The Indian equity markets have made a positive start in the early trade on the back of buying witnessed in key heavyweights like, Reliance Industries, ICICI bank and L&T. However, the global cues were not much supportive as, the US markets managed the close of modest gains on Friday, though the economic news remained mixed while; Asian counterparts were trading mixed at this point of time. Back home, sustained buying mostly in all the heavyweights along with broader indices supported NSE's -- Nifty -- to regain its crucial 5,500 mark. Realty witnessed the maximum gain in trade followed by healthcare and consumer durables with no losers on the BSE sectoral space. The broader indices were outperforming benchmarks. Meanwhile, Mahindra & Mahindra (M&M), BPCL, Indian Oil Corporation, National Aluminium Company and ONGC rose ahead of their Q4 results slated to be released today. The market breadth on the BSE was positive; there were 1,197 shares on the gaining side against 470 shares on the losing side while 58 shares remained unchanged.
The BSE Sensex opened at 18,319.74; about 53 points higher compared to its previous closing of 18,266.10, and has touched a high and a low of 18,380.17 and 18,317.16, respectively.
The index is currently trading at 18,353.76, up by 87.66 points or 0.48%. There were 26 stocks advancing against just 4 declines on the index.
The overall market breadth has made a strong start with 69.39% stocks advancing against 27.25% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.96% and 0.85% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.48%, HC up by 1.20%, CD up by 1.02%, Bankex up by 0.88% and PSU was up by 0.79%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 2.44%, Sterlite Industries up by 1.97%, Jaiprakash Associates up by 1.40%, Cipla up by 1.30% and M&M was up by 1.26%. While, Reliance Infra was down by 0.74%, Bharti Airtel was down by 0.74%, ITC was down by 0.48% and Tata Steel was down by 0.48%, were only losers on the Sensex.
Meanwhile, the government is expected to revise its GDP forecast of 9% for the current financial year. The downward revision is expected because of the rising global commodity prices and high inflation. Earlier, many international and national organizations had also revised downward their forecast of growth on account of high inflation, the steepest being the Goldman Sachs that had cut growth estimate for the 2011-12 by over a percent to 7.8% from 8.7% estimated originally. Another international organization, OECD has projected the Indian economy to expand 8.5% in 2011-12, much lower than the growth of 9.6 percent witnessed in 2010-11 financial year. Two other international bodies, the International Monetary Fund and the World Bank too had forecast that India's economy would grow at 8 per cent and 9 per cent, respectively. While, on the domestic front the Reserve Bank of India has reduced the growth target of Indian economy at about 8% in the current financial year after it increased the policy rates for the ninth time in over a year.
The mid-term review of the economy was due in October 2011, but the finance ministry has decided to review its forecast next month itself because of the fast changing economic conditions. Chief Economist Advisor Kaushik Basu said, "This year, because of changing global scenario and many other important organisations having downgraded India's growth rate, we have decided that we would go back and take another look at our (GDP) numbers in mid-June". However, Basu expects a small revision in the forecast. Finance Minister has also hinted that high inflation and any further rise in crude oil prices may pull down India's economic growth to 8% from a projected 9%.
The Wholesale Price Index inflation marginally decreased to 8.66% in April from over 9.04 % in March but may accelerate again after the increase in petrol prices. The government is likely to increase the prices of diesel, kerosene and LPG, in order to reduce the revenue losses of Oil Marketing Companies.
The S&P CNX Nifty opened at 5,493.75; about 17 points higher compared to its previous closing of 5,476.10, and has touched a high and a low of 5,509.30 and 5,489.70 respectively.
The index is currently trading at 5,504.25, higher by 28.15 points or 0.51%. There were 42 stocks advancing against just 8 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 3.16%, DLF up by 2.33%, Sterlite Industries up by 2.03%, Reliance Industries up by 1.60% and JP Associates up by 1.40%.
Cairn down by 2.31%, Reliance Infra down by 0.97%, Bharti Airtel down by 0.86%, Tata Steel down by 0.37% and ITC down by 0.29%, were the major losers on the index.
Asian markets were trading mixed; Shanghai Composite was up 12.84 points or 0.47% to 2,722.78, Hang Seng was up 118.50 points or 0.51% to 23,236.57, Straits Times was up 18.13 points or 0.58% to 3,153.65 and Taiwan Weighted was up by 16.19 points or 0.18% to 8,826.19.
