Indian frontline indices have pared some portion of their initial gains and are currently trading moderately higher by around half a percentage point as cautious investors chose to book partial profits. The psychological 5,900 and 19,700 levels are constantly proving as unbreakable resistance levels for the local benchmarks as they have faltered time and again after inching closer to those levels. Moreover, the subdued inflation data released by government weighed on sentiments as food inflation edged up to 8.74%, year-on-year for the week ended April 9, 2011 against 8.28% in the previous week. Though, leads from the global front remained positive as most indices in the Asian space traded above the neutral line while the European markets got off to a positive start. However, the uptrend in international crude oil prices since last few days has again become a cause of concern for not only market participants but also for policy makers who are already finding it difficult to control the spiraling inflation which is showing little signs of coming down in the near term. Meanwhile, hefty buying was witnessed in the metal and IT counters which accumulated 0.99% and 0.73% respectively while the Power and Capital Goods pockets saw bouts of profit booking as they slipped 0.38% and 0.32% respectively. While index heavyweight Reliance Industries was trading with gains of over half a percent ahead of its fourth quarter earnings announcement later in the day.
Meanwhile, the broader markets failed to show any kind of fervor this Thursday as the midcap index added 0.15% while the smallcap index rose by 0.18%. The market breadth on the BSE was in favor of advances in the ratio of 1381:1291 while 126 shares remained unchanged.
The BSE Sensex added 113.20 points or 0.58% at 19,584.18. The index touched a high and a low of 19,695.98 and 19,554.06 respectively.
The BSE Mid-cap index gained by 0.15% and Small-cap index rose 0.18%.
On the BSE sectoral front, metal was up 0.99%, IT up 0.73%, Oil and Gas up 0.52%, Bankex up 0.42% and Auto up 0.34% were the major gainers in the space.
On the flip side, Power down 0.38%, CG down 0.32%, HC down 0.14% and PSU down 0.05% were the only laggards in the BSE sectoral space.
The top gainers on the Sensex were Maruti Suzuki up 2.38%, Hero Honda up 2.12%, HDFC up 1.96%, ONGC up 1.63% and Sterlite up 1.55%.
On the flip side Bharti Airtel down 1.58%, Tata Motors down 1.19% and BHEL down 0.75%, Bajaj Auto down 0.63% and Cipla down 0.45% were the only losers on the index.
Meanwhile, air travel demand in the country continues to remain robust despite the airlines hiking fares substantially to factor in the surging prices of aviation turbine fuel (ATF). Strong recovery in the Indian economy and rising disposable incomes has boosted air traffic by nearly 21% over the last quarter.
According to the data released by the director general of civil aviation (DGCA), total passengers carried by domestic airlines during the Jan-Mar 2011 quarter stood at 143.31 lakh compared with 118.54 lakh passengers in the same quarter a year ago, thus growing by 20.9%. In the month of March 2011 alone, total passengers flying on domestic routes increased to 48.2 lakh compared with 39.04 lakh in the same month a year ago, thus showing an even better growth of 23.5%.
Looking at the cross section trends, Jet Airways (along with its low cost subsidiary JetLite) continued to lead the market with a share of 25.4%, Kingfisher retained the second spot in domestic market with a market share of 19.9%, IndiGo followed closely with a share of 19.5%, while Air India remained at the fourth place with a share of 14.9%. Spice Jet and Go Air had market shares of 13.5% and 6.8% respectively.
However, load factors of all the airlines saw a decline in March compared with the previous month. Jet Airways saw its load factor declining to 69.2% from 76.5% in February while the same for JetLite was down at 76.7% compared with 80.2%. Seat factor for Kingfisher too fell sequentially to 80.4% from 83.6%. Even the no-frills carrier could not buck the trend and seat factor for SpiceJet declined to 75.4% in March from 81% in February. This however was not unexpected as March is traditionally a leaner period for airlines.
The analysis of capacity as reflected in available seat per kilometre (ASKM) and demand as reflected in revenue per seat per kilometre (RPKM) shows that the airlines continued to increase capacity but the increase remains lower than the increase in demand. One of the key issues faced by the aviation industry after the economic crisis of late 2008 was over capacity. There has been a conscious effort on part of the industry to prevent any oversupply and while capacity has been increasing consistently for more than a year now, the increase in most months has been less than increase in demand.
The S&P CNX Nifty advanced 23.10 points or 0.39% at 5,874.75. The index touched high and low of 5,912.90 and 5,866.90, respectively.
The top gainers on the Nifty were Maruti up 2.45%, Hero Honda up 2.23%, Sesa Goa up 1.80%, HDFC up 1.76% and ONGC up 1.71%.
On the other hand, Siemens down 2.19%, Bharti Airtel down 1.85%, Tata Motors down 1.27%, Dr Reddy down 1.11% and GAIL down 1.09% were the major losers on the index.
