After drifting to the lowest point in the session on the back of investors' knee-jerk reaction to ugly May inflation numbers, Indian equity indices have shown some recovery and have managed to regain the psychological 5,500 and 18,300 levels in the early afternoon session of trade. Sanguine opening for European markets gave the much needed support to the local sentiments while the Asian markets too exhibited optimistic trends since the start of trade. Buying was largely witnessed in Public Sector Undertakings counter which added around a percent point while the Capital Goods stocks too traded with good gains providing support to the frontline indices. However, investors squared off positions from the oil and gas and rate sensitive Auto counters, capping the upside chances for the key indices. The index heavyweight Reliance Industries too bore the brunt of selling pressure as it shave off over a percent point and weighed down local sentiments. Meanwhile a meeting of a panel of ministers including oil minister Jaipal Reddy is underway to consider raising fuel costs. However, concerns that further hike in prices of petroleum products would take the inflation to double digits are looming large which will adversely impact the local equity markets.
Back home, the broader markets are trading on a firm note, showing some resilience and did not succumb to the selling pressure that was evident in the frontline indices post the release of ugly inflation data. The markets drifted on volumes of over Rs 0.45 lakh crore in the early noon session while the turnover for the F&O segment was at over Rs 0.38 lakh crore. The market breadth on the BSE was in favor of advances in the ratio of 1500:990 while 126 scrips remained unchanged.
The BSE Sensex added 39.63 points or 0.22% at 18,305.66. The index touched a high and a low of 18,380.19 and 18,276.78 respectively.
The BSE midcap index advanced 0.45% and the smallcap index added 0.37% points.
On the BSE sectoral front, PSU up 0.86%, Capital Goods up 0.83%, FMCG up 0.76%, Healthcare up 0.72% and Relaty up 0.71%, remained the major gainers.
While, Consumer Durables down 0.64%, Oil & Gas down 0.56% and Auto down 0.13% were the only laggards in the BSE sectoral space. The top gainers on the Sensex were R Infra up 2.04%, Tata Power up 1.73%, Bajaj Auto up 1.57%, ITC up 1.23% and Mahindra & Mahindra up 1.21%.
On the flip side Tata Motors down 2.34%, Hindalco down 1.52%, RIL down 1.39%, HDFC down 1.08% and Maruti Suzuki down 0.70% were the major losers on the index.
Meanwhile, India's farm credit surged by 11% to Rs 4.26 lakh crore in the 2010-11 fiscal, against the government's target of Rs 3.75 lakh crore. The extension of the interest rate subvention scheme for short term crop loans boosted the credit flow to the farm sector. Credit institutions had disbursed Rs 3.84 lakh crore during the previous fiscal year of 2009-10 against a target of Rs 3.25 lakh crore. The credit flow target for the current financial year (2011-12) has been fixed at Rs 4.75 lakh crore.
According to the agency-wise data released by Ministry of Agriculture, Commercial Banks were the top lenders with disbursal of Rs 3.14 lakh crore against the target of Rs 2.80 lakh crore followed by Cooperative Banks with 69 thousand crore versus target of Rs 55 thousand crore and Regional Rural Banks with 43 thousand crore against target of Rs 40 thousand crore. Over the years, agriculture credit flow has registered significant jump. It has gone up from Rs. 86,981 crore in 2003-04 to Rs. 4,26,531 crore in 2010-11, the data showed.
Banks have been asked to step up direct lending, especially to small and marginal farmers. The Government has been providing crop loans at concessional interest rates since 2006-07. In the current financial year (2011-12), the government is providing interest subvention by 3%, thus bringing down the effective rate of interest to 4% per annum. This interest subvention is provided to those farmers who repay their short term crop loans on time. In 2009-10 the subvention rate for timely repayment of crop loans was 1% which was raised to 2% in 2010-11 and further to 3% this year.
The S&P CNX Nifty rose 19.70 points or 0.36% at 5,502.50. The index touched high and low of 5,520.15 and 5,484.20 respectively.
The top gainers on the Nifty were Ranbaxy up 2.21%, R Infra up 2.05%, R Capital up 2.05%, Dr Reddy's up 1.99% and Tata Power up 1.76%.
On the other hand, Tata Motors down 1.98%, Hindalco down 1.58%, Reliance down 1.46%, HDFC down 1.03% and Cipla down 1% were the major losers on the index.
On the Asian front, Shanghai Composite surged 1.10%, Hang Seng added 0.26%, Jakarta Composite inched up 0.36%, KLSE Composite advanced 0.23%, Nikkei 225 soared 1.05%, Straits Times gained 0.08%, Seoul Composite jumped 1.37% and Taiwan Weighted amassed 1.33%.
The European markets have opened on a sanguine note as the France's CAC 40 surged 0.93%, Germany's DAX jumped 1.26% and London's FTSE climbed 0.69%.
Unit-8, 3rd Floor, First Mall, The Mall, Ludhiana-141001, Punjab (INDIA).
| To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0jAyMLGwsrKw=  |
Posts
0 comments:
Post a Comment
Note: only a member of this blog may post a comment.