After the late short covering that led the Indian frontline indices to bounce back sharply on the F&O expiry day, the sanguinity got spilled over into Friday's session too as investors continued to look for opportunities to enter into the market and pile up positions in beaten down but fundamentally strong stocks. Bullishness seemed to be returning to the markets as investors aggressively piled up positions in key heavyweight stocks as they speculated a lot of headwinds have already been factored in. The spurt in benchmarks not only was due to sanguine leads from the global markets but also because of the bottom fishing in rate sensitive, banking and realty counters and oil and gas stocks which underpinned the benchmarks comfortably over the psychological 5,450 and 18,250 levels. While skeptics doubted the recent rally of Indian markets as they believe macroeconomic headwinds like slowing economic growth rate, rising borrowing costs, towering inflation numbers, elevated international crude oil prices and euro-zone worries are going to make it difficult for an emerging market like India to outperform the global markets. Leads from markets across the globe too remained encouraging as majority of Asian equity indices exhibited positive trends while the European counterparts too traded on an optimistic note, which persuaded bulls to come out of their shelter. Back home, the NSE's 50-share broadly followed index Nifty, shut shop with around a percent gains after recapturing the crucial 5,450 support level while Bombay Stock Exchange's Sensitive Index, Sensex slammed a double century and closed above the psychological 18,250 mark. By the end of trade, the broader markets matched their performance with larger peers as the midcap index surged 1.48% while the smallcap index closed with 0.89% gains. On the sectoral front, the high beta Realty stocks garnered maximum traction and settled after spurting 3.60% as majors like DLF and Unitech accumulated 4.11%, and 4.09% respectively. The rate sensitive Bankex too remained amid the thick of things as it zoomed 2.46% after majors like ICICI Bank and SBI soared by 4.23% and 2.09% respectively. While Index heavyweight Reliance Industries too made its presence felt as it amassed around one and half percent on reports that DE Shaw & Co., the $20 billion hedge fund founded by David Shaw, may partner with the Mukesh Ambani-run company to offer investment banking, derivatives trading and alternate-asset management in India next year. Sesa Goa too surged 1.71% after reports that iron ore export were set to resume from Karnataka while the all stocks from the ADAG pack bounced sharply in the session. On the other hand another rate sensitive Auto pocket languished at the bottom of the table with 0.85% losses after bellwether Tata Motors, the biggest truck-maker, registered over six percent losses after the quarterly results showed margins for the three months ended March 31 narrowed from the quarter ended December because of higher raw-material costs.
On the global front, majority of the Asian equity indices settled in the positive zone with Hong Kong's benchmark grabbing the top gainer's position after gaining around a percent point and settling higher for the third straight session. The European equities are trading on an optimistic note as France's CAC advanced 0.97%, Britain's FTSE 100 climbed 0.90% and Germany's DAX rose 0.47%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to an optimistic opening in line with the sanguine trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which rose despite weak economic reports, mainly on the back of strong earnings that helped push stocks higher. After the positive opening the frontline indices oscillated in a narrow band through the morning session around the psychological 8,450 and 18,200 levels. However, investors showed renewed vigor to build up positions in the afternoon session of trade as the key indices showed signs of capturing even the 5,500 and 18,300 levels. However, mild profit booking in the late hours of trade ensured that the frontline indices go home off the day's high levels yet with over a percent gains for the second session on a run. On expected lines, markets registered low volumes of over Rs 0.92 lakh crore on the first day of a new F&O series. The turnover for NSE F&O segment also remained on the lower side compared to Thursday at over 0.77 lakh crore. Market breadth remained positive as there were 1496 shares on the gaining side against 1275 shares on the losing side while 125 shares remained unchanged.
Finally, the BSE Sensex soared by 221.46 points or 1.23% to settle at 18,266.10 while the S&P CNX Nifty surged 63.75 points or 1.18% to settle at 5,476.10.
The BSE Sensex touched a high and a low of 18,298.64 and 18,087.16, respectively.The BSE Mid cap and Small cap index gained 1.48% and 0.89% respectively.
The top gainers on the Sensex were Hindalco Industries up 5.78%, Reliance Communication up 5.66%, ICICI Bank up 4.23%, DLF up 4.11% and Reliance Infra up 3.85%.
On the flip side, Tata Motors down 6.25%, Hindustan Unilever down 1.27%, NTPC down 1.03%, Hero Honda down 0.80% and Cipla down 0.19% were the major losers on the index.
India's handicrafts export saw a decent growth of around 14% to $204 million in April 2011 year-on-year (Y-O-Y) basis, mainly driven by the demand from traditional markets like Europe and US. According to the Export Promotion Council for Handicraft (EPCH) data, last year during the same period India's handcraft export were around $179.9 million. The EPCH and exporters are hopeful that exports would continue to grow in the present financial year due to increasing demand from the traditional as well as from the new emerging markets.
