CHEERS !!!
Thursday, June 30, 2011
TREND FOR 1st JULY
CHEERS !!!
LATE SPURT
The June series Futures and Options contract settlement turned out to be an encouraging event for the Indian markets as bulls showed strong buying interests in majority of the blue chip stocks. Hefty short covering in the dying hours ahead of the series expiry further stoked the benchmarks to settle around the high point of the day. The resilient markets seldom shown any signs of capitulation in last six sessions, as they vivaciously rallied over 1,250 (Sensex) and 350 (Nifty) points during the period. Sentiments remained upbeat across the globe as investors continued to capitalize on the positive momentum from the previous session after the Greek government successfully voted in favor of stringent austerity measures. A second vote for the implementation of the measures is expected in Greece later in the day. Majority of the Asian equity indices settled in the green zone with smart gains while the European counterparts too exhibited mixed trends ahead of a second vote for the implementation of the measures scheduled later in the day. In the meantime domestic sentiments also got buoyed by encouraging food inflation numbers which drifted sharply to one and a half month low levels, a week after convalescing over 9% levels. The moderation in inflation numbers came a day after Prime Minister Manmohan Singh said that inflation will come down to 6.5% by March-end if international oil prices soften and commodity prices do not rise further. The numbers indicate that RBI, which has hiked its key interest rate by 2.75% points since March 2010, may not resort to rate resort to further hikes and soften its hawkish stance against inflation. However, Indian fuel price inflation accelerated to an eight-week high in mid-June and the government's recent move to hike diesel and other fuel prices is expected to put upward pressure on prices in coming weeks and push headline inflation towards double digits. Local sentiments also remained optimistic as FIIs have turned net buyers since Thursday, indicating that interest of foreign funds are not fading any time soon.
Back on Dalal Street, the benchmark began the expiry session on an optimistic note and oscillated above the neutral line in a narrow range through most part of the session, lacking any kind of volatility which is typically evident on F&O settlement days. After registering losses in the two previous F&O series, the June series F&O showed a swashbuckling performance adding over four percent from the last series. The NSE's 50-share broadly followed index Nifty, settled close to a percent gains just below the crucial 5,650 support level while Bombay Stock Exchange's Sensitive Index, Sensex amassed over one hundred and fifty points to close below the important psychological 18,850 level. However, the broader markets failed to mirror the performance showcased by their larger peers and negotiated only moderate gains. The midcap index added 0.32% points while the smallcap index rose 0.57% point. On the sectoral front, it was the defensive - FMCG pocket which once again outperformed not only its sectoral peers but also the benchmarks and surged by close to 2%. The high beta - Realty counter, which off late witnessed heavy selling pressure, too remained amid the thick of things and gained 1.19% as majors like Unitech and HDIL gained 2.73% and 0.92% respectively. The fertilizer stocks too gained a lot of traction on hopes that the government would consider giving freedom to fertilizers companies to fix maximum retail price of di-ammonium phosphate (DAP) in a cabinet meet scheduled for later today. On the other hand, the Healthcare pack remained the only laggard that languished in the negative terrain with marginal losses. The markets surged on strong volumes of over Rs 1.99 lakh crore while the turnover for NSE F&O segment also remained on the higher side compared to Wednesday at over 1.81 lakh crore. Market breadth remained extremely positive as there were 1507 shares on the gaining side against 1337 shares on the losing side while 144 shares remained unchanged.
Finally, the BSE Sensex gained 152.01 points or 0.81% to settle at 18,845.87, while the S&P CNX Nifty rose 46.95 points or 0.884% to settle at 5,647.40.
The BSE Sensex touched a high and a low of 18,873.39 and 18,723.14, respectively. The BSE Mid cap and Small cap index were up by 0.32% and 0.57% respectively.
The top gainers on the Sensex were Jaiprakash Associate up 3.79%, Hindustan Unilever up 3.18%, Jindal Steel up 3.13%, Tata Power up 1.68% and Hero Honda up 1.63%.
On the flip side, ONGC down 1.62%, Maruti Suzuki down 1.54%, Bharti Airtel down 1.52%, Wipro down 0.61% and Hindalco Inds down 0.58% were the top losers on the index.
Meanwhile, the government is going to withdraw the unspent funds from its flagship Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), this withdrawal of money from the flagship MGNREGS scheme is expected to provide some relief to government which is facing financial crunches.
The state governments are estimated to have around Rs 15,000 crore as unspent balance under the NREGA scheme left over from last financial year. A finance ministry official has said, "We estimate that states have about Rs 15,000 crore left from 2010-11. We have written to them to let us know the exact amount of unspent money they have. Accordingly their allocation for the current fiscal will be fixed," adding further the official said that this would result in net savings for the government in 2011-12. States are expected to surrender unspent balances before getting fresh allocation.
During the last financial year, central government had allocated Rs 40, 100 crore to the MGNREGS scheme and almost the same amount in the current financial year i.e. 40,000 crore. The finance minister official said, "MGNREGS is a last resort for people when they do not get any jobs. With the economy doing largely well and better employment available, we expect that the demand for jobs under the scheme could be lower," adding that the government could save as much as Rs 18,000 crore from the scheme's allocation in 2011-12.
This would be good news for the central government, which is trying hard to meet the fiscal deficit target of 4.6% of the GDP for the present financial year. The slowdown in economic growth due to high inflation led by elevated global crude and commodity prices and increased interest rates by the central bank to curb inflation, has raised the concern of government over meeting the fiscal target for the present financial year.
The top gainers on the BSE sectoral space were FMCG up 1.83%, Realty up 1.19%, Consumer Durables (CD) up 1.19%, IT up 0.69% and Capital Goods (CG) up 0.65%. While Health Care (HC) down by 0.03% was the only loser in the BSE sectoral space.
The S&P CNX Nifty touched high and low of 5,657.90 and 5,606.10, respectively.
The top gainers of the Nifty were JP Associate up 3.85%, Kotak Bank up 3.36%, Jindal Steel up 2.51%, Cairn up 2.49% and Hindustan Unilever up 2.39%.
On the flip side, Sesa Goa down 2.67%, Bharti Airtel down 2.01%, ONGC down 1.84%, Maruti down 1.78% and ACC down 1.56% were the major losers on the index.
The food inflation numbers have shown some signs of cooling in the week ended June 18 and has drifted below the 8% levels, a week after convalescing over 9% levels. However, the Fuel & Power group index edged higher after remaining at unchanged levels in the week ended June 11. Though the inflation numbers continue to hover above the Reserve Bank of India's comfort levels, it is expected to shoot up further to double digits as the government in its recent move, to trim down the under recoveries of oil companies hiked prices of petroleum products.
According to the data released by Ministry of Commerce and Industry, the index for Food Articles group rose to 7.78 percent for the week-ended June 18, from 9.13 percent for the previous week due to lower prices of poultry chicken (4%), masur (3%), tea, condiments & spices and jowar (2% each) and arhar, mutton and fish-inland (1% each).
The index for primary articles group which has the highest weightage of 20.12% in WPI cooled to 11.84 percent for the week from 12.62 for the previous week.
The index for 'Non-Food Articles' group eased to 17.91 percent from 18.43 percent for the previous week due to lower prices of flowers and raw cotton (3% each), cotton seed (2%) and raw jute, soyabean and raw silk (1% each).
The index for Fuel & Power group which carries a weightage of 14.91%, rose to 12.98 percent for the week against 12.84 recorded in the previous week due to higher prices of aviation turbine fuel (3%), naphtha (2%) and furnace oil (1%).
European markets were trading mixed. France's CAC 40 rose 0.08%, Britain's FTSE 100 gained 0.49% and Germany's DAX down by 0.11%.
Back on Dalal Street, the benchmark began the expiry session on an optimistic note and oscillated above the neutral line in a narrow range through most part of the session, lacking any kind of volatility which is typically evident on F&O settlement days. After registering losses in the two previous F&O series, the June series F&O showed a swashbuckling performance adding over four percent from the last series. The NSE's 50-share broadly followed index Nifty, settled close to a percent gains just below the crucial 5,650 support level while Bombay Stock Exchange's Sensitive Index, Sensex amassed over one hundred and fifty points to close below the important psychological 18,850 level. However, the broader markets failed to mirror the performance showcased by their larger peers and negotiated only moderate gains. The midcap index added 0.32% points while the smallcap index rose 0.57% point. On the sectoral front, it was the defensive - FMCG pocket which once again outperformed not only its sectoral peers but also the benchmarks and surged by close to 2%. The high beta - Realty counter, which off late witnessed heavy selling pressure, too remained amid the thick of things and gained 1.19% as majors like Unitech and HDIL gained 2.73% and 0.92% respectively. The fertilizer stocks too gained a lot of traction on hopes that the government would consider giving freedom to fertilizers companies to fix maximum retail price of di-ammonium phosphate (DAP) in a cabinet meet scheduled for later today. On the other hand, the Healthcare pack remained the only laggard that languished in the negative terrain with marginal losses. The markets surged on strong volumes of over Rs 1.99 lakh crore while the turnover for NSE F&O segment also remained on the higher side compared to Wednesday at over 1.81 lakh crore. Market breadth remained extremely positive as there were 1507 shares on the gaining side against 1337 shares on the losing side while 144 shares remained unchanged.
Finally, the BSE Sensex gained 152.01 points or 0.81% to settle at 18,845.87, while the S&P CNX Nifty rose 46.95 points or 0.884% to settle at 5,647.40.
The BSE Sensex touched a high and a low of 18,873.39 and 18,723.14, respectively. The BSE Mid cap and Small cap index were up by 0.32% and 0.57% respectively.
The top gainers on the Sensex were Jaiprakash Associate up 3.79%, Hindustan Unilever up 3.18%, Jindal Steel up 3.13%, Tata Power up 1.68% and Hero Honda up 1.63%.
On the flip side, ONGC down 1.62%, Maruti Suzuki down 1.54%, Bharti Airtel down 1.52%, Wipro down 0.61% and Hindalco Inds down 0.58% were the top losers on the index.
Meanwhile, the government is going to withdraw the unspent funds from its flagship Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), this withdrawal of money from the flagship MGNREGS scheme is expected to provide some relief to government which is facing financial crunches.
The state governments are estimated to have around Rs 15,000 crore as unspent balance under the NREGA scheme left over from last financial year. A finance ministry official has said, "We estimate that states have about Rs 15,000 crore left from 2010-11. We have written to them to let us know the exact amount of unspent money they have. Accordingly their allocation for the current fiscal will be fixed," adding further the official said that this would result in net savings for the government in 2011-12. States are expected to surrender unspent balances before getting fresh allocation.
During the last financial year, central government had allocated Rs 40, 100 crore to the MGNREGS scheme and almost the same amount in the current financial year i.e. 40,000 crore. The finance minister official said, "MGNREGS is a last resort for people when they do not get any jobs. With the economy doing largely well and better employment available, we expect that the demand for jobs under the scheme could be lower," adding that the government could save as much as Rs 18,000 crore from the scheme's allocation in 2011-12.
This would be good news for the central government, which is trying hard to meet the fiscal deficit target of 4.6% of the GDP for the present financial year. The slowdown in economic growth due to high inflation led by elevated global crude and commodity prices and increased interest rates by the central bank to curb inflation, has raised the concern of government over meeting the fiscal target for the present financial year.
The top gainers on the BSE sectoral space were FMCG up 1.83%, Realty up 1.19%, Consumer Durables (CD) up 1.19%, IT up 0.69% and Capital Goods (CG) up 0.65%. While Health Care (HC) down by 0.03% was the only loser in the BSE sectoral space.
The S&P CNX Nifty touched high and low of 5,657.90 and 5,606.10, respectively.
The top gainers of the Nifty were JP Associate up 3.85%, Kotak Bank up 3.36%, Jindal Steel up 2.51%, Cairn up 2.49% and Hindustan Unilever up 2.39%.
On the flip side, Sesa Goa down 2.67%, Bharti Airtel down 2.01%, ONGC down 1.84%, Maruti down 1.78% and ACC down 1.56% were the major losers on the index.
The food inflation numbers have shown some signs of cooling in the week ended June 18 and has drifted below the 8% levels, a week after convalescing over 9% levels. However, the Fuel & Power group index edged higher after remaining at unchanged levels in the week ended June 11. Though the inflation numbers continue to hover above the Reserve Bank of India's comfort levels, it is expected to shoot up further to double digits as the government in its recent move, to trim down the under recoveries of oil companies hiked prices of petroleum products.
According to the data released by Ministry of Commerce and Industry, the index for Food Articles group rose to 7.78 percent for the week-ended June 18, from 9.13 percent for the previous week due to lower prices of poultry chicken (4%), masur (3%), tea, condiments & spices and jowar (2% each) and arhar, mutton and fish-inland (1% each).
The index for primary articles group which has the highest weightage of 20.12% in WPI cooled to 11.84 percent for the week from 12.62 for the previous week.
The index for 'Non-Food Articles' group eased to 17.91 percent from 18.43 percent for the previous week due to lower prices of flowers and raw cotton (3% each), cotton seed (2%) and raw jute, soyabean and raw silk (1% each).
The index for Fuel & Power group which carries a weightage of 14.91%, rose to 12.98 percent for the week against 12.84 recorded in the previous week due to higher prices of aviation turbine fuel (3%), naphtha (2%) and furnace oil (1%).
European markets were trading mixed. France's CAC 40 rose 0.08%, Britain's FTSE 100 gained 0.49% and Germany's DAX down by 0.11%.
All the Asian equity indices witnessed upswing on Thursday as investors continued their buying momentum after Greece approved a harsh austerity package to prevent the heavily indebted country from a massive default. The overnight rally on Wall Street too aided sentiments in the region. Moreover, Chinese index rose more than a percent, boosted by large cap plays with investors seen taking a cautious but an optimistic stance on the country's growth outlook while, Nikkei edged higher in the trade on hopes for the restart of Japanese mothballed nuclear plants.
MARKETS HOLD ON TO THEIR GAINS
The Indian equity markets are trading near its day's low though with marginal gains in the late morning session due to resistance at higher levels and some profit taking. Meanwhile, food articles inflation after surging over 9% mark has came down at 7.78% for the week-ended June 18 versus 9.13% in the previous week and the primary articles inflation come in at 11.84% versus 12.62%, while fuel group inflation surged to 12.98% versus 12.84%. Back on street, on sectoral front consumer durables, FMCG, realty banking and metal companies' shares were supporting the market to hold in the positive terrain but healthcare, power and technology shares were under pressure, limiting the upside. Fertilizer companies were trading higher ahead of government meeting to consider giving fertilizer companies freedom to fix the maximum retail price of di-ammonium phosphate (DAP). On the global front, Asian markets continue to trade higher after Greek Parliament approved austerity package for the country to avoid debt default. Back home, market breadth continues to remain in positive with; there were 1,326 shares on the gaining side against 1,145 shares on the losing side while 122 shares remained unchanged.
The BSE Sensex is currently trading at 18,751.05, up by 57.19 points or 0.31%. The index has touched a high and low of 18,823.06 and 18,723.72 respectively. There were 21 stocks advancing against 9 declines on the index.
The broader indices are also trading in positive with marginal gains; the BSE Mid cap and Small cap indices were up by 0.18% and 0.30% respectively.
The top gaining sectoral indices on the BSE were CD up by 1.99%, FMCG up by 0.84%, Realty up by 0.49%, Bankex up by 0.43% and Metal up by 0.34%, while HC down by 0.30%, Power down by 0.23%, TECk down by 0.23% and Auto down by 0.09% were the top losers.
The top gainer on the Sensex were Jaiprakash Associate up by 3.40%, HUL up by 1.79%, Hero Honda up by 1.22%, Jindal Steel up by 1.12% and Reliance Infra up by 1.02%.
On the other hand, Bharti Airtel down by 2.52%, Cipla down by 1.93%, ONGC down by 1.20%, Tata Motors down by 1.13% and BHEL down by 0.45% were the major losers on the Sensex.
The government's proposal to increase the limit of Foreign Direct Investment (FDI) in insurance sector from existing 26 to 49% is not likely to happen as the parliament's standing committee on finance, headed by Yashwant Sinha has delayed the decision on adopting a vital report on amending India's insurance norms. The parliamentary panel had scheduled a meeting tomorrow to adopt its report on the Bill, among other things.
The Insurance Act amendment bill was one of the eight items listed in the 2011-12 budget speech, where Finance Minister Pranab Mukherjee had promised that the issue would be solved before the budgetary year was out. However, the draft report of the panel has questioned the rationale for increasing the FDI cap in insurance from 26 to 49%.
