Market hits fresh intraday high; Auto, IT, Banks stocks lead

The benchmark equity indices continue to edge higher in late morning session as sustained buying by foreign funds and local investors and higher Asian stocks boosted the sentiments. The market breath was also strong. US index futures were trading higher adding to the positive sentiments for the local markets. Back home, the BSE sensex and NSE Nifty were trading above its psychological level of 19,400 and 5,800 levels respectively. All the sectoral indices on the BSE barring Metal which was down by 0.02% were trading in the green. IT shares rose on expectations of good Q4 results. Index heavyweights Reliance Industries, Infosys, HDFC, Tata Motors and L&T nudged higher. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices soared 0.89% and 1.02%, respectively. The overall market breadth on BSE was in the favour of advances which outnumbered declines in the ratio of 1737:835, while 98 shares remained unchanged.

The BSE Sensex surged 196.46 points or 1.02% at 19,459. The index has touched a high of 19,504.58 and a low of 19,101.63 respectively.

The BSE Mid cap and Small cap indices soared 0.89% and 1.02% respectively. 

All the  sectoral indices on the BSE baring Metal down 0.02% were trading in green, Auto up by 1.54%, CG up by 1.46%,  IT up by 1.32%, Bankex up by 1.10 % and TECk was up by 1.09%.

The top gainers on the Sensex were JP Associates up by 4.74%, HUL up by 2.23%, Hero Honda up 2.13%, HDFC up by 2.06% and Tata Motors up by 2.05% . 

On the flip side, Jindal Steel down by 0.85%, Sterlite Industries down by 0.72%, Hindalco Industries down 0.43%, Tata Power down 0.40% and Bharti Airtel down 0.08% were the top losers on the index.

India's headline inflation, that continues to remain above the 8% level despite a series of policy rate hikes by the central bank over last financial year, might come down to around 7% by May, said the Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan.

The PMEAC Chief expects that inflation was softening, particularly in food commodities and results would be visible in couple of months. 'I think the inflation numbers will show some decline in the month of March but certainly by April or May. Weekly data that are available indicate that the food price inflation is coming down,' Rangarajan said while talking to media persons on the side lines of an industry event.

Rangarajan, a former Governor of the Reserve Bank of India (RBI) himself, said that since food price inflation was persistent for a long time it was also getting extended to the manufacturing side that was why the overall inflation was not coming down as fast we expected. "But certainly by April-May we should be closer to 7%," Rangarajan said adding that measures taken by the government and the RBI will show impact going forward.

Inflation remains the biggest problem facing Indian policy makers. High and sticky inflation has also led most researchers to downwardly revise growth forecast for India. Most recently, the International Monetary Fund (IMF) had lowered growth projection for India by about 30 basis points owing to high inflation and potential further monetary tightening by the central bank. The RBI has already hiked its policy rates eight time last fiscal and is expected to continue the fight against inflation deep into 2011 as well.

In context of the government having any plans to deregulate diesel prices within current financial year, Rangarajan stated that the fiscal numbers indicated in the budget clearly showed that there would be some policy decisions relating to petroleum products during the year. 'However, the timing of the decision will depend on when the inflation rate falls. I think some policy action relating to the petroleum and diesel prices will have to be taken during the course of the year,' he said.  

The S&P CNX Nifty advanced 57.45 points or 0.99% at 5843.15.  The index has touched a high and a low of 5,853.80 and 5,735.55 respectively.

The top gainers of the Nifty were JP Associates up 4.85%, Siemens up 2.92 %, HUL up 2.61%, Hero Honda up by 2.26% and HDFC up 2.28%.

Sun Pharma down by 1.05%, Jindal Steel down by 0.85%, Sterlite Industries down by 0.78%, Tata Power down 0.47% and Hindalco down 0.43% were the major losers on the index.

All the Asian markets were trading in the green; Shanghai Composite surged 0.33%, Hang Seng gained 0.60%, Jakarta Composite added 0.24%, KLSE Composite rose 0.16%, Nikkei 225 increased 0.90%, Straits Times soared 1.05%, Seoul Composite surged 1.56% and Taiwan Weighted was up 0.55%.

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