Despite coming off the day's high level, the local equity markets remain well placed in the positive territory at this point of time. Both the Bombay Stock Exchange (BSE) benchmark Sensex and National Stock Exchange (NSE) Nifty indexes are trading above their psychological levels of 18,500 and 5,500. Other key Asian markets are all trading well in the green and US index futures too are showing an up-tick in screen trade. Back home, except capital goods segment which was down by 1.04%, all the sectoral indices were trading in the green. Among them, auto, banking, power, information technology and healthcare counters were leading the gains on the BSE sectoral space. Meanwhile, the banking segment is trading in the positive zone since morning following Cabinet giving its nod to the Banking Regulation (Amendment) Bill, which proposes to increase the voting rights of foreign investors in private sector banks. The Bill - which seeks to align the voting rights of foreign shareholders in banks in proportion to their equity holding - will make it easier for banks to raise capital. The broader markets were also moving higher with BSE mid-cap and small-cap indices gaining 0.37% and 0.38%, respectively. The market breadth on the BSE was positive; the gainers thrashed the losers in a ratio of 1572:1093 while 123 shares remained unchanged.
The BSE Sensex soared 103.66 points or 0.56% at 18,593.42. The index touched a high and a low of 18,736.97 and 18,526.22, respectively.
The BSE Mid-cap and Small-cap indices rose 0.37% and 0.38%, respectively.
All the sectoral indices on the BSE with an exception of Capital Goods (CG), which was down by 1.04% were trading higher. Auto up 1.23%, Bankex up 1.07%, Power up 0.71%, Information Technology (IT) up 0.70% and Healthcare (HC) up 0.64% were the major gainers on the index.
Meanwhile, drug maker Cipla has launched a breakthrough screening technology called the No Touch Breast Scan (NTBS) in India recently. NTBS is the first painless, non-invasive and radiation-free breast scanning technique for detecting breast cancer at an early stage.
Three centres across India have already installed the 40 lakh worth machine. The cost of each NTBS test would range between Rs 800 to 1000, depending on the pricing determined individually by the hospitals and centres. With introduction of this technology in India, Cipla has entered into the diagnostic market.
Developed by UE Life Sciences, the NTBS is the world's first fully computerized thermal imaging technology with dual IR cameras which can find thermal changes at less than 0.08 degree C. The NTBS using infrared imaging creates a sophisticated heat-map of the breast without using any radiation. Thermal imaging has been approved by the FDA several years ago for early diagnosis of breast cancer.
Breast cancer is associated with increased formation of new blood vessels and this show up as 'hot spots' which could indicate a cancerous growth. Today, one in every 22 women in India is expected to be diagnosed with breast cancer.There are NTBS machines available in the US, UK, Turkey, Sri Lanka and Kazakhstan, but women in India would have greater access to this landmark technology and have more control over their breast health.
The top gainers on the Sensex were Tata Power up 2.55%, Hero Honda up 2.45%, Jindal Steel up 2.14%, HDFC up 2.08% and Bajaj Auto up 1.98%.
On the flip side, L&T down 2.07%, JP Associates down 1.81%, Bharti Airtel down 0.70%, ONGC down 0.56% and Hindalco Inds down 0.43% were the major losers on the index.
Resuming their composite dialogue process, India and Pakistan will hold Secretary-level talks on anti-terrorism measures and steps to check drugs trade on March 27 and 28. The meeting will be held in New Delhi following last month's meeting between Pakistani Foreign Secretary Salman Bashir and his Indian counterpart Nirupama Rao in the Bhutanese capital Thimpu, and Pakistan and India announced the resumption of bilateral peace talks.
The talks will be mainly focused on progress made by Pakistan in the trial of Mumbai suspects. Seven suspects are being tried in Pakistan for allegedly masterminding and facilitating Mumbai attacks. India has also Pakistan to allow a team to question some persons in Pakistan suspected of involvement in the Mumbai attacks.
Meanwhile, India had pulled out of talks following the November 2008 bloodshed in India's commercial capital Mumbai which killed 166 people. India had blamed the attacks on terrorist outfits based in Pakistan.
The S&P CNX Nifty jumped 29.20 points or 0.53% to 5565.40. The index touched a high and a low of 5608.20 and 5544.60, respectively.
The top gainers on the Nifty were Sun Pharma up 3.35%, RPower up 3.13%, Tata Power up 2.89%, Jindal Steel up 2.38% and Bajaj Auto up 2.29%.
On the flip side, L&T down 2.39%, JP Associates down 2.21%, SAIL down 1.05%, Sesa Goa down 0.89% and Bharti Airtel down 0.76% were the major losers on the index.
Other key Asian markets are trading in the green. Shanghai Composite soared 1.28%, Hang Seng rose 1.44%, Jakarta Composite added 1.19%, KLSE Composite gained 1.10%, Nikkei 225 surged 1.02%, Straits Times soared 1.25%, Seoul Composite jumped 1.73% and Taiwan Weighted increased 0.53%.
Friday, March 4, 2011
Equity markets continue to trade higher; Auto, Banking counters lead
The local equity markets continue to trade in green with notable gains in late morning session on the back of constructive global support and easing domestic economic stability as inflation has declined further. Global markets are supportive as US Index futures were trading higher and all other Asian markets too were trading higher. Back home, in the BSE sectoral space barring BSE CG down by 0.58% all other indices were trading in green , Auto was up by 1.24%, Bankex up by 1.10 %, IT up by 0.80%, Healthcare up 0.73% and Power up 0.69%. The broader markets are also trading higher the BSE Mid cap and Small cap indices were up by 0.45% and 0.51%, respectively. The markets breadth on BSE is in the favour of advances, outperforming declines in the ratio of 1511:997, while, 97 shares remained unchanged.