The standing committee's report could be a major stumbling block for FDI in insurance sector, as the committee is not likely to accept the proposal. It is expected that the parliament's standing committee would not support the proposal of increasing the FDI limits in the insurance sector, therefore FDI in insurance sector is not likely to happen in near future.
The S&P CNX Nifty is currently trading at 5,612.65, up by 12.20 points or 0.22%. The index has touched a high and low of 5,637.45 and 5,606.55 respectively. There were 28 stocks advancing against 21 declines on the index.
The top gainers of the Nifty were JP Associate up by 3.47%, SAIL up by 2.27%, HUL up by 1.71%, Jindal Steel up by 1.29% and SBI up by 1.09%.
On the other hand, Bharti Airtel down by 2.60%, Cipla down by 1.97%, Sesa Goa down by 1.66%, ONGC down by 1.52% and BPCL down by 1.46% were the top losers.
Asian markets are trading in green. Shanghai Composite was up by 1.09, Hang Seng was up by 1.58%, Jakarta Composite was up by 1.25%, Nikkei 225 was up 0.29%, Straits Times up by 1.20%, Seoul Composite was up 0.30% and Taiwan Weighted was up 0.92%. On the flip side, KLSE Composite was down by 0.04% was the lone loser among the Asian pack.
The BSE Sensex is currently trading at 18,751.05, up by 57.19 points or 0.31%. The index has touched a high and low of 18,823.06 and 18,723.72 respectively. There were 21 stocks advancing against 9 declines on the index.
The broader indices are also trading in positive with marginal gains; the BSE Mid cap and Small cap indices were up by 0.18% and 0.30% respectively.
The top gaining sectoral indices on the BSE were CD up by 1.99%, FMCG up by 0.84%, Realty up by 0.49%, Bankex up by 0.43% and Metal up by 0.34%, while HC down by 0.30%, Power down by 0.23%, TECk down by 0.23% and Auto down by 0.09% were the top losers.
The top gainer on the Sensex were Jaiprakash Associate up by 3.40%, HUL up by 1.79%, Hero Honda up by 1.22%, Jindal Steel up by 1.12% and Reliance Infra up by 1.02%.
On the other hand, Bharti Airtel down by 2.52%, Cipla down by 1.93%, ONGC down by 1.20%, Tata Motors down by 1.13% and BHEL down by 0.45% were the major losers on the Sensex.
The government's proposal to increase the limit of Foreign Direct Investment (FDI) in insurance sector from existing 26 to 49% is not likely to happen as the parliament's standing committee on finance, headed by Yashwant Sinha has delayed the decision on adopting a vital report on amending India's insurance norms. The parliamentary panel had scheduled a meeting tomorrow to adopt its report on the Bill, among other things.
The Insurance Act amendment bill was one of the eight items listed in the 2011-12 budget speech, where Finance Minister Pranab Mukherjee had promised that the issue would be solved before the budgetary year was out. However, the draft report of the panel has questioned the rationale for increasing the FDI cap in insurance from 26 to 49%.
The parliament's standing committee on finance has made draft report of 250 pages which conclusively and effectively rejects the proposal for increasing the FDI limits in the Insurance sector. The standing committee's draft report has said the government has failed to successfully tap domestic finance to cater to the insurance sector. The government is not sure, the draft added, how much investment the insurance sector needs as two different figures on requirement of the sector were being quoted by two top officials.
However, in the support of the finance ministry's proposal of hiking the FDI limits, Prime Minister Manmohan Singh said, 'We want to increase FDI in insurance to 49% and hope we can persuade opposition to pass the bill. The industry needs that capital as domestic industrialists don't have that large capital base.' The standing committee's report could be a major stumbling block for FDI in insurance sector, as the committee is not likely to accept the proposal. It is expected that the parliament's standing committee would not support the proposal of increasing the FDI limits in the insurance sector, therefore FDI in insurance sector is not likely to happen in near future.
The S&P CNX Nifty is currently trading at 5,612.65, up by 12.20 points or 0.22%. The index has touched a high and low of 5,637.45 and 5,606.55 respectively. There were 28 stocks advancing against 21 declines on the index.
The top gainers of the Nifty were JP Associate up by 3.47%, SAIL up by 2.27%, HUL up by 1.71%, Jindal Steel up by 1.29% and SBI up by 1.09%.
On the other hand, Bharti Airtel down by 2.60%, Cipla down by 1.97%, Sesa Goa down by 1.66%, ONGC down by 1.52% and BPCL down by 1.46% were the top losers.
Asian markets are trading in green. Shanghai Composite was up by 1.09, Hang Seng was up by 1.58%, Jakarta Composite was up by 1.25%, Nikkei 225 was up 0.29%, Straits Times up by 1.20%, Seoul Composite was up 0.30% and Taiwan Weighted was up 0.92%. On the flip side, KLSE Composite was down by 0.04% was the lone loser among the Asian pack.
POSITIVE START
The Indian equity markets have made positive starts tracking strong cues from global indices as the US markets made a hat-trick of gains with indices gaining for the third straight session overnight while, all the Asian equity indices barring KLSE Composite were trading in the green at this point of time. Sustained buying by foreign investors too supported the sentiments. Back home, sustained buying in most of the key heavyweights along with broader indices supported BSE's -- Sensex -- to cross its crucial 18,700 mark. Investors covering their short positions on the last day of June month settlement in the derivatives segment further fuelled the uptrend. Fast moving consumer goods witnessed the maximum gain in trade followed by realty and consumer durables while, oil and gas remained the lone losers on the BSE sectoral space. The broader indices were going neck to neck with benchmarks. The market breadth on the BSE was positive; there were 1,081 shares on the gaining side against 540 shares on the losing side while 78 shares remained unchanged.
The BSE Sensex opened at 18,741.10; about 48 points higher compared to its previous closing of 18,693.86, and has touched a high of 18,823.06 while low remained its opening.
The index is currently trading at 18,764.69, up by 70.83 points or 0.38%. There were 23 stocks advancing against 7 declines on the index.
The overall market breadth has made a strong start with 63.63% stocks advancing against 31.78% declines. The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices rose 0.27% and 0.40% respectively.
The top gaining sectoral indices on the BSE were, FMCG up by 1.01%, Realty up by 0.78%, CD up by 0.77%, Metal up by 0.44% and CG was up by 0.38%. While, Oil and Gas down by 0.03% remained the lone losers on the index.
The top gainers on the Sensex were HUL up by 1.81%, Reliance Infra up by 1.12%, SBI up by 1.11%, ITC up by 1.08% and Tata Steel was up by 0.96%. On the flip side, ONGC was down by 1.24%, Tata Motors was down by 0.78%, NTPC was down by 0.59%, Bharti Airtel was down by 0.52% and Maruti Suzuki was down by 0.30% were the top losers on the Sensex.
Meanwhile, the crude output from Indian refineries has increased by 4.5 percent as compared to the output during May last year. This rise is due to increased crude processing by PSUs whose output rose on an annual 8.7 percent in May when global refining margins improved and Indian fuel demand rose by an annual 5 percent. 1.44 million tonnes or 3.40 million barrels per day (bpd) oil was processed by domestic refiners during May. Throughput of private refineries was down 4.4 percent from a year ago. However, any specific reason for the lower crude processing by private refiners was not cited by government. Also, crude processing by 120,000 bpd Bina refinery in central India, which came on-stream earlier this year, has not so far been included in the data.
Reliance Industries' two refineries at Jamnagar, which account for about a third of India's refining capacity, output fell on an annual 5.7 percent and of Essar Oil's Vadinar refinery's output declined by 1.2 percent during May as compared to corresponding month last year.
The decline of output from private refineries and low production from the country's biggest producer Mumbai High fields as a scheduled shutdown spilled over to May slowing the pace of growth from April; which was 11 percent and decreased to 9.6 percent during May to 763,500 bpd.
India, the world's fourth-biggest crude importer, produces only a fraction of its overall needs. However, government is constantly trying to increase the production by allowing government-run and private companies to explore the Indian waters. Government encouraged private companies in this sector through introduction of New Exploration Licensing Policy in 1999, as it is believed that India is amongst the least explored countries in world (only 60 percent is being explored).
The S&P CNX Nifty opened at 5,614.50; about 14 points higher compared to its previous closing of 5,600.45, and has touched a high and a low of 5,637.45 and 5,613.20 respectively.
The index is currently trading at 5,622.70, higher by 22.25 points or 0.40%. There were 36 stocks advancing against 14 declines on the index.
The BSE Sensex opened at 18,741.10; about 48 points higher compared to its previous closing of 18,693.86, and has touched a high of 18,823.06 while low remained its opening.
The index is currently trading at 18,764.69, up by 70.83 points or 0.38%. There were 23 stocks advancing against 7 declines on the index.
The overall market breadth has made a strong start with 63.63% stocks advancing against 31.78% declines. The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices rose 0.27% and 0.40% respectively.
The top gaining sectoral indices on the BSE were, FMCG up by 1.01%, Realty up by 0.78%, CD up by 0.77%, Metal up by 0.44% and CG was up by 0.38%. While, Oil and Gas down by 0.03% remained the lone losers on the index.
The top gainers on the Sensex were HUL up by 1.81%, Reliance Infra up by 1.12%, SBI up by 1.11%, ITC up by 1.08% and Tata Steel was up by 0.96%. On the flip side, ONGC was down by 1.24%, Tata Motors was down by 0.78%, NTPC was down by 0.59%, Bharti Airtel was down by 0.52% and Maruti Suzuki was down by 0.30% were the top losers on the Sensex.
Meanwhile, the crude output from Indian refineries has increased by 4.5 percent as compared to the output during May last year. This rise is due to increased crude processing by PSUs whose output rose on an annual 8.7 percent in May when global refining margins improved and Indian fuel demand rose by an annual 5 percent. 1.44 million tonnes or 3.40 million barrels per day (bpd) oil was processed by domestic refiners during May. Throughput of private refineries was down 4.4 percent from a year ago. However, any specific reason for the lower crude processing by private refiners was not cited by government. Also, crude processing by 120,000 bpd Bina refinery in central India, which came on-stream earlier this year, has not so far been included in the data.
Reliance Industries' two refineries at Jamnagar, which account for about a third of India's refining capacity, output fell on an annual 5.7 percent and of Essar Oil's Vadinar refinery's output declined by 1.2 percent during May as compared to corresponding month last year.
The decline of output from private refineries and low production from the country's biggest producer Mumbai High fields as a scheduled shutdown spilled over to May slowing the pace of growth from April; which was 11 percent and decreased to 9.6 percent during May to 763,500 bpd.
India, the world's fourth-biggest crude importer, produces only a fraction of its overall needs. However, government is constantly trying to increase the production by allowing government-run and private companies to explore the Indian waters. Government encouraged private companies in this sector through introduction of New Exploration Licensing Policy in 1999, as it is believed that India is amongst the least explored countries in world (only 60 percent is being explored).
The S&P CNX Nifty opened at 5,614.50; about 14 points higher compared to its previous closing of 5,600.45, and has touched a high and a low of 5,637.45 and 5,613.20 respectively.
The index is currently trading at 5,622.70, higher by 22.25 points or 0.40%. There were 36 stocks advancing against 14 declines on the index.
The top gainers of the Nifty were HUL up by 1.77%, SAIL up by 1.36%, Reliance Infra up by 1.18%, SBI up by 1.16% and Tata Steel up by 0.98%.
On the flip side, BPCL down by 1.57%, ONGC down by 1.47%, Tata Motors down by 0.92%, Sesa Goa down by 0.78% and Bharti Airtel down by 0.67%, were the top losers on the index Wednesday, June 29, 2011
TREND FOR 30th JUNE
CHEERS !!!
NIFTY HOVERS AROUND 5600
Indian equity indices continue to trade firm in a narrow range as investors showed unrelenting buying interests across the bourses. Market participants were seen piling up the positions in FMCG, Metal and Power while, selling was witnessed among Oil & Gas and PSU counters. Despite the recent indication of slowdown in economic expansion because of inflation and increased interest rates by the Reserve Bank of India to curb inflation, Indian economy is expected to grow by 9 to 9.5% in the next five year plan. The Planning commission Deputy Chairman Montek Singh Ahluwalia said India is in a strong position to achieve 9-9.5 percent growth during the 12th Five-Year Plan (2012-17). On the global front Asian markets were trading in green barring Shanghai Composite and Hang Seng, the European markets too are trading in green on an optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,500 and 18,600 levels, respectively. The market breadth on the BSE was in favor of advances in the ratio of 1764:988 while, 108 scrips remained unchanged.
Moreover, the Empowered Group of Ministers (EGoM) on food yesterday decided to permit the export of five lakh tonne of sugar as the country's production is estimated to outstrip demand after a gap of two years. After the report sugar stocks were seen rallying on the bourses with Shree Renuka Sugar, EID Parry, Bajaj Hindustan, Balrampur Chini, Triveni, Rana Sugars up by 7.51%, 6.77%, 4.12%, 3.77%, 3.58% and 8.14% respectively. According to the Coffee Board's post-monsoon forecast, India's coffee production is likely to remain steady at 3 lakh tonnes in the 2011-12 season starting October this year. Tata Coffee was up 4.99% at 861.00. Shriram Transport Finance Company was up more than 1.5%. The company's secured non convertible debenture (NCD) issue will close today with effect from the close of banking hours. The NCD issue, which opened for subscription on 27 June 2011, was originally supposed to close on 9 July 2011. The NCD issue was worth Rs 500 crore with an option to accept oversubscription to the extent of Rs 500 crore. Also, Supreme Court directed West Bengal government not to return the lands to the farmers till further orders from the Calcutta High Court. Tata Motors on Tuesday had approached the Supreme Court challenging the Calcutta High Court order refusing its plea to restrain West Bengal government from distributing land to farmers in Singur.
The BSE Sensex is currently trading at 18,659.09 up by 166.64 points or 0.90% after trading as high as 18,703.05 and as low as 18,552.19. There were 24 stocks advancing against 6 declines on the index.
The broader indices were trading on a positive note; the BSE Mid cap and Small cap indices advanced by 0.67% and 0.83% respectively.
On the BSE sectoral space, FMCG up 2.53%, Metal up 1.26%, Power up 0.86%, Consumer Durables up 0.86% and Bankex up 0.74% were the major gainers, while Oil & Gas down 0.17% and PSU down 0.09% were the only losers on the index.
The top gainers on the Sensex were HUL up by 2.66%, ITC up by 2.66%, Sterlite up by 2.61%, Tata Motors up 2.21% and BHEL up 1.97%. On the flip side, ONGC down by 2.41%, JP Associates down by 1.59%, Bajaj Auto down 1.32%, DLF down 0.31% and RCom down by 0.26% were the top losers on the index.
Meanwhile, the government is likely to give permission for the sharing of spectrum by two or more service providers in the New Telecom Policy 2011, this decision will help to improve the quality of services accrued because of huge spectrum shortage. The official involved in framing the New Telecom Policy 2011, said, the government is likely to allow sharing of radio-waves by two or more service providers. However, ruled out trading in the 2G spectrum as it was never auctioned.
As per the internal department of telecom communication, 'Even, TRAI (Telecom Regulatory Authority of India) had recommended spectrum sharing. Spectrum trading was not recommended due to the fact that 2G spectrum price was not determined by the market as it was bundled with the license and further allocation was made based on the subscriber base.'
The radio-waves sharing will help to improve the quality and reduce the shortage in the telecom sector as it will enable mobile service providers to lease their surplus spectrums to other mobile service providers on commercial terms. Many service providers were not able to acquire sufficient subscribers so as to utilize the spectrum allotted to them, especially by the new operators.
Telecom Minister Kapil Sibal has announced that the government will bring the New Telecom Policy by the end of this year to address various problems faced by the telecom sector. As per the note, the stakeholders have proposed adequate funding mechanism for the service providers, sharing of active infrastructure for better efficiency and easier mergers and acquisitions. On the issues of spectrum, the stakeholders are of the opinion that the spectrum should be allotted on the bases of technology neutrality, service flexibility, timely allocation and reconciliation and enhance transparency.
Last year in May, the TRAI released the recommendation, under the 'Spectrum Management and Licensing Framework', to review the spectrum requirement of the operators as per the circle and to decide the pricing and allocation of 2G spectrums for optimizing the spectral efficiency of the telecom industry.
The top gainers of the Nifty were IDFC up by 3.72%, Sterlite up by 2.89%, ITC up by 2.71%, HUL up by 2.69% and Ranbaxy up by 2.42%. On the flip side, ONGC down by 2.56%, BPCL down by 2.00%, R Power down by 1.52%, JP Associates down by 1.52% and Axis Bank down 0.98% were the major losers on the index.
