The Indian equity markets have made a strong start in the early trade on the back of rally in Reliance Anil Dhirubhai Ambani (ADA) Group stocks. However, the global cues remained mixed as the US markets made a mixed closing overnight while; Asian peers too were trading mixed at this point of time. Back home, sustained buying in key heavyweights along with broader indices supported BSE's -- Sensex -- to regain its crucial 18,600 mark. Realty witnessed the maximum gain in trade followed by capital goods and consumer durables with no losers on the BSE sectoral space. The broader indices were outperforming benchmarks. Moreover, ADAG companies viz., RCom, Reliance Capital, Reliance Infra and Reliance Power all were trading with a good gain in the range of 4-8% in the trade after a Central Bureau of Investigation (CBI) court on June 2, 2011, rejected a plea seeking a probe against Reliance ADA Group Chairman Anil Ambani in a case of alleged rigging of the sale of telecommunication licenses and bandwidth in 2008. The market breadth on the BSE was positive; there were 1,526 shares on the gaining side against 313 shares on the losing side while 53 shares remained unchanged.
The BSE Sensex opened at 18,554.40; about 60 points higher compared to its previous closing of 18,494.18, and has touched a high of 18,672.65 while low remained its opening.
The index is currently trading at 18,636.25, up by 142.07 points or 0.77%. There were 28 stocks advancing against just 2 declines on the index.
The overall market breadth has made a strong start with 80.66% stocks advancing against 16.54% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.97% and 1.16% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.56%, CG up by 1.23%, CD up by 1.13%, Power up by 1.04% and Oil and Gas was up by 0.92%. While there were no losers on the index.
The top gainers on the Sensex were RCom up by 7.23%, Reliance Infra up by 5.03%, L&T up by 1.73%, M&M up by 1.63% and DLF was up by 1.57%. On the flip side, HUL was down by 0.28% and Tata Power was down by 0.03%, were the only losers on the Sensex.
Meanwhile, the World Bank (WB) has approved a loan of $975 million to Indian railways to set up the Eastern Dedicated Freight Corridor (EDFC) (a freight-only rail line) for faster and efficient movement of raw material and goods between Northern and Eastern regions. The corridor will also permit Indian Railways to free up capacity and better serve the large passenger market in the backward and densely populated region. The fund will also help to develop the institutional capacity of the Dedicated Freight Corridor Corporation (DFCCL) to build and maintain the DFC infrastructure network.
The EDFC is a part of Dedicated Freight Corridor (DFC) initiative of Indian government. The Indian government is planning to build a dedicated freight corridor connecting to its 4 metropolitan cities i.e. Mumbai, Delhi, Kolkata and Chennai. The four rail routes account for 16% of country's rail network, however, they carry more than 60% of India's total rail freight. The EDFC will reduce the travel time for passenger trains mainly on Ludhiana-Delhi-Mughal Sarai railway route. The corridor will also add additional capacity to rail transport. It will also improve the quality of service and create higher freight capacity.
Expansion of transport system is an important element of Indian's trillion dollar infrastructure agenda for the 12th Five Year Plan. After liberalization, the share of railway has reduced sharply as against to road transport, now road transport accounts for around 65% of freight market and 90% passenger market in India. The Indian Railways urgently need to increase freight routes to meet the growing freight traffic in India; the freight traffic is increasing around 7% annually. The loan has the maturity of 22 years with a grace period of 7 years and the WB will finance around 1130 Km of 1839 Km EDFC in three phase. The present approval will finance the first phase which is around 343 km section that runs between Khurja and Kanpur. The DFC corridor will operate entirely through electric locomotives which will improve the efficiency and reduce the emission greenhouse gas (GHG). At present the existing rail network runs on combination of diesel and electrical locomotives.
The DFC program will offer India the opportunity to create one of the world's largest freight operations, adoption proven international technologies and approaches which can progressively be extended to other important freight routes throughout the rail network. Also DFC will enable the Indian Railways to reduce GHG emissions on these routes by over 64 percent.
The S&P CNX Nifty opened at 5,565.70; about 15 points higher compared to its previous closing of 5,550.35, and has touched a high of 5,604.95 while low remained its opening.
The index is currently trading at 5,595.65, higher by 45.30 points or 0.82%. There were 48 stocks advancing against just 2 declines on the index.
The top gainers of the Nifty were RCom up by 7.17%, Reliance Capital up by 6.14%, Reliance Infra up by 5.10%, Reliance Power up by 4.11% and L&T up by 2.03%.
On the flip side, HUL down by 0.33% and Tata Power down by 0.03%, were the only losers on the index.
Asian equity indices were trading mixed; Seoul Composite was up 5.14 points or 0.24% to 2,119.34, Taiwan Weighted was up 50.55 points or 0.56% to 9,041.91, KLSE Composite was up 0.03 points and Shanghai Composite was up 24.20 points or 0.89% to 2,729.38.
On the flip side, Hang Seng was down 66.19 points or 0.28% to 23,187.65, Jakarta Composite was down 2.72 points or 0.07% to 3,835.04, Nikkei 225 was down 36.31 points or 0.38% to 9,518.73 and Straits Times was down by 12.14 points or 0.38% to 3,148.46.
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