BOUNCE BACK

Sanguinity of Asian pacific shares has fortified the sentiment at D-Street, where barometer gauges systematically accumulating gains, are oscillating near the intra-day's high level. One week high level scaled by the Indian currency, also has offered some solace to the Indian equity markets, with lack of fresh negative triggers, after the recent downtrend, encouraging investor's to engage in bottom-fishing. The broad-based buying is witnessed across the space, however, stocks from Capital Goods, Power and Metal counters have featured in the list of 'best performers' on the BSE Sectoral front.

On the global front, Asian markets are trading optimistic as the heavy sell-off abated in the absence of fresh negative news, shifting investors focus to forthcoming key policy meetings. A group of G-7 finance ministers and central bankers will hold a teleconference on Tuesday to discuss developments in the euro-zone, where Spain is expected to be in focus. Later on in the week, the European Central Bank will hold its rate-setting meeting, where it could trim key policy rates by 0.25% points. The US future indices too are depicting an uptick in the screen trade.

Closer home, expectation of rate cut by the Reserve Bank of India (RBI) in its upcoming monetary policy meeting on June 18, 2012, is also enhancing the risky appetite of the investor's, with banking stocks making the most out of the news flow. In light of encouraging leads both from domestic as well as international front, 30 scrip sensitive index, Sensex, is hovering above the psychological 16100 level, with gain of over a century of points. Similarly, the widely followed 50 share index, Nifty, gaining momentum is at a kissing distance of 4900 fortress. The broader indices, too have lured traction. The overall market breadth on BSE is in the favour of advances which have thrashed declines in the ratio of 1315:585, while 87 shares remained unchanged.

The BSE Sensex, after surging by 119.44 points or 0.75%, is currently trading at 16,107.84. The index has touched a high and low of 16,120.19 and 16,023.44 respectively.  The broader indices too gained additional traction; the BSE Mid cap and Small cap indices were trading higher by 1.12% and 0.84% respectively.

Buying witnessed was broad based, however, the top gaining sectoral indices on the BSE were, Capital Goods (CG) up by 1.55%, Power up by 1.51%, Metal up by 1.44%, Consumer Durables up by 1.38% and Bankex up by 1.37%.

The top gainers on the Sensex were Hindalco Industries up by 2.86%, Sterlite Industries up by 2.13%, BHEL up by 2.00%, NTPC and SBI were up by 1.80%.

On the flip side, Tata Motors down by 0.98%, DLF down by 0.97%, Bharti Airtel down by 0.78%, ONGC down by 0.22% and Bajaj Auto down by 0.19%, remained the top losers on the Sensex.

Meanwhile, the government is expected to announce incentives like interest subsidy in the Foreign Trade Policy (FTP) scheduled on June 05, 2012, for the labour intensive sectors such as textiles and carpets, in a move to help the hard-pressed sector in the wake of global slowdown. Commerce and Industry Minister Anand Sharma has already evaluated the situation of exports with all stakeholders, together with the industry and export promotion councils.

Economic crisis in the US and Europe have affected India's exports, since both account for about one-third of country's total shipments. India's merchandise exports, which registered a growth of 82% in July 2011, witnessed a growth of mere 3.2% in April 2012, mainly on the back of slowing demand from these countries.

The government had extended export incentives worth Rs 1,700 crore in the last FTP announced in October 2011. Along with labour intensive sectors, incentives are also expected to be announced to make the Special Economic Zones (SEZs) more attractive.

The exporters on the other hand are also demanding easy and reasonably priced credit to SME exporters along with higher distribution of funds for market development and a regular policy for raw material security, besides 2% interest subsidy.

The S&P CNX Nifty is currently trading at 4,888.10, higher by 39.95 points or 0.82%. The index has touched a high and low of 4,892.05 and 4,864.25 respectively. There were 40 stocks advancing against 10 declining one's on the index.

The top gainers of the Nifty were Hindalco up by 2.86%, Power Grid Corporation of India up by 2.45%, BHEL up by 2.33%, Grasim Industries up by 2.30% and Sterlite Industries up by 2.02%.

On the flip side, Tata Motors down by 1.14%, DLF down by 1.08%, Bajaj Auto down by 0.77%, Dr Reddy's Laboratories down by 0.74% and HCL Technologies down by 0.70% remained the top losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite rose 0.13%, Hang Seng Index climbed 0.83%, Jakarta Composite soared 1.92%, KLSE Composite advanced 0.47%, Nikkei 225 ascended 0.85%, Straits Times Index surged 0.85%, KOSPI Composite Index jumped 1.26% and Taiwan Weighted spurted 1.54%.