Prolonging its previous sessions' rally, Indian equity benchmarks have made a good start tracking positive cues from global indices. Investors' morale got underpinned after better-than-anticipated manufacturing reports from the global growth engines like China and India along with upbeat factory activity data from developed economies like the US and EU, spurred hopes that a recovery could be back on track. Moreover, the overnight rally on Wall Street on the back of strong manufacturing data and encouraging reports about the Greek debt crisis too boosted the sentiments. 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 17,450 and 5,250 mark respectively. Moreover, continued capital inflows by foreign funds following an improvement in the sentiments on better-than- expected third quarter earnings by some corporates and strong sales in January by auto makers also supported the rally. The broader indices too were trading neck to neck with benchmarks. The market breadth on the BSE was positive; there were 1,241 shares on the gaining side against 363 shares on the losing side while 43 shares remained unchanged.
The BSE Sensex opened at 17,438.07; about 138 points higher compared to its previous closing of 17,300.58, and has touched a high and a low of 17,491.94 and 17,427.37 respectively.
The index is currently trading at 17,451.69, up by 151.11 points or 0.87%. There were 28 stocks advancing against just 2 declines on the index.
The overall market breadth has made a strong start with 75.35% stocks advancing against 22.04% declines. The broader indices too were trading in-line with benchmarks; the BSE Mid cap and Small cap indices rose 0.89% and 1.01% respectively.
The top gaining sectoral indices on the BSE were, CG up by 1.43%, Power up by 1.39%, Bankex up by 1.24%, Metal up by 1.23% and PSU up by 1.17%. While, there were no losers on the index.
The top gainers on the Sensex were Sterlite Industries up by 4.40%, Tata Power up by 3.36%, ICICI Bank up by 2.28%, Hero MotoCorp up by 1.96% and M&M up by 1.66%.
On the flip side, Cipla was down by 0.83% and ITC was down by 0.55% remained the only losers on the Sensex.
Meanwhile, India's fiscal deficit for the current financial year is likely to go up by one percentage point, and it is expected to hover around 5.6% as compared to the budgeted 4.6% of gross domestic product (GDP), said Prime Minister's Economic Advisory Council (PMEAC) panel member M Govinda Rao.
As per the Controller General of Accounts (CGA) data, the fiscal deficit for the first three quarters (April-December 2011), has already reached 92.3% of the full-year target and it is unlikely that the government will be able to contain it at the budgeted levels. This is mainly due to poor realization of non-tax revenues and also because the government has so far managed to raise only Rs 1,145 crore this fiscal from disinvestment against a target of Rs 40,000 crore.
Rao's forecast seconds the view expressed by many private economists who had warned that the deficit could overshoot the budgeted target due to slowing growth and weak federal finances. The Centre's fiscal deficit was 45% of the estimates in the same period last year. For the current financial year, the government had estimated a deficit of Rs 4.12 lakh crore, or 4.6% of the GDP.
Till December, the government's tax receipts stood at Rs 4.20 lakh crore, 63.3% of the Budget target for the entire financial year. On the other hand, non-tax receipts were just Rs 78,077 crore, 62.2% of Budget estimates. Likewise, non-debt capital receipts were just Rs 16,858 crore, 30.6% of estimates, against 69.4% in the first three quarters of the last financial year.
The S&P CNX Nifty opened at 5,272.10; about 37 points higher compared to its previous closing of 5,235.70, and has touched a high and a low of 5,287.60 and 5,267.60 respectively.
The index is currently trading at 5,269.70, higher by 34.00 points or 0.65%. There were 39 stocks advancing against 11 declines on the index.
The top gainers of the Nifty were Sterlite Industries up by 3.60%, Ambuja Cement up by 3.34%, Tata Power up by 2.50%, HCL Tech up by 2.16% and ICICI Bank up by 2.03%.
On the flip side, RCom down by 2.14%, Cairn down by 2.00%, Bajaj Auto down by 1.24%, Cipla down by 0.96% and IDFC down by 0.76% remained the top losers on the index.
All the Asian equiy indices were trading in the green; Shanghai Composite was up 6.96 points or 0.31% to 2,275.04, Hang Seng was up 296.31 points or 1.46% to 20,629.68, Jakarta Composite was up 22.53 points or 0.57% to 3,987.50, Nikkei 225 was up 78.25 points or 0.89% to 8,888.04, Straits Times was up 15.36 points or 0.53% to 2,920.12, Seoul Composite was up 24.25 points or 1.24% to 1,983.49 and Taiwan Weighted was up 60.54 points or 0.80% to 7,609.75.
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