ENCOURAGING SESSION

First trading day of February series F&O expiry week is turning out to be an encouraging session for the Indian benchmark indices which have climbed to multi-month high levels. The frontline indices have re-captured the psychological 5,600 (Nifty) and 18,400 (Sensex) levels in the afternoon session after garnering around a percent gains. The gains appeared even more prominent as they came on a day when most Asian markets declined. Coming from an extended weekend, investors took to hefty across the board buying on the back of encouraging reports that Finance ministers from the Euro-zone have finally struck a deal for Greece's second bailout package however, details were still being worked out in the early hours of Tuesday, more than 12 hours after discussions began. Sentiments also remained upbeat in the session after government released an encouraging India's first-ever CPI-based inflation data which showed inflation based for Rural Labourers (CPI-RL) and Agricultural Labourers (CPI-AL) fell to 4.92% and 5.27% in January from 6.37% and 6.72% in December. Stocks from the power sector continued to hog the limelight with hefty gains while the Realty and Metal pockets too are not far behind. However, the information technology counter remained the only chink in the armor as it traded in the negative terrain with moderate losses. On the global front, Asian markets are trading largely on a pessimistic note while European stock futures are indicating a higher opening for the markets there as sentiments remain positive on reports that European finance ministers reached an agreement on a Greek aid package.

Moreover, the broader markets too traded with fervor and amassed around a percent gains, performing largely in line with their larger peers. The bourses surged on good volumes of over Rs 1 lakh crore while market breadth on BSE was in favor of advances in the ratio of 1613:1082 while 120 scrips remained unchanged.

The BSE Sensex is currently trading at 18,420.07 up by 130.72 points or 0.71% after trading as high as 18,452.51 and as low as 18,293.80. There were 19 stocks advancing against 11 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index gained 0.86% and Small cap gained 1.26%.

On the BSE sectoral space, Realty up 1.89%, Metal up 1.82%, Power up 1.59%, Capital Goods up 1.46% and Oil & Gas up 1.39% were the major gainers while IT down 0.28% was the only loser in the space.

BHEL up 4.47%, Tata Steel up 4.31%, Hindalco Industries up 3.51%, ONGC up 3.31% and SBI up 1.96% were the major gainers on the Sensex, while Tata Motors down 0.69%, Wipro down 0.53%, HDFC Bank down 0.37%, TCS down 0.34% and Infosys down 0.28% were the major losers in the index.

Meanwhile, reflecting sharp drop in prices of essential food items, inflation based on Consumer Price Index for Rural Labourers (CPI-RL) fell to 4.92 percent in January from 6.37 percent in December. The rate of price rise based on the Consumer Price Index for Agricultural Labourers (CPI-AL) also fell to 5.27 percent in January from 6.72 percent in December 2011, an official release said.

On a point-by-point basis, the CPI (RL) index stood at 619 points in January, the same level as in the previous month. The CPI (AL) also remained stable month-on-month at 618 points. Food index for rural labourers was down marginally by 0.33 percent on a monthly basis in January. However, prices of other goods continued to rise. Pan and supari was expensive by 1.45 percent in January, while fuel and lighting was expensive by 1.15 percent. Clothing, bedding and footwear was up also by 0.32 percent.

Miscellaneous items became dearer by 0.68 percent month-on-month for rural labourers. In the case of agricultural labourers, food prices went down by 0.50 percent on a monthly basis in the last month. But other items became expensive in January as compared to December. Pan and supari became expensive by 1.22 percent. Fuel and lighting became expensive by 1.14 percent and clothing, bedding and footwear by 0.33 percent. In January, miscellaneous items also went up by 0.85 percent for agricultural labourers month-on-month. 

The S&P CNX Nifty is currently trading at 5,611.50, higher by 47.20 points or 0.85% after trading as high as 5,617.75 and as low as 5,561.75. There were 37 stocks advancing against 13 declines on the index.

The top gainers on the Nifty were BHEL up 4.56%, Tata Steel up 4.49%, ONGC up 3.47%, Hindalco up 3.44% and R Infra up 2.89%.

Tata Motors down 0.69%, HDFC Bank down 0.52%, Wipro down 0.41%, HCL Tech down 0.39% and Maruti down 0.34% were the major losers on the index.

In the Asian space, Shanghai Composite slipped 0.20%, Hang Seng eased 0.27%, KLSE Composite dropped 0.06%, Nikkei 225 declined 0.21%, Seoul Composite lost 0.24% and Taiwan Weighted shed 0.42%.

On the flipside only Jakarta Composite advanced 0.46% and Straits Times added 0.01%.