MARKETS MOVE UP

Frontline equity indices oscillating in a tight range have managed to gain slender traction in backdrop of global uncertainty which has been rekindled after a series of euro zone ratings cuts by Moody's Investors Services. Moody's downgraded its ratings on six European nations including Spain and Italy, and warned that its top ratings on Austria, France and the U.K. could be at risk, citing the weakening prospects for an overhaul in Europe. Reacting to this, regional counterparts too are trading weak. However, even the US future indices are showing a downtick in the screen trade. The spotlight now largely remains on Greece as investors await a key meeting of European finance ministers in Brussels on Wednesday over the ratification of a second bailout for Greece.

The cautious sentiment of Dalal Street is also ahead of the release of the inflation data for January, which is likely to offer clues on the likely direction of policy interest rates. The expectation is that headline inflation rate, based on wholesale prices, may have fallen to 6.60 percent year-on-year in January from 7.47 percent in December.

Back home, stocks from Realty, Bankex and Public Sector Undertaking counters are doing their best to sustain the up move of the bourses, however, stocks from Healthcare, TECK and Information Technology counters are the weak links of the trade. The 30 share volatile index of BSE-Sensex-after gaining close to 50 points is trading above the sparkling 17800 level, while 50 share widely followed index has too pierced through the 5400 mark. The broader indices too outperforming the frontline equity indices are up with gains of over half a percent each. The overall market breadth on BSE is in the favour of advances which have thrashed declines in the ratio of 1412:842, while 104 shares remain unchanged.

The BSE Sensex is currently trading at 17,821.98, up by 49.14 points or 0.28%.The index has touched a high and a low of 17,840.39 and 17,742.58 respectively.  There were 19 stocks advancing against 11 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.73% and 0.76% respectively.

The top gaining sectoral indices on the BSE were Realty up by 1.30%, Bankex up by 1.09%, PSU up by 1.04%, Auto up by 1.00% and CD up by 0.86%. While, HC down by 0.56%, TECk down by 0.29% and IT down by 0.26% were the only losers on the index.

The top gainers on the Sensex were SBI up by 3.70%, M&M up by 1,91%, Hindalco Industries up by 1.80%, Tata Motors up by 1.63% and L&T up by 1.38%.

On the flip side, Cipla down by 5.18%, Tata Power down by 1.76%, Bharti Airtel down by 1.28%, ONGC down by 0.86% and Bajaj Auto down by 0.81% were the top losers on the Sensex.

Meanwhile, with the fiscal deficit crossing 90% of the budget target in nine months, the government is all set to move ahead with divestment in ONGC and BHEL. The modus operandi is likely to be through auction and the government hopes to raise 14,500 crore through it.

An Empowered Group of Ministers (EGoM) headed by the Finance Minister is scheduled to meet on Wednesday, February 15 to finalise the exact amount of disinvestment and the price. The government wants to offer 5% in ONGC and 10% in BHEL. After the divestment, its holding will come down to 69.14% in ONGC and 62.72% in BHEL. The Disinvestment Department has sent the paper for ONGC stake sale to Finance Minister and a reply is expected within 2-3 days.

The government had set a disinvestment target of Rs 40,000 crore this year, but has been able to raise only a little over Rs 1,145 crore so far. Market regulator Securities and Exchange Board of India (Sebi) has issued norms allowing promoters to sell stake by way of auction, through a separate window on the BSE and the National Stock Exchange that has to be completed within a day.

The S&P CNX Nifty is currently trading at 5,407.15, higher by 16.95 points or 0.31%. The index has touched a high and a low of 5,411.30 and 5,377.95 respectively.  There were 35 stocks advancing against 15 declines on the index.

The top gainers of the Nifty were SBI up by 3.70%, PNB up by 2..53%, IDFC up by 1.94%, Hindalco Industries up by 1.89% and  BPCL up by 1.83%.

Cipla down by 5.01%, Tata Power down by 1.76%, Bharti Airtel down by 1.32%, ONGC down by 1.09% and Siemens down by 1.06% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined 0.58%, Hang Seng was trading flat with negative bias, Jakarta Composite inched lower by 0.05%, Seoul Composite declined 0.28% , Taiwan Weighted shed 0.39% and Straits Times trimmed 0.09%

On the flip side, Nikkei 225 gained 0.48% was the lone gainer amongst the Asian pack