points in early trade is now trading flat.

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