On the flip side, Jakarta Composite was down 6.12 points or 0.16% to 3,826.26, KLSE Composite was down 0.49 points or 0.03% to 1,548.20, Nikkei 225 was down 17.47 points or 0.18% to 9,504.47 and Seoul Composite was down by 5.94 points or 0.28% to 2,094.30.
The BSE Sensex opened at 18,319.74; about 53 points higher compared to its previous closing of 18,266.10, and has touched a high and a low of 18,380.17 and 18,317.16, respectively.
The index is currently trading at 18,353.76, up by 87.66 points or 0.48%. There were 26 stocks advancing against just 4 declines on the index.
The overall market breadth has made a strong start with 69.39% stocks advancing against 27.25% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.96% and 0.85% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.48%, HC up by 1.20%, CD up by 1.02%, Bankex up by 0.88% and PSU was up by 0.79%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 2.44%, Sterlite Industries up by 1.97%, Jaiprakash Associates up by 1.40%, Cipla up by 1.30% and M&M was up by 1.26%. While, Reliance Infra was down by 0.74%, Bharti Airtel was down by 0.74%, ITC was down by 0.48% and Tata Steel was down by 0.48%, were only losers on the Sensex.
Meanwhile, the government is expected to revise its GDP forecast of 9% for the current financial year. The downward revision is expected because of the rising global commodity prices and high inflation. Earlier, many international and national organizations had also revised downward their forecast of growth on account of high inflation, the steepest being the Goldman Sachs that had cut growth estimate for the 2011-12 by over a percent to 7.8% from 8.7% estimated originally. Another international organization, OECD has projected the Indian economy to expand 8.5% in 2011-12, much lower than the growth of 9.6 percent witnessed in 2010-11 financial year. Two other international bodies, the International Monetary Fund and the World Bank too had forecast that India's economy would grow at 8 per cent and 9 per cent, respectively. While, on the domestic front the Reserve Bank of India has reduced the growth target of Indian economy at about 8% in the current financial year after it increased the policy rates for the ninth time in over a year.
The mid-term review of the economy was due in October 2011, but the finance ministry has decided to review its forecast next month itself because of the fast changing economic conditions. Chief Economist Advisor Kaushik Basu said, "This year, because of changing global scenario and many other important organisations having downgraded India's growth rate, we have decided that we would go back and take another look at our (GDP) numbers in mid-June". However, Basu expects a small revision in the forecast. Finance Minister has also hinted that high inflation and any further rise in crude oil prices may pull down India's economic growth to 8% from a projected 9%.
The Wholesale Price Index inflation marginally decreased to 8.66% in April from over 9.04 % in March but may accelerate again after the increase in petrol prices. The government is likely to increase the prices of diesel, kerosene and LPG, in order to reduce the revenue losses of Oil Marketing Companies.
The S&P CNX Nifty opened at 5,493.75; about 17 points higher compared to its previous closing of 5,476.10, and has touched a high and a low of 5,509.30 and 5,489.70 respectively.
The index is currently trading at 5,504.25, higher by 28.15 points or 0.51%. There were 42 stocks advancing against just 8 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 3.16%, DLF up by 2.33%, Sterlite Industries up by 2.03%, Reliance Industries up by 1.60% and JP Associates up by 1.40%.
Cairn down by 2.31%, Reliance Infra down by 0.97%, Bharti Airtel down by 0.86%, Tata Steel down by 0.37% and ITC down by 0.29%, were the major losers on the index.
Asian markets were trading mixed; Shanghai Composite was up 12.84 points or 0.47% to 2,722.78, Hang Seng was up 118.50 points or 0.51% to 23,236.57, Straits Times was up 18.13 points or 0.58% to 3,153.65 and Taiwan Weighted was up by 16.19 points or 0.18% to 8,826.19.
On the flip side, Jakarta Composite was down 6.12 points or 0.16% to 3,826.26, KLSE Composite was down 0.49 points or 0.03% to 1,548.20, Nikkei 225 was down 17.47 points or 0.18% to 9,504.47 and Seoul Composite was down by 5.94 points or 0.28% to 2,094.30.
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