GAP UP START

Key domestic bourses have made a gap up opening following a relief rally in Asian markets. All the Asian equity indices were trading in the positive terrain as sentiments got buttressed by encouraging global manufacturing activity reports. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 15,700 and 4,700 mark respectively. Metal witnessed the maximum gain in trade followed by realty and capital goods while, there were no losers on the BSE sectoral space. The Purchasing Managers' Index in India rose to 54.2, the most in six months, from 51 in November too aided the sentiments. Bank stocks rose after the Reserve Bank of India on December 30, 2011, issued draft guidelines outlining proposed implementation of Basel III capital regulation in India. The broader indices too were trading on a firm note. The market breadth on the BSE was positive; there were 999 shares on the gaining side against 447 shares on the losing side while 47 shares remained unchanged.
The BSE Sensex opened at 15,640.56; about 123 points higher compared to its previous closing of 15,517.92, and has touched a high of 15,751.10 while low remain its opening.
The index is currently trading at 15,739.35, up by 221.43 points or 1.43%. There were 29 stocks advancing against only 1 decline on the index.
The overall market breadth has made a strong start with 73.42% stocks advancing against 23.16% declines. The broader indices too were trading on firm note; the BSE Mid cap and Small cap indices rose 1.04% and 0.95% respectively.
The top gaining sectoral indices on the BSE were, Metal up by 2.14%, Realty up by 2.08%, CG up by 1.84%, Bankex up by 1.82% and CD up by 1.57%. While, there were no losers on the index.
The top gainers on the Sensex were Coal India up by 4.03%, Tata Power up by 2.72%, DLF up by 2.60%, Tata motors up by 2.23% and Jindal Steel up by 2.18%. While, M&M down by 2.13% remained the lone loser on the Sensex.
Meanwhile, growth in lending to the priority sector continued to slow in the month of November as it grew by just 9.2 percent on an annualised basis as compared to 21 percent during the same month of 2010. November month saw the lowest rate of growth in lending to the crucial sectors during the fiscal 2011-12 owing to lower credit offtake in the agriculture and MSME segments, besides a decline in micro credit.
According to the Reserve Bank of India statement, credit disbursement to the priority sector stood at Rs 12.53 lakh crore in November, as against Rs 11.48 lakh crore in the same month in 2010. Bank disbursements to agriculture and allied activities went up by a meager 7.3 percent to Rs 4.41 lakh crore in the period under consideration while it had gone up by 20 percent on an annual basis in the same month last year.

Growth rate in offtake by the micro and small enterprises (MSME) too eased to 16.1 percent at Rs 4.73 lakh crore in November from a growth rate of 21.6 percent in November last year. Meanwhile, micro credit sector, which had grown by over 51 percent in November last year, registered a decline of 10.5 percent during the month under review to Rs 25,343 crore.

Credit to the housing sector stood at Rs 2.36 lakh crore in November this year, which on an annual basis is just 1.9 percent against the growth rate of 9 percent in November 2010. Bank credit disbursement to weaker sections grew by 11.7 percent to Rs 2.11 lakh crore during the month under review while it had grown at an annual rate of 29.8 percent in November last year. While some priority sectors like agriculture and loans for weaker sections is disbursed at an interest rate lower than the prime lending rates, other segments do not fall under the subsidized lending regime.
The S&P CNX Nifty opened at 4,675.80; about 39 points higher compared to its previous closing of 4,636.75, and has touched a high of 4,705.35 while low remain its opening.
The index is currently trading at 4,702.55, higher by 65.80 points or 1.42%. There were 48 stocks advancing against just 2 declines on the index.
The top gainers of the Nifty were Coal India up by 3.56%, Cairn up by 2.68%, Tata Power up by 2.67%, DLF up by 2.51% and Kotak Bank up by 2.38%.
On the flip side, M&M down by 1.97% and BPCL down by 1.57% remained the only losers on the index.
All the Asian equity indices were trading in the green; Hang Seng was up 378.30 points or 2.05% to 18,812.69, Jakarta Composite was up 32.31 points or 0.85% to 3,841.45, Straits Times was up 30.52 points or 1.15% to 2,676.87, Seoul Composite was up 43.98 points or 2.41% to 1,870.35 and Taiwan Weighted was up by 116.63 points or 1.68% to 7,068.84.
Stock markets in China and Japan remained shut for extended New Year's holiday.