The BSE Sensex surged 118.21 or 0.64% at 18,607.97. The index has touched a high of 18,736.97 and a low of 18,582.30 respectively.
The BSE Mid cap and Small cap indices were up by 0.45% and 0.51%, respectively.
Bajaj Finserv continued its up move on the tie up with Warren Buffet's Berkshire Hathway. The stock was trading 4.28% higher on the BSE.
Power Finance Corporation shares are up nearly 3.17% on the buzz that the company may raise around Rs 4,500 crore in external debt in fiscal year 2011-12. The company is reportedly seeking permission from Reserve Bank of India to raise more funds from advanced economies, taking advantage of low interest rates.
AXIS Bank surged more than one percent as ICICI Prudential Asset Management's Deputy Managing Director Nilesh Shah is joining Axis Bank and will be overseeing the lender's initiatives in the investment banking space. Shah, who is well-known in the mutual fund industry, will be joining as President, Strategic Initiatives, Corporate Banking at Axis Bank,
All the sectoral indices on the BSE with an exception of CG were trading in green, Auto up by 1.24%, Bankex up by 1.10%, IT up by 0.80%, Healthcare up 0.73% and Power up 0.69% were the major gainers on the index.
Private sector bank like, ICICI bank, YES bank, Indusind Bank , Kotak Mahindra Bank, shares are trading higher as the Cabinet gave its nod to the Banking Regulation (Amendment) Bill, which proposes to increase the voting rights of foreign investors in private sector banks. This Bill will looks for to coordinate the voting rights of foreign shareholders in banks in proportion to their equity holding - will make it easier for banks to raise capital. It will be tabled in the current session of Parliament. At present, there is a 10% cap on voting rights of foreign entities in private banks, regardless of their shareholding, newspaper report suggests.
The top gainers on the Sensex were Hero Honda up by 2.79%, Tata Power up by 2.71%, HDFC up by 2.14%, M&M up by 2.05% and Bajaj Auto was up by 1.95%.
L&T down by 1.20%, JP Associates down 0.87%, Hindalco Industries down 0.83%, Bharti Airtel down by 0.67% and ONGC down by 0.41% were the only losers on the index.
The S&P CNX Nifty advanced 32.65 points or 0.59% at 5,568.85. The index has touched a high of 5,608.20 and a low of 5,561.60 respectively.
The top gainers of the Nifty were Sun Pharma up by 3.19%, Tata Power 2.90%, Reliance Power up by 2.77%, Hero Honda up by 2.50% and M&M up 2.25% .
The top losers of the index were L&T down by 1.51%, JP associates down 1.11%, Sesa Goa down by 0.93%, Ranbaxy down by 0.89% and Hindalco down by 0.76%.
All the Asian equity indices were trading in the green; Shanghai Composite surged 0.65%, Hang Seng climbed 1.19%, Jakarta Composite advanced 1.06%, KLSE Composite moved up by 0.92%, Nikkei 225 soared by 1.02%, Straits Times gained 1.39%, Seoul Composite added 1.73% and Taiwan Weighted rose 0.53%.
The BSE Sensex surged 118.21 or 0.64% at 18,607.97. The index has touched a high of 18,736.97 and a low of 18,582.30 respectively.
The BSE Mid cap and Small cap indices were up by 0.45% and 0.51%, respectively.
Bajaj Finserv continued its up move on the tie up with Warren Buffet's Berkshire Hathway. The stock was trading 4.28% higher on the BSE.
Power Finance Corporation shares are up nearly 3.17% on the buzz that the company may raise around Rs 4,500 crore in external debt in fiscal year 2011-12. The company is reportedly seeking permission from Reserve Bank of India to raise more funds from advanced economies, taking advantage of low interest rates.
AXIS Bank surged more than one percent as ICICI Prudential Asset Management's Deputy Managing Director Nilesh Shah is joining Axis Bank and will be overseeing the lender's initiatives in the investment banking space. Shah, who is well-known in the mutual fund industry, will be joining as President, Strategic Initiatives, Corporate Banking at Axis Bank,
All the sectoral indices on the BSE with an exception of CG were trading in green, Auto up by 1.24%, Bankex up by 1.10%, IT up by 0.80%, Healthcare up 0.73% and Power up 0.69% were the major gainers on the index.
Private sector bank like, ICICI bank, YES bank, Indusind Bank , Kotak Mahindra Bank, shares are trading higher as the Cabinet gave its nod to the Banking Regulation (Amendment) Bill, which proposes to increase the voting rights of foreign investors in private sector banks. This Bill will looks for to coordinate the voting rights of foreign shareholders in banks in proportion to their equity holding - will make it easier for banks to raise capital. It will be tabled in the current session of Parliament. At present, there is a 10% cap on voting rights of foreign entities in private banks, regardless of their shareholding, newspaper report suggests.
The top gainers on the Sensex were Hero Honda up by 2.79%, Tata Power up by 2.71%, HDFC up by 2.14%, M&M up by 2.05% and Bajaj Auto was up by 1.95%.
L&T down by 1.20%, JP Associates down 0.87%, Hindalco Industries down 0.83%, Bharti Airtel down by 0.67% and ONGC down by 0.41% were the only losers on the index.
The S&P CNX Nifty advanced 32.65 points or 0.59% at 5,568.85. The index has touched a high of 5,608.20 and a low of 5,561.60 respectively.