Asian markets are exhibiting positive trends as KLSE Composite rose 0.32%, Nikkei 225 climbed 1.54%, Straits Times increased 1.01%, Seoul Composite soared 1.53% and Taiwan Weighted jumped 1.11%. On the flipside, Shanghai Composite slipped 1.11% and Hang Seng declined 0.01%.
Stock markets in Indonesia remained closed on account of a public holiday.
The European markets were trading in green with, France's CAC 40 added 1.05%, Germany's DAX advance 1.19% and London's FTSE rose 1.07%.
Moreover, the Empowered Group of Ministers (EGoM) on food yesterday decided to permit the export of five lakh tonne of sugar as the country's production is estimated to outstrip demand after a gap of two years. After the report sugar stocks were seen rallying on the bourses with Shree Renuka Sugar, EID Parry, Bajaj Hindustan, Balrampur Chini, Triveni, Rana Sugars up by 7.51%, 6.77%, 4.12%, 3.77%, 3.58% and 8.14% respectively. According to the Coffee Board's post-monsoon forecast, India's coffee production is likely to remain steady at 3 lakh tonnes in the 2011-12 season starting October this year. Tata Coffee was up 4.99% at 861.00. Shriram Transport Finance Company was up more than 1.5%. The company's secured non convertible debenture (NCD) issue will close today with effect from the close of banking hours. The NCD issue, which opened for subscription on 27 June 2011, was originally supposed to close on 9 July 2011. The NCD issue was worth Rs 500 crore with an option to accept oversubscription to the extent of Rs 500 crore. Also, Supreme Court directed West Bengal government not to return the lands to the farmers till further orders from the Calcutta High Court. Tata Motors on Tuesday had approached the Supreme Court challenging the Calcutta High Court order refusing its plea to restrain West Bengal government from distributing land to farmers in Singur.
The BSE Sensex is currently trading at 18,659.09 up by 166.64 points or 0.90% after trading as high as 18,703.05 and as low as 18,552.19. There were 24 stocks advancing against 6 declines on the index.
The broader indices were trading on a positive note; the BSE Mid cap and Small cap indices advanced by 0.67% and 0.83% respectively.
On the BSE sectoral space, FMCG up 2.53%, Metal up 1.26%, Power up 0.86%, Consumer Durables up 0.86% and Bankex up 0.74% were the major gainers, while Oil & Gas down 0.17% and PSU down 0.09% were the only losers on the index.
The top gainers on the Sensex were HUL up by 2.66%, ITC up by 2.66%, Sterlite up by 2.61%, Tata Motors up 2.21% and BHEL up 1.97%. On the flip side, ONGC down by 2.41%, JP Associates down by 1.59%, Bajaj Auto down 1.32%, DLF down 0.31% and RCom down by 0.26% were the top losers on the index.
Meanwhile, the government is likely to give permission for the sharing of spectrum by two or more service providers in the New Telecom Policy 2011, this decision will help to improve the quality of services accrued because of huge spectrum shortage. The official involved in framing the New Telecom Policy 2011, said, the government is likely to allow sharing of radio-waves by two or more service providers. However, ruled out trading in the 2G spectrum as it was never auctioned.
As per the internal department of telecom communication, 'Even, TRAI (Telecom Regulatory Authority of India) had recommended spectrum sharing. Spectrum trading was not recommended due to the fact that 2G spectrum price was not determined by the market as it was bundled with the license and further allocation was made based on the subscriber base.'
The radio-waves sharing will help to improve the quality and reduce the shortage in the telecom sector as it will enable mobile service providers to lease their surplus spectrums to other mobile service providers on commercial terms. Many service providers were not able to acquire sufficient subscribers so as to utilize the spectrum allotted to them, especially by the new operators.
Telecom Minister Kapil Sibal has announced that the government will bring the New Telecom Policy by the end of this year to address various problems faced by the telecom sector. As per the note, the stakeholders have proposed adequate funding mechanism for the service providers, sharing of active infrastructure for better efficiency and easier mergers and acquisitions. On the issues of spectrum, the stakeholders are of the opinion that the spectrum should be allotted on the bases of technology neutrality, service flexibility, timely allocation and reconciliation and enhance transparency.
Last year in May, the TRAI released the recommendation, under the 'Spectrum Management and Licensing Framework', to review the spectrum requirement of the operators as per the circle and to decide the pricing and allocation of 2G spectrums for optimizing the spectral efficiency of the telecom industry.
Considering the large number of service providers in each service area, and the position relating to the availability of spectrum, TRAI had given recommendations on mergers and acquisitions, sharing of radio-waves and trading. The TRAI has suggested that the radio waves sharing should be allowed between the two mobile operators given that each of them does not have more than 4.4 MHz/2.5 MHz of spectrums (GSM/CDMA). Leasing of spectrum should not be permitted, it had added. TRAI has also recommended against the radio waves trading in the Indian market as the 2G spectrum has been either given along with license or given based on the Subscriber Linked Criteria, without any additional charges of the spectrum.
The S&P CNX Nifty is currently trading at 5,590.45, higher by 45.15 points or 0.81% after trading as high as 5,604.65 and as low as 5,566.50. There were 34 stocks advancing against 15 declines on the index. The top gainers of the Nifty were IDFC up by 3.72%, Sterlite up by 2.89%, ITC up by 2.71%, HUL up by 2.69% and Ranbaxy up by 2.42%. On the flip side, ONGC down by 2.56%, BPCL down by 2.00%, R Power down by 1.52%, JP Associates down by 1.52% and Axis Bank down 0.98% were the major losers on the index.
Asian markets are exhibiting positive trends as KLSE Composite rose 0.32%, Nikkei 225 climbed 1.54%, Straits Times increased 1.01%, Seoul Composite soared 1.53% and Taiwan Weighted jumped 1.11%. On the flipside, Shanghai Composite slipped 1.11% and Hang Seng declined 0.01%.
Stock markets in Indonesia remained closed on account of a public holiday.
The European markets were trading in green with, France's CAC 40 added 1.05%, Germany's DAX advance 1.19% and London's FTSE rose 1.07%.
MARKETS CONTINUE TO TRADE HIGHER
Indian equity indices have continued the good work this Wednesday afternoon as investors showed unrelenting buying interests a day after appearing a bit exhausted. The benchmarks have gone on to re-capture the important psychological 5,600 levels and 18,700 levels and are currently trading at the high point of the day with over a percent gains. The sanguine opening for European stock markets has buttressed local sentiments while positive Asian peers too have done their bit in keeping the mood upbeat. Investors looked increasingly confident that the parliamentary vote on austerity measures in Greece will pass successfully later in the session, which would result in a fresh bailout package. However, investors' morale also got a boost as FIIs have turned net buyers since Friday, indicating that interest of foreign funds are not fading any time soon. Marketmen are resorting to broad based buying on the penultimate session of June month F&O contract settlement. Heavy buying was witnessed in the defensive FMCG names like ITC and HUL while shares from Metal and Power counters too remained amid the thick of things. However, profit booking was evident in few high beta real estate and oil and gas pockets. Information technology counter rejoiced after a report stating that the Indian enterprise software market showed broad growth and recovery in 2010, with total software revenue increasing 16.3 per cent to total $2.5 billion.
Moreover, the broader markets are showing some resilience in the afternoon session and are trading with well over half a percent gains. The market breadth on BSE was in favor of advances in the ratio of 1677:909 while 87 scrips remained unchanged.
The BSE Sensex is currently trading at 18,695.37 up by 202.92 points or 1.10% after trading as high as 18,701.21 and as low as 18,552.19. There were 26 stocks advancing against 4 declines on the index.
The broader indices were trading on a positive note; the BSE Mid cap and Small cap indices advanced by 0.64% and 0.87% respectively.
On the BSE sectoral space, FMCG up 1.99%, Metal up 1.36%, Power up 1.17%, IT up 0.94% and Bankex up 0.89% were the major gainers, while there were no losers on the index.
The top gainers on the Sensex were R Infra up by 2.40%, Sterlite up by 2.40%, BHEL up by 2.25%, HUL up 2.23% and Tata Motors up 2.22%.
On the flip side, ONGC down by 1%, JP Associates down by 0.70%, Bajaj Auto down 0.48% and DLF down 0.12% were the only losers on the index.
Despite the recent indication of slowdown in economic expansion because of inflation and increased interest rates by the Reserve Bank of India to curb inflation, Indian economy is expected to grow by 9 to 9.5% in the next five year plan. The Planning commission Deputy Chairman Montek Singh Ahluwalia said India is in a strong position to achieve 9-9.5 per cent growth during the 12th Five-Year Plan (2012-17).
M S Ahluwalia said "Although the global situation is difficult, we should be able to achieve average 9 per cent growth during 12th Plan if tough policy decisions are taken in critical areas." The planning commission is presently giving the finale outline to the 12th five year plan approach paper and it is expected to finish the process in few days.
Ahluwalia said, "Achieving even 9 per cent growth rate is not easy. It requires lot of tough decisions. Over a five-year period, we should be able to take these decisions." He is hopeful for better performance of the economy in the next five year plan, supported by the policy actions. "We can do even better than 9 per cent provided we are able to take difficult decisions in the areas, including management of energy prices, infrastructure management and management of water resources. We must pay attention to ground water recharge and scientific watershed management," he added.
Stressing on the need for fiscal consolidation for better performance on economic growth, planning commission deputy chairman said, "It will also be necessary to make genuine progress towards fiscal consolidation, which depends mainly on reducing untargeted subsidies." Adding further he said "None of this is easy but possible. If we do all of this, we can achieve average growth of 9 per cent in the 12th Plan."
Ahluwalia, however, cautioned that unrealistic expectations on growth should not be raised. "I am not in favour of encouraging unrealistic expectations about growth. We have to wake up and smell the coffee," he said.
The S&P CNX Nifty is currently trading at 5,602.25, higher by 56.95 points or 1.03% after trading as high as 5,604.65 and as low as 5,566.50. There were 42 stocks advancing against 8 declines on the index.
The top gainers of the Nifty were IDFC up by 3.32%, Sterlite up by 2.62%, R Infra up by 2.55%, ITC up by 2.40% and HUL up by 2.24%.
ONGC down by 1.16%, BPCL down by 1.15%, R Power down by 1%, Cairn down by 0.75% and JP Associates down 0.70% were the major losers on the index.
Asian markets are exhibiting positive trends as KLSE Composite rose 0.14%, Nikkei 225 climbed 1.54%, Straits Times increased 0.55%, Seoul Composite soared 1.53% and Taiwan Weighted jumped 1.11%.
On the flipside, Shanghai Composite slipped 0.81% and Hang Seng declined 0.02%.
Stock markets in Indonesia remained shut on account of a public holiday. The European markets have opened on an optimistic note as France's CAC 40 added 0.84%, Germany's DAX advance 0.86% and London's FTSE rose 0.79%.
Moreover, the broader markets are showing some resilience in the afternoon session and are trading with well over half a percent gains. The market breadth on BSE was in favor of advances in the ratio of 1677:909 while 87 scrips remained unchanged.
The BSE Sensex is currently trading at 18,695.37 up by 202.92 points or 1.10% after trading as high as 18,701.21 and as low as 18,552.19. There were 26 stocks advancing against 4 declines on the index.
The broader indices were trading on a positive note; the BSE Mid cap and Small cap indices advanced by 0.64% and 0.87% respectively.
On the BSE sectoral space, FMCG up 1.99%, Metal up 1.36%, Power up 1.17%, IT up 0.94% and Bankex up 0.89% were the major gainers, while there were no losers on the index.
The top gainers on the Sensex were R Infra up by 2.40%, Sterlite up by 2.40%, BHEL up by 2.25%, HUL up 2.23% and Tata Motors up 2.22%.
On the flip side, ONGC down by 1%, JP Associates down by 0.70%, Bajaj Auto down 0.48% and DLF down 0.12% were the only losers on the index.
Despite the recent indication of slowdown in economic expansion because of inflation and increased interest rates by the Reserve Bank of India to curb inflation, Indian economy is expected to grow by 9 to 9.5% in the next five year plan. The Planning commission Deputy Chairman Montek Singh Ahluwalia said India is in a strong position to achieve 9-9.5 per cent growth during the 12th Five-Year Plan (2012-17).
M S Ahluwalia said "Although the global situation is difficult, we should be able to achieve average 9 per cent growth during 12th Plan if tough policy decisions are taken in critical areas." The planning commission is presently giving the finale outline to the 12th five year plan approach paper and it is expected to finish the process in few days.
Ahluwalia said, "Achieving even 9 per cent growth rate is not easy. It requires lot of tough decisions. Over a five-year period, we should be able to take these decisions." He is hopeful for better performance of the economy in the next five year plan, supported by the policy actions. "We can do even better than 9 per cent provided we are able to take difficult decisions in the areas, including management of energy prices, infrastructure management and management of water resources. We must pay attention to ground water recharge and scientific watershed management," he added.
Stressing on the need for fiscal consolidation for better performance on economic growth, planning commission deputy chairman said, "It will also be necessary to make genuine progress towards fiscal consolidation, which depends mainly on reducing untargeted subsidies." Adding further he said "None of this is easy but possible. If we do all of this, we can achieve average growth of 9 per cent in the 12th Plan."
Ahluwalia, however, cautioned that unrealistic expectations on growth should not be raised. "I am not in favour of encouraging unrealistic expectations about growth. We have to wake up and smell the coffee," he said.
During the present 11th five year plan, Indian economy grew on an average over 8%, below the target of 9%. However, the GDP growth is outstanding given the global economic downturn and deficient monsoon during the 11th five year plan period. In 10th five year plan, India's average gross domestic product (GDP) growth was around 7.7%.
In the full planning commission meeting headed by the Prime Minister Manmohan Singh on April 21, planning commission in its presentation on the 12th five year plan expectation pointed out that a growth of 9 to 9.5% for the plan period could be directed. "Realistically, even 9 per cent will need strong policy action," the plan body said in its presentation. The S&P CNX Nifty is currently trading at 5,602.25, higher by 56.95 points or 1.03% after trading as high as 5,604.65 and as low as 5,566.50. There were 42 stocks advancing against 8 declines on the index.
The top gainers of the Nifty were IDFC up by 3.32%, Sterlite up by 2.62%, R Infra up by 2.55%, ITC up by 2.40% and HUL up by 2.24%.
ONGC down by 1.16%, BPCL down by 1.15%, R Power down by 1%, Cairn down by 0.75% and JP Associates down 0.70% were the major losers on the index.
Asian markets are exhibiting positive trends as KLSE Composite rose 0.14%, Nikkei 225 climbed 1.54%, Straits Times increased 0.55%, Seoul Composite soared 1.53% and Taiwan Weighted jumped 1.11%.
On the flipside, Shanghai Composite slipped 0.81% and Hang Seng declined 0.02%.
Stock markets in Indonesia remained shut on account of a public holiday. The European markets have opened on an optimistic note as France's CAC 40 added 0.84%, Germany's DAX advance 0.86% and London's FTSE rose 0.79%.
MARKETS REMAIN FIRM
The Indian equity markets are not looking to give up and have continued their relentless bull run for yet another day, taking the benchmarks comfortably higher over the psychological level of 18600 (Sensex) and 5580 (Nifty). The broad based buying has firmed up in the mid morning session led by the surge in power and metal sector, none of the sectors are showing any sign of fatigue even after surging in last few session. The oil & gas sector that took a breather in last session too has made a mild bounce back supported by an upmove in the heavy weight Reliance Industries. IT sector has surged on a report stating that the Indian enterprise software market showed broad growth and recovery in 2010, with total software revenue increasing 16.3 per cent to total $2.5 billion.
The BSE Sensex is currently trading at 18,625.31, up by 132.86 points or 0.72%. The index has touched a high and low of 18,654.72 and 18,552.19 respectively. There were 27 stocks advancing against just 3 declines on the index.
The broader indices too are in the jubilant mood; the BSE Mid cap and Small cap indices were up by 0.78% and 1.01% respectively. The market breadth strong with 68.97% stocks advancing against 26.64% declines.
The top gaining sectoral indices on the BSE were Power up by 1.37%, Metal up by 1.26%, FMCG up by 0.87%, IT was up by 0.81% and TECk was up by 0.72%, while there was no loser.
The top gainer on the Sensex were BHEL up by 2.80%, Reliance Infra up by 2.38%, Sterlite Inds up by 2.25%, Tata Power up by 1.73% and TCS was up by 1.57%.
The losers on the Sensex were Bajaj Auto down by 0.69%, L&T down by 0.50% and ONGC was down by 0.39%.
