MODERATE GAINS

Domestic benchmarks have made a flat-to-positive opening tracking an overall mixed trend in Asian markets. Moreover, traders remained on the sidelines ahead of inflation numbers for the month of April. On the global front, Asian markets were trading mixed on Monday morning as China eased monetary policy injecting liquidity in the global financial system. The Chinese central bank cut reserve requirement ratio for banks to support growth. Moreover, crude oil prices traded at a five-month low on Monday. OPEC, the agency of oil exporters, said that the supply outweighs demand by 1.3 to 1.5 million barrels a day. Back home, the PSU oil marketing companies like, BPCL, HPCL and IOC were edged higher by about a percent each on the buzz that they may go for a price hike after the budget session. Moreover, index heavyweights Reliance Industries and Infosys also led the market little higher. On the sectoral front, the BSE metal index is the top gainer, up nearly 1% or 78 points at 10,185 levels. Auto, realty, IT, capital goods and PSU stocks are also witnessing some amount of buying. At the same time, FMCG stocks were witnessing a wee bit of selling pressure. The broader indices were going neck to neck with benchmarks. The market breadth on the BSE was positive; there were 877 shares on the gaining side against 550 shares on the losing side while 72 shares remained unchanged.

The BSE Sensex opened at 16,318.36; about 26 points higher compared to its previous closing of 16,292.98, and has touched a high and a low of 16,386.17 and 16,298.28 respectively.

The index is currently trading at 16,335.04, up by 42.06 points or 0.26%. There were 21 stocks advancing against 9 declines on the index.

The overall market breadth has made a strong start with 58.51% stocks advancing against 36.69% declines. The broader indices were trading in-line with benchmarks; the BSE Mid cap and Small cap indices surged 0.28% and 0.38% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 0.78%, CD up by 0.57%, CG up by 0.54%, Auto up by 0.46% and Bankex up by 0.44%. While, Oil and Gas down by 0.13% was the lone loser on the index.

The top gainers on the Sensex were Bajaj Auto up by 1.52%, Sterlite Industries up by 1.52%, Coal India up by 1.18%, ICICI Bank up by 1.11% and GAIL up by 1.10%.

On the flip side, ONGC was down by 1.71%, Sun Pharma was down by 1.00%, Tata Power was down by 0.49%, HDFC Bank was down by 0.43% and Bharti Airtel was down by 0.29% were the top losers on the Sensex.

Meanwhile, the government is mulling the probability of giving direct subsidy in respect of kerosene, LPG & fertilizers to farmers. A Task force in this regards was formed under the chairmanship of Nandan Nilekani, Unique Identification Authority of India (UIDAI) to examine and recommend a implemental solution for transfer of subsidy directly to the intended beneficiaries.

The task force has submitted its interim report with respect to fertilizers and has recommended three stage approach with respect to payment of subsidy directly to farmers. The Phase-I is to capture the information on availability of fertilizers at the farm gate level, wherein the availability at the retailer level will be captured.

In Phase-II, which will be implemented after the Phase-I stabilizes; the subsidy is expected to be transferred at the last point sale. Under Phase III, the subsidy is expected to be transferred directly to the intended beneficiary based on AADHAR Numbers.

Further by way of a heavily subsidized MRP, the fertilizer subsidy is transferred to the farmer including the marginal and small ones. As on date, a farmer pays only approximately 50% of the cost of fertilizer as MRP.

The S&P CNX Nifty opened at 4,934.35; about 6 points higher compared to its previous closing of 4,928.90, and has touched a high and a low of 4,955.00 and 4,928.85 respectively.

The index is currently trading at 4,941.05, higher by 12.15 points or 0.25%. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were Dr Reddy up by 1.51%, Coal India up by 1.46%, IDFC up by 1.45%, Bajaj Auto up by 1.44% and Hindalco up by 1.41%.

ONGC down by 1.57%, Sun Pharma down by 1.41%, JP Associates down by 1.19%, Ambuja Cement down by 1.18% and ACC down by 1.15%, were the major losers on the index.

Asian equity indices were trading mixed; Shanghai Composite was up 4.58 points or 0.19% to 2,399.56, Hang Seng was up 58.51 points or 0.29% to 20,023.14, Nikkei 225 was up 24.22 points or 0.27% to 8,977.53 and Straits Times was up 12.24 points or 0.42% to 2,895.64.

On the flip side, Jakarta Composite was down 18.68 points or 0.45% to 4,095.47, KLSE Composite was down 2.16 points or 0.14% to 1,582.16, KOSPI Composite was down 3.14 points or 0.16% to 1,913.99 and Taiwan Weighted was down 13.14 points or 0.18% to 7,388.23.