The top gainers of the Nifty were Sun Pharma up by 3.19%, Tata Power 2.90%, Reliance Power up by 2.77%, Hero Honda up by 2.50% and M&M up 2.25% .
The top losers of the index were L&T down by 1.51%, JP associates down 1.11%, Sesa Goa down by 0.93%, Ranbaxy down by 0.89% and Hindalco down by 0.76%.
All the Asian equity indices were trading in the green; Shanghai Composite surged 0.65%, Hang Seng climbed 1.19%, Jakarta Composite advanced 1.06%, KLSE Composite moved up by 0.92%, Nikkei 225 soared by 1.02%, Straits Times gained 1.39%, Seoul Composite added 1.73% and Taiwan Weighted rose 0.53%.
Markets cool off a bit after an enthusiastic start
Indian equity markets have cooled off a bit in the mid morning session after making an enthusiastic start of the session. However, continued buying by funds, driven by a firm global market trend and easing food inflation are keeping the momentum on the positive side. In addition, corporate-friendly Budget proposals are also supporting the ongoing rally on the bourses. On the global front, trend on other Asian bourses remain firm following overnight gains in the US markets. The US future indices too are showing an uptick in the screen trade. Back home, on the BSE Sectoral front, stocks from Banking; Auto and Information Technology are enticing investor's attention, while the stocks from capital Goods counter are languishing at the bottom. The 30 share index--Sensex--on BSE is about to touch its key physiological level of 18500 marks. While 50 scrip index--Nifty--on NSE has sustained its important level of 5500 mark and is trading well above it. The broader indices though have trimmed their gains in line with the larger peers but they too still are trading well above 0.50% each. The overall markets breadth on BSE is in the favour of advances, outperforming declines in the ratio of 1533:776, while, 93 shares remained unchanged.
The BSE Sensex is currently trading at 18,620.30, up by 130.54 points or 0.71%. The index has touched a high of 18,736.97 and a low of 18,582.30 respectively. There were 26 stocks advancing against just 4 declines on the index.
The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices were up by 0.55% and 0.71%, respectively.
All the sectoral indices on the BSE remained higher, Bankex up by 1.24 %, Auto up by 1.18%, IT up by 0.94%, TECk up by 0.75%, and Healthcare up by 0.64% were the major gainers on the index.
The top gainers on the Sensex were Hero Honda up by 2.66%, Tata Power up by 2.59%,HDFC up by 1.97%, M&M up by 1.90% and Bajaj Auto was up by 1.85%.
L&T down by 1.10%, Bharti Airtel down by 0.57%, BHEL down by 0.26% and ONGC down by 0.04% were the only losers on the index.
State-owned miner National Mineral Development Corporation (NMDC) has finalized an agreement with a consortium comprising SVAI of Austria and Nagarjuna Construction Company for turnkey execution of a sinter plant complex, marking the first contract among the nine packages for the three million tonne steel plant that the company is setting up at Nagarnar.
The sinter plant will be catering to 80 per cent of the ferrous feed to the blast furnace. The schedule of the project is 33 months from the effective date of contract.
Recently state owned miner announced that it is planning to sign a 50:50 joint venture (JV) pact with Tata Steel for setting up a 2 million tonne per annum (mtpa) steel plant at Bastar in Chhattisgarh.
The S&P CNX Nifty is currently trading at 5,573.15, up by 36.95 points or 0.67%. The index has touched a high of 5,608.20 and a low of 5,561.60 respectively. There were36 stocks advancing against just 14 declines on the index.
The top gainers of the Nifty were Tata Power up by 2.89%, Reliance Power up by 2.55%, Sun Pharmaceuticals up by 2.39%, Hero Honda up by 2.37%, Hero Honda up by 2.10% and Bajaj Auto up by 2.10%.
The top losers of the index were L&T down by 1.42%, Ranbaxy down by 1.27%, Sesa Goa down by 1.19%, Cairn India down by 1.00% and SAIL was down by 0.63%.
Meanwhile, Drugmaker Cipla has launched a breakthrough screening technology called the No Touch Breast Scan (NTBS) in India recently. NTBS is the first painless, non-invasive and radiation-free breast scanning technique for detecting breast cancer at an early stage.
Three centres across India have already installed the 40 lakh worth machine. The cost of each NTBS test would range between Rs 800 to 1000, depending on the pricing determined individually by the hospitals and centres. With introduction of this technology in India, Cipla has entered into the diagnostic market.
Developed by UE Life Sciences, the NTBS is the world's first fully computerized thermal imaging technology with dual IR cameras which can find thermal changes at less than 0.08 degree C. The NTBS using infrared imaging creates a sophisticated heat-map of the breast without using any radiation. Thermal imaging has been approved by the FDA several years ago for early diagnosis of breast cancer.
All the Asian equity indices were trading in the green; Shanghai Composite was up by 0.22%, Hang Seng was up by 1.19%, Jakarta Composite was up by 1.06%, KLSE Composite was up by 0.92%, Nikkei 225 was up by 1.12%, Straits Times gained 1.20%, Seoul Composite added 1.69% and Taiwan Weighted increased 0.58%.
The BSE Sensex is currently trading at 18,620.30, up by 130.54 points or 0.71%. The index has touched a high of 18,736.97 and a low of 18,582.30 respectively. There were 26 stocks advancing against just 4 declines on the index.
The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices were up by 0.55% and 0.71%, respectively.
All the sectoral indices on the BSE remained higher, Bankex up by 1.24 %, Auto up by 1.18%, IT up by 0.94%, TECk up by 0.75%, and Healthcare up by 0.64% were the major gainers on the index.