On the Asian front, Shanghai Composite was up 0.51%, Hang Seng was up 0.85%, Nikkei 225 was up 0.82%, Straits Times was up 0.98%, Seoul Composite was up 1.32% and Taiwan Weighted was up 1.64%.On the other hand, Jakarta Composite was down 0.11%, KLSE Composite was down 0.02%,
The European markets are trading on a strong note as the France's CAC 40 added 0.29%, Germany's DAX gained 0.48% and Britain's FTSE 100 rose 0.24%.
Meanwhile, the broader markets failed to show any kind of fervor this Thursday as the midcap index added 0.15% while the smallcap index rose by 0.18%. The market breadth on the BSE was in favor of advances in the ratio of 1381:1291 while 126 shares remained unchanged.
The BSE Sensex added 113.20 points or 0.58% at 19,584.18. The index touched a high and a low of 19,695.98 and 19,554.06 respectively.
The BSE Mid-cap index gained by 0.15% and Small-cap index rose 0.18%.
On the BSE sectoral front, metal was up 0.99%, IT up 0.73%, Oil and Gas up 0.52%, Bankex up 0.42% and Auto up 0.34% were the major gainers in the space.
On the flip side, Power down 0.38%, CG down 0.32%, HC down 0.14% and PSU down 0.05% were the only laggards in the BSE sectoral space.
The top gainers on the Sensex were Maruti Suzuki up 2.38%, Hero Honda up 2.12%, HDFC up 1.96%, ONGC up 1.63% and Sterlite up 1.55%.
On the flip side Bharti Airtel down 1.58%, Tata Motors down 1.19% and BHEL down 0.75%, Bajaj Auto down 0.63% and Cipla down 0.45% were the only losers on the index.
Meanwhile, air travel demand in the country continues to remain robust despite the airlines hiking fares substantially to factor in the surging prices of aviation turbine fuel (ATF). Strong recovery in the Indian economy and rising disposable incomes has boosted air traffic by nearly 21% over the last quarter.
According to the data released by the director general of civil aviation (DGCA), total passengers carried by domestic airlines during the Jan-Mar 2011 quarter stood at 143.31 lakh compared with 118.54 lakh passengers in the same quarter a year ago, thus growing by 20.9%. In the month of March 2011 alone, total passengers flying on domestic routes increased to 48.2 lakh compared with 39.04 lakh in the same month a year ago, thus showing an even better growth of 23.5%.
Looking at the cross section trends, Jet Airways (along with its low cost subsidiary JetLite) continued to lead the market with a share of 25.4%, Kingfisher retained the second spot in domestic market with a market share of 19.9%, IndiGo followed closely with a share of 19.5%, while Air India remained at the fourth place with a share of 14.9%. Spice Jet and Go Air had market shares of 13.5% and 6.8% respectively.
However, load factors of all the airlines saw a decline in March compared with the previous month. Jet Airways saw its load factor declining to 69.2% from 76.5% in February while the same for JetLite was down at 76.7% compared with 80.2%. Seat factor for Kingfisher too fell sequentially to 80.4% from 83.6%. Even the no-frills carrier could not buck the trend and seat factor for SpiceJet declined to 75.4% in March from 81% in February. This however was not unexpected as March is traditionally a leaner period for airlines.
The analysis of capacity as reflected in available seat per kilometre (ASKM) and demand as reflected in revenue per seat per kilometre (RPKM) shows that the airlines continued to increase capacity but the increase remains lower than the increase in demand. One of the key issues faced by the aviation industry after the economic crisis of late 2008 was over capacity. There has been a conscious effort on part of the industry to prevent any oversupply and while capacity has been increasing consistently for more than a year now, the increase in most months has been less than increase in demand.
The S&P CNX Nifty advanced 23.10 points or 0.39% at 5,874.75. The index touched high and low of 5,912.90 and 5,866.90, respectively.
The top gainers on the Nifty were Maruti up 2.45%, Hero Honda up 2.23%, Sesa Goa up 1.80%, HDFC up 1.76% and ONGC up 1.71%.
On the other hand, Siemens down 2.19%, Bharti Airtel down 1.85%, Tata Motors down 1.27%, Dr Reddy down 1.11% and GAIL down 1.09% were the major losers on the index.
On the Asian front, Shanghai Composite was up 0.51%, Hang Seng was up 0.85%, Nikkei 225 was up 0.82%, Straits Times was up 0.98%, Seoul Composite was up 1.32% and Taiwan Weighted was up 1.64%.On the other hand, Jakarta Composite was down 0.11%, KLSE Composite was down 0.02%,
The European markets are trading on a strong note as the France's CAC 40 added 0.29%, Germany's DAX gained 0.48% and Britain's FTSE 100 rose 0.24%.
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