GAP UP START

After witnessing massacre of over one and half a percent in previous session, the Indian equity markets have made a gap up start triggered by a firming trend on other Asian bourses post upbeat Japanese GDP data. All the Asian equity indices were trading in the positive terrain at this point of time on reports that the world's third largest Japanese economy expanded at a faster than expected rate of 1% in the first quarter of 2012 as against the revised 0.1% growth in the final three months of 2011. Back home, sustained buying in all the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 16,100 and 4,900 mark respectively. The investors kept themselves busy in picking up positions in fundamentally strong stocks, which butchered badly as markets had fallen in previous seven out of nine sessions due to Greece political crisis and depreciation in rupee. Meanwhile, telecom stocks like Idea Cellular, Bharti Airtel, Reliance Communication and MTNL all edged higher in the trade on report that the telecom regulator TRAI may be inclined to reconsider its recommendations on spectrum auction if the government asks it to do so. TRAI's latest recommendations on spectrum auction propose to keep Rs 3,622 crore as reserve price per unit of 2G spectrum, more than 10 times the cost of the same permits in 2008. The broader indices were going neck to neck with benchmarks. The market breadth on the BSE was positive; there were 1,055 shares on the gaining side against 494 shares on the losing side while 75 shares remained unchanged.

The BSE Sensex opened at 16,119.08; about 89 points higher compared to its previous closing of 16,030.09, and has touched a high and a low of 16,196.28 and 16,104.64 respectively.

The index is currently trading at 16,184.45, up by 154.36 points or 0.96%. All the 30 stocks on the Sensex were on advance side.

The overall market breadth has made a strong start. The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices surged 0.97% and 0.67% respectively.

The top gaining sectoral indices on the BSE were, FMCG up by 2.17%, Power up by 1.36%, Realty up by 1.24%, Bankex up by 1.24% and PSU up by 1.01%. While, there were no losers on the index.

The top gainers on the Sensex were ITC up by 2.65%, DLF up by 2.23%, Maruti Suzuki up by 1.86%, HDFC Bank up by 1.48% and Tata Steel up by 1.48%. While there were no loser on the Sensex.

Meanwhile, Power Ministry is planning to increase the country's power generation capacity by 18,000 MW in the current fiscal. Out of this, 2000 MW is expected to be added as nuclear power capacity. These figures were discussed in a meeting between the Power Ministry officials and the Principal Secretary to the Prime Minister, Pulok Chatterji.

In the last five years, i.e. from 2007-2012, the government has been successful in adding about 53,000 MW power generation capacity, 9,000 MW short of the planned target of 62,000 MW. The initial target set by the government was 78,000 MW, which was curtailed to 62,000 MW in the absence of environment clearance for the coal blocks allotted. However, the Power Ministry is hopeful of achieving this target by the end of this fiscal.

In the coming five years, 2012-17, the government plans to add 76,000 MW, as against the Planning Commission's proposed target of above 90,000 MW.  The target has been lowered on account of shortages in the supply of coal and gas.

The supply of power is essential for the growth of the Indian economy. It has been estimated that power generation needs to grow by 6.5% if the country wants to achieve the growth target of 9% annually. The Working Group on Power has estimated an allocation of Rs 13,72,580 crore for the power sector in the 12th Five Year Plan. Out of this, Rs 638,600 crore has been earmarked for power generation and Rs 306,235 crore for distribution.

The S&P CNX Nifty opened at 4,878.60; about 20 points higher compared to its previous closing of 4,858.25, and has touched a high and a low of 4,909.45 and 4,878.60 respectively.

The index is currently trading at 4,908.85, higher by 50.60 points or 1.04%. There were 46 stocks advancing against just 4 declines on the index.

The top gainers of the Nifty were ITC up by 3.01%, IDFC up by 2.28%, DLF up by 2.23%, JP Associates up by 2.23% and Reliance Infra up by 2.23%.

On the flip side, HCL Tech down by 0.48%, Grasim down by 0.44%, BPCL down by 0.41% and ACC down by 0.38% were the few losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite amassed 15.83 points or 0.67% to 2,362.03, Hang Seng Index ascended 107.93 points or 0.56% to 19,367.76, KLSE Composite climbed 12.91 points or 0.84% to 1,548.95, Nikkei 225 rose 1.68 points or 0.02% to 8,802.85, Straits Times Index gained 15.97 points or 0.56% to 2,847.12, KOSPI Composite Index advanced 8.03 points or 0.44% to 1,848.56 and Taiwan Weighted surged 86.69 points or 1.20% to 7,321.26.

Stock markets in Indonesia remained closed on Thursday owing to a public holiday on account of Ascension Day of Jesus Christ.