'We expect the exports to touch $2.7 billion in 2011-12 due to increasing demand not only from the US and Europe, but also from emerging markets like Middle East, Latin America and Africa,' EPCH Executive Director Rakesh Kumar said.
The items which registered the maximum growth were wood wares up by 26.9%, followed by jewellery around 21%, shawls as art wares around 19%, miscellaneous handicraft 15% and metal wares by 13.49%.
The growth in export for the month of April follows the impressive jump of about 26% to $2.3 billion in April-March 2010-11, as compared to a year ago. In line with the country's total merchandise exports which registered the highest ever growth of 37.5% to $245.9 billion in 2010-11. Approximately 60% of country's handicraft is exported to Europe and US, but the whole year growth was driven by the growing demand from new markets like Latin America and Africa. As to reduce dependence on western markets, the exporters started exploring new markets like Latin America, Asia and Africa. The government too has introduced incentives for exporters to diversify and boost their trade with emerging markets like Latin America and Caribbean region.
The top gainers on the BSE sectoral space were Realty up 3.60%, Bankex up 2.46%, Metal up 1.98%, Oil & Gas up 1.59%, and PSU up 1.24%.
On the flip side, Auto down 0.85% and Consumer Durables (CD) down 0.76% were the only losers in the BSE sectoral space.
Lack of consensus between the Ministry of Defence (MoD) and Ministry of Commerce and Industry has casted a shadow over the fate of increasing Foreign direct investment (FDI) ceiling in the sensitive sector for a long time now. Given the strategic nature of the subject, several brainstorming sessions took place yet it still remains to be seen as to when a formal proposal will be moved in this regard.
It has been over a year that the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, put out a discussion paper on raising foreign direct investment in defence sector to 74%, in order to enable global defence entities to set up manufacturing units in the country. However, the proposal did not find many supporters from the Ministry of Defence (MoD) which is against raising the limit to the extent DIPP has proposed but showed some inclination towards raising the cap to 49%.
Currently, foreign direct investment upto 26% is allowed in defence production. Hindustan Aeronautic, Ordnance Factory Board and Bharat Electronics are the only three Indian companies which make it to the list of top 100 defence companies in the world accounting for a meager 1.1% share of the global industry. The government is the sole purchaser of defence equipment spending around 15% of the central government expenditure.
The S&P CNX Nifty touched high and low of 5,485.80 and 5,413.60, respectively.
The top gainers of the Nifty were Hindalco up 6.57%, IDFC up 6.24%, Reliance Communication up 5.92%, Reliance Power up 4.77% and ICICI Bank up 4.53%.
On the flip side, Tata Motors down 6.54%, Hindustan Unilever down 1.86%, Ambuja Cement down 1.80%, GAIL down 1.72% and Hero Honda down 1.71% were the major losers on the index.
European markets were trading in green. France's CAC 40 advanced 0.80%, Britain's FTSE 100 up 0.90%, and Germany's DAX rose 0.46%.
The Asian markets made a mixed closing on Friday, though the start was good but some volatility crept in the Japanese and Chinese markets that could not manage to end in green otherwise all other major indices closed in green on the back of good corporate profits numbers and they overlooked the weak economic data from the US. The yen appreciated 0.4 percent against the dollar and weighed on the markets on the same time the country had its outlook lowered to negative from stable by Fitch Ratings. Japan's gross government debt reached 210 percent of GDP by end-2010, by far the highest ratio for any Fitch-rated sovereign.
On the global front, majority of the Asian equity indices settled in the positive zone with Hong Kong's benchmark grabbing the top gainer's position after gaining around a percent point and settling higher for the third straight session. The European equities are trading on an optimistic note as France's CAC advanced 0.97%, Britain's FTSE 100 climbed 0.90% and Germany's DAX rose 0.47%. On the other hand, the screen trading for US index futures indicated that the Dow could open on a flat note.
Earlier on Dalal Street, the benchmark got off to an optimistic opening in line with the sanguine trends that prevailed in most Asian markets as investors in the region were largely influenced by the overnight Wall Street which rose despite weak economic reports, mainly on the back of strong earnings that helped push stocks higher. After the positive opening the frontline indices oscillated in a narrow band through the morning session around the psychological 8,450 and 18,200 levels. However, investors showed renewed vigor to build up positions in the afternoon session of trade as the key indices showed signs of capturing even the 5,500 and 18,300 levels. However, mild profit booking in the late hours of trade ensured that the frontline indices go home off the day's high levels yet with over a percent gains for the second session on a run. On expected lines, markets registered low volumes of over Rs 0.92 lakh crore on the first day of a new F&O series. The turnover for NSE F&O segment also remained on the lower side compared to Thursday at over 0.77 lakh crore. Market breadth remained positive as there were 1496 shares on the gaining side against 1275 shares on the losing side while 125 shares remained unchanged.