The special economic zone meant for creating export hubs are in danger because of changes in the tax laws, the commerce ministry has decided to appeal its case before the parliamentary standing committee looking into the Direct Tax Code Bill (DTC) in the monsoon session which is about to start in a month. The direct taxes code bill is with parliament's standing committee on finance.
As per the exporters' organization, 15 approved special economic zones are considering dropping their projects after the budget for 2011-12 imposed Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on such zones.
The commerce department official said that they will make a case against the imposition of MAT and DDT this fiscal as SEZs have been promised tax-free operations in the initial years by the SEZ Act, adding further the official said, it is now becoming clear that it would not be viable for a number of investors to continue if faced with this unexpected financial burden.
The S&P CNX Nifty is currently trading at 5,583.30, up by 38.00 points or 0.69%. The index has touched a high and low of 5,591.80 and 5,566.50 respectively. There were 41 stocks advancing against 8 declines on the index.
The top gainers of the Nifty were BHEL up by 2.68%, Reliance Infra up by 2.61%, Sterlite Inds up by 2.37%, IDFC up by 1.86% and Ranbaxy was up by 1.61%.
On the other hand, Cairn India down by 0.99%, L&T down by 0.495, HCL technology down by 0.48%, ONGC down by 0.32% and RPower down by 0.30% were the top losers.
All the Asian equity indices barring Shanghai Composite which was down by 0.59%, were trading in the green; Hang Seng was up 0.32%, KLSE Composite was up 0.18%, Nikkei 225 was up by 1.18%, Straits Times was up 0.53%, Seoul Composite gained 1.34% and Taiwan Weighted was higher by 1.10%
The BSE Sensex is currently trading at 18,625.31, up by 132.86 points or 0.72%. The index has touched a high and low of 18,654.72 and 18,552.19 respectively. There were 27 stocks advancing against just 3 declines on the index.
The broader indices too are in the jubilant mood; the BSE Mid cap and Small cap indices were up by 0.78% and 1.01% respectively. The market breadth strong with 68.97% stocks advancing against 26.64% declines.
The top gaining sectoral indices on the BSE were Power up by 1.37%, Metal up by 1.26%, FMCG up by 0.87%, IT was up by 0.81% and TECk was up by 0.72%, while there was no loser.
The top gainer on the Sensex were BHEL up by 2.80%, Reliance Infra up by 2.38%, Sterlite Inds up by 2.25%, Tata Power up by 1.73% and TCS was up by 1.57%.
The losers on the Sensex were Bajaj Auto down by 0.69%, L&T down by 0.50% and ONGC was down by 0.39%.
The special economic zone meant for creating export hubs are in danger because of changes in the tax laws, the commerce ministry has decided to appeal its case before the parliamentary standing committee looking into the Direct Tax Code Bill (DTC) in the monsoon session which is about to start in a month. The direct taxes code bill is with parliament's standing committee on finance.
As per the exporters' organization, 15 approved special economic zones are considering dropping their projects after the budget for 2011-12 imposed Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on such zones.
The commerce department official said that they will make a case against the imposition of MAT and DDT this fiscal as SEZs have been promised tax-free operations in the initial years by the SEZ Act, adding further the official said, it is now becoming clear that it would not be viable for a number of investors to continue if faced with this unexpected financial burden.
The Special Economic Zone Act gives five years of tax holidays on profits to developers and units. The DTC bill introduced by finance ministry has recommended finishing all the tax holidays through imposition of MAT and also linking tax breakers to investment instead of profits. Although, before the DTC bill be approved the finance ministry in this year's budget, imposed an 18% MAT and 15% DDT on SEZs. By imposing MAT and DDT, finance ministry wants to recover the losses from tax concession given to SEZs, projected at Rs 1, 75,487 crore in the 2004-05 to 2009-10.
In against to the imposed tax by finance ministry, the industry has argued that the units operating in SEZs are not entitled for export promotion schemes and have to pay full custom duty on what they sell in the domestic market, hence it would not make commercial sense for them to operate in SEZs without tax exemptions. The S&P CNX Nifty is currently trading at 5,583.30, up by 38.00 points or 0.69%. The index has touched a high and low of 5,591.80 and 5,566.50 respectively. There were 41 stocks advancing against 8 declines on the index.
The top gainers of the Nifty were BHEL up by 2.68%, Reliance Infra up by 2.61%, Sterlite Inds up by 2.37%, IDFC up by 1.86% and Ranbaxy was up by 1.61%.
On the other hand, Cairn India down by 0.99%, L&T down by 0.495, HCL technology down by 0.48%, ONGC down by 0.32% and RPower down by 0.30% were the top losers.
All the Asian equity indices barring Shanghai Composite which was down by 0.59%, were trading in the green; Hang Seng was up 0.32%, KLSE Composite was up 0.18%, Nikkei 225 was up by 1.18%, Straits Times was up 0.53%, Seoul Composite gained 1.34% and Taiwan Weighted was higher by 1.10%
Tuesday, June 28, 2011
TREND FOR 29th JUNE
CHEERS !!!
CONSOLIDATION
Stock markets in India sustained the uptrend on the second day of F&O expiry week, after enthusiastically rallying eight hundred fifty points in last three sessions and managed to finish a choppy session in the green territory. The benchmarks appeared exhausted as they gradually crawled sideways, lacking any significant upside triggers as sentiments remained cautious amid speculations that the recent upsurge may be a "bull trap" and that a correction could be around the corner. Nevertheless, the Sensex has managed to accumulate over nine hundred points in last four trading sessions on the back of some supportive local as well as global developments. The upside chances for local bourses was limited in Tuesday's session as investors took profits off the table from the Oil and Gas counters post their smart rally in the previous session. Rebound in Brent crude oil prices which forms part of India's crude basket also prompted investors to sell shares of oil companies. Meanwhile, Finance Minister Pranab Mukherjee's statement that inflation poses a major challenge to the Indian economy and projection that the rate of inflation is going to be more than 6.5% this year, weighed on domestic investors' morale. However, domestic benchmarks still negotiated a close in the green as sentiments on getting support from the optimism in global markets which rose as an agreement by French banks to roll over Greek debt and talks that European officials were working on a contingency plan for Greece if its parliament rejected an austerity plan improved investors' risk appetite. Majority of Asian equity indices settled in the green zone while, the European counterparts too exhibited positive trends.
Back on Dalal Street, the key indices witnessed a volatile session of trade as after starting on a positive note, they retracted into the red terrain only to see a pullback and eventually finish with moderate gains. The NSE's 50-share broadly followed index Nifty, settled with one third of a percent gains just below the crucial 5,550 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with around half a percent of gains just below the important psychological 18,500 level. The broader markets though showed resilience and traded with a lot of conviction through the session, outclassing their larger peers by a good a margin. The midcap index garnered 0.78% points while the smallcap index amassed 0.60% point. On the sectoral front, it was the Consumer Durables and the defensive - Healthcare pocket that outperformed not only their sectoral peers but also the benchmarks as they surged by 0.95% each. The capital goods counter too remained amid the thick of things and gained 0.94% as majors like L&T and BHEL gained 0.79% and 1.82% respectively. Stocks of tyre companies to kept buzzing through the session on the news that commerce ministry has proposed removal of 20% duty on the rubber up to 1 lakh tonne due to rising domestic rubber prices. On the other hand, Oil and Gas counter witnessed maximum profit booking and languished at the bottom of the table with close to half a percent loss as majors like GAIL and BPCL slipped by 2.22% and 1.84% respectively. The high beta realty pack too remained under pressure on expectations that the RBI will further its hawkish stance against inflation. The markets consolidated on weaker volumes compared to Monday. Market breadth remained positive as there were 1464 shares on the gaining side against 1378 shares on the losing side while 124 shares remained unchanged.
Finally, the BSE Sensex rose 80.04 points or 0.43% to settle at 18,492.45 while the S&P CNX Nifty gained 18.70 points or 0.34% to settle at 5,545.30.
The BSE Sensex touched a high and a low of 18,527.45 and 18,323.44, respectively. The BSE Mid cap and Small cap index up 0.78% and 0.60% respectively.
The top gainers on the Sensex were Hindalco Inds up 4.15%, Bajaj Auto up 2.87%, HDFC up 2.18%, BHEL up 1.82% and Bharti Airtel up 1.07%.
On the flip side, DLF down 2.21%, JP Associate down 1.56%, Jindal Steel down 1.16%, Wipro down 0.76%, Hero Honda down 0.31% were the top losers on the index.
Meanwhile, the Indian government would now allowed foreign investors other than Foreign Institutional Investors (FIIs) to invest up to $10 billion in domestic mutual funds, a move that will help to reduce the volatility in the capital market. Joint Secretary (capital markets) in the finance ministry, Thomas Mathew, said, this class of investors called Qualified Foreign Investors (QFIs), but not FIIs, can invest money into domestic mutual funds through Unit Confirmation Receipts (DPs) or Depository Participant route.
The QFIs can be Individuals and bodies, including pension funds; cumulatively they can invest up to $10 billion (around Rs 45,000 crore). Currently, only FIIs, sub-accounts listed with the market watchdog Security Exchange Board of India (SEBI), and Non-Resident Indians are allowed to invest in domestic Mutual Fund schemes. Thomas Mathew said, 'SEBI will be the regulator for all investments for both routes," adding the SEBI will issue necessary notification and framework by August 01.
Only KYC (know-your-customer) compliant retail foreign investors would be allowed to invest and the DPs will ensure proper KYC of QFIs as per the norms prescribed by SEBI. Besides, mutual funds would also undertake KYC of QFIs, Thomas Mathew added. By adding further he said, one QFI can open one account in one of the qualified DPs and only QFIs from jurisdictions which are FATF (Financial Action Task Force) compliant would be eligible to invest in the MFs under the scheme.
The move follows the announcement of finance minister Pranab Mukherjee on the issue in the last Budget. The finance minister in last budget said, 'Currently, only FIIs and the sub-account registered with the SEBI and NRIs are allowed to invest in the mutual fund schemes. To liberalize the portfolio investment route it has been decided to permit SEBI registered mutual funds to accept subscriptions from foreign investors who meet the KYC requirements for equity schemes."
'This would enable Indian mutual funds to have direct access to foreign investors and widen the class of foreign investors in India equity market,' the finance minister had said.
As of March 2011, the average assets managed by 40 fund house rose to Rs 7, 00,583 crore. Since it is going to be retail investment, it would be more stable than the FII money, Mathew said.
The top gainers on the BSE sectoral space were Consumer Durables (CD) up 0.95%, Health Care (HC) up 0.95%, Capital Goods (CG) up 0.94%, Auto up 0.82% and Power up 0.72%.
The losers in the BSE sectoral space were Oil & Gas down 0.44%, Realty down 0.33%, PSU down 0.22% and IT down 0.07%.
On a three day visit to India, New Zealand Prime Minister John Key said, New Zealand hopes to conclude the proposed Free Trade Agreement with India by March next year. The bilateral trade between India and New Zealand has been well below the potential, last year it's crossed $1 billion, and both the nations have set the target of trebling bilateral trade to $3 billion in four years.
John Key said, "We expect it to be signed by March 2012". However, Key added that the conclusion would depend on the quality of agreement and negotiations. India and New Zealand already have completed around five rounds of negotiations, India is hopeful to get more market access for its professionals through the FTA and New Zealand is trying to get entry in India's dairy market. 'These things are always delicate and, as we know from the negotiations with Korea, you can hit speed bumps along the way, but I'm confident they want to do a deal,' he added.
The S&P CNX Nifty touched high and low of 5,558.30 and 5,496.35, respectively.
The top gainers of the Nifty were Hindalco up 3.96%, Bajaj Auto up 3.01%, Dr Reddy up 2.42%, HDFC up 2.13% and BHEL up 1.92%.
On the flip side, GAIL down 2.60%, DLF down 2.28%, ACC down 2.17%, BPCL down 2.10% and JP Associate down 1.75% were the major losers on the index.
European markets were trading in a mix note. France's CAC 40 rose by 0.53%, Britain's FTSE 100 advanced 0.39% and Germany's DAX down by 0.16%.
Most of the Asian equity indices reversed their initial losses and finished in the positive terrain on Tuesday as sentiments turned firm on report that French banks hold $21.3 billion in Greek government debt and the plan would give Greece more time to meet its other financial obligations. Japanese Nikkei ended the day's trade with a gain of over half a percent on growing optimism for a resolution to the Greek debt crisis, with exporter stocks supporting the market.
Back on Dalal Street, the key indices witnessed a volatile session of trade as after starting on a positive note, they retracted into the red terrain only to see a pullback and eventually finish with moderate gains. The NSE's 50-share broadly followed index Nifty, settled with one third of a percent gains just below the crucial 5,550 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with around half a percent of gains just below the important psychological 18,500 level. The broader markets though showed resilience and traded with a lot of conviction through the session, outclassing their larger peers by a good a margin. The midcap index garnered 0.78% points while the smallcap index amassed 0.60% point. On the sectoral front, it was the Consumer Durables and the defensive - Healthcare pocket that outperformed not only their sectoral peers but also the benchmarks as they surged by 0.95% each. The capital goods counter too remained amid the thick of things and gained 0.94% as majors like L&T and BHEL gained 0.79% and 1.82% respectively. Stocks of tyre companies to kept buzzing through the session on the news that commerce ministry has proposed removal of 20% duty on the rubber up to 1 lakh tonne due to rising domestic rubber prices. On the other hand, Oil and Gas counter witnessed maximum profit booking and languished at the bottom of the table with close to half a percent loss as majors like GAIL and BPCL slipped by 2.22% and 1.84% respectively. The high beta realty pack too remained under pressure on expectations that the RBI will further its hawkish stance against inflation. The markets consolidated on weaker volumes compared to Monday. Market breadth remained positive as there were 1464 shares on the gaining side against 1378 shares on the losing side while 124 shares remained unchanged.
Finally, the BSE Sensex rose 80.04 points or 0.43% to settle at 18,492.45 while the S&P CNX Nifty gained 18.70 points or 0.34% to settle at 5,545.30.
The BSE Sensex touched a high and a low of 18,527.45 and 18,323.44, respectively. The BSE Mid cap and Small cap index up 0.78% and 0.60% respectively.
The top gainers on the Sensex were Hindalco Inds up 4.15%, Bajaj Auto up 2.87%, HDFC up 2.18%, BHEL up 1.82% and Bharti Airtel up 1.07%.
On the flip side, DLF down 2.21%, JP Associate down 1.56%, Jindal Steel down 1.16%, Wipro down 0.76%, Hero Honda down 0.31% were the top losers on the index.
Meanwhile, the Indian government would now allowed foreign investors other than Foreign Institutional Investors (FIIs) to invest up to $10 billion in domestic mutual funds, a move that will help to reduce the volatility in the capital market. Joint Secretary (capital markets) in the finance ministry, Thomas Mathew, said, this class of investors called Qualified Foreign Investors (QFIs), but not FIIs, can invest money into domestic mutual funds through Unit Confirmation Receipts (DPs) or Depository Participant route.
The QFIs can be Individuals and bodies, including pension funds; cumulatively they can invest up to $10 billion (around Rs 45,000 crore). Currently, only FIIs, sub-accounts listed with the market watchdog Security Exchange Board of India (SEBI), and Non-Resident Indians are allowed to invest in domestic Mutual Fund schemes. Thomas Mathew said, 'SEBI will be the regulator for all investments for both routes," adding the SEBI will issue necessary notification and framework by August 01.
Only KYC (know-your-customer) compliant retail foreign investors would be allowed to invest and the DPs will ensure proper KYC of QFIs as per the norms prescribed by SEBI. Besides, mutual funds would also undertake KYC of QFIs, Thomas Mathew added. By adding further he said, one QFI can open one account in one of the qualified DPs and only QFIs from jurisdictions which are FATF (Financial Action Task Force) compliant would be eligible to invest in the MFs under the scheme.
The move follows the announcement of finance minister Pranab Mukherjee on the issue in the last Budget. The finance minister in last budget said, 'Currently, only FIIs and the sub-account registered with the SEBI and NRIs are allowed to invest in the mutual fund schemes. To liberalize the portfolio investment route it has been decided to permit SEBI registered mutual funds to accept subscriptions from foreign investors who meet the KYC requirements for equity schemes."
'This would enable Indian mutual funds to have direct access to foreign investors and widen the class of foreign investors in India equity market,' the finance minister had said.
As of March 2011, the average assets managed by 40 fund house rose to Rs 7, 00,583 crore. Since it is going to be retail investment, it would be more stable than the FII money, Mathew said.
The top gainers on the BSE sectoral space were Consumer Durables (CD) up 0.95%, Health Care (HC) up 0.95%, Capital Goods (CG) up 0.94%, Auto up 0.82% and Power up 0.72%.
