Indian equities have extended their gaining momentum
in Monday afternoon trades and are trading around the high point of the
day with about one and half a percent gains. Investors continued to
build hefty positions across the board as sentiments got a boost after
reports that French President and German Chancellor have pledged to
protect the banks and resolve the region's lingering debt trouble that
is threatening global growth. Investors' morale also remained upbeat as
the US Labor Department reported, employers added 103,000 workers in
September after a revised 57,000 increase the month before, indicating
that US is not moving into a recession. The markets in Europe too have
got off to an optimistic start while the Asian peers continue to trade
on a mixed note. On the domestic front, telecom shares like Reliance
Communications and Idea Cellular failed to participate in the rally as
marketmen awaited the release of new draft of National Telecom Policy
2011, which the telecom minister is scheduled to release in the later
part of the day. Meanwhile, IT bellwether Infosys surged by close to two
percent a day ahead of its quarterly earnings announcement which will
officially mark the opening of July-September quarterly earnings season.
Also, Index heavyweight Reliance Industries made its presence felt by
surging over two percent in the session on reports that the company is
eyeing a deal with the Indian unit of Walt Disney, to acquire content
for its telecom operations. On the sectoral front, buying was evident
across the board and investors piled up hefty positions in the high beta
Realty counter which rocketed by over two percent while the beaten down
Oil & Gas index too from strength to strength and climbed by about
two percent. However, only chink in the armor was the Capital Goods
pocket which traded on a flat note with a negative bias as heavyweight
L&T plunged by over one and half a percent.
Moreover, the broader markets traded on an optimistic note with strong gains of about a percent but were outperformed by their larger peers. The bourses gained on good volumes of over Rs 0.50 lakh core, while the market breadth on BSE was in favor of advances in the ratio of 1537:937 while 100 scrips remained unchanged.
The BSE Sensex is currently trading at 16,440.09 up by 207.55 points or 1.28% after trading as high as 16,490.13 and as low as 16,230.77. There were 25 stocks advancing against 5 declines on the index.
The broader indices were trading with good gains; the BSE Mid cap index surged 0.97% and Small cap ascended 0.77%.
On the BSE sectoral space, Realty up 2.27%, Oil & Gas up 1.77%, Power up 1.65%, Consumer Durables up 1.65% and IT up 1.61% were the major gainers while Capital Goods down 0.09% was the only loser in the space.
Tata Motors up 5.48%, Tata Power up 3.97%, DLF up 3.23%, Sterlite up 2.34% and Tata Steel up 2.32% were the major gainers on the Sensex, while Maruti Suzuki down 2.53%, L&T down 1.57%, Sun Pharma down 1.27%, Jindal Steel down 0.51% and Coal India down 0.31% were the only losers on the index.
Meanwhile, advocating the need for regulating the trading in crude oil, the Minister of State for Petroleum and Natural Gas R.P.N. Singh, said Volatility in crude oil pricing cannot be left unregulated; measures should be put in place to check unhealthy, speculative, over-the-counter trading in the paper barrels.
By adding further R.P.N. Singh said the reasons for the fluctuation in crude oil pricing need to be examined in greater detail. In India, the domestic crude oil prices are linked to the international parity principle. In current week, the Indian crude oil basket, the price at which Indian refiners' imports crude oil has decline by 3.7%, from October 3 to 5. On October 3, it was around $102.73 per barrel which declined to $98.86 per barrel. India has taken a strong stand on the issue at various international forums and was pitching for a price that is affordable for all, he said.
"This volatility is a concern. All stakeholders - consumers as well as producers - need to work out a mechanism where there is more transparency in the system. Why is it that despite a slowdown in the economy, prices keep rising? An answer to this question needs to be found," minister said.
On the domestic front, petroleum refining pricing too has been linked to the international trade parity principle. India has witnessed a slow revolution and has emerged as a major export hub in recent years, he further added.
During last financial year, Indian refiner's exported around 56 million tonnes of petroleum products valued at around $40 billion, which make it the largest foreign exchange earner in merchandise category.
Singh also noted that the most efficient way of dealing with subsidies (diesel, domestic LPG, and kerosene are sold at a controlled price in India) is when it is targeted effectively. To plug leakages in the public distribution system and eventually bring down the subsidy burden of the Government, a task force has been set up to implement a phased plan for direct transfer of cash subsidy to the beneficiaries.
"We expect that at the end of this exercise over a three-year period, dual pricing in kerosene and LPG will come to an end and products will move at a single market price, with the cash subsidy only for intended sections of the society, being transferred directly to their bank accounts," he added.
The S&P CNX Nifty is currently trading at 4,939.00, higher by 50.95 points or 1.04% after trading as high as 4,961.65 and as low as 4,882.05. There were 37 stocks advancing against 13 declines on the index.