The top gainers on the Sensex were Hero Honda up by 2.66%, Tata Power up by 2.59%,HDFC up by 1.97%, M&M up by 1.90% and Bajaj Auto was up by 1.85%.
L&T down by 1.10%, Bharti Airtel down by 0.57%, BHEL down by 0.26% and ONGC down by 0.04% were the only losers on the index.
State-owned miner National Mineral Development Corporation (NMDC) has finalized an agreement with a consortium comprising SVAI of Austria and Nagarjuna Construction Company for turnkey execution of a sinter plant complex, marking the first contract among the nine packages for the three million tonne steel plant that the company is setting up at Nagarnar.
The sinter plant will be catering to 80 per cent of the ferrous feed to the blast furnace. The schedule of the project is 33 months from the effective date of contract.
Recently state owned miner announced that it is planning to sign a 50:50 joint venture (JV) pact with Tata Steel for setting up a 2 million tonne per annum (mtpa) steel plant at Bastar in Chhattisgarh.
The S&P CNX Nifty is currently trading at 5,573.15, up by 36.95 points or 0.67%. The index has touched a high of 5,608.20 and a low of 5,561.60 respectively. There were36 stocks advancing against just 14 declines on the index.
The top gainers of the Nifty were Tata Power up by 2.89%, Reliance Power up by 2.55%, Sun Pharmaceuticals up by 2.39%, Hero Honda up by 2.37%, Hero Honda up by 2.10% and Bajaj Auto up by 2.10%.
The top losers of the index were L&T down by 1.42%, Ranbaxy down by 1.27%, Sesa Goa down by 1.19%, Cairn India down by 1.00% and SAIL was down by 0.63%.
Meanwhile, Drugmaker Cipla has launched a breakthrough screening technology called the No Touch Breast Scan (NTBS) in India recently. NTBS is the first painless, non-invasive and radiation-free breast scanning technique for detecting breast cancer at an early stage.
Three centres across India have already installed the 40 lakh worth machine. The cost of each NTBS test would range between Rs 800 to 1000, depending on the pricing determined individually by the hospitals and centres. With introduction of this technology in India, Cipla has entered into the diagnostic market.
Developed by UE Life Sciences, the NTBS is the world's first fully computerized thermal imaging technology with dual IR cameras which can find thermal changes at less than 0.08 degree C. The NTBS using infrared imaging creates a sophisticated heat-map of the breast without using any radiation. Thermal imaging has been approved by the FDA several years ago for early diagnosis of breast cancer.
All the Asian equity indices were trading in the green; Shanghai Composite was up by 0.22%, Hang Seng was up by 1.19%, Jakarta Composite was up by 1.06%, KLSE Composite was up by 0.92%, Nikkei 225 was up by 1.12%, Straits Times gained 1.20%, Seoul Composite added 1.69% and Taiwan Weighted increased 0.58%.
Benchmarks start tremendously on supporting global cues
The Indian equity markets have made a firm start taking positive cues from across the globe. The US markets closed with a gain of over one percent overnight as unexpected drop in the unemployment benefit claim and good retail sales number boosted the morale of the investors. Moreover, all the Asian markets were trading in the positive terrain at this point of time indicating strong investors' sentiments. Back home, markets were trading tremendously well led by banking sector as private banks viz., ICICI Bank, HDFC Bank and Axis Bank all were trading with a gain of over one percent after Union Cabinet on Thursday approved the Banking Laws Amendment Bill, a part of the seven key financial sector legislative changes announced by finance minister Pranab Mukherjee in the Budget, which will allow shareholders of private banks to vote in line with their shareholdings. On the sectoral front, technology, fast moving consumer goods and software were the top gainers in the trade; while there were no losers on the BSE sectoral space. The broader indices too were going neck to neck with benchmarks. The market breadth on the BSE was negative; there were 1176 shares on the gaining side against 392 shares on the losing side while 42 shares remained unchanged.
The BSE Sensex opened at 18,622.70; about 133 points higher compared to its previous closing of 18,489.76, and has touched a high of 18,736.97 while low remain its opening.
The index is currently trading at 18,670.59, up by 180.83 points or 0.98%. There were 28 stocks advancing against just 2 declines on the index.
The overall market breadth started in the positive terrain, with 73.04% stocks advancing against 24.35% declines. The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices were up by 0.86% and 0.80%, respectively.
All the sectoral indices on the BSE remained higher, Bankex up by 1.55%, Auto up by 1.53%, IT up by 1.26%, Metal up by 1.02% and TECk was up by 1.00%, were the major gainers on the index.
The top gainers on the Sensex were Tata Power up by 2.55%, M&M up by 2.49%, Hero Honda up by 2.45%, Bajaj Auto up by 2.00% and ICICI Bank was up by 1.87%.
Bharti Airtel down by 0.97% and ONGC down by 0.22% were the only losers on the index.
Meanwhile, for a nation that is 75% dependent on imported crude oil to meet its energy needs, further increase in crude prices may spell bad news for the Government as it will be forced to take the tough decision of deregulating the diesel prices. According to Kaushik Basu, Chief Economic Adviser in the Ministry of Finance, if global crude touches $150 to $160 a barrel, the government will have to take the tough decision of freeing up the diesel prices soon which may aggravate rising prices situation.
Meanwhile, crude oil prices in the international market are ruling above $100 a barrel at present and with the crisis worsening in Libya and other Middle East countries, they may go up further. Also, with rise in crude prices, petrol prices are also expected to be raised because in wake of rising prices it will be left with only two options either deregulation of diesel prices or shelling out more subsidies for already loss making oil marketing companies (OMCs).
