BULLISH RUN CONTINUES

Buoyed by favourable outcome from Greek election, sentiment in the domestic markets continued their bullish run with Sensex recapturing 17,000 mark in Monday's morning trade. Globally, Greek polls provided hopes that Greece will stay in eurozone after New Democracy emerged as the largest party with around 30% vote share followed by Syriza party with 27% vote share. Socialist PASOK won over around 13% in Greek election while, all the Asian equity indices were trading in the green at this point of time. Back home, traders were eyeing the RBI's mid-quarter review of monetary Policy, to be released near 11 am today for further cue. Though, there is a general expectation that the apex bank may cut repo rate by 25 basis points (bps) or cash reserve ratio by 25 bps. On the sectoral front, realty witnessed the maximum gain in trade followed by auto and consumer durables while, fast moving consumer goods remained the lone loser on the BSE sectoral space. The broader indices were going neck to neck with benchmarks. The market breadth on the BSE was positive; there were 1,047 shares on the gaining side against 359 shares on the losing side while 54 shares remained unchanged.

The BSE Sensex opened at 17,039.54; about 90 points higher compared to its previous closing of 16,949.83, and has touched a high of 17,109.95 while low remained its opening.

The index is currently trading at 17,077.68, up by 127.85 points or 0.75%. There were 26 stocks advancing against just 4 declines on the index.

The overall market breadth has made a strong start with 71.71% stocks advancing against 24.59% declines. The broader indices too were trading on firm note; the BSE Mid cap and Small cap indices rose 0.87% and 0.85% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.81%, Auto up by 1.55%, CD up by 1.53%, CG up by 1.46% and Metal up by 1.41%. While, FMCG down by 0.09% remained the lone loser on the index.

The top gainers on the Sensex were Tata Motors up by 3.00%, Tata Steel up by 2.44%, L&T up by 2.04%, Hero MotoCorp up by 2.00% and Hindalco up by 1.99%.

On the flip side, Dr Reddy down by 0.22%, HUL down by 0.13%, ITC down by 0.04% and ONGC down by 0.02% remained the few losers on the Sensex.

Meanwhile, prices of oil are likely to impact the timing as well as speed of rate cuts by the apex bank.

Leif Eskesen, Chief Economist for India & ASEAN at HSBC has cautioned that the Reserve Bank India will have to approach the easing cycle cautiously as inflation is likely to hover above the comfort zone. Bringing cheer to the financially troubled airline industry, Delhi based oil marketing companies have slashed jet fuel prices from Friday Midnight by a good 5%, the steepest rate reduction since February 2010. The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by 5%, to Rs 62,410 per kl from Rs 3,260 per kl. State-owned oil firms had been cutting prices since past three fortnights in the wake of decline in global crude prices.

In Mumbai, jet fuel will cost Rs 63,178 per kl from as against Rs 66,587.90 a kl now. Jet fuel constitutes over 40 per cent of an airline's operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.

Indian Oil Corporation ,Hindustan Petroleum and Bharat Petroleum revises jet fuel price on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

The S&P CNX Nifty opened at 5,174.00; about 35 points higher compared to its previous closing of 5,139.05, and has touched a high of 5,190.20 while low remained its opening.

The index is currently trading at 5,176.50, higher by 37.45 points or 0.73%. There were 42 stocks advancing against 8 declines on the index.

The top gainers of the Nifty were Tata Motors up by 2.98%, JP Associates up by 2.86%, Tata Steel up by 2.29%, Hero MotoCorp up by 2.06% and Sesa Goa up by 2.05%.

On the flip side, HCL Tech down by 2.05%, Ranbaxy down by 0.83%, Dr Reddy down by 0.53%, Ambuja Cement down by 0.44% and BPCL down by 0.30% remained the top losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite climbed 15.43 points or 0.67% to 2,322.28, Hang Seng Index surged 309.80 points or 1.61% to 19,543.74, Jakarta Composite soared 58.01 points or 1.52% to 3,876.12, KLSE Composite advanced 5.76 points or 0.36% to 1,584.99, Nikkei 225 jumped 150.95 points or 1.76% to 8,720.27, Straits Times Index ascended 30.46 points or 1.08% to 2,841.46, KOSPI Composite Index shot up 38.52 points or 2.07% to 1,896.68 and Taiwan Weighted garnered 132.00 points or 1.84% to 7,287.83.