Indian equity markets on making a strong comeback after six consecutive sessions of slide in the early deals have sealed the gains in sync with the Asian peers, buoyed by the Fed Chairman Ben S. Bernanke vow's to keep borrowing costs at an all-time low of nearly zero percent through the middle of 2013. The broad based buying witnessed across the board post the development in US has granted new vigor to the local markets. As on the global front, U.S. stocks notched the biggest gain in more than two years as investors applauded the Federal Reserve's pledge to keep interest rates near zero. Meanwhile, Asian shares too rebounded after the US Federal Reserve stepped in to stem a global equity route. However, US stock future indices are showing a downtick in the screen trade. Back in India, however, some experts are of the view that relief rally may not last long and the indices may see a technical correction as they feel that the intermediate trend still looks very bearish and any pullback should be used to cut positions or go short. Although bulls have put to rest the bears as frenzied buying is witnessed across the board, however, stocks that have led to the dazzling gains at Dalal Street belong to the high beta Realty, Information Technology and Auto counters. Auto stocks are in good contour despite the Car sales in India falling to 15.8 percent in July. According to data from the Society of Indian Automobile Manufacturers, the Indian automakers sold 133,747 cars in July, while the sale of trucks and buses, a key pointer to economic activity, rose 23.7 percent to 64,241 vehicles in July. The 30 scrip sensitive index on BSE is currently trading above the 17200 level with the sparkling gains of over 350 points. Similarly, the 50 share on NSE gaining over 100 points is currently trading over 5100 mark. The broader indices too doing well are currently outperforming their larger counterparts. The overall market breadth on BSE is in the favour of declines which have outpaced advances in the ratio of 2041:350, while 61 shares remained unchanged.
The BSE Sensex is currently trading at 17,208.71, up by 350.80 points or 2.08%. The index has touched a high and low of 17,256.46 and 17,093.63 respectively. There were 27 stocks advancing against just 2 declining one's on the index, while a stock remained unchanged.
The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 2.32% and 2.92% respectively.
Frenzied buying was witnessed across the board. However, the top gaining sectoral indices on the BSE were, Realty up by 3.30%, IT up by 3.24%, Auto up by 3.20%, CD up by 2.94%, and Metal up by 2.78% While, there were no losers on the index.
The top gainers on the Sensex were Hindalco Industries up by 5.24%, Tata Motors up by 4.99%, M&M up by 4.34%, DLF up by 3.71% and Infosys was up by 3.53%.
On the flip side, ONGC was down by 1.22% and Hindalco Industries down by 0.92% were the only losers on the Sensex.
Meanwhile, the government is ready to involve private sector players for the revival of sick public sector enterprises (PSEs). There are around 249 central public sector units (PSUs) and till the end of 2009-10 financial years, around 59 PSUs were sick. Minister of Heavy Industries and Public Enterprises Praful Patel said, 'the government is open to induct private sector to turnaround companies that have the potential for revival on a case-to-case basis.'
On the number of sick PSEs Praful Patel said, "As of March 31, 2010, there are 59 public sector units which have incurred losses, by adding he said that the Centre has approved the restructuring/revival of 14 PSEs in the last three financial years (2007-2010).
During the revival period of the 14 sick PSEs the central government has envisaged giving total cash help of Rs 14,757 crore. On the issue of improving corporate governance in PSEs, Patel said the government has issued guidelines under which state-run units may report their whistle-blower policy in their annual report.
The whistle-blower policy is the regime for employees to reports concerns about unethical behaviour, actual or suspected fraud, or violation of the company's general guidelines on conduct or ethic policy to the management. By adding further Patel said, 'adequate safeguards should be provided against victimization of employees who avail of the above referred policy.'