The government is having a tough task at hand as diesel fuel is considered life blood of both the agriculture and the commercial transport sectors and higher diesel prices could lower profits for businesses. Also, the government has set itself a target of limiting the fiscal deficit to 4.6% of GDP in 2011-12, though it is perceived that it could be a tough call to keep it within the band against the backdrop of high global oil and commodity prices.
Though the government had in June last year allowed oil marketing firms to set petrol prices, it has shied away from deregulating diesel prices due to stiff opposition from political parties and on fears that such a move would stoke inflation. Hence, the deregulation of diesel has been kept in abeyance.
The S&P CNX Nifty opened at 5,586.20; about 50 points higher compared to its previous closing of 5,536.20, and has touched a high and a low of 5,608.20 and 5,581.75 respectively.
The index is currently trading at 5,595.85, up by 59.65 points or 1.08%. There were 44 stocks advancing against just 6 declines on the index.
The top gainers of the Nifty were M&M up by 2.78%, Tata Power up by 2.64%, Kotak Bank up by 2.56%, Hero Honda up by 2.46% and Bajaj Auto up by 2.22%.
The top losers of the index were Bharti Airtel down by 0.70%, ONGC down by 0.26%, Siemens down by 0.22%, GAIL down by 0.19% and Power Grid was down by 0.15%.
All the Asian equity indices were trading in the green; Shanghai Composite was up 6.13 points or 0.21% to 2,909.11, Hang Seng was up 291.77 points or 1.26% to 23,414.19, Jakarta Composite was up 35.42 points or 1.01% to 3,529.96, KLSE Composite was up 14.11 points or 0.94% to 1,520.99, Nikkei 225 was up 120.73 points or 1.14% to 10,706.75, Straits Times was up 35.85 points or 1.18% to 3,073.20, Seoul Composite was up 24.84 points or 1.26% to 1,995.50 and Taiwan Weighted was up 64.41 points or 0.74% to 8,802.78.
The BSE Sensex opened at 18,622.70; about 133 points higher compared to its previous closing of 18,489.76, and has touched a high of 18,736.97 while low remain its opening.
The index is currently trading at 18,670.59, up by 180.83 points or 0.98%. There were 28 stocks advancing against just 2 declines on the index.
The overall market breadth started in the positive terrain, with 73.04% stocks advancing against 24.35% declines. The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices were up by 0.86% and 0.80%, respectively.
All the sectoral indices on the BSE remained higher, Bankex up by 1.55%, Auto up by 1.53%, IT up by 1.26%, Metal up by 1.02% and TECk was up by 1.00%, were the major gainers on the index.
The top gainers on the Sensex were Tata Power up by 2.55%, M&M up by 2.49%, Hero Honda up by 2.45%, Bajaj Auto up by 2.00% and ICICI Bank was up by 1.87%.
Bharti Airtel down by 0.97% and ONGC down by 0.22% were the only losers on the index.
Meanwhile, for a nation that is 75% dependent on imported crude oil to meet its energy needs, further increase in crude prices may spell bad news for the Government as it will be forced to take the tough decision of deregulating the diesel prices. According to Kaushik Basu, Chief Economic Adviser in the Ministry of Finance, if global crude touches $150 to $160 a barrel, the government will have to take the tough decision of freeing up the diesel prices soon which may aggravate rising prices situation.
Meanwhile, crude oil prices in the international market are ruling above $100 a barrel at present and with the crisis worsening in Libya and other Middle East countries, they may go up further. Also, with rise in crude prices, petrol prices are also expected to be raised because in wake of rising prices it will be left with only two options either deregulation of diesel prices or shelling out more subsidies for already loss making oil marketing companies (OMCs).
The government is having a tough task at hand as diesel fuel is considered life blood of both the agriculture and the commercial transport sectors and higher diesel prices could lower profits for businesses. Also, the government has set itself a target of limiting the fiscal deficit to 4.6% of GDP in 2011-12, though it is perceived that it could be a tough call to keep it within the band against the backdrop of high global oil and commodity prices.
Though the government had in June last year allowed oil marketing firms to set petrol prices, it has shied away from deregulating diesel prices due to stiff opposition from political parties and on fears that such a move would stoke inflation. Hence, the deregulation of diesel has been kept in abeyance.
The S&P CNX Nifty opened at 5,586.20; about 50 points higher compared to its previous closing of 5,536.20, and has touched a high and a low of 5,608.20 and 5,581.75 respectively.
The index is currently trading at 5,595.85, up by 59.65 points or 1.08%. There were 44 stocks advancing against just 6 declines on the index.
The top gainers of the Nifty were M&M up by 2.78%, Tata Power up by 2.64%, Kotak Bank up by 2.56%, Hero Honda up by 2.46% and Bajaj Auto up by 2.22%.
The top losers of the index were Bharti Airtel down by 0.70%, ONGC down by 0.26%, Siemens down by 0.22%, GAIL down by 0.19% and Power Grid was down by 0.15%.
All the Asian equity indices were trading in the green; Shanghai Composite was up 6.13 points or 0.21% to 2,909.11, Hang Seng was up 291.77 points or 1.26% to 23,414.19, Jakarta Composite was up 35.42 points or 1.01% to 3,529.96, KLSE Composite was up 14.11 points or 0.94% to 1,520.99, Nikkei 225 was up 120.73 points or 1.14% to 10,706.75, Straits Times was up 35.85 points or 1.18% to 3,073.20, Seoul Composite was up 24.84 points or 1.26% to 1,995.50 and Taiwan Weighted was up 64.41 points or 0.74% to 8,802.78.