Asian markets traded on mixed note, Shanghai Composite shed 0.74%, Hang Seng sank 0.78% and KLSE Composite receded 0.44%.
On the flipside Jakarta Composite advanced 0.56%, Straits Times ascended 0.51% and Seoul Composite rose 0.38%.
Stock markets in Japan remained closed on Monday on account of the Health and Sports Day holiday while bourses in Taiwan too were shut in observance of the Double Ten National Day holiday.
The European markets traded on optimistic note as France's CAC 40 surged 1.02%, Germany's DAX gained 0.58% and Britain's FTSE 100 rose 0.52%.
Moreover, the broader markets traded on an optimistic note with strong gains of about a percent but were outperformed by their larger peers. The bourses gained on good volumes of over Rs 0.50 lakh core, while the market breadth on BSE was in favor of advances in the ratio of 1537:937 while 100 scrips remained unchanged.
The BSE Sensex is currently trading at 16,440.09 up by 207.55 points or 1.28% after trading as high as 16,490.13 and as low as 16,230.77. There were 25 stocks advancing against 5 declines on the index.
The broader indices were trading with good gains; the BSE Mid cap index surged 0.97% and Small cap ascended 0.77%.
On the BSE sectoral space, Realty up 2.27%, Oil & Gas up 1.77%, Power up 1.65%, Consumer Durables up 1.65% and IT up 1.61% were the major gainers while Capital Goods down 0.09% was the only loser in the space.
Tata Motors up 5.48%, Tata Power up 3.97%, DLF up 3.23%, Sterlite up 2.34% and Tata Steel up 2.32% were the major gainers on the Sensex, while Maruti Suzuki down 2.53%, L&T down 1.57%, Sun Pharma down 1.27%, Jindal Steel down 0.51% and Coal India down 0.31% were the only losers on the index.
Meanwhile, advocating the need for regulating the trading in crude oil, the Minister of State for Petroleum and Natural Gas R.P.N. Singh, said Volatility in crude oil pricing cannot be left unregulated; measures should be put in place to check unhealthy, speculative, over-the-counter trading in the paper barrels.
By adding further R.P.N. Singh said the reasons for the fluctuation in crude oil pricing need to be examined in greater detail. In India, the domestic crude oil prices are linked to the international parity principle. In current week, the Indian crude oil basket, the price at which Indian refiners' imports crude oil has decline by 3.7%, from October 3 to 5. On October 3, it was around $102.73 per barrel which declined to $98.86 per barrel. India has taken a strong stand on the issue at various international forums and was pitching for a price that is affordable for all, he said.
"This volatility is a concern. All stakeholders - consumers as well as producers - need to work out a mechanism where there is more transparency in the system. Why is it that despite a slowdown in the economy, prices keep rising? An answer to this question needs to be found," minister said.
On the domestic front, petroleum refining pricing too has been linked to the international trade parity principle. India has witnessed a slow revolution and has emerged as a major export hub in recent years, he further added.
During last financial year, Indian refiner's exported around 56 million tonnes of petroleum products valued at around $40 billion, which make it the largest foreign exchange earner in merchandise category.
Singh also noted that the most efficient way of dealing with subsidies (diesel, domestic LPG, and kerosene are sold at a controlled price in India) is when it is targeted effectively. To plug leakages in the public distribution system and eventually bring down the subsidy burden of the Government, a task force has been set up to implement a phased plan for direct transfer of cash subsidy to the beneficiaries.
"We expect that at the end of this exercise over a three-year period, dual pricing in kerosene and LPG will come to an end and products will move at a single market price, with the cash subsidy only for intended sections of the society, being transferred directly to their bank accounts," he added.
The S&P CNX Nifty is currently trading at 4,939.00, higher by 50.95 points or 1.04% after trading as high as 4,961.65 and as low as 4,882.05. There were 37 stocks advancing against 13 declines on the index.
The
top gainers on the Nifty were Tata Motors up 5.37%, Tata Power up
4.22%, DLF up 3.48%, IDFC up 3.09% and Tata Steel up 2.42%.
Maruti down 2.31%, L&T down 1.58%, Sun Pharma
down 1.39%, Ambuja Cement down 0.96% and Jindal Steel down 0.82% were
the major losers on the index. Asian markets traded on mixed note, Shanghai Composite shed 0.74%, Hang Seng sank 0.78% and KLSE Composite receded 0.44%.
On the flipside Jakarta Composite advanced 0.56%, Straits Times ascended 0.51% and Seoul Composite rose 0.38%.
Stock markets in Japan remained closed on Monday on account of the Health and Sports Day holiday while bourses in Taiwan too were shut in observance of the Double Ten National Day holiday.
The European markets traded on optimistic note as France's CAC 40 surged 1.02%, Germany's DAX gained 0.58% and Britain's FTSE 100 rose 0.52%.
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