DECENT START

The Indian equity markets have made a decent start hitting their highest level in more than ten weeks with Sensex recapturing its crucial 17,000 mark amid volatility on positive Asian cues. Japan's Nikkei average opened at a fresh three-month high on Wednesday after earnings from US-based technology giant Apple came in above expectations. Back home markets extended their recent rally on sustained buying by funds and retail investors following RBI's decision to cut cash reserve ratio (CRR). All the sectoral indices are in the green - led by metal, consumer durables and oil and gas space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,106 shares on the gaining side against 473 shares on the losing side while 66 shares remained unchanged. Moreover, high volatility is expected on the bourses today as traders roll over positions in futures & options (F&O) segment from the near-month January 2012 series to February 2012 series. The near-month January 2012 F&O contracts expire today as stock market will remain closed on January 26, 2012, on account of Republic Day.

The BSE Sensex opened at 17,068.85; about 73 points higher compared to its previous closing of 16,995.77, and has touched a high and a low of 17,110.02 and 17,035.03 respectively.

The index is currently trading at 17,066.78, up by 71.01 points or 0.42%. There were 22 stocks advancing against 8 declines on the index.

The overall market breadth has made a strong start with 67.23% stocks advancing against 28.75% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.60% and 0.71% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 1.05%, CD up by 0.88%, Oil and Gas up by 0.72%, Power up by 0.64% and PSU was up by 0.63%. While, there were no losers on the index.

The top gainers on the Sensex were Tata Steel up by 2.52%, Tata Motors up by 1.62%, Sterlite Industries up by 1.48%, SBI up by 1.16% and Coal India up by 1.00%.

On the flip side, Maruti Suzuki was down by 1.01%, Hero MotoCorp was down by 0.74%, ICICI Bank was down by 0.65%, Cipla was down by 0.48%  and Jindal Steel down by 0.40% were the only losers on the Sensex.

Meanwhile, India's trade with the ASEAN countries is expected to grow to $70 Billion by 2012. These expectations are based on the fact that trade between India and ASEAN countries has been growing at a rate of 18-20% every year. In 2011, trade crossed the $50 billion mark and hence targets for the year 2012 have been pegged at $70 billion, a growth of 20%. Since its start about a decade ago, the partnership between India and the Association of South East Asian Nations (ASEAN) comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam has been developing at quite a fast pace. Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from $ 2.9 billion in 1993 to $ 12.1 billion in 2003. In 2008, the total volume of ASEAN-India trade was $ 47.5 billion and it crossed the $ 50 billion mark in 2011.

The India-ASEAN Free Trade Agreement (FTA) is expected to further increase goods trade between India and ASEAN countries. India has a Comprehensive Economic Cooperation Agreement (CECA) signed with Singapore and FTAs with Malaysia, Indonesia and Thailand. India and ASEAN are currently negotiating agreements on trade in services and investment. The services negotiations are taking place on a request-offer basis, wherein both sides make requests for the openings they seek and offers are made by the receiving country based on the requests.

India has made requests in a number of areas including teaching, nursing, architecture, chartered accountancy and medicine as it has a large number of English speaking professionals in these areas who can gain from job opportunities in the ASEAN region. India is also keen on expanding its telecom, IT, tourism and banking network in ASEAN countries.

The S&P CNX Nifty opened at 5,151.50; about 24 points higher compared to its previous closing of 5,127.35, and has touched a high and a low of 5,160.30 and 5,134.90 respectively.

The index is currently trading at 5,144.65, higher by 17.30 points or 0.34%. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were Tata Steel up by 2.35%, BPCL up by 2.14%, IDFC up by 1.87%, Tata Motors up by 1.67% and JP Associates up by 1.35%.

On the flip side, Kotak Bank down by 1.98%, ICICI Bank down by 1.04%, Maruti Suzuki down by 1.02%, Hero MotoCorp down by 0.73% and Jindal Steel down by 0.62%, were the major losers on the index.

In Asia, majority of bourses remained closed for Lunar New Year holiday, however, Nikkei 225 was up 105.43 points or 1.20% to 8,890.76, Straits Times was up 24.30 points or 0.85% to 2,873.68 and Seoul Composite was up by 8.96 points or 0.46% to 1,958.85.

On the flip side, Jakarta Composite was down by 14.54 points or 0.36% to 3,980.05.