The sick industrial companies (Special provisions) Act, 1985, as amended in 1993 defines sick industrial company as an industrial company (being a company registered for not less than five years) which has at the end of any financial year accumulated losses equal to or exceeding its entire networth.The S&P CNX Nifty is currently trading at 5,180.60, higher by 107.55 points or 2.12%. The index has touched a high and low of 5,197.95 and 5,146.15 respectively. There were 45 stocks advancing against 5 declines on the index.
The top gainers of the Nifty were Tata Motors up by 5.55%, Hindalco Industries up by 5.41%, M&M up by 4.64%, DLF up by 3.81% and Reliance Infra up by 3.74%.
On the flip side, BPCL down by 1.31%, ONGC down by 1.14%, HUL down by 0.97%, GAIL down by 0.31% and Grasim down by 0.07%, were the top losers on the index.
The BSE Sensex is currently trading at 17,208.71, up by 350.80 points or 2.08%. The index has touched a high and low of 17,256.46 and 17,093.63 respectively. There were 27 stocks advancing against just 2 declining one's on the index, while a stock remained unchanged.
The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 2.32% and 2.92% respectively.
Frenzied buying was witnessed across the board. However, the top gaining sectoral indices on the BSE were, Realty up by 3.30%, IT up by 3.24%, Auto up by 3.20%, CD up by 2.94%, and Metal up by 2.78% While, there were no losers on the index.
The top gainers on the Sensex were Hindalco Industries up by 5.24%, Tata Motors up by 4.99%, M&M up by 4.34%, DLF up by 3.71% and Infosys was up by 3.53%.
On the flip side, ONGC was down by 1.22% and Hindalco Industries down by 0.92% were the only losers on the Sensex.
Meanwhile, the government is ready to involve private sector players for the revival of sick public sector enterprises (PSEs). There are around 249 central public sector units (PSUs) and till the end of 2009-10 financial years, around 59 PSUs were sick. Minister of Heavy Industries and Public Enterprises Praful Patel said, 'the government is open to induct private sector to turnaround companies that have the potential for revival on a case-to-case basis.'
On the number of sick PSEs Praful Patel said, "As of March 31, 2010, there are 59 public sector units which have incurred losses, by adding he said that the Centre has approved the restructuring/revival of 14 PSEs in the last three financial years (2007-2010).
During the revival period of the 14 sick PSEs the central government has envisaged giving total cash help of Rs 14,757 crore. On the issue of improving corporate governance in PSEs, Patel said the government has issued guidelines under which state-run units may report their whistle-blower policy in their annual report.
The whistle-blower policy is the regime for employees to reports concerns about unethical behaviour, actual or suspected fraud, or violation of the company's general guidelines on conduct or ethic policy to the management. By adding further Patel said, 'adequate safeguards should be provided against victimization of employees who avail of the above referred policy.'
The sick industrial companies (Special provisions) Act, 1985, as amended in 1993 defines sick industrial company as an industrial company (being a company registered for not less than five years) which has at the end of any financial year accumulated losses equal to or exceeding its entire networth.The S&P CNX Nifty is currently trading at 5,180.60, higher by 107.55 points or 2.12%. The index has touched a high and low of 5,197.95 and 5,146.15 respectively. There were 45 stocks advancing against 5 declines on the index.
The top gainers of the Nifty were Tata Motors up by 5.55%, Hindalco Industries up by 5.41%, M&M up by 4.64%, DLF up by 3.81% and Reliance Infra up by 3.74%.
On the flip side, BPCL down by 1.31%, ONGC down by 1.14%, HUL down by 0.97%, GAIL down by 0.31% and Grasim down by 0.07%, were the top losers on the index.
All the Asian equity indices barring Straits Times were trading in the green; Shanghai Composite was up by 1.88, Hang Seng was up by 3.33%, Jakarta Composite was up by 3.07%, KLSE Composite was up by 0.96%, Nikkei 225 was up by 1.26, Seoul Composite was up by 1.57 and Taiwan Weighted was up by 3.25%.
On the flip side, Straits Times was down by 0.52% to 2,859.41.
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