The losers in the BSE sectoral space were Oil & Gas down 0.44%, Realty down 0.33%, PSU down 0.22% and IT down 0.07%.
On a three day visit to India, New Zealand Prime Minister John Key said, New Zealand hopes to conclude the proposed Free Trade Agreement with India by March next year. The bilateral trade between India and New Zealand has been well below the potential, last year it's crossed $1 billion, and both the nations have set the target of trebling bilateral trade to $3 billion in four years.
John Key said, "We expect it to be signed by March 2012". However, Key added that the conclusion would depend on the quality of agreement and negotiations. India and New Zealand already have completed around five rounds of negotiations, India is hopeful to get more market access for its professionals through the FTA and New Zealand is trying to get entry in India's dairy market. 'These things are always delicate and, as we know from the negotiations with Korea, you can hit speed bumps along the way, but I'm confident they want to do a deal,' he added.
New Zealand is ready to offer more access to Indian Professionals. However, the stress is on the skill level of professionals, Tim Groser New Zealand Trade Minister said, 'We cannot allow unqualified people knocking our front doors and doing a poor job. Indian professionals who can benefit from this FTA, includes teachers, healthcare providers, technicians, IT experts, architects and hospitality providers, among others. New Zealand is seeking to get more access in India dairy sector for its dairy industry, as India has kept the sector largely closed.
Last year, India and New Zealand started their negotiations on a Comprehensive Economic Cooperation Agreement, an FTA, last year, that includes, goods services and investment, both the nation's leaders are also expected to discuss on issues like energy cooperation, including civil nuclear. The S&P CNX Nifty touched high and low of 5,558.30 and 5,496.35, respectively.
The top gainers of the Nifty were Hindalco up 3.96%, Bajaj Auto up 3.01%, Dr Reddy up 2.42%, HDFC up 2.13% and BHEL up 1.92%.
On the flip side, GAIL down 2.60%, DLF down 2.28%, ACC down 2.17%, BPCL down 2.10% and JP Associate down 1.75% were the major losers on the index.
European markets were trading in a mix note. France's CAC 40 rose by 0.53%, Britain's FTSE 100 advanced 0.39% and Germany's DAX down by 0.16%.
Most of the Asian equity indices reversed their initial losses and finished in the positive terrain on Tuesday as sentiments turned firm on report that French banks hold $21.3 billion in Greek government debt and the plan would give Greece more time to meet its other financial obligations. Japanese Nikkei ended the day's trade with a gain of over half a percent on growing optimism for a resolution to the Greek debt crisis, with exporter stocks supporting the market.
MARKETS TRADE IN A TIGHT BAND
Indian equity indices are displaying listless performance in the afternoon session of trade as they look to consolidate their position after the vivacious over eight hundred fifty points rally in last three sessions. The benchmarks appeared exhausted as they gradually crawled sideways in a tight band around the previous closing levels, lacking any significant upside triggers. The upside chances for local bourses was limited as investors took profits off the table from the Oil and Gas counter post its smart rally in the previous session. Rebound in Brent crude oil prices which forms part of India's crude basket also prompted investors to sell shares of oil companies. Selling pressure was also witnessed in high beta real estate, defensive FMCG and information technology names while index heavyweight Reliance Industries too failed to make its presence felt, declining by over half a percent points and adding pressure on the frontline indices. However, gains in bellwethers from the Capital goods, Healthcare and Metal counters provided the much needed support to the sentiments and capped the downside risks. Domestic benchmarks even overlooked the optimism in global markets which rose as an agreement by French banks to roll over Greek debt and talks that European officials were working on a contingency plan for Greece if its parliament rejected an austerity plan improved investors' risk appetite. Majority of Asian equity indices traded in the green zone while, the European counterparts too exhibited positive trends.
Back home, the broader markets are showing some resilience in the afternoon session and are trading with well over half a percent gains, outclassing their larger peers by quite a margin. The bourses consolidated on weaker volumes as compared to yesterday. The market breadth on BSE was in favor of advances in the ratio of 1305:1219 while 120 scrips remained unchanged.
The BSE Sensex is currently trading at 18,424.20 up by 11.79 points or 0.06% after trading as high as 18,527.45 and as low as 18,323.44. There were 18 stocks advancing against 12 declines on the index.
The broader indices were trading on a positive note; the BSE Mid cap and Small cap indices advanced by 0.57% and 0.49% respectively.
On the BSE sectoral space, Capital Goods up 0.71%, Healthcare up 0.57%, Metal up 0.55%, Power up 0.47% and Auto up 0.46% were the major gainers, while Oil & Gas down 0.70%, Realty down 0.65%, IT down 0.56%, FMCG down 0.47% and Teck down 0.18% were the major losers on the index.
The top gainers on the Sensex were Hindalco up by 2.59%, Bajaj Auto up by 2.02%, HDFC up by 1.26%, Sterlite up 1.24% and BHEL up 1.18%.
On the flip side, JP Associates down by 2.50%, DLF down by 2.28%, Wipro down 1.67%, ITC down 0.98% and RIL down 0.65% were the only losers on the index.
On a three day visit to India, New Zealand Prime Minister John Key said, New Zealand hopes to conclude the proposed Free Trade Agreement with India by March next year. The bilateral trade between India and New Zealand has been well below the potential, last year it's crossed $1 billion, and both the nations have set the target of trebling bilateral trade to $3 billion in four years.
John Key said, "We expect it to be signed by March 2012". However, Key added that the conclusion would depend on the quality of agreement and negotiations. India and New Zealand already have completed around five rounds of negotiations, India is hopeful to get more market access for its professionals through the FTA and New Zealand is trying to get entry in India's dairy market. 'These things are always delicate and, as we know from the negotiations with Korea, you can hit speed bumps along the way, but I'm confident they want to do a deal,' he added.
During his visit, John Key will meet India's Prime Minister Manmohan Singh and foreign minister S M Krishna on June 28 and will also address a meeting of industrialist from both the nations.
In April 2007, the Indian Minister of Commerce & Industry and the New Zealand Minister of Trade agreed to pursue this objective by undertaking a joint study into the feasibility of negotiating a Free Trade Agreement / Comprehensive Economic Cooperation Agreement.
The S&P CNX Nifty is currently trading at 5,523.90, lower by 2.35 points or 0.05% after trading as high as 5,558.30 and as low as 5,496.35. There were 24 stocks advancing against 26 declines on the index.
The top gainers of the Nifty were Hindalco up by 2.35%, Bajaj Auto up by 1.79%, BHEL up by 1.29%, Sterlite up by 1.24% and HDFC up by 1.23%.
JP Associates down by 2.50%, Cairn down by 2.38%, DLF down by 2.19%, GAIL down by 1.85% and Wipro down 1.72% were the major losers on the index.
Asian markets are exhibiting positive trends as Shanghai Composite rose 0.11%, Hang Seng added 0.04%, Jakarta Composite gained 0.33%, KLSE Composite inched up 0.19%, Nikkei 225 climbed 0.74% and Straits Times increased 0.07%.
On the flipside, Seoul Composite slipped 0.36% and Taiwan Weighted declined 0.25%.
The European markets have opened on an optimistic note as France's CAC 40 added 0.27%, Germany's DAX advance 0.43% and London's FTSE rose 0.30%.
Back home, the broader markets are showing some resilience in the afternoon session and are trading with well over half a percent gains, outclassing their larger peers by quite a margin. The bourses consolidated on weaker volumes as compared to yesterday. The market breadth on BSE was in favor of advances in the ratio of 1305:1219 while 120 scrips remained unchanged.
The BSE Sensex is currently trading at 18,424.20 up by 11.79 points or 0.06% after trading as high as 18,527.45 and as low as 18,323.44. There were 18 stocks advancing against 12 declines on the index.
The broader indices were trading on a positive note; the BSE Mid cap and Small cap indices advanced by 0.57% and 0.49% respectively.
On the BSE sectoral space, Capital Goods up 0.71%, Healthcare up 0.57%, Metal up 0.55%, Power up 0.47% and Auto up 0.46% were the major gainers, while Oil & Gas down 0.70%, Realty down 0.65%, IT down 0.56%, FMCG down 0.47% and Teck down 0.18% were the major losers on the index.
The top gainers on the Sensex were Hindalco up by 2.59%, Bajaj Auto up by 2.02%, HDFC up by 1.26%, Sterlite up 1.24% and BHEL up 1.18%.
On the flip side, JP Associates down by 2.50%, DLF down by 2.28%, Wipro down 1.67%, ITC down 0.98% and RIL down 0.65% were the only losers on the index.
On a three day visit to India, New Zealand Prime Minister John Key said, New Zealand hopes to conclude the proposed Free Trade Agreement with India by March next year. The bilateral trade between India and New Zealand has been well below the potential, last year it's crossed $1 billion, and both the nations have set the target of trebling bilateral trade to $3 billion in four years.
John Key said, "We expect it to be signed by March 2012". However, Key added that the conclusion would depend on the quality of agreement and negotiations. India and New Zealand already have completed around five rounds of negotiations, India is hopeful to get more market access for its professionals through the FTA and New Zealand is trying to get entry in India's dairy market. 'These things are always delicate and, as we know from the negotiations with Korea, you can hit speed bumps along the way, but I'm confident they want to do a deal,' he added.
During his visit, John Key will meet India's Prime Minister Manmohan Singh and foreign minister S M Krishna on June 28 and will also address a meeting of industrialist from both the nations.
New Zealand is ready to offer more access to Indian Professionals. However, the stress is on the skill level of professionals, Tim Groser New Zealand Trade Minister said, 'We cannot allow unqualified people knocking our front doors and doing a poor job. Indian professionals who can benefit from this FTA, includes teachers, healthcare providers, technicians, IT experts, architects and hospitality providers, among others. New Zealand is seeking to get more access in India dairy sector for its dairy industry, as India has kept the sector largely closed.
Last year, India and New Zealand started their negotiations on a Comprehensive Economic Cooperation Agreement, an FTA, last year, that includes, goods services and investment, both the nation's leaders are also expected to discuss on issues like energy cooperation, including civil nuclear. In April 2007, the Indian Minister of Commerce & Industry and the New Zealand Minister of Trade agreed to pursue this objective by undertaking a joint study into the feasibility of negotiating a Free Trade Agreement / Comprehensive Economic Cooperation Agreement.
The S&P CNX Nifty is currently trading at 5,523.90, lower by 2.35 points or 0.05% after trading as high as 5,558.30 and as low as 5,496.35. There were 24 stocks advancing against 26 declines on the index.
The top gainers of the Nifty were Hindalco up by 2.35%, Bajaj Auto up by 1.79%, BHEL up by 1.29%, Sterlite up by 1.24% and HDFC up by 1.23%.
JP Associates down by 2.50%, Cairn down by 2.38%, DLF down by 2.19%, GAIL down by 1.85% and Wipro down 1.72% were the major losers on the index.
Asian markets are exhibiting positive trends as Shanghai Composite rose 0.11%, Hang Seng added 0.04%, Jakarta Composite gained 0.33%, KLSE Composite inched up 0.19%, Nikkei 225 climbed 0.74% and Straits Times increased 0.07%.
On the flipside, Seoul Composite slipped 0.36% and Taiwan Weighted declined 0.25%.
The European markets have opened on an optimistic note as France's CAC 40 added 0.27%, Germany's DAX advance 0.43% and London's FTSE rose 0.30%.
MARKET PARES EARLY GAINS
Indian equity markets have given up their early gains and are now trading lower by about a quarter percent. The last three day's rally mood fizzled out and profit booking has emerged at the higher levels. Though the broader indices are still trading in green but they too have come off the highs of the day. Bluechips, which have propelled the rally in last few sessions, have taken the back seat today and the investors are opting to take some profit off the table. Realty sector that was the laggard in last session don't seem getting any respite even today and is once again at the bottom of the sectoral table. Oil & gas sector too is witnessing profit booking after the sharp upmove in previous session on the back of the recent hike in fuel prices. One of the heavy weight Cairn India is in somber mood after its parent company, Cairn Energy Plc has said it will forego Rs 50 per share non-compete fees to push through the sale of majority stake in Indian subsidiary to Vedanta.
The BSE Sensex is currently trading at 18,342.18, down by 70.23 points or 0.38%. The index has touched a high and low of 18,527.45 and 18,339.13 respectively. There were 12 stocks advancing against 18 declines on the index.
The broader indices too are outperforming the benchmarks in mid morning session; the BSE Mid cap and Small cap indices were up by 0.27% and 0.12% respectively. The market breadth was still holding in green with 48.69% stocks advancing against 45.68% declines.
The top gaining sectoral indices on the BSE were HC up by 0.60%, CD up by 0.14%, Power up by 0.10%, Metal and CG were up by 0.07%, while Realty down by 1.04%, oil & gas down by 1%, IT down by 0.76%, FMCG down by 0.64% and TECk down by 0.39% were the top losers.
The top gainer on the Sensex were Sterlite Inds up by 1.43%, Bajaj Auto up by 0.94%, RCom up by 0.85%, Bharti Airtel up by 0.82% and HDFC was up by 0.72%.
On the other hand, Jaiprakash Associates down by 2.62%, DLF down by 2.19%, Wipro down by 1.91%, ITC down by 1.39% and TCS down by 0.93% were the major losers on the Sensex.
In the next week's meeting FIPB will also consider the application of Paris based BNP Paribas, the decision on which was delayed in the last meeting, held on May 20. In the last meeting, FIPB has approved 16 FDI applications worth around Rs 923.55 crore, including L&T Finance Holding and Star News Broadcasting Ltd.
Even though, Indian has been liberalizing its FDI policy, the inflow slowed in the first 4 months of 2011.The FDI inflows were reduced by 10% to around Rs 29,189 from Rs 32,535 crore in the same period of last year.
The S&P CNX Nifty is currently trading at 5,508.30, down by 18.30 points or 0.33%. The index has touched a high and low of 5,558.30 and 5,507.70 respectively. There were 16 stocks advancing against 32 declines, while 2 stock remained unchanged on the index.
The top gainers of the Nifty Dr. Reddy's up by 1.94%, Sterlite Inds up by 1.27%, Reliance Capital up by 1.06%, Bharti Airtel up by 0.88% and HDFC was up by 0.78%.
On the other hand, JP Associates down by 2.81%, DLF down by 2.28%, Wipro down by 2.02%, IDFC down by 25 and BPCL down by 1.87% were the top losers.
Asian markets too have lost their momentum and along with Shanghai Composite few others too are now in red. Shanghai Composite was down by 0.55%, Hang Seng was down by 0.03%, Straits Times was down by 0.08% and Taiwan Weighted was down by 0.04%.
On the other hand, Jakarta Composite was up by 0.35%, KLSE Composite was up by 0.21%, Nikkei 225 has gained 0.94% and Seoul Composite was up by 0.57%.
The BSE Sensex is currently trading at 18,342.18, down by 70.23 points or 0.38%. The index has touched a high and low of 18,527.45 and 18,339.13 respectively. There were 12 stocks advancing against 18 declines on the index.
The broader indices too are outperforming the benchmarks in mid morning session; the BSE Mid cap and Small cap indices were up by 0.27% and 0.12% respectively. The market breadth was still holding in green with 48.69% stocks advancing against 45.68% declines.
The top gaining sectoral indices on the BSE were HC up by 0.60%, CD up by 0.14%, Power up by 0.10%, Metal and CG were up by 0.07%, while Realty down by 1.04%, oil & gas down by 1%, IT down by 0.76%, FMCG down by 0.64% and TECk down by 0.39% were the top losers.
The top gainer on the Sensex were Sterlite Inds up by 1.43%, Bajaj Auto up by 0.94%, RCom up by 0.85%, Bharti Airtel up by 0.82% and HDFC was up by 0.72%.
On the other hand, Jaiprakash Associates down by 2.62%, DLF down by 2.19%, Wipro down by 1.91%, ITC down by 1.39% and TCS down by 0.93% were the major losers on the Sensex.
The Foreign Investment Promotion Board (FIBP) is scheduled to meet next week, to consider 55 FDI (Foreign Direct Investment) from Information Technology, Broadcasting and Telecom sector. FIPB being headed by R Gopalan, Secretary Department of Economic Affairs was originally scheduled to meet on 24 June, but the meeting has been postponed to July 6.
The applications for FDI in telecom sector include Vodafone Essar, Cordia International Crop, USA, Essar Holding (India), Mumbai, along with others, while request for FDI in information technology and in broadcasting sector are 8 FDI applications including Dish TV India and Walt Disney Company India. In the next week's meeting FIPB will also consider the application of Paris based BNP Paribas, the decision on which was delayed in the last meeting, held on May 20. In the last meeting, FIPB has approved 16 FDI applications worth around Rs 923.55 crore, including L&T Finance Holding and Star News Broadcasting Ltd.
