Markets continue positive rally; Nifty touches 5,050 level

The Indian equity market carried on with its positive rally on further buying across index heavyweights in the late morning trades. Investors tried to match up with the Asian peers which had sound gains in last two sessions, when Indian markets remained closed for public holidays. However, Nifty crossed 5,050 levels, while Sensex holding 16,800 levels. On sectoral front oil, metal, consumer durables, reality, automobile, healthcare, and FMCG stocks were trading in positive zone. Bank and FMCG stocks are trading mixed. Information technology, TECk and power stocks were trading weak. Reliance Communications topped the gainers list on Nifty by gaining 5.91% followed by Sterlite Industries. Tata Motors, M&M and Bajaj Auto surged 1-3%. Maruti lost over 1% due to workers' strike at company's Manesar plant. On the global front, most of the Asian markets were trading in red after low expectations from key jobs data dragged down Wall Street overnight. Back home, the market breadth favoring the positive trend; there were 1,547 shares on the gaining side against 878 shares on the losing side while 110 shares remained unchanged.

The BSE Sensex is currently trading at 16,852.37, up by 175.62 points or 1.05%. The index has touched a high and low of 16,989.86 and 16,704.71 respectively. There were 24 stocks advancing against 6 declining ones on the index.

The broader indices too gained some weight after flat start; the BSE Mid cap and Small cap indices rose 0.86% and 0.18% respectively.

The top gaining sectoral indices on the BSE were, Oil & Gas up by 2.35%, Metal up by 2.14%, CD up by 1.84%, Reality up by 1.71% and Auto up by 1.65%. While, IT down 0.90%, TECk down by 0.13%, Power down by 0.08% were the top losers on the index.

The top gainers on the Sensex were Sterlite Industries up by 4.20%, M&M up by 3.32%, RIL up by 3.08%, Hindalco Industries up by 2.99% and Sun Pharma up by 2.90%. On the flip side, Tata Power down by 1.56%, Maruti Suzuki down by 1.41%, TCS down by 1.08%, Infosys up by 1.05% and BHEL down by 1.02% were the top losers on the Sensex.

Meanwhile, despite the uncertainties in United States and European nations, India's export in July jumped by 81.79% to $29.3 billion year-on-year compared to $16.14 billion in July 2010. On the other hand, in July imports also surged by 51.5% to $40.4 billion year-on-year, whereas it was around $26.6 billion in the same period of last financial year. As a result, India's trade deficit stood at $11 billion.

As per the Ministry of Commerce & Industry data, during the first four months of current financial year, India's exports increased by 53.98% to $108.34 billion from $70.36 billion in the corresponding period last year. However, imports in the same period of time, increased by 40% to $151 billion from $107.88 billion in April-July 2010. As a result, trade deficit for the April-July 2011 stood at $42.6 billion.

As per the Commerce Ministry statement, exports of engineering, petroleum products and gems and jewelery were worth $8.7 billion, $4.6 billion and $3.5 billion respectively. In July 2011, India's oil imports surged by 37.02% to $11.4 billion from $8.35 billion in July 2010. Whereas non-oil imports increased by 58.12% to $28.98 billion from $18.32 billion in July 2010. In the April-July 2011, India's oil import increased by 22.72% to $41.97 billion and non-oil imports increased by 48.03% to $109.06 billion.

However, this robust growth in India's export is unlikely to sustain its growth rate in coming months because of uncertainties in US and European nations. The uncertainties in US and Europe is expected to have adverse impact on the global demand, as together, these countries account for 35% of India's total exports. 

The S&P CNX Nifty is currently trading at 5,050.50, higher by 49.50 points or 0.99%.  The index has touched a high and low of 5,113.70 and 5,006.90 respectively. There were 35 stocks advancing against 15 declining ones on the index.

The top gainers of the Nifty were RCOM up by 5.91%, Sterlite Industries up by 4.70%, M&M up by 3.47%, Reliance up by 3.18% and Ambuja Cement up by 3.12%. On the flip side, HCL Tech down by 3.13%, Tata Power down by 1.58%, TCS down by 1.32%, Maruti Suzuki down by 1.27% and Grasim down by 1.17% were the top losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite was down by 1.12% Hang Seng by 1.43%, Nikkei 225 was down by 1.07%, Straits Times was down by 0.84%, Seoul Composite was down by 0.62% and Taiwan Weighted was down by 0.01%

On the flip side, KLSE Composite up by 1.62% was the lone gainer amongst the Asian pack. 

#4406, Lane V, New Madhopuri, Ludhiana-141008, Punjab (INDIA).

To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0jIzsLJzsLBw=