Monday, February 21, 2011
Late spurt help benchmarks make a scintillating intraday U-turn
Indian share pulled through an unexpected finish to the initial day of F&O expiry week amid a slew of news continuously flowing from New Delhi, the national capital. The 5,400 level proved as a solid support for the S&P CNX Nifty index which registered a smart re-bound from those levels as investors turned sanguine and resorted to hefty bottom fishing in fundamentally strong and undervalued stocks. Government's consent to opposition's demand for Joint Parliamentary Committee Probe along with a robust GDP projection of nearly 9% for the coming fiscal by C Rangarajan, Chairman of the PM's Economic Advisory Council, underpinned investor sentiment in the dying hours of trade. Meanwhile Indian President Pratibha Patil affirmed that top priority of the government was to combat inflation, especially of food items, and sustaining growth momentum while striving to push economic reforms to encourage foreign and private sector investments in the country. The NSE's 50-share broadly followed index, Nifty surged over a percent to settle around the high point of the day above the crucial 5,500 level while the Bombay Stock Exchange's Sensitive Index, or Sensex soared over two hundred points to end above the psychological 18,400 mark. The broader markets though succumbed to selling pressure as the BSE's midcap index fell 0.04% and smallcap index shed 0.09% in Monday's session, underperforming their larger peers by quite a margin. The IT and TECk counters in the BSE sectoral space snapped the day with maximum gains of 2.76% and 2.11% respectively as bellwethers like Wipro and TCS zoomed 4.12% and 4.24% respectively. The consumer durables pack too remained amid the thick of the things after majors like Titan Industries and Bajaj Electricals amassed 4.64% and 1.86% respectively. Besides, index heavyweights like Reliance Industries and ONGC too made their participation felt after jumping 2.98% and 2.04% respectively. However the Auto pocket remained the only sectoral index that languished in the red zone with 1.18% losses since shares of Tata Motors and Hero Honda plunged 3.33% and 1.66%.
On the global front, Asian benchmarks closed mostly in the negative terrain amid growing concerns of turmoil in the Middle East which underpinned the crude oil prices to rise by more than $1 per barrel in Asian electronic trade. The European counterparts too traded with large cuts as investors resorted to hefty profit booking with the DAX plummeting around a percent, being the top laggard in the space. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a pessimistic note.
Earlier on the Dalal Street, after Friday's over a percent jolt the benchmark showed signs of consolidation for most part of the day's trade as investors lacked conviction. The index gyrated around the neutral line in a narrow band through the first half in the absence of any optimistic market triggers. But Budget-related positive news flow and softening inflation eased investors' apprehensions as the Sensex saw a bounce back post-noon. Sanguine sentiments in the dying hours helped the local bourses pull through a scintillating intraday U-turn and settle around the high point of the day. The indices eventually went home with over a percent gain on the initial day of F&O expiry week and four working days ahead of the Budget 2011. Volumes for markets were lower than Friday at over Rs 1.77 lakh crore while the turnover for NSE F&O segment too remained higher at over Rs 1.63 lakh crore on Monday. The market breadth on the BSE was negative as there were 1397 shares on the gaining side against 1463 shares on the losing side while 112 shares remained unchanged.
On Charts: The S&P CNX Nifty today closed above 5,507 levels, which was crucial level. The next resistance for the nifty will be around 5,572 (38% retracement level) and 5688 (50% retracement level).While support will be around 5,457 (10EDMA) and 5,401 mark, while going forward its major resistance may see around 5,655 mark.
Finally, the BSE Sensex rose 226.79 points or 1.25% to settle at 18,438.31 while the S&P CNX Nifty advanced 59.65 points or 1.09% to end at 5518.60.
The BSE Sensex touched a high and a low of 18,457.49 and 18,082.66, respectively.
TCS up 4.24%, Wipro up 4.12%, Sterlite Inds up 3.31%, ONGC up 2.98% and Jaiprakash Associates up 2.93% were the major gainers on the Sensex.
On the flip side, Tata Motors down 3.33%, Hero Honda down 1.66%, Maruti Suzuki down 1.31%, NTPC down 1.04% and Tata Power down 1% were the main losers on the index.
The BSE Mid-cap and Small-cap indices lost 0.04% and 0.09%, respectively.
Meanwhile, the Indian textile industry has seen strong recovery from the impact of global downturn riding on improving demand from the rich countries and diversification of its export direction. There is however still a number of troubles facing the industry and textile players have lined up a series of expectations from the forthcoming Budget for FY12.
First, the industry has seen one of the severest cost inflation cycle in last one year. Cotton prices have been increasing rapidly on a tight demand-supply scenario in global markets putting pressure on textile companies' margins. Export market on the other hand has become extremely competitive and much more price sensitive compared to pre-crisis period. This has not only impacted margins but competitiveness of textile players as well. While the cap of 5 million bales of exports is nearly exhausted, the industry wants the government to hike export duty on cotton to lower exports immediately and continue with the same in next season as well.
The industry wants the government to hike duty drawback rates by 5% at least by increasing the scope and coverage of duty drawback scheme so as to ensure full reimbursement of various duties including excise duties, custom duties, service tax, education cess and various state level taxes. The demand is also based on argument that rivals like China and Bangladesh have increased these concessions and in a super-competitive export atmosphere which prevails currently, Indian government should also match the steps.