Even though, Indian has been liberalizing its FDI policy, the inflow slowed in the first 4 months of 2011.The FDI inflows were reduced by 10% to around Rs 29,189 from Rs 32,535 crore in the same period of last year.
The S&P CNX Nifty is currently trading at 5,508.30, down by 18.30 points or 0.33%. The index has touched a high and low of 5,558.30 and 5,507.70 respectively. There were 16 stocks advancing against 32 declines, while 2 stock remained unchanged on the index.
The top gainers of the Nifty Dr. Reddy's up by 1.94%, Sterlite Inds up by 1.27%, Reliance Capital up by 1.06%, Bharti Airtel up by 0.88% and HDFC was up by 0.78%.
On the other hand, JP Associates down by 2.81%, DLF down by 2.28%, Wipro down by 2.02%, IDFC down by 25 and BPCL down by 1.87% were the top losers.
Asian markets too have lost their momentum and along with Shanghai Composite few others too are now in red. Shanghai Composite was down by 0.55%, Hang Seng was down by 0.03%, Straits Times was down by 0.08% and Taiwan Weighted was down by 0.04%.
On the other hand, Jakarta Composite was up by 0.35%, KLSE Composite was up by 0.21%, Nikkei 225 has gained 0.94% and Seoul Composite was up by 0.57%.
Monday, June 27, 2011
TREND FOR 28th JUNE
CHEERS !!!
RALLY EXTENDED
Exuberant Indian markets have commenced the F&O expiry week with an exciting performance extending Friday's pullback rally with short covering gathering greater force. Sentiments remain buoyant for the frontline indices which have vivaciously rallied over eight hundred fifty points in last three trading sessions re-capturing the psychological 5,500 and 18,400 levels. The rally on local bourses also looked superior as markets across the globe reeled under the fears of spreading European debt crisis after a ratings agency placed Italian banks on a review for a possible downgrade. Investors went on the defensive as Greece's parliament began debating harsh new austerity measures ahead of a Greek austerity vote this week that may sow stronger doubts about financial stability and economic recovery. However, local frontline indices did not show any signs of capitulation despite the weak opening as investors gave a thumbs up to government's recent act of hiking fuel prices. Though expectations are rife that double-digit inflation may re-emerge following the hike in prices of diesel by Rs 3 a liter, kerosene by Rs 2 a liter and cooking gas by a steep Rs 50 a cylinder, however, PMEAC chairman C Rangarajan's statement that fuel price hike was a calculated decision by the government and its impact on inflation is seen as temporary, calmed investor concerns to some extent. He said that after initial correction, inflation will come down to 6.5% by March 2012. Apart from fuel price hike, governments' move to scrap customs duty on crude oil and petroleum products by 5% and reduce excise duty on diesel by Rs 2.6 per liter, was cheered by marketmen as it would ease the government's subsidy burden and also bolster its image among cautious investors. Over the weekend, plunge in international crude prices too buttressed buying interests and lifted sentiments. Investors' morale also got a boost as FIIs turned net buyers on Friday, indicating that interest of foreign investors are not fading any time soon.
The NSE's 50-share broadly followed index Nifty, settled with a percent gains above the crucial 5,500 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with over one hundred fifty point gains above the important psychological 18,400 level. The broader markets too traded on a firm note and moved in tandem with their larger peers. The midcap index garnered 0.82% while the smallcap index amassed 0.80%. On the sectoral front, it was the Public Sector Undertakings that outperformed not only their sectoral peers but the benchmarks as well as it surged by 1.92%. The Oil and Gas counter kept buzzing through the session as government's move to hike fuel prices and cut duties will reduce under recoveries of oil marketing companies (OMCs) and also ease the subsidy burden for upstream oil company like ONGC. Moreover, aviation shares once again flied higher on hopes that state-run oil marketing companies will cut aviation turbine fuel prices as crude oil prices fell sharply. However, IT stocks came under some selling pressure initially amid possibilities of further downgrades in Europe however, they managed to claw back in the positive terrain and settle with around half a percent gains after majors like TCS and Oracle Finserv 1.28% and 3.74% respectively. On the other hand, high beta realty and defensive FMCG packs were the indices that languished in the red terrain with 0.62% and 0.48% losses. The markets surged on strong volumes of over Rs 1.77 lakh crore while the turnover for NSE F&O segment remained on the lower side compared to Friday at over 1.63 lakh crore. Market breadth remained positive as there were 1636 shares on the gaining side against 1193 shares on the losing side while 116 shares remained unchanged.
Finally, the BSE Sensex gained 171.73 points or 0.94% to settle at 18,412.41 while the S&P CNX Nifty surged by 55.35 points or 1.01% to settle at 5,526.60.
The BSE Sensex touched a high and a low of 18,494.11 and 18,132.70, respectively. The BSE Mid cap and Small cap index up 0.82% and 0.80% respectively.
The top gainers on the Sensex were ONGC up 4.16%, Mahindra & Mahindra up 3.09%, Maruti Suzuki up 2.86%, L&T up 2.69% and Tata Steel up 1.65%.
On the flip side, Reliance Infra down 1.48%, ITC down 0.77%, Hero Honda down 0.76%, DLF down 0.74%, Wipro down 0.33% were the top losers on the index.
Meanwhile, due to nationwide protests against the increase in prices of diesel, kerosene and domestic cooking gas, finance minister Pranab Mukherjee is likely to write letter to state Chief Ministers to reduce state taxes on at least LPG to reduce the impact of increase in prices on the common man. Meanwhile, the states like West Bengal and Kerala have already announced that they will be reducing the taxes on petroleum products.
The Finance minister will be writing letter to the state heads to explain the rationale of the price hike and the need to reduce sales tax on cooking gas to give some relief to the common people. The central government has removed custom duty, excise duty and import duty from the crude oil and its products, which would result in revenue loss of Rs 49, 000 crore per annum.
meanwhile, giving relief to common man, West Bengal government has decided to remove sales tax on cooking gas; the decision would reduce the price of domestic cooking gas by Rs 16 in state. The Kerala's CM Oommen Chandy too has decided to reduce the state tax on diesel, after this the diesel price will get reduced by 75 paise in state, however, Kerala government would loss around Rs 142.2 crore by giving up the taxes. The Delhi government is also expected to reduce the sales tax and VAT on diesel and domestic cooking gas. At present, the Delhi government gets around Rs 5 or 12.5% from the sales tax on diesel and 4 % or Rs 16 of VAT on domestic cooking gas. The Congress has asked its Chief Ministers to find out the similar possibility to provide relief to the common man.
The Empowered Group of Ministers (EGoM) chaired by Finance Minister Pranab Mukharejee on 24 June has decided to hike the price of diesel by Rs 3/litre, Kerosene by Rs 2/liter and domestic cooking gas by Rs 50/14.2 kg cylinder. The decision of price hike was taken to reduce the revenue loss of state owned Oil Marketing Companies, OMCs were making loss of Rs 490 crore everyday because of increased international prices of crude oil.
The top gainers on the BSE sectoral space were PSU up 1.92%, Capital Goods up 1.75%, Bankex up 1.61%, Auto up 1.49% and Oil & Gas up 1.40%.
The losers in the BSE sectoral space were Realty down 0.62%, FMCG down 0.48% and Consumer Durables (CD) down 0.43%.
The Ministry of Telecom is mulling significant policy changes in the telecom sector on the recommendations made by the Telecom Regulatory Authority of India (TRAI). The Ministry is likely to propose policy changes on pricing of excess spectrum and delinking of spectrum from license, these expected changes in policy will be sent to Cabinet for final decision.
The Telecom Commission, the highest decision making body of the Department of Telecommunications (DoT), was expected to meet next month to consider the recommendations of the Telecom Regulatory Authority of India (TRAI) on spectrum management and other licensing issues. However, after the deliberations in the Telecom Commission on all the issues, the main policy changes would be referred to the Cabinet for a final decision.
The telecom commission has members from the various ministries and governmental bodies related to the sector. "The major proposed policy changes such as revising the structure of the unified access service licence and delinking of spectrum from licence and pricing of excess spectrum will be taken to the Cabinet since these decisions were earlier taken by the Cabinet under the aegis of the National Telecom Policy, 1999. Any change in the letter and spirit of this policy on licence and spectrum issues has to be subjected to the scrutiny of the Cabinet and Parliament," the department said in a note for Telecom Commission.
The DoT has acknowledged in principle a majority of the suggestions of TRAI, including a one-time fee on operation for holding spectrum beyond contractual limits and mergers and acquisitions rules, under which a combined entity after merger will have a total market share of 30 % and not more than 14.4/10 MHz of spectrum.
The top gainers of the Nifty were Powergrid up 5.07%, BPCL up 4.71%, ONGC up 4.01%, Reliance Capital up 3.57% and Maruti up 3.16%.
On the flip side, Reliance Infra down 1.13%, Grasim down 1.10%, DLF down 0.99%, Ambuja Cement down 0.75% and ITC down 0.72% were the major losers on the index.
European markets were trading in green. France's CAC 40 rose by 0.26%, Britain's FTSE 100 advanced 0.45%, and Germany's DAX gains by 0.14%.
All the Asian equity indices barring Shanghai Composite finished the day's trade in the positive terrain on Monday amid fears of a spreading European debt crisis after a ratings agency placed Italian banks on a review for a possible downgrade. Investors in the region remained spooked by the pessimism in Europe where Moody's said it had put the ratings of 16 Italian banks on review for possible downgrade and had changed the outlook to negative from stable for a further 13 banks. Moreover, Seoul Composite ended with a cut of about a percent as foreign investors remained seller amid continued worries about the Greek debt situation ahead of crucial parliamentary vote later this week.
The NSE's 50-share broadly followed index Nifty, settled with a percent gains above the crucial 5,500 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with over one hundred fifty point gains above the important psychological 18,400 level. The broader markets too traded on a firm note and moved in tandem with their larger peers. The midcap index garnered 0.82% while the smallcap index amassed 0.80%. On the sectoral front, it was the Public Sector Undertakings that outperformed not only their sectoral peers but the benchmarks as well as it surged by 1.92%. The Oil and Gas counter kept buzzing through the session as government's move to hike fuel prices and cut duties will reduce under recoveries of oil marketing companies (OMCs) and also ease the subsidy burden for upstream oil company like ONGC. Moreover, aviation shares once again flied higher on hopes that state-run oil marketing companies will cut aviation turbine fuel prices as crude oil prices fell sharply. However, IT stocks came under some selling pressure initially amid possibilities of further downgrades in Europe however, they managed to claw back in the positive terrain and settle with around half a percent gains after majors like TCS and Oracle Finserv 1.28% and 3.74% respectively. On the other hand, high beta realty and defensive FMCG packs were the indices that languished in the red terrain with 0.62% and 0.48% losses. The markets surged on strong volumes of over Rs 1.77 lakh crore while the turnover for NSE F&O segment remained on the lower side compared to Friday at over 1.63 lakh crore. Market breadth remained positive as there were 1636 shares on the gaining side against 1193 shares on the losing side while 116 shares remained unchanged.
Finally, the BSE Sensex gained 171.73 points or 0.94% to settle at 18,412.41 while the S&P CNX Nifty surged by 55.35 points or 1.01% to settle at 5,526.60.
The BSE Sensex touched a high and a low of 18,494.11 and 18,132.70, respectively. The BSE Mid cap and Small cap index up 0.82% and 0.80% respectively.
The top gainers on the Sensex were ONGC up 4.16%, Mahindra & Mahindra up 3.09%, Maruti Suzuki up 2.86%, L&T up 2.69% and Tata Steel up 1.65%.
On the flip side, Reliance Infra down 1.48%, ITC down 0.77%, Hero Honda down 0.76%, DLF down 0.74%, Wipro down 0.33% were the top losers on the index.
Meanwhile, due to nationwide protests against the increase in prices of diesel, kerosene and domestic cooking gas, finance minister Pranab Mukherjee is likely to write letter to state Chief Ministers to reduce state taxes on at least LPG to reduce the impact of increase in prices on the common man. Meanwhile, the states like West Bengal and Kerala have already announced that they will be reducing the taxes on petroleum products.
The Finance minister will be writing letter to the state heads to explain the rationale of the price hike and the need to reduce sales tax on cooking gas to give some relief to the common people. The central government has removed custom duty, excise duty and import duty from the crude oil and its products, which would result in revenue loss of Rs 49, 000 crore per annum.
meanwhile, giving relief to common man, West Bengal government has decided to remove sales tax on cooking gas; the decision would reduce the price of domestic cooking gas by Rs 16 in state. The Kerala's CM Oommen Chandy too has decided to reduce the state tax on diesel, after this the diesel price will get reduced by 75 paise in state, however, Kerala government would loss around Rs 142.2 crore by giving up the taxes. The Delhi government is also expected to reduce the sales tax and VAT on diesel and domestic cooking gas. At present, the Delhi government gets around Rs 5 or 12.5% from the sales tax on diesel and 4 % or Rs 16 of VAT on domestic cooking gas. The Congress has asked its Chief Ministers to find out the similar possibility to provide relief to the common man.
The Empowered Group of Ministers (EGoM) chaired by Finance Minister Pranab Mukharejee on 24 June has decided to hike the price of diesel by Rs 3/litre, Kerosene by Rs 2/liter and domestic cooking gas by Rs 50/14.2 kg cylinder. The decision of price hike was taken to reduce the revenue loss of state owned Oil Marketing Companies, OMCs were making loss of Rs 490 crore everyday because of increased international prices of crude oil.
The top gainers on the BSE sectoral space were PSU up 1.92%, Capital Goods up 1.75%, Bankex up 1.61%, Auto up 1.49% and Oil & Gas up 1.40%.
The losers in the BSE sectoral space were Realty down 0.62%, FMCG down 0.48% and Consumer Durables (CD) down 0.43%.
The Ministry of Telecom is mulling significant policy changes in the telecom sector on the recommendations made by the Telecom Regulatory Authority of India (TRAI). The Ministry is likely to propose policy changes on pricing of excess spectrum and delinking of spectrum from license, these expected changes in policy will be sent to Cabinet for final decision.
The Telecom Commission, the highest decision making body of the Department of Telecommunications (DoT), was expected to meet next month to consider the recommendations of the Telecom Regulatory Authority of India (TRAI) on spectrum management and other licensing issues. However, after the deliberations in the Telecom Commission on all the issues, the main policy changes would be referred to the Cabinet for a final decision.
The telecom commission has members from the various ministries and governmental bodies related to the sector. "The major proposed policy changes such as revising the structure of the unified access service licence and delinking of spectrum from licence and pricing of excess spectrum will be taken to the Cabinet since these decisions were earlier taken by the Cabinet under the aegis of the National Telecom Policy, 1999. Any change in the letter and spirit of this policy on licence and spectrum issues has to be subjected to the scrutiny of the Cabinet and Parliament," the department said in a note for Telecom Commission.
The DoT has acknowledged in principle a majority of the suggestions of TRAI, including a one-time fee on operation for holding spectrum beyond contractual limits and mergers and acquisitions rules, under which a combined entity after merger will have a total market share of 30 % and not more than 14.4/10 MHz of spectrum.
The suggestions made by Telecom Regulatory Authority of India have became important inthe wake of increasing need for consolidation in the telecom industry, which has been observing low tariffs and reducing revenues due to increased players in the sector. After the entry of new plays in the telecom sector in late 2008, the average revenue per user with the profits of the operators has started falling due to low tariffs. If Department of Telecom, accepts the suggestions of TRAI on pricing spectrum will increase exchequer's revenue realization.
The S&P CNX Nifty touched high and low of 5,552.65 and 5,434.25, respectively. The top gainers of the Nifty were Powergrid up 5.07%, BPCL up 4.71%, ONGC up 4.01%, Reliance Capital up 3.57% and Maruti up 3.16%.
On the flip side, Reliance Infra down 1.13%, Grasim down 1.10%, DLF down 0.99%, Ambuja Cement down 0.75% and ITC down 0.72% were the major losers on the index.
European markets were trading in green. France's CAC 40 rose by 0.26%, Britain's FTSE 100 advanced 0.45%, and Germany's DAX gains by 0.14%.
All the Asian equity indices barring Shanghai Composite finished the day's trade in the positive terrain on Monday amid fears of a spreading European debt crisis after a ratings agency placed Italian banks on a review for a possible downgrade. Investors in the region remained spooked by the pessimism in Europe where Moody's said it had put the ratings of 16 Italian banks on review for possible downgrade and had changed the outlook to negative from stable for a further 13 banks. Moreover, Seoul Composite ended with a cut of about a percent as foreign investors remained seller amid continued worries about the Greek debt situation ahead of crucial parliamentary vote later this week.