Finally, the BSE Sensex soared by 221.46 points or 1.23% to settle at 18,266.10 while the S&P CNX Nifty surged 63.75 points or 1.18% to settle at 5,476.10.
The BSE Sensex touched a high and a low of 18,298.64 and 18,087.16, respectively.The BSE Mid cap and Small cap index gained 1.48% and 0.89% respectively.
The top gainers on the Sensex were Hindalco Industries up 5.78%, Reliance Communication up 5.66%, ICICI Bank up 4.23%, DLF up 4.11% and Reliance Infra up 3.85%.
On the flip side, Tata Motors down 6.25%, Hindustan Unilever down 1.27%, NTPC down 1.03%, Hero Honda down 0.80% and Cipla down 0.19% were the major losers on the index.
India's handicrafts export saw a decent growth of around 14% to $204 million in April 2011 year-on-year (Y-O-Y) basis, mainly driven by the demand from traditional markets like Europe and US. According to the Export Promotion Council for Handicraft (EPCH) data, last year during the same period India's handcraft export were around $179.9 million. The EPCH and exporters are hopeful that exports would continue to grow in the present financial year due to increasing demand from the traditional as well as from the new emerging markets.
'We expect the exports to touch $2.7 billion in 2011-12 due to increasing demand not only from the US and Europe, but also from emerging markets like Middle East, Latin America and Africa,' EPCH Executive Director Rakesh Kumar said.
The items which registered the maximum growth were wood wares up by 26.9%, followed by jewellery around 21%, shawls as art wares around 19%, miscellaneous handicraft 15% and metal wares by 13.49%.
The growth in export for the month of April follows the impressive jump of about 26% to $2.3 billion in April-March 2010-11, as compared to a year ago. In line with the country's total merchandise exports which registered the highest ever growth of 37.5% to $245.9 billion in 2010-11. Approximately 60% of country's handicraft is exported to Europe and US, but the whole year growth was driven by the growing demand from new markets like Latin America and Africa. As to reduce dependence on western markets, the exporters started exploring new markets like Latin America, Asia and Africa. The government too has introduced incentives for exporters to diversify and boost their trade with emerging markets like Latin America and Caribbean region.
The top gainers on the BSE sectoral space were Realty up 3.60%, Bankex up 2.46%, Metal up 1.98%, Oil & Gas up 1.59%, and PSU up 1.24%.
On the flip side, Auto down 0.85% and Consumer Durables (CD) down 0.76% were the only losers in the BSE sectoral space.
Lack of consensus between the Ministry of Defence (MoD) and Ministry of Commerce and Industry has casted a shadow over the fate of increasing Foreign direct investment (FDI) ceiling in the sensitive sector for a long time now. Given the strategic nature of the subject, several brainstorming sessions took place yet it still remains to be seen as to when a formal proposal will be moved in this regard.
It has been over a year that the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, put out a discussion paper on raising foreign direct investment in defence sector to 74%, in order to enable global defence entities to set up manufacturing units in the country. However, the proposal did not find many supporters from the Ministry of Defence (MoD) which is against raising the limit to the extent DIPP has proposed but showed some inclination towards raising the cap to 49%.
Currently, foreign direct investment upto 26% is allowed in defence production. Hindustan Aeronautic, Ordnance Factory Board and Bharat Electronics are the only three Indian companies which make it to the list of top 100 defence companies in the world accounting for a meager 1.1% share of the global industry. The government is the sole purchaser of defence equipment spending around 15% of the central government expenditure.
The S&P CNX Nifty touched high and low of 5,485.80 and 5,413.60, respectively.
The top gainers of the Nifty were Hindalco up 6.57%, IDFC up 6.24%, Reliance Communication up 5.92%, Reliance Power up 4.77% and ICICI Bank up 4.53%.
On the flip side, Tata Motors down 6.54%, Hindustan Unilever down 1.86%, Ambuja Cement down 1.80%, GAIL down 1.72% and Hero Honda down 1.71% were the major losers on the index.
European markets were trading in green. France's CAC 40 advanced 0.80%, Britain's FTSE 100 up 0.90%, and Germany's DAX rose 0.46%.
The Asian markets made a mixed closing on Friday, though the start was good but some volatility crept in the Japanese and Chinese markets that could not manage to end in green otherwise all other major indices closed in green on the back of good corporate profits numbers and they overlooked the weak economic data from the US. The yen appreciated 0.4 percent against the dollar and weighed on the markets on the same time the country had its outlook lowered to negative from stable by Fitch Ratings. Japan's gross government debt reached 210 percent of GDP by end-2010, by far the highest ratio for any Fitch-rated sovereign.
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