Benchmarks make firm start tracking positive cues from global indices

The Indian equity markets have made a firm start tracking positive cues from the global indices as all the Asian counterparts were trading in the positive terrain at this point of time, indicating strong investor's sentiments, while overnight rally in the US markets too boosted the sentiments. Back home, sustained buying in key heavyweights along with broader indices keeping the markets on the positive side. BSE's Sensex and NSE's Nifty are hovering near their crucial 19,300 and 5,800 mark, respectively. On the sectoral front, realty witnessed the maximum gain in trade followed by consumer software and technology with no losers on the BSE sectoral space. Meanwhile, fertilizer stocks viz., Chambal Fertilizer, National Fertilizer and Gujarat State Fertilizer all were trading with a gain in a range of 1.50% to 3% on projection of monsoon to remain normal this year. Moreover, HCL Technologies surged more than eight and a half percent on reporting strong Q3 result. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,356 shares on the gaining side against 381 shares on the losing side while 67 shares remained unchanged.

The BSE Sensex opened at 19,274.21; about 153 points higher compared to its previous closing of 19,121.83, and has touched a high and a low of 19,334.50 and 19,269.99, respectively.

The index is currently trading at 19,299.76, up by 177.93 points or 0.93%. There were 29 stocks advancing against just 1 decline on the index.

The overall market breadth has made a strong start with 75.17% stocks advancing against 21.12% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 1.02% and 1.01% respectively. 

The top gaining sectoral indices on the BSE were, Realty up by 1.88%, IT up by 1.65%, TECk up by 1.43%, Metal up by 1.17% and Bankex was up by 1.03%. While there were no losers on the index.

The top gainers on the Sensex were TCS up by 2.66%, DLF up by 2.22%, M&M up by 2.07%, Hindalco up by 1.56% and Jaiprakash Associates was up by 1.49%.

On the flip side, Hero Honda down by 2.88% was the lone loser on the index.

Meanwhile, even as millions of households are struggling to cope with the mounting inflation in an economy where food takes away one out of every two rupees they earned, the food prices are expected to remain stable this summer as abundant stocks of rice, wheat, pulses, sugar, and edible oil would keep a lid on volatility. Prime Minister's economic panel -- Prime Minister's Economic Advisory Council (PMEAC) has also said that average inflation this fiscal may ease to 6% from about 9% at present.

Though the wholesale price inflation (WPI) in March rose to 8.98%, higher than Reserve Bank's (RBI) projection, the PMEAC is hopeful that in April the situation will ease on the back of bumper grain production. Further, the government is trying very hard to protect its economy from rising crude oil prices and hence so far as retail prices have not been adjusted to international crude prices, particularly with respect to diesel. But the government has said that after 3-4 months, when inflation rate falls to a much lower level, perhaps they will take a firm decision on what to do with the diesel prices.

The PMEAC is also optimistic about the fact that the Greece debt crisis may not have a direct bearing on the foreign capital flows into India and the growth of the country will mainly depend on the decisions taken by the government and RBI. 

The S&P CNX Nifty opened at 5,786.05; about 46 points higher compared to its previous closing of 5,740.75, and has touched a high and a low of 5,806.40and 5,783.95 respectively.

The index is currently trading at 5,788.00, higher by 47.25 points or 0.82%. There were 46 stocks advancing against just 4 declines on the index.

The top gainers of the Nifty were HCL Tech up by 7.10%, TCS up by 2.55%, M&M up by 2.13%, DLF up by 1.92% and Hindalco up by 1.71%.

Hero Honda down by 0.56%, Grasim down by 0.52%, Sun Pharma down by 0.24% and BPCL down by 0.21, were the only losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up 9.72 points or 0.32% to 3,008.76, Hang Seng was up 216.35 points or 0.92% to 23,736.97, Jakarta Composite was up 37.22 points or 1.00% to 3,769.87, KLSE Composite was up 5.99 points or 0.39% to 1,527.52, Nikkei 225 was up 161.87 points or 1.71% to 9,602.90, Straits Times was up 14.22 points or 0.45% to 3,139.59, Seoul Composite was up 36.05 points or 1.70% to 2,158.73 and Taiwan Weighted was up 135.44 points or 1.57% to 8,773.99 

Unit-8, 3rd Floor, First Mall, The Mall, Ludhiana-141001, Punjab (INDIA).

To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0nGysTAwMbA==