The industry wants the government to make the funding easier and at reasonable rate of interest. With the central bank hiking its policy rates seven times in the current fiscal so farm market interest rate has been going up, making the working capital costly for the textile players. The industry wants that at least for the small and medium units the government should ensure cheaper working capital by providing interest subvention. The industry is demanding that export loans to be treated at par with the farm loans and therefore made a part of the priority sector lending by the banks.
Another wish of textile players is that government should scrap the import duty on manmade fibres which will help it source cheaper manmade fabrics. The move will bring the cost of production down and improve the global competitiveness of Indian textile players. Such a move also becomes more important in wake of the surging prices of cotton. However, it has been strongly opposed by the manmade fibre industry and therefore may not make the cut in Budget.
Further, given the severe shortage of power being faced by the industry, the government has been urged to encourage development of captive power units by textile companies. Towards this end, the government should exempt the diesel used in captive power generation from excise duty and other local levies. Finally, the industry wants an early implementation of the goods and services tax (GST) which will help bring the tax incidence down. The industry wants the government to make sure that the state level levies of around 6% are also refunded to producers by the central government.
In BSE sectoral space Information Technology (IT) up 2.76%, TECk up 2.11%, Consumer Durables up by 1.97%, Oil & Gas up 1.81% and Metal up 1.31% were the major gainers in the BSE sectoral space; while Auto down 1.18% was the sole loser in the sectoral indices.
The S&P CNX Nifty touched a high and a low of 5526.25 and 5413.10, respectively.
The top gainers on the Nifty were Wipro up 4.83%, TCS up 4.32%, Jaiprakash Associates up 3.93%, Sterlite Inds up 3.59% and ONGC up 3.17%.
The top losers on the index were Tata Motors down 3.65%, Hero Honda down 2.18%, Maruti Suzuki down 1.56%, NTPC down 1.51% and DLF down 0.84%.
With the announcement of the Union Budget just days away, the tea industry like any other industry has its set of expectations. The industry has demanded complete exemption from the present level of import duty of 10% on import of filter paper for tea bags as tea bags and instant tea are gaining preference amongst consumers of India and abroad. Another demand of the industry is full exemption from payment of import duty from the present level of 10% on Nylon Cloth for tea bags.
The industry wants continuation of the special purpose tea fund and other additional subsidies which were being provided by the central government earlier, as it is reeling under cost pressures. This will help tea companies upgrade and improve overall tea quality. The industry further wants that the increased weighted deduction on payments made to national laboratories, research associations, universities and other institutions for scientific research from 125% to 175% must be continued as this will help organizations like the Tea Research Association to take up better research and development activities, resulting in production of better quality tea saplings.
The industry will also be benefitted by the extension of concessional import duty on imported plantation machinery as it will help the industry in value adding and hiking exports in the long run. Also, another crucial demand of the industry is that tea plantations should be made under the purview of the Transport Subsidy Scheme under NEIIPP, which would provide much needed cost relief and its enhance competitiveness.
India's tea industry has seen a strong revival over last 2-3 years. After facing years of slump, the industry has remained in bullish scenario over the last three years. Overall, the outlook of tea industry is quite strong at the moment, given the tight global demand supply scenario, and any supportive announcement in the Budget will act as a further catalyst for the industry.
European markets were trading in the red on Monday. France's CAC 40 lost 0.81%, Germany's DAX dipped 0.77% and Britain's FTSE 100 dropped 0.34%.
Asian equity indices finished the day's trade mostly in the negative terrain on Monday amid growing turmoil in the Middle East. The sentiments in the region also weighed as crude oil prices rose by more than $1 per barrel in Asian electronic trade on Monday. Seoul shares slipped by 0.40%, weighed by fall in steelmakers and financials such as POSCO and KB Financial Group, while Chinese main stock index closed with a gain of more than one percent, supported by oil firms after China raised fuel prices to fresh highs, offsetting the impact of a rise in bank reserve requirement ratios (RRR).
On the global front, Asian benchmarks closed mostly in the negative terrain amid growing concerns of turmoil in the Middle East which underpinned the crude oil prices to rise by more than $1 per barrel in Asian electronic trade. The European counterparts too traded with large cuts as investors resorted to hefty profit booking with the DAX plummeting around a percent, being the top laggard in the space. On the other hand, the screen trading for US index futures too indicated that the Dow could open on a pessimistic note.
Earlier on the Dalal Street, after Friday's over a percent jolt the benchmark showed signs of consolidation for most part of the day's trade as investors lacked conviction. The index gyrated around the neutral line in a narrow band through the first half in the absence of any optimistic market triggers. But Budget-related positive news flow and softening inflation eased investors' apprehensions as the Sensex saw a bounce back post-noon. Sanguine sentiments in the dying hours helped the local bourses pull through a scintillating intraday U-turn and settle around the high point of the day. The indices eventually went home with over a percent gain on the initial day of F&O expiry week and four working days ahead of the Budget 2011. Volumes for markets were lower than Friday at over Rs 1.77 lakh crore while the turnover for NSE F&O segment too remained higher at over Rs 1.63 lakh crore on Monday. The market breadth on the BSE was negative as there were 1397 shares on the gaining side against 1463 shares on the losing side while 112 shares remained unchanged.
On Charts: The S&P CNX Nifty today closed above 5,507 levels, which was crucial level. The next resistance for the nifty will be around 5,572 (38% retracement level) and 5688 (50% retracement level).While support will be around 5,457 (10EDMA) and 5,401 mark, while going forward its major resistance may see around 5,655 mark.
Finally, the BSE Sensex rose 226.79 points or 1.25% to settle at 18,438.31 while the S&P CNX Nifty advanced 59.65 points or 1.09% to end at 5518.60.