STABLE SESSION
The Indian equity market seems stable at this hour of trade with strong buying mainly in oil & gas sector, with state-run oil companies among the big gainers after the government raised state-controlled fuel prices, giving them an earnings boost. The government increased diesel prices by about 9% late on Friday after months of delay. Government also scrapped customs duty on crude oil and petroleum products by 5%. It reduced excise duty on diesel by Rs 2.6/liter while additional excise duty has not been cut. Back on street all sectoral indices are trading in green except IT. Global cues are showing negative trend as Asian markets are trading in red as euro zone debt worries weighed on markets before a crucial parliamentary vote in Greece due this week and after a sharp fall in overseas banking shares. Back home, market breadth continues to remain strong; there were 1,518 shares on the gaining side against 915 shares on the losing side while 127 shares remained unchanged.
The BSE Sensex is currently trading at 18,393.67, up by 152.99 points or 0.84%. The index has touched a high and low of 18,432.67 and 18,132.70 respectively. There were 24 stocks advancing against just 5 declines on the index and one remained unchanged.
The broader indices are following the benchmark; the BSE Mid cap and Small cap indices were up by 0.76% and 0.85% respectively.
The top gaining sectoral indices on the BSE were Oil & Gas up by 1.92%, Auto up by 1.81%, PSU up by 1.77%, Metal up by 1.22% and Power up by 0.95%, while IT down by 0.28% was the lone loser.
The top gainer on the Sensex were ONGC up by 4.93%, M&M up by 3.69%, Bajaj Auto up by 3.57%, HDFC up by 1.96% and Tata Steel up by 1.74%.
On the other hand, ITC down by 0.77%, Hero Honda down by 0.68%, R Infra down by 0.59%, HUL down by 0.54% and Wipro down by 0.47% were the only losers on the Sensex.
Meanwhile,the Ministry of Telecom is mulling significant policy changes in the telecom sector on the recommendations made by the Telecom Regulatory Authority of India (TRAI). The Ministry is likely to propose policy changes on pricing of excess spectrum and delinking of spectrum from license, these expected changes in policy will be sent to Cabinet for final decision.
The Telecom Commission, the highest decision making body of the Department of Telecommunications (DoT), was expected to meet next month to consider the recommendations of the Telecom Regulatory Authority of India (TRAI) on spectrum management and other licensing issues. However, after the deliberations in the Telecom Commission on all the issues, the main policy changes would be referred to the Cabinet for a final decision.
The suggestions made by Telecom Regulatory Authority of India have became important inthe wake of increasing need for consolidation in the telecom industry, which has been observing low tariffs and reducing revenues due to increased players in the sector. After the entry of new plays in the telecom sector in late 2008, the average revenue per user with the profits of the operators has started falling due to low tariffs. If Department of Telecom, accepts the suggestions of TRAI on pricing spectrum will increase exchequer's revenue realization.
The S&P CNX Nifty is currently trading at 5,518.00, up by 46.75 points or 0.85%. The index has touched a high and low of 5,532.45 and 5,434.25 respectively. There were 41 stocks advancing against 9 declines on the index.
The top gainers of the Nifty were BPCL up by 5.01%, ONGC up by 4.88%, M&M up by 3.76%, Bajaj Auto was up by 3.39% and Power Grid was up by 3.14%.
On the other hand, R Infra down by 1.31%, HCL Tech down by 0.97%, ITC down by 0.95%, Wipro down by 0.70% and Hero Honda down by 0.64% were the top losers.
All the Asian markets barring Shanghai Composite are trading in the red; Hang Seng was down by 0.70%, Jakarta Composite was down by 0.72%, KLSE Composite was down by 0.07%, Nikkei 225 was lower by 0.97%, Straits Times was down by 0.66%, Seoul Composite has plunged by 0.91% and Taiwan Weighted was down by 0.38%.
On the other hand, Shanghai Composite was trading higher by 0.32%.
The BSE Sensex is currently trading at 18,393.67, up by 152.99 points or 0.84%. The index has touched a high and low of 18,432.67 and 18,132.70 respectively. There were 24 stocks advancing against just 5 declines on the index and one remained unchanged.
The broader indices are following the benchmark; the BSE Mid cap and Small cap indices were up by 0.76% and 0.85% respectively.
The top gaining sectoral indices on the BSE were Oil & Gas up by 1.92%, Auto up by 1.81%, PSU up by 1.77%, Metal up by 1.22% and Power up by 0.95%, while IT down by 0.28% was the lone loser.
The top gainer on the Sensex were ONGC up by 4.93%, M&M up by 3.69%, Bajaj Auto up by 3.57%, HDFC up by 1.96% and Tata Steel up by 1.74%.
On the other hand, ITC down by 0.77%, Hero Honda down by 0.68%, R Infra down by 0.59%, HUL down by 0.54% and Wipro down by 0.47% were the only losers on the Sensex.
Meanwhile,the Ministry of Telecom is mulling significant policy changes in the telecom sector on the recommendations made by the Telecom Regulatory Authority of India (TRAI). The Ministry is likely to propose policy changes on pricing of excess spectrum and delinking of spectrum from license, these expected changes in policy will be sent to Cabinet for final decision.
The Telecom Commission, the highest decision making body of the Department of Telecommunications (DoT), was expected to meet next month to consider the recommendations of the Telecom Regulatory Authority of India (TRAI) on spectrum management and other licensing issues. However, after the deliberations in the Telecom Commission on all the issues, the main policy changes would be referred to the Cabinet for a final decision.
The telecom commission has members from the various ministries and governmental bodies related to the sector. "The major proposed policy changes such as revising the structure of the unified access service licence and delinking of spectrum from licence and pricing of excess spectrum will be taken to the Cabinet since these decisions were earlier taken by the Cabinet under the aegis of the National Telecom Policy, 1999. Any change in the letter and spirit of this policy on licence and spectrum issues has to be subjected to the scrutiny of the Cabinet and Parliament," the department said in a note for Telecom Commission.
The DoT has acknowledged in principle a majority of the suggestions of TRAI, including a one-time fee on operation for holding spectrum beyond contractual limits and mergers and acquisitions rules, under which a combined entity after merger will have a total market share of 30 % and not more than 14.4/10 MHz of spectrum. The suggestions made by Telecom Regulatory Authority of India have became important inthe wake of increasing need for consolidation in the telecom industry, which has been observing low tariffs and reducing revenues due to increased players in the sector. After the entry of new plays in the telecom sector in late 2008, the average revenue per user with the profits of the operators has started falling due to low tariffs. If Department of Telecom, accepts the suggestions of TRAI on pricing spectrum will increase exchequer's revenue realization.
The S&P CNX Nifty is currently trading at 5,518.00, up by 46.75 points or 0.85%. The index has touched a high and low of 5,532.45 and 5,434.25 respectively. There were 41 stocks advancing against 9 declines on the index.
The top gainers of the Nifty were BPCL up by 5.01%, ONGC up by 4.88%, M&M up by 3.76%, Bajaj Auto was up by 3.39% and Power Grid was up by 3.14%.
On the other hand, R Infra down by 1.31%, HCL Tech down by 0.97%, ITC down by 0.95%, Wipro down by 0.70% and Hero Honda down by 0.64% were the top losers.
All the Asian markets barring Shanghai Composite are trading in the red; Hang Seng was down by 0.70%, Jakarta Composite was down by 0.72%, KLSE Composite was down by 0.07%, Nikkei 225 was lower by 0.97%, Straits Times was down by 0.66%, Seoul Composite has plunged by 0.91% and Taiwan Weighted was down by 0.38%.
On the other hand, Shanghai Composite was trading higher by 0.32%.
MARKETS REMAIN FIRM
Crude is ruling the Indian markets move in the morning trade and solid gains in oil & gas after the rise in fuel prices and duty rejig has neutralized the somber global cues. Though, the benchmark indices have came off the high points of the day but still are managing to hold good gains in mid morning trade, extending their marvelous rally of last session. The broader indices too are equally participating in the markets upmove, keeping the breadth firmly in green. The one sector that is showing some weakness at this point of time is IT, after two technology majors in US reported weak numbers on Friday, showing that business are still not using IT in the recovery. Back home all the PSU oil companies have surged after the recent price hike.
The BSE Sensex is currently trading at 18,367.74, up by 127.06 points or 0.70%. The index has touched a high and low of 18,432.67 and 18,132.70 respectively. There were 25 stocks advancing against just 5 declines on the index.
The broader indices too are showing good upmove; the BSE Mid cap and Small cap indices were up by 0.62% and 0.65% respectively. The market breadth was strong with 62.32% stocks advancing against 33.26% declines.
The top gaining sectoral indices on the BSE were Oil & Gas up by 1.85%, PSU up by 1.53%, Auto up by 1.16%, Metal up by 0.88% and CG was up by 0.81%, while IT down by 0.02% was the lone loser.
The top gainer on the Sensex were ONGC up by 4.78%, M&M up by 3.125, Bajaj Auto up by 2.61%, HDFC up by 1.67% and Cipla was up by 1.41%.
On the other hand, R infra down by 1.03, hero Honda down by 0.44%, Maruti Suzuki down by 0.36%, NTPC down by 0.19% and ITC was down by 0.13% were the only losers on the Sensex.
Indian government on Friday hiked the much expected fuel prices in order to reduce the financial or revenue losses of state owned Oil Marketing Companies (OMCs) which are accruing expected revenue loss of Rs 490 crore everyday. By taking political risk, the Congress led UPA government raised prices of diesel, kerosene and cooking gas by Rs 3/litre, Rs 2/litre and Rs 50 per cylinders respectively. On the other hand, government also removed the custom duty of 5% on crude oil and reduced excise duty on diesel from Rs 4.6 to Rs 2 a litre, it also reduced the import tax on petrol and diesel to 2.5% from 7.5%. This reduction of duties will cost around Rs 49,000 crore to the government.
The decision of increase in diesel, kerosene and domestic cooking gas was taken by empowered group of ministers (EGoM) on fuel prices, headed by Finance Minister Pranab Mukherjee. After the announcement of fuel price hike, finance minister said, 'It is very modest increase. I have taken the risk of reducing the duties substantially... I think it will be around Rs 49,000 crore on account of reduction of import duty and also the excise duty." 'I do hope the states will also reduce their VATs (Value Added Tax) so that relief could be given to the consumer.' Finance Minister added.
The increased fuel prices will reduce the revenue losses of state owned OMCs by Rs 21, 000 in current financial year. The recovery from increased fuel prices is lower than reduced custom and excise duties, the government is losing around Rs 49,000 crore, out of this, Rs 26,000 crore from the import duties and Rs 23,000 crore from excise on diesel. However, revenue losses of public owned OMCs would still remain around Rs 1,20,000 crore for present financial year. Currently, OMCs are incurring a revenue loss of Rs 1,66,712 crore due to selling diesel, kerosene and domestic cooking gas on subsidized rates.
The top gainers of the Nifty are BPCL up by 5.25%, ONGC up by 4.77%, M&M up by 35, SAIL was up by 2.94% and Powergrid was up by 2.75%.
On the other hand, HCL Tech down by 0.79%, Reliance Infra down by 0.71%, hero Honda down by 0.61%, Maruti Suzuki down by 0.325 and Rcom down by 0.11% were the top losers.
All the Asian markets barring Shanghai Composite are trading in the green; Hang Seng was down by 0.66%, Jakarta Composite was down by 0.72%, KLSE Composite was down by 0.07%, Nikkei 225 was lower by 0.77%, Straits Times was down by 0.65%, Seoul Composite has plunged by 1.11% and Taiwan Weighted was down by 0.37%.
On the other hand, Shanghai Composite was trading higher by 0.31%.
The BSE Sensex is currently trading at 18,367.74, up by 127.06 points or 0.70%. The index has touched a high and low of 18,432.67 and 18,132.70 respectively. There were 25 stocks advancing against just 5 declines on the index.
The broader indices too are showing good upmove; the BSE Mid cap and Small cap indices were up by 0.62% and 0.65% respectively. The market breadth was strong with 62.32% stocks advancing against 33.26% declines.
The top gaining sectoral indices on the BSE were Oil & Gas up by 1.85%, PSU up by 1.53%, Auto up by 1.16%, Metal up by 0.88% and CG was up by 0.81%, while IT down by 0.02% was the lone loser.
The top gainer on the Sensex were ONGC up by 4.78%, M&M up by 3.125, Bajaj Auto up by 2.61%, HDFC up by 1.67% and Cipla was up by 1.41%.
On the other hand, R infra down by 1.03, hero Honda down by 0.44%, Maruti Suzuki down by 0.36%, NTPC down by 0.19% and ITC was down by 0.13% were the only losers on the Sensex.
Indian government on Friday hiked the much expected fuel prices in order to reduce the financial or revenue losses of state owned Oil Marketing Companies (OMCs) which are accruing expected revenue loss of Rs 490 crore everyday. By taking political risk, the Congress led UPA government raised prices of diesel, kerosene and cooking gas by Rs 3/litre, Rs 2/litre and Rs 50 per cylinders respectively. On the other hand, government also removed the custom duty of 5% on crude oil and reduced excise duty on diesel from Rs 4.6 to Rs 2 a litre, it also reduced the import tax on petrol and diesel to 2.5% from 7.5%. This reduction of duties will cost around Rs 49,000 crore to the government.
The decision of increase in diesel, kerosene and domestic cooking gas was taken by empowered group of ministers (EGoM) on fuel prices, headed by Finance Minister Pranab Mukherjee. After the announcement of fuel price hike, finance minister said, 'It is very modest increase. I have taken the risk of reducing the duties substantially... I think it will be around Rs 49,000 crore on account of reduction of import duty and also the excise duty." 'I do hope the states will also reduce their VATs (Value Added Tax) so that relief could be given to the consumer.' Finance Minister added.
The increased fuel prices will reduce the revenue losses of state owned OMCs by Rs 21, 000 in current financial year. The recovery from increased fuel prices is lower than reduced custom and excise duties, the government is losing around Rs 49,000 crore, out of this, Rs 26,000 crore from the import duties and Rs 23,000 crore from excise on diesel. However, revenue losses of public owned OMCs would still remain around Rs 1,20,000 crore for present financial year. Currently, OMCs are incurring a revenue loss of Rs 1,66,712 crore due to selling diesel, kerosene and domestic cooking gas on subsidized rates.
This decision of reducing duties on crude oil and product is likely to put pressure on the country's fiscal situation. The government is losing around Rs 49,000 crore and earlier it had provided Rs 23,000 crore in the budget for oil subsidies. The government is struggling to meet the fiscal deficit target of 4.6% of the GDP, due to slowdown in economic growth. This move of government is also viewed as inflationary as the diesel and domestic cooking gas account for more than 5.6% of wholesale price index (WPI) and this raised fuel prices are expected to increase inflation further. The headline inflation for month of May rose to 9.06% from 8.66% in April. The increased price of diesel will increase the transportation cost and increased cost will virtually increase the prices of all goods in the country.
The S&P CNX Nifty is currently trading at 5,516.30, up by 45.05 points or 0.82%. The index has touched a high and low of 5,532.45 and 5,434.25 respectively. There were 41 stocks advancing against 8 declines, while one stock remained unchanged on the index. The top gainers of the Nifty are BPCL up by 5.25%, ONGC up by 4.77%, M&M up by 35, SAIL was up by 2.94% and Powergrid was up by 2.75%.
On the other hand, HCL Tech down by 0.79%, Reliance Infra down by 0.71%, hero Honda down by 0.61%, Maruti Suzuki down by 0.325 and Rcom down by 0.11% were the top losers.
All the Asian markets barring Shanghai Composite are trading in the green; Hang Seng was down by 0.66%, Jakarta Composite was down by 0.72%, KLSE Composite was down by 0.07%, Nikkei 225 was lower by 0.77%, Straits Times was down by 0.65%, Seoul Composite has plunged by 1.11% and Taiwan Weighted was down by 0.37%.
On the other hand, Shanghai Composite was trading higher by 0.31%.
Sunday, June 26, 2011
TREND FOR 27th JUNE
CHEERS !!!
