Sensex trade near day’s high; nifty extend gains

The Indian equity markets are trading near day's high on sustained buying in several blue chip stocks and positive global cues. The Sensex has added more than 150 points in trade so far after a fall of over 650 points in previous three trading sessions. Even the Nifty was gradually moving towards the 5,600 mark. On sectoral front all the indices were in the green with consumer durables, oil and gas and realty taking the lead. IT is a bit weak in today's trade but is managing to maintain the positive mark. Heavyweights, ONGC, TCS, SBI, ITC and NTPC gained 1-2%. Deferral of ONGC follow-on public offer to September has helped the rally in ONGC. However, Infosys and Wipro continue to reel under selling pressure, falling 0.45%.and 0.41% respectively. On the global front most of the Asian markets were trading in green. Back home, the market breadth too is extremely strong ; there were 1712 shares on the gaining side against 776 shares on the losing side while 95 shares remained unchanged.

The BSE Sensex is currently trading at 18,593.49, up by 181.87 points or 0.99%. The index has touched a high and low of 18,593.49 and 18,465.40 respectively. There were 24 stocks advancing against 6 declines on the index.

The broader indices continue to outperform the benchmarks; the BSE Mid cap and Small cap indices were up by 1.07% and 0.97% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.62%, Oil & Gas up by 1.54%, Realty up by 1.53%, Bankex up by 1.27% and PSU up by 1.27%. While, there was no loser on the BSE.

The top gainers on the Sensex were DLF up by 2.52%, ONGC up by 2.08%, RIL up by 1.74%, Bharti Airtel up by 1.70% and Reliance Infra was up by 1.66%. On the flip side, Infosys down by 0.45%, Wipro down by 0.41%, Tata Power down by 0.26%, Cipla down by 0.20% and HDFC down by 0.17% were the top losers on the index.

Meanwhile, overseas direct investments by Indian companies/parties have increased in the month of June despite the global economic uncertainties. Overseas investment by Indian companies for last month stood at $5.47 billion from $4.66 billion in May. However, it is less than the outflow of $12.27 billion during June 2010. Overseas investment during month of May saw the second highest increase in last 11 years, it increased by 111% to $4.66 billion from $2.21 billion in May 2010.

During the first quarter of current financial year, total overseas direct investment stood at $10.57 billion, which is lower than $18.25 billion during the same period of last fiscal.

According to data released by the Reserve Bank of India (RBI), for the month of June, Adani group firm Mundra Port and Telecom Company Bharti collectively committed more than $2.5 billion overseas investment. As per the RBI data, in June Indian firms issued $3.9 billion financial guarantee, $937 million loans and contributed $641.37 million towards equities. 

The Adani group's Mundra Port and SEZ extended a guarantee of $2.25 billion to its wholly-owned subsidiary Mundra port PTY in Australia. The Adani group's subsidiary is engaged in construction activities. From other three different deals telecom company, Bharti Airtel made overseas investment of $494.5 million, it invested $350 million in Singapore, $140 million in Netherlands and Mauritius in $4.5 million. Other Indian firms who made overseas investment were RHC holding Private in Manutius, Suzlon Energy in Mauritius and Aurbindo Pharma in USA.

The S&P CNX Nifty is currently trading at 5,582.00, up by 55.85 points or 1.01%. The index has touched a high and low of 5,583.95 and 5,541.40 respectively. There were 43 stocks advancing against 7 declines on the index.

The top gainers of the Nifty were Dr Reddy's up by 3.15%, IDFC up by 2.80%, DLF up by 2.56%, ONGC up by 2.20% and Kotak Bank was up by 2.20%.

Infosys down by 0.45%, Wipro down by 0.42%, Tata Power down by 0.24%, Cipla down by 0.19% and BPCL down by 0.16% were the major losers on the index.

Most of the Asian equity indices were trading in the green. KLSE Composite was marginally down by 0.10% and Taiwan Weighted has lost 0.03%.

On the other hand, Shanghai Composite was up 1.43%, Hang Seng was up 1.12%, Jakarta Composite was up 0.64%, Nikkei 225 was up 0.47%, Straits Times was up 0.44% and Seoul Composite was up by 0.80% 

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