Local bourses add to the morning gains; auto stocks soar as oil cools

Local equity markets after snapping the 9 days losing streak in the morning session have now gained some more ground in sharp contrast to the Asian markets which are largely trading in the red. The domestic bourses have shot up on the back of the fall in the crude oil which has triggered off buying across the board. Crude oil prices slumped the most on Thursday falling below $100 a barrel thereby easing macroeconomic worries as India imports most of its oil requirements. The global crude oil prices had surged in past few months fuelling inflationary pressures and concerns about widening current account deficit (CAD). However, even bargain buying of select beaten down stocks by funds and retail investors has given some respite to the ailing equity markets which witnessed its longest run of losses in a decade. On the global front, Asian stock fell on Friday after Wall Street was hit by a massive sell-off in commodities as a surge in weekly claims for jobless benefits intensified worries over a faltering economic recovery. Back home the market bellwether Reliance Industries, gaining for the second straight day on reports of company planning to invest $12 billion in the chemicals business to tap the rapidly growing market for hygiene and healthcare products in India.

On the BSE sectoral front, stocks from Banking, Auto and Capital Goods were witnessing sharp gains of over 1%, while stocks from Metal and Fast Moving Consumer Goods were the only losers. Auto stocks gained as sharp fall in crude oil prices eased concerns of apparent hike in fuel prices as the rise in fuel prices could affect demand in already rising interest rate scenario. Both the barometer indices i.e. Sensex on BSE and Nifty on NSE were trading above the physiological levels of 18300 and 5500 respectively. The broader indices too were trading firm. The overall market breadth on BSE was in the favour of advances which outpaced declines in the ratio of 1470:649, while, 76 shares remained unchanged.

The BSE Sensex is currently trading at 18,396.65, up by 186.07 points or 1.02%. The index has touched a high and low of 18,480.93 and 18,281.50 respectively. There were 24 stocks advancing against 6 declines on the index.

The broader indices too were trading firm in the green; the BSE Mid cap and Small cap indices gained 0.65% and 0.91% respectively. 

The top gaining sectoral indices on the BSE were, Bankex up by 2.45%, Auto up by 1.83%, CG up by 0.39%, CD up by 0.96% and Realty up by 0.92% While, Metal down by 0.67% and FMCG down by 0.39% was the only losers on the index.

The top gainers on the Sensex were ICICI Bank up by 4.15%, M&M up by 3.11%, Tata Motors up by 2.75%, BHEL up by 1.89% and HDFC Bank up by 1.79%.

Sterlite Industries down by 3.38%, Hindalco down by 1.66%, Bharti Airtel down by 0.96%, ITC down by 0.77% and Reliance Infra down by 0.75% were the top losers on the index.

Meanwhile, after evaluating the progress of various captive coal blocks, government has decided to revoke the allotment of 14 Coal blocks and 1 lignite captive coal block for slow implementation or non-implementation of mining projects. The Coal Ministry had issued show cause notices to 84 coal block allocatees and 4 lignite block allocattees last year for not developing the same within stipulated time and sought explanation as to why blocks should not be cancelled.

According to an official statement, the coal ministry panel under the Chairmanship of Special Secretary (Coal), based on the responses of the allocattees, recommended de-allocation of two coal blocks allotted to private companies, 12 coal blocks allotted to Government companies, five of which were allotted to state-run National Thermal Power Corporation (NTPC) and one lignite block allotted to a private company.

The five blocks that were earlier awarded to NTPC and stand deallocated as of now include Chatti Bariatu, Chatti Bariatu (S), Kerandari, Brahmani and Chichiro Patsimal. The committee has recommended no action against 20 coal blocks falling under 'No-Go-Area'/wild life corridor area as classified by the Ministry of Forest and Environment.

The blocks recommended for de-allocation with regards to government companies other than NTPC are -Gondulpara of Tenughat Vidyut Nigam Limited/Damodar Valley Corporation; Saria Khoyatand of Bihar Rajya Khanij Bikas Nigam Limited; Banhardih of Jharkhand State Electricity Board; Anesatta-palli, Punukula Chilka and Pengadappa of APGENCO and Saharpur jamar-pani of Damodar Valley Corporation. Two blocks allotted to private companies recommended for deallocation are Bhandak West of Shree Baidyanath Ayurved Limited and Warora West (N) of Bhatia International Limited. The Lignite block recommended for deallocation is Lunsara block allocated to V S Lignite.

The Committee has also recommended deduction of bank guarantee in case of 15 allocattees (private companies) for failing to achieve commencement of production as per the letter of allotment. The Committee has also recommended issue of warning to 29 coal block allocattees and three lignite block allocattees for bringing their blocks into production at the earliest.

The S&P CNX Nifty is currently trading at 5,509.05, up by 49.20 points or 0.90%. The index has touched a high and low of 5,535.50 and 5,477.55 respectively.There were 38 stocks advancing against 12 declines on the index.

The top gainers of the Nifty were ICICI Bank up by 4.03%, M&M up by 2.96%, Tata Motors up by 2.84%, BPCL up by 2.65%, Punjab National Bank up by 2.40%.

The top losers of the index were Sterlite Industries down by 3.29%, Hindalco down by 2.05%, Cairn down by 1.47%, Bharti Airtel down by 1.29% and Sesa Goa was down by 1.09%.

All the Asian peers were trading in the red; Shanghai Composite slid 0.23%, Hang Seng dropped 0.60%, Jakarta Composite declined 0.40%, KLSE Composite shed 0.47%, Nikkei 225 plunged 1.63%, Straits Times decreased 0.57%, Seoul Composite fell 1.90% and Taiwan Weighted was down by 0.50%

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