Saturday, June 25, 2011
WEEEND
Friday, June 24, 2011
MOMENTOUS PERFORMANCE
After all the dilly-dallying in the start of the week, the Indian frontline indices showcased a boisterous feat of registering biggest intra-day gains since the post budget rally. It was a day when bulls went on rampage and the Sensex snapped the enthralling last session of a the week with over a 500 points rally in an euphoric atmosphere after bottom fishing in fundamentally strong shares gathered strength. It seems like the heartening global cues of plunge in the crude prices and Greece gaining European Union and IMF's approval of its latest five-year austerity plan, encouraged the market participants to catch the falling knife and trigger the reversal for the Indian stock markets which off-late were getting accustomed to daily obliteration. The frontline indices managed to fire on all cylinders as sentiments remained buoyant across the board. The bourses registered strong back-to-back gains in last two trading sessions scaling beyond psychological 5,450 and 18,200 levels, signaling that bullishness may be returning on expectations that the markets have already bottomed out and a lot of headwinds have been factored in. Meanwhile reports of fuel price revision, duty rejig and talks on under recoveries in the Empowered Group of Ministers (EGoM) meet later in the day underpinned the rally mood. However, pessimists were of the belief that further hike in prices of petroleum products would stoke the inflation to double digits which would lead the Indian central bank to further its hawkish stance against the inflationary pressure and hike interest rates. Any further attempt to bring down the rate of price rise will come at the cost of near tem GDP growth and will also lead to further downgrades in the earnings estimates.
On the global front, leads from the markets across the globe too were buttressing the local sentiments as benchmarks in China, Hong Kong and South Korea spurted by close to two percent while the European markets too opened on a sanguine note with all indices trading with well over a percent gains. Also the sharp plunge in crude prices after IEA's declaration to release 60 million barrels of oil into world markets spurred optimism on speculations that release of oil stocks will bring down prices of commodities at large thus easing inflationary pressure.
The NSE's 50-share broadly followed index Nifty, settled with close to three percent gains above the crucial 5,450 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with over a five hindered point gains above the important psychological 18,200 level. The broader markets have finally showed some fervor after languishing in the red terrain in previous sessions and the midcap index garnered 2.26% while the smallcap index amassed 1.80%. On the sectoral front, it was the rate sensitive Realty and Bankex counters which outperformed not only their sectoral peers but the benchmarks as well. Moreover, Aviation shares flied higher on hopes state-run oil marketing companies will cut aviation turbine fuel prices as crude oil prices fell sharply on Thursday, 23 June 2011. The sugar stocks too remained in jubilant mood after EGoM finally gave a nod for additional 5 lakh tonne of sugar for exports under the open general license. IT stocks rallied after National Association of Software and Services Companies (NASSCOM) President reiterated 16%-18% growth in export revenue for IT outsourcing services in 2011-12 fiscal year, indicating that demand for outsourcing services remains strong. While the PSU oil marketing companies (OMCs) spurted ahead of empowered group of ministers (EGoM) meeting to be held later today, headed by finance minister Pranab Mukherjee to discuss fuel prices. On the other hand, Consumer Durables packs which was the only index that languished in the red terrain with 2.24% losses, succumbed to profit booking after amassing over four percent in the previous session. The markets surged on strong volumes of over Rs 2.13 lakh crore while the turnover for NSE F&O segment also remained on the higher side compared to Thursday at over 1.97 lakh crore. Market breadth remained positive as there were 1984 shares on the gaining side against 852 shares on the losing side while 124 shares remained unchanged.
Finally, the BSE Sensex surged by 513.19 points or 2.89% to settle at 18,240.68 while the S&P CNX Nifty rushed 151.25 points or 2.84% to settle at 5,471.25.
The BSE Sensex touched a high and a low of 18,268.95 and 17,804.94, respectively. The BSE Mid cap and Small cap index surged 2.26% and 1.80% respectively.
The top gainers on the Sensex were Hero Honda up 6.07%, SBI up 5.95%, JP Associate up 4.55%, HDFC up 4.46% and L&T up 4.25%.
On the flip side, Reliance Infra down 0.84% and Reliance down 0.03%were the only losers on the index.
An Empowered Group of Ministers on fuel (EGoM), headed by the Finance Minister Pranab Mukherjee, is expected to meet today to consider a increase in diesel and LPG prices, as well as a cut in duty rates to combat the high cost of crude oil.
It is expected that a hike of Rs 2-3 per litre in diesel prices and an increase of at least Rs 25 per domestic LPG cylinder are on the EGoM agenda. It may also consider raising kerosene prices, along with this, it may also consider reducing custom or importing duty on crude oil to nil from current 5%, and on diesel from 7.5% to 2.5%. At present, state owned Oil Marketing Companies (OMCs) are losing Rs 15.44 per litre on sale of diesel at government subsidized rates.
The Oil Ministry is pushing for equitable sharing of the burden occurring because of the increased international crude oil prices, among consumers, the government and state-owned OMCs. Oil Minister S Jaipal Reddy had met Prime Minister and Finance Minister for calling EGoM meeting as early as possible.
One third of increased prices will have to pass on to consumer in stages, whereas a similar amount will have to be borne by the government by the way of either providing cash subsidy or reducing custom and excise duty. The remaining would be absorbed by the upstream firms like ONGC and fuel retailers. The similar formula would apply to Rs 27.47 per litre loss on kerosene and Rs 381.14 loss on sale of every 14.2 kg domestic LPG cylinder, besides this oil ministry also wants a cut in Rs 4.60 per litre central excise duty levied on diesel to reduce the impact of the high crude oil prices.
At current subsidized prices, which is below the market price, government owned OMCs are estimated to lose Rs 1,66,712 crore in revenues on selling diesel, domestic LPG and kerosene. In May, OMCs had increased prices of deregulated petrol by Rs 5; however, OMCs are still losing Rs 1.98 a litre on the sale of petrol. At present, OMCs are losing Rs 490 crore a day on fuel sales.
The government is likely to keep the hike in retail prices of diesel at minimum level, as any increase in diesel prices will have a significant impact on the headline inflation which is hovering around 9%. The EGoM was originally scheduled to meet on May 11, but the meeting was canceled on the last moment, there was a talk of EGoM meeting on June 9 to take decision on fuel price hike but the meeting was never scheduled for the day. EGoM has not met since last June, when the international crude oil prices were around $70-72 per barrel, which is increased by almost 50%.
The top gainers on the BSE sectoral space were Realty up 3.76%, Metal up 3.40%, IT up 3.37%, Capital Goods(CG) up 3.32% and Bankex up 3.25%.
The only loser in the BSE sectoral space was Consumer Durables (CD) down 2.24%.
The Indian government has asked United States (US) to make progress on the Bilateral Totalisation Agreement (BTA) which would exempt Indian professionals working in the United States from payment of security taxes to mitigate the impact of a visa fee increase last year. India and US are negotiating BTA which once singed, would benefit many Indians who are working in US and paying social security tax but not getting any benefit out of it. Under the BTA, professionals of both the countries would be exempted from social security taxes when they go to work for a short period in the other country.
Anand Sharma, asked US firms to invest in sectors like Agriculture, Infrastructure and Agro-processing industry. Minister said there is requirement for investment to bring about the Second Green Revolution in India and to develop the agro-processing and food processing sectors.
Anand Sharma said India will be spending around $1 trillion on the development of infrastructure in the next Five Year Plan beginning in 2012. There are many gaps in the infrastructure which present opportunities for investment, especially in energy, roads and power. Minister also emphasized on the need to give strength to the ongoing technological collaboration between the two countries through institutional linkages and co-development of technologies. He also pointed out the opportunities available in India in the manufacturing sector, in pharmaceuticals, in research and development and in a number of other sectors. The S&P CNX Nifty touched high and low of 5,477.85 and 5,343.40, respectively.
The top gainers of the Nifty were Sesa Goa up 6.10%, SBI up 5.91%, Hero Honda up 5.71%, Ranbaxy up 5.15% and HDFC up 4.65%.
On the flip side, Reliance Infra down 0.91% and Reliance down 0.23% were the only losers on the index.
European markets were trading in green. France's CAC 40 up by 0.84%, Britain's FTSE 100 advanced 0.98%, and Germany's DAX gained by 0.87%.
All the Asian equity indices barring Taiwan Weighted finished the day's trade in the positive terrain on the last trading day of the week led by Chinese Shanghai which soared more than two percent, its biggest daily rise in more than four months on hopes that inflation will ease soon while, a slew of bullish forecasts of the market's outlook for the second half of this year too strengthened the investors sentiments. Moreover, Hang Seng and Seoul Composite remained the other top gainer followed Shanghai and gained over one and a half percent. However, Taiwan Weighted remained the lone loser among the Asian peers and lost about half a percent, pressured by fall in TSMC which shed 1.75 percent after a broker downgrade and by plastics firms, offsetting a rise in transport shares.
On the global front, leads from the markets across the globe too were buttressing the local sentiments as benchmarks in China, Hong Kong and South Korea spurted by close to two percent while the European markets too opened on a sanguine note with all indices trading with well over a percent gains. Also the sharp plunge in crude prices after IEA's declaration to release 60 million barrels of oil into world markets spurred optimism on speculations that release of oil stocks will bring down prices of commodities at large thus easing inflationary pressure.
The NSE's 50-share broadly followed index Nifty, settled with close to three percent gains above the crucial 5,450 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with over a five hindered point gains above the important psychological 18,200 level. The broader markets have finally showed some fervor after languishing in the red terrain in previous sessions and the midcap index garnered 2.26% while the smallcap index amassed 1.80%. On the sectoral front, it was the rate sensitive Realty and Bankex counters which outperformed not only their sectoral peers but the benchmarks as well. Moreover, Aviation shares flied higher on hopes state-run oil marketing companies will cut aviation turbine fuel prices as crude oil prices fell sharply on Thursday, 23 June 2011. The sugar stocks too remained in jubilant mood after EGoM finally gave a nod for additional 5 lakh tonne of sugar for exports under the open general license. IT stocks rallied after National Association of Software and Services Companies (NASSCOM) President reiterated 16%-18% growth in export revenue for IT outsourcing services in 2011-12 fiscal year, indicating that demand for outsourcing services remains strong. While the PSU oil marketing companies (OMCs) spurted ahead of empowered group of ministers (EGoM) meeting to be held later today, headed by finance minister Pranab Mukherjee to discuss fuel prices. On the other hand, Consumer Durables packs which was the only index that languished in the red terrain with 2.24% losses, succumbed to profit booking after amassing over four percent in the previous session. The markets surged on strong volumes of over Rs 2.13 lakh crore while the turnover for NSE F&O segment also remained on the higher side compared to Thursday at over 1.97 lakh crore. Market breadth remained positive as there were 1984 shares on the gaining side against 852 shares on the losing side while 124 shares remained unchanged.
Finally, the BSE Sensex surged by 513.19 points or 2.89% to settle at 18,240.68 while the S&P CNX Nifty rushed 151.25 points or 2.84% to settle at 5,471.25.
The BSE Sensex touched a high and a low of 18,268.95 and 17,804.94, respectively. The BSE Mid cap and Small cap index surged 2.26% and 1.80% respectively.
The top gainers on the Sensex were Hero Honda up 6.07%, SBI up 5.95%, JP Associate up 4.55%, HDFC up 4.46% and L&T up 4.25%.
On the flip side, Reliance Infra down 0.84% and Reliance down 0.03%were the only losers on the index.
An Empowered Group of Ministers on fuel (EGoM), headed by the Finance Minister Pranab Mukherjee, is expected to meet today to consider a increase in diesel and LPG prices, as well as a cut in duty rates to combat the high cost of crude oil.
It is expected that a hike of Rs 2-3 per litre in diesel prices and an increase of at least Rs 25 per domestic LPG cylinder are on the EGoM agenda. It may also consider raising kerosene prices, along with this, it may also consider reducing custom or importing duty on crude oil to nil from current 5%, and on diesel from 7.5% to 2.5%. At present, state owned Oil Marketing Companies (OMCs) are losing Rs 15.44 per litre on sale of diesel at government subsidized rates.
The Oil Ministry is pushing for equitable sharing of the burden occurring because of the increased international crude oil prices, among consumers, the government and state-owned OMCs. Oil Minister S Jaipal Reddy had met Prime Minister and Finance Minister for calling EGoM meeting as early as possible.
One third of increased prices will have to pass on to consumer in stages, whereas a similar amount will have to be borne by the government by the way of either providing cash subsidy or reducing custom and excise duty. The remaining would be absorbed by the upstream firms like ONGC and fuel retailers. The similar formula would apply to Rs 27.47 per litre loss on kerosene and Rs 381.14 loss on sale of every 14.2 kg domestic LPG cylinder, besides this oil ministry also wants a cut in Rs 4.60 per litre central excise duty levied on diesel to reduce the impact of the high crude oil prices.
At current subsidized prices, which is below the market price, government owned OMCs are estimated to lose Rs 1,66,712 crore in revenues on selling diesel, domestic LPG and kerosene. In May, OMCs had increased prices of deregulated petrol by Rs 5; however, OMCs are still losing Rs 1.98 a litre on the sale of petrol. At present, OMCs are losing Rs 490 crore a day on fuel sales.
The government is likely to keep the hike in retail prices of diesel at minimum level, as any increase in diesel prices will have a significant impact on the headline inflation which is hovering around 9%. The EGoM was originally scheduled to meet on May 11, but the meeting was canceled on the last moment, there was a talk of EGoM meeting on June 9 to take decision on fuel price hike but the meeting was never scheduled for the day. EGoM has not met since last June, when the international crude oil prices were around $70-72 per barrel, which is increased by almost 50%.
The top gainers on the BSE sectoral space were Realty up 3.76%, Metal up 3.40%, IT up 3.37%, Capital Goods(CG) up 3.32% and Bankex up 3.25%.
The only loser in the BSE sectoral space was Consumer Durables (CD) down 2.24%.
The Indian government has asked United States (US) to make progress on the Bilateral Totalisation Agreement (BTA) which would exempt Indian professionals working in the United States from payment of security taxes to mitigate the impact of a visa fee increase last year. India and US are negotiating BTA which once singed, would benefit many Indians who are working in US and paying social security tax but not getting any benefit out of it. Under the BTA, professionals of both the countries would be exempted from social security taxes when they go to work for a short period in the other country.
At the event organized by the US India Business Council (USIBC) on June 23 in Washington DC, the subject which is important for Indian Information Technology Industry came up for discussion between Commerce and Industry Minister Anand Sharma, and William Daley , Chief of Staff in the US administration. As per the statement issued by Anand Sharma, stressed on the need to make progress on BTA and to mitigate the impact of discriminatory measures such as the Border Security Legislation and Zadrog bill enacted last year which would unfairly tax Indian companies.
Under the Zadrog bill, US had imposed 2% tax on the US government procurement from foreign companies and also extended the visa fee on certain categories of H1B and L1, by one more year from 2014 to 2015. Visa categories such as H1B and L1 are mostly used by Indian IT professionals to fund security measures along the US-Mexico border. This increase of visa fee has raised the great concern and anxiety in the $60 billion Indian IT industry, which get its 60% business from the US. Anand Sharma, asked US firms to invest in sectors like Agriculture, Infrastructure and Agro-processing industry. Minister said there is requirement for investment to bring about the Second Green Revolution in India and to develop the agro-processing and food processing sectors.
Anand Sharma said India will be spending around $1 trillion on the development of infrastructure in the next Five Year Plan beginning in 2012. There are many gaps in the infrastructure which present opportunities for investment, especially in energy, roads and power. Minister also emphasized on the need to give strength to the ongoing technological collaboration between the two countries through institutional linkages and co-development of technologies. He also pointed out the opportunities available in India in the manufacturing sector, in pharmaceuticals, in research and development and in a number of other sectors. The S&P CNX Nifty touched high and low of 5,477.85 and 5,343.40, respectively.
The top gainers of the Nifty were Sesa Goa up 6.10%, SBI up 5.91%, Hero Honda up 5.71%, Ranbaxy up 5.15% and HDFC up 4.65%.
On the flip side, Reliance Infra down 0.91% and Reliance down 0.23% were the only losers on the index.
European markets were trading in green. France's CAC 40 up by 0.84%, Britain's FTSE 100 advanced 0.98%, and Germany's DAX gained by 0.87%.
All the Asian equity indices barring Taiwan Weighted finished the day's trade in the positive terrain on the last trading day of the week led by Chinese Shanghai which soared more than two percent, its biggest daily rise in more than four months on hopes that inflation will ease soon while, a slew of bullish forecasts of the market's outlook for the second half of this year too strengthened the investors sentiments. Moreover, Hang Seng and Seoul Composite remained the other top gainer followed Shanghai and gained over one and a half percent. However, Taiwan Weighted remained the lone loser among the Asian peers and lost about half a percent, pressured by fall in TSMC which shed 1.75 percent after a broker downgrade and by plastics firms, offsetting a rise in transport shares.
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