The BSE Sensex touched a high and a low of 18,457.49 and 18,082.66, respectively.
TCS up 4.24%, Wipro up 4.12%, Sterlite Inds up 3.31%, ONGC up 2.98% and Jaiprakash Associates up 2.93% were the major gainers on the Sensex.
On the flip side, Tata Motors down 3.33%, Hero Honda down 1.66%, Maruti Suzuki down 1.31%, NTPC down 1.04% and Tata Power down 1% were the main losers on the index.
The BSE Mid-cap and Small-cap indices lost 0.04% and 0.09%, respectively.
Meanwhile, the Indian textile industry has seen strong recovery from the impact of global downturn riding on improving demand from the rich countries and diversification of its export direction. There is however still a number of troubles facing the industry and textile players have lined up a series of expectations from the forthcoming Budget for FY12.
First, the industry has seen one of the severest cost inflation cycle in last one year. Cotton prices have been increasing rapidly on a tight demand-supply scenario in global markets putting pressure on textile companies' margins. Export market on the other hand has become extremely competitive and much more price sensitive compared to pre-crisis period. This has not only impacted margins but competitiveness of textile players as well. While the cap of 5 million bales of exports is nearly exhausted, the industry wants the government to hike export duty on cotton to lower exports immediately and continue with the same in next season as well.
The industry wants the government to hike duty drawback rates by 5% at least by increasing the scope and coverage of duty drawback scheme so as to ensure full reimbursement of various duties including excise duties, custom duties, service tax, education cess and various state level taxes. The demand is also based on argument that rivals like China and Bangladesh have increased these concessions and in a super-competitive export atmosphere which prevails currently, Indian government should also match the steps.
The industry wants the government to make the funding easier and at reasonable rate of interest. With the central bank hiking its policy rates seven times in the current fiscal so farm market interest rate has been going up, making the working capital costly for the textile players. The industry wants that at least for the small and medium units the government should ensure cheaper working capital by providing interest subvention. The industry is demanding that export loans to be treated at par with the farm loans and therefore made a part of the priority sector lending by the banks.
Another wish of textile players is that government should scrap the import duty on manmade fibres which will help it source cheaper manmade fabrics. The move will bring the cost of production down and improve the global competitiveness of Indian textile players. Such a move also becomes more important in wake of the surging prices of cotton. However, it has been strongly opposed by the manmade fibre industry and therefore may not make the cut in Budget.
Further, given the severe shortage of power being faced by the industry, the government has been urged to encourage development of captive power units by textile companies. Towards this end, the government should exempt the diesel used in captive power generation from excise duty and other local levies. Finally, the industry wants an early implementation of the goods and services tax (GST) which will help bring the tax incidence down. The industry wants the government to make sure that the state level levies of around 6% are also refunded to producers by the central government.
In BSE sectoral space Information Technology (IT) up 2.76%, TECk up 2.11%, Consumer Durables up by 1.97%, Oil & Gas up 1.81% and Metal up 1.31% were the major gainers in the BSE sectoral space; while Auto down 1.18% was the sole loser in the sectoral indices.
The S&P CNX Nifty touched a high and a low of 5526.25 and 5413.10, respectively.
The top gainers on the Nifty were Wipro up 4.83%, TCS up 4.32%, Jaiprakash Associates up 3.93%, Sterlite Inds up 3.59% and ONGC up 3.17%.
The top losers on the index were Tata Motors down 3.65%, Hero Honda down 2.18%, Maruti Suzuki down 1.56%, NTPC down 1.51% and DLF down 0.84%.
With the announcement of the Union Budget just days away, the tea industry like any other industry has its set of expectations. The industry has demanded complete exemption from the present level of import duty of 10% on import of filter paper for tea bags as tea bags and instant tea are gaining preference amongst consumers of India and abroad. Another demand of the industry is full exemption from payment of import duty from the present level of 10% on Nylon Cloth for tea bags.
The industry wants continuation of the special purpose tea fund and other additional subsidies which were being provided by the central government earlier, as it is reeling under cost pressures. This will help tea companies upgrade and improve overall tea quality. The industry further wants that the increased weighted deduction on payments made to national laboratories, research associations, universities and other institutions for scientific research from 125% to 175% must be continued as this will help organizations like the Tea Research Association to take up better research and development activities, resulting in production of better quality tea saplings.
The industry will also be benefitted by the extension of concessional import duty on imported plantation machinery as it will help the industry in value adding and hiking exports in the long run. Also, another crucial demand of the industry is that tea plantations should be made under the purview of the Transport Subsidy Scheme under NEIIPP, which would provide much needed cost relief and its enhance competitiveness.
India's tea industry has seen a strong revival over last 2-3 years. After facing years of slump, the industry has remained in bullish scenario over the last three years. Overall, the outlook of tea industry is quite strong at the moment, given the tight global demand supply scenario, and any supportive announcement in the Budget will act as a further catalyst for the industry.
European markets were trading in the red on Monday. France's CAC 40 lost 0.81%, Germany's DAX dipped 0.77% and Britain's FTSE 100 dropped 0.34%.
Asian equity indices finished the day's trade mostly in the negative terrain on Monday amid growing turmoil in the Middle East. The sentiments in the region also weighed as crude oil prices rose by more than $1 per barrel in Asian electronic trade on Monday. Seoul shares slipped by 0.40%, weighed by fall in steelmakers and financials such as POSCO and KB Financial Group, while Chinese main stock index closed with a gain of more than one percent, supported by oil firms after China raised fuel prices to fresh highs, offsetting the impact of a rise in bank reserve requirement ratios (RRR).
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