The benchmark equity indices were in upswing and have gained more than two percent in the late afternoon session due to strong buying activity across the board especially after 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. Meanwhile the other global markets like European markets and US index futures were trading in green while the other Asian markets settled in mixed note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,550 and 18,600 levels, respectively. All the sectors were trading higher and there were no losers on the both index. FMCG, Bankex, Metal and Auto rose more than 2% each. Remaining sectors were over 1% higher. The Sensex outperformed the Midcap and the Small-cap indices. The market breadth on the BSE was in favor of advances in the ratio of 1719:941 while 138 scrips remained unchanged.
The BSE Sensex surged 356.57 points or 1.94% at 18,692.36. The index touched a high and a low of 18,724.54 and 18,280.70 respectively.
The BSE Mid-cap index climbed 1.11% and Small-cap index garnered 0.80%.
On the BSE sectoral front, FMCG up 2.90%, Bankex up 2.44%, Metal up 2.17%, Auto up 2.16% and Capital Goods up 1.92% were the major gainers.
There was no laggard in the BSE sectoral space.
The top gainers on the Sensex were JP Associates up 5.42%, ITC up 4.08%, ICICI Bank up 3.73%, Bajaj Auto up 3.53% and Tata Motors up 3.44%.There were no losers on the BSE 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 increased 113.35 points or 2.07% at 5,599.50. The index touched high and low of 5,605 and 5,472.15, respectively.
The top gainers on the Nifty were JP Associates up 5.24%, Axis Bank up 4.38%, ITC up 4.19%, ICICI Bank up 4.03% and Reliance Capital up 3.88% while there were no losers on the index.
Majority of the Asian markets were trading mixed. Shanghai Composite added 0.98%, Hang Seng added 0.88%, Jakarta Composite added 0.61%, KLSE Composite added 0.55% and Straits Times added 1.06%. On the flipside Nikkei 225 shed 0.70% Seoul Composite down 0.12% and Taiwan Weighted down 0.30%.
The European markets were trading in green. CAC 40 added 0.80%, DAX added 0.65% and FTSE 100 added 0.84%.
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