The stocks markets have held on to the over one percent gains, gyrating around the psychological 5,550 and 18,550 levels in the afternoon session of trade as investors have turned their complete focus on the assembly poll results from the West Bengal, Tamil Nadu, Kerala, Assam and Pondicherry. On one hand, Mamata Banerjee has single handedly wrecked the red bastion in West Bengal ending Left Front's uninterrupted 34-year-old rule while on the other J. Jayalalitha led AIADMK is inching closer to an assured win in the Tamil Nadu assembly polls. Broad based bottom fishing in badly butchered counters especially the rate sensitive pockets like Real Estate and Banking along with FMCG are also buoying sentiments. Meanwhile most markets in Asia have reversed their initial losses and are back into the green terrain trading with good gains while the European counterparts too have got off to an optimistic start, adding to the investor conviction and leading them to overlook the advance in international crude oil prices. While around a percent gain in index heavyweight RIL is also helping the benchmarks to maintain the initial gains.
Meanwhile, the broader markets too are trading on a positive note but underperforming their larger peers by a small margin. The midcap index climbed 0.85% and the smallcap index advanced 0.57% points. The market breadth on the BSE was in favor of advances in the ratio of 1583:859 while 115 scrips remained unchanged.
The BSE Sensex surged 216.85 points or 1.18% at 18,552.64. The index touched a high and a low of 18,590.63 and 18,280.70 respectively.
The BSE Mid-cap index climbed 0.85% and Small-cap index garnered 0.57%.
On the BSE sectoral front, FMCG up 1.75%, Realty up 1.54%, Bankex up 1.52%, Capital Goods up 1.47% and Metal up 1.35% were the major gainers.
There was no laggard in the BSE sectoral space.
The top gainers on the Sensex were ICICI Bank up 2.28%, DLF up 2.11%, ITC up 2.09%, Hindalco up 2.05% and JP Associates up 1.94%.
On the flip side M&M down 0.26% was the only loser on the index.
Meanwhile, government on May 12, 2011 decided to grant an additional cash subsidy of Rs 20,000 crore in order to compensate the state-owned oil marketing companies (OMCs) like Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOC) for selling petroleum products like diesel, domestic LPG and kerosene at controlled rates in 2010-11 fiscal. However not even six weeks have passed in the 2011-12 financial year and the government has already exhausted its entire budgetary provision of Rs 20,000 crore for petroleum subsidy.
Out of the total subsidy, around Rs 11,027 crore cash compensation will be provided to Indian Oil Corporation, Bharat Petroleum Corporation is likely to get Rs 4,595 crore while Hindustan Petroleum Corporation would be allotted about Rs 4,379 crore. The cash subsidy will facilitate the OMCs to report profits in their earnings for the quarter ended March 31 slated to be announced by the end of May.
Moreover, the government is also planning to hike prices of petroleum products after the meeting of the Empowered Group of Ministers (EGoM) to consider hiking fuel prices, which is scheduled to be held within a week' time by May 17-18.
Reports suggest that OMCs had originally sought Rs 30,000 crore as monetary compensation from the government. In the previous fiscal the industry had recorded under-recoveries of around Rs 78,000 crore, out of which one third will be borne by upstream companies like Oil and Natural Gas Corporation and Oil India which will contribute about Rs 25,750 crore, while the government contributed around Rs 21,000 crore in September 2010 and has only just granted Rs 20,000 crore taking the cumulative tally to Rs 41,000. The OMCs still fall short of another about Rs 11,000 crore from meeting their under-recoveries.
The S&P CNX Nifty soared 68.05 points or 1.24% at 5,554.20. The index touched high and low of 5,564.00 and 5,472.15, respectively.
The top gainers on the Nifty were Axis Bank up 3.15%, ICICI Bank up 2.64%, DR Reddy's up 2.38%, Hindalco up 2.25% and DLF up 2.17%.
On the other hand, BPCL down 0.54%, M&M down 0.42% and HCL Tech down 0.28%were the only losers on the index.
On the Asian front Shanghai Composite added 0.98%, Hang Seng added 0.76%, Jakarta Composite added 0.33%, KLSE Composite added 0.70%, Straits Times added 1.02%.
On the flipside only Nikkei 225 down 0.70%, Seoul Composite down 0.12% and Taiwan Weighted down 0.30%.
The European markets have opened a positive note as the France's CAC 40 added 0.70%, Germany's DAX added 0.70% and London's FTSE 100 added 0.85%
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