Benchmarks make firm start tracking positive cues from global indices

The Indian equity markets have made a firm start tracking positive cues from global indices. The US markets closed higher supported by good earnings number and better than expected consumer confidence data and all the Asian markets were trading in the positive terrain at this point of time, indicating strong investors' sentiment. Back home, sustained buying in key heavyweights along with broader indices keeping the markets on the positive side. Consumer durables witnessed the maximum gain in trade followed by public sector undertaking and realty with no losers on the BSE sectoral space. Meanwhile, steel companies viz. Tata Steel, JSW Steel, SAIL are edged higher in the trade on the country's largest steel producer Tata Steel's assumptions that country's steel demand might grow by around 10-11% in the current fiscal. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,172 shares on the gaining side against 550 shares on the losing side while 60 shares remained unchanged. Trade may remain volatile this week, being the expiry week for the April F&O series.

The BSE Sensex opened at 19,610.71; about 65 points higher compared to its previous closing of 19,545.35, and has touched a high and a low of 19,633.63 and 19,550.56, respectively.

The index is currently trading at 19,594.05, up by 48.70 points or 0.25%. There were 25 stocks advancing against just 5 declines on the index.

The overall market breadth has made a strong start with 65.77% stocks advancing against 30.86% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.55% and 0.65% respectively. 

The top gaining sectoral indices on the BSE were, CD up by 1.11%, PSU up by 0.69%, Realty up by 0.62%, Auto up by 0.58% and CG was up by 0.48%. While there were no losers on the index.

The top gainers on the Sensex were ONGC up by 1.45%, Maruti Suzuki up by 1.26%, DLF up by 1.15%, M&M up by 1.08% and Hero Honda was up by 0.82%.

On the flip side, Wipro down by 2.75%, Bajaj Auto down by 0.40%, Tata Power down by 0.31%, Jindal Steel down by 0.28% and HDFC down by 0.23% were the top losers on the index.

Meanwhile, Even as the problem of inflation looms large, the government is considering allowing more unrestricted sugar exports on account of bumper crop last fiscal. However, the government is waiting for the final output figures for the current season from October for taking further decisions in this matter. But the delay is causing jittery among traders as global prices are starting to come down and have already declined by 11% to $626.9 per tonne since March 22, leaving very little incentive for mills in North India to export.

The government has pegged the sugar production in the ongoing 2010-11 sugar year at 24.5 million tonne (MT) which is slightly higher than what US Department of Agriculture (USDA) estimated for India (24 MT). Earlier, the USDA had pegged the country's sugar production at 23.6 MT during the ongoing 2010-11 sugar year (October-September), but revised the estimate after taking into account higher cane output of 340.5 MT in the 2010-11 sugar year. USDA estimates that Indian sugar mills have already produced 16.3 MT of sugar till February this sugar year, as compared to 13.7 MT in the year-ago period and with surplus sugar production in 2010-11, India may export around 8,00,000 tonne of sugar in the current sugar year of which export of 5,00,000 tonne of sugar under Open General Licenses (OGL) has already been approved.

Meanwhile, production in top two sugar-producing states - Maharashtra and Uttar Pradesh is expected to be 9.3 MT tonne and 6.2 MT, respectively, this year. Higher sugar production is expected particularly in central and southern India, as output in these regions is likely to be better following well-distributed monsoon rains and favorable weather conditions.

The S&P CNX Nifty opened at 5,884.20; about 16 points higher compared to its previous closing of 5,868.40, and has touched a high and a low of 5,892.35 and 5,865.25 respectively.

The index is currently trading at 5,878.65, higher by 10.25 points or 0.17%. There were 31 stocks advancing against 19 declines on the index.

The top gainers of the Nifty were Siemens up by 1.70%, ONGC up by 1.51%, Maruti Suzuki up by 1.11%, DLF up by 1.03% and M&M up by 1.00%.

Wipro down by 2.88%, Ambuja Cement down by 1.65%, GAIL down by 0.95%, ACC down by 0.84% and Bajaj Auto was down by 0.59%, were the major losers on the index.

All the Asian counterparts were trading in the green; Shanghai Composite was up 6.80 points or 0.23% to 2,945.78, Hang Seng was up 97.69 points or 0.41% to 24,105.07, Jakarta Composite was up 15.05 points or 0.40% to 3,789.92, KLSE Composite was up 5.59 points or 0.37% to 1,532.93, Nikkei 225 was up 102.47 points or 1.07% to 9,661.16, Straits Times was up 15.21 points or 0.48% to 3,187.04, Seoul Composite was up 4.26 points or 0.19% to 2,210.56 and Taiwan Weighted was up by 101.40 points or 1.13% to 9,049.54.

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/?TJzsLEwstCyc7OysHMyctEa0nOyMzIxsHA==