Anna and Bernanke uplift the sentiment at Dalal Street; bourses enlarge gains

Barometer gauges after reclaiming their psychological level in early deals post slumping to an 18 month low in the previous session, have added some more ground. Investors taking the opportunity of the oversold markets indulged in grabbing fundamentally strong stocks available at attractive valuations tailing the sanguinity of the global markets. A dash of enthusiasm was gathered across the board after US Federal Reserve Chairman Ben Bernanke left the door open for further action to stimulate the economy and fight high unemployment. On Friday night, US markets Wall Street posted its first weekly gain in more than a month as Fed Chairman Ben Bernanke raised hopes for more stimulus for the economy at the U.S. central bank's September meeting. Meanwhile, mass of Asian stock markets were demonstrating positive trends in the morning trades tailing the euphoria of the US markets. The US future indices too were showing an uptick on the screen trade. Back home, a rush of joy also came in post Anna Hazare ended his 12-day long public fast as the parliament agreed to incorporate his three contentious demands on the Lokpal Bill. Meanwhile, Oil prices which dipped post energy demand got impacted by the closure of refineries and airports as Hurricane Irene struck the US east coast, also relieved the markets, thereby injecting strength in stocks of Oil marketing companies. Though buying was broad based on the BSE Sectoral front, but stocks from Information Technology, TECk were displaying immense vigiur, thereby topping the chart of gainers. The 30 scrip sensitive index on BSE-Sensex- capturing gains of over 300 points was trading happily above the 16000 mark, while the 50 share widely followed index- Nifty- adding over 100 points was trading above the 4800 mark. The broader indices too tailing the larger counterparts were ruling up over 1%. The overall market breadth on BSE was in the favour of advances which thrashed declines in the ratio of 1795:438, while 66 shares remained unchanged.

The BSE Sensex is currently trading at 16,200.62, up by 351.79 points or 2.22%. The index has touched a high and low of 16,242.91 and 16,068.73 respectively. 29 stocks were advancing against 1 declining stock on the index.

The broader indices added further ground as both the BSE Mid cap and Small cap index rose by 1.63% and 1.57% respectively.

Buying was witnessed across the space however, topping the chart of the gainers on BSE were, IT up by 3.39%, TECk up by 2.99%, Bankex up by 2.64%, Metal up by 2.56% and Realty up by 2.53%.

The top gainers on the Sensex were Jindal Steel up by 6.15%, TCS up by 4.10%, Wipro up by 3.81%, Infosys up by 3.37% and ICICI Bank up by 3.15%. While Maruti Suzuki down by 0.11% was the lone loser in the 30 share pack.

Meanwhile, the Technology Upgradation Funds Scheme (TUFS), which provides support for textiles through interest reimbursement and capital subsidy will be extended during the 12th Plan period as well, Union Commerce Minister Anand Sharma said.

The restructured TUFS with a total subsidy cap of Rs 1,972 crore was to end on March 31, 2012. But now the government plans to extend it to 12th plan with an overall allocation of Rs 15,404 crore, almost double the Rs 8,000 crore originally approved for the 11th Five-Year plan.

TUFS, a subsidy scheme for setting up a state-of-the-art technology for the growth of textile industry, was introduced first in 1999 to catalyze investments in all sub-sectors of the textile and jute industry, by way of five percent interest reimbursement. The scheme was initially approved from April 1999 to March 31, 2004. Subsequently, it was extended in 2004 and again in 2007 with modifications. The scheme was discontinued on June 28, 2010.

Meanwhile, the Ministry of Textiles, expects the technical textiles sector in India to grow by 11 percent every year to attain a market size of $14.8 billion by 2012-13 from the current size of $9.9 billion. In order to promote technical textiles in the country and to address the growth bottlenecks the, Ministry of Textiles has launched the Technology Mission on Technical Textiles (TMTT). Sharma said two new missions aimed at standardization of testing laboratories and boosting marketing strength will be announced shortly.

The S&P CNX Nifty is currently trading at 4,860.50, higher by 112.70 points or 2.37%. The index has touched a high and low of 4,863.35 and 4,806.05 respectively. There were 47 stocks advancing against only 3 declining one's on the index.

The top gainers of the Nifty were Jindal Steel up by 6.34%, Reliance Infra up by 4.55, IDFC up by 4.34%, TCS up by 4.33% and Kotak Bank up by 4.06%.

On the flip side, Ranbaxy down by 1.65%, Sesa Goa down by 1.45% and Maruti Suzuki down by 0.65% remained the lone loser on the index.

All the Asian counterparts barring Shanghai Composite and Jakarta Composite were trading in the green; Hang Seng was up 1.51%, KLSE Composite was up by 0.17%, Nikkei 225 was up by 0.54%, Straits Times was up by 1.37%, Seoul Composite was up by 2.80% and Taiwan Weighted was up by 1.85%.

On the flip side, Shanghai Composite was down by 1.06% and Jakarta Composite plunged 0.07%.

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