Local bourses have firmed up well ahead the release of the GDP data since buying has gained momentum tailing positive Asian markets. The investors are also deriving some sense of comfort on the reports of early monsoon as abundant rains may boost rice, corn, sugar, cotton and oilseed harvests, thereby helping growth and curbing inflation, which has been the top priority of the RBI. The Central bank in its annual monetary policy review on May 3 raised its interest rates for the ninth time since March 2010, by a sharper-than-expected 50 basis points.
On the global front, European indices finished flat overnight amid thin volumes. The US markets were also shut on Monday. Meanwhile, Asian Indices were trading in the positive zone. Back home, all the 13 sectoral indices are trading in green however, the stocks belonging to Fast Moving Consumer Goods, Realty, Bankex counters are edged higher with notable gains. The 30 share index on BSE-Sensex-is calmly trading above its 18300 mark. In the similar fashion, the 50 scrip index on NSE-Nifty is trading above its 5,500 physiological level. However, the broader indices are outdoing their larger peers and are currently enticing gain of over 0.50% each. The overall market breadth on BSE is in the favour of advances which have thumped declines in the ratio of 1438:655, while 99 shares remained unchanged.
Meanwhile the much awaited Gross Domestic Production (GDP) for the fourth quarter ended March 31, 2011 came at 7.8%, much lower than the 8.3% in the previous quarter (the GDP data for third quarter was revised from 8.2% to 8.3%). The year-end GDP stood at 8.5%. The street expectation was that the annual growth of economy for quarter would remain unchanged from the previous quarter at 8.2%
The BSE Sensex is currently trading at 18,399.81, up by 167.75 points or 0.92%. The index has touched a high and low of 18,408.99 and 18,266.61 respectively. There were 24 stocks advancing against just 6 declines on the index.
The broader indices were outperforming their larger counterparts; the BSE Mid cap and Small cap indices surged 0.99% and 0.76 % respectively.
Bulls have captured the entire BSE Sectoral space, however, among them the top gaining sectoral indices were FMCG up by 2.00%, Realty up by 1.87%, Bankex up by 1.40%, HC was up by 1.12% and CD up by 0.97%. While there were no losers on the index.
The top gainers on the Sensex were ITC up by 2.80%, DLF up by 2.45%, HDFC Bank up by 1.81%, SBI up by 1.57% and Wipro up by 1.55%.
On the flip side, Reliance Communication down by 1.37%, M&M was down by 1.20%, Bharti Airtel was down by 0.62%, NTPC down by 0.36% and Hindalco Industries down by 0.21% were only losers on the Sensex.
Meanwhile, Exports of Indian apparels climbed higher to touch the $1 billion mark in the month of April 2011, surging by around 13% year-on-year as it got fortified by huge demand from major importing markets like the US and Europe. According to the data provided by the Apparel Export Promotion Council (AEPC), the apparel exports came in at $972 million in April last year.
Apparel Export Promotion Council (AEPC) Chairman Premal Udani opined that 'there is a good demand for our exports from the US. Also, the European market is picking up.' Udani was also positive on the export prospects for the current fiscal year as he expected exports to touch $14 billion in the current fiscal on the back of good orders not only from the western markets, but also from new markets like Latin America.
The US and Europe together account for a large chunk of around 65% of India's total garment exports. The council expects garments exports' growth to continue in 2011-12. During 2010-11, garments exports grew by 4.4% to $11.1 billion compared to the previous fiscal. The garment industry employs about 70 lakh people in the country, out of which almost half are engaged in the export sector.
Though the global economy has faced many difficulties during the past two years, the export of Indian textile and garment products has managed to weather the storm swiftly. International economists expect the textile and garment production to move from Eastern European countries to Asian countries in 3-4 years. China is presently meeting 70% of the clothing demand of the world but is now reducing production. Economists think this is a good time for countries like India, Bangladesh, Pakistan, Vietnam and Cambodia to expand production and exports and be well prepared and equipped to meet the increasing demand.
The S&P CNX Nifty is currently trading at 5,527.80, higher by 54.70 points or 1.00%. The index has touched a high and low of 5,531.15 and 5,531.15 respectively.
There were 42 stocks advancing against 8 declines on the index.
The top gainers of the Nifty were ITC up by 2.83%, ACC up by 2.65%, DLF up by 2.35%, Ambuja Cement up by 2.24% and HDFC Bank up by 1.88%.
On the flip side, Reliance Capital down by 1.44%, Reliance Communication down by 1.37%, M&M down by 0.94%, Bharti Airtel down by 0.35% and Cairn India down by 0.34% were the major losers on the index.
Most of the Asian equity indices were trading in the green; Hang Seng gained 0.92%, KLSE Composite added 0.46%, Nikkei 225 surged 1.58%, Straits Times advanced 0.34%, Seoul Composite soared 2.0% and Taiwan Weighted climbed higher by 1.38%.
On the flip side, Jakarta Composite declined 0.07% and Shanghai Composite slid 0.13% were the only losers among the Asian pack
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