Buoyed by positive global cues, the local bourses have extended their rally for second consecutive day. The global sentiments were soothed by European leaders' comment that they would intervene to help the troubled countries from high cost of borrowing. The US markets closed higher on Friday and the major indices surged to over two months high while, Asian markets extended their gains on Monday, supported by expectations the Federal Reserve and the European Central Bank will deliver new measures to underpin their fragile economies. Back home, sustained buying in most of the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 17,000 and 5,150 mark respectively. Meanwhile, traders will be eyeing the first-quarter monetary policy review to be announced tomorrow, there are hopes that RBI governor Duvvuri Subbarao will spring a pleasant surprise in the form of a rate cut. The broader indices too were trading with traction. The market breadth on the BSE was positive; there were 982 shares on the gaining side against 472 shares on the losing side while 64 shares remained unchanged.
The BSE Sensex opened at 16,919.14; about 80 points higher compared to its previous closing of 16,839.19, and has touched a high of 17,032.51 while low remain its opening.
The index is currently trading at 17,013.08, up by 173.89 points or 1.03%. There were 26 stocks advancing against only 4 declines on the index.
The overall market breadth has made a strong start with 31.09% stocks advancing against 64.69% declines. The broader indices too were trading on a firm note; the BSE Mid cap and Small cap indices rose 0.72% and 0.65% respectively.
The top gaining sectoral indices on the BSE were, Bankex up by 1.84%, Realty up by 1.51%, CG up by 1.33%, Power up by 1.29% and HC up by 1.17%. While, there were no losers on the index.
The top gainers on the Sensex were ICICI Bank up by 3.50%, Cipla up by 2.28%, Bharti Airtel up by 1.81%, Sun Pharma up by 1.74% and Tata Motors up by 1.74%. While, Maruti Suzuki down by 1.52%, Wipro down by 0.60%, Dr Reddy down by 0.24% and HUL down by 0.16% remained the few losers on the Sensex.
Meanwhile, in the wake growing fears about drought and food inflation, the Standing Committee of Parliament on Agriculture, headed by Basudeb Acharia is likely to meet on 3rd August to hear reports from various Ministries and Departments on the details of the actions initiated to tackle the problem. Agriculture, Food, Railways and Water Resources Ministries are asked to appear before the committee. 63% of India's geographical area has registered a deficient rainfall or worse, while half the monsoon season is already over. It's been reported that the current monsoon season in India is 22% below average. Except in North-Eastern regions and North Bengal, almost the entire country is affected by deficient monsoon.
The current situation is forecasted to be more serious than that of 2010. The current scenario demands the central government to take aggressive action plans so as to face the drought period. The Opposition parties had criticized the centre for the alleged "lack of preparation" to face the drought situation. The former Agriculture Minister Rajnath Singh had demanded the government to provide free power for farmers, while Maharashtra and Karnataka state governments have demanded financial aid to tackle the situation.
The S&P CNX Nifty opened at 5,129.75; about 28 points higher compared to its previous closing of 5,099.85, and has touched a high and a low of 5,156.85 and 5,129.75 respectively.
The index is currently trading at 5,153.25, higher by 53.40 points or 1.05%. There were 43 stocks advancing against 7 declines on the index.
The top gainers of the Nifty were ICICI Bank up by 3.74%, Axis Bank up by 2.76%, Cipla up by 2.40%, JP Associates up by 2.36% and RInfra up by 2.26%.
On the flip side, Ambuja Cement down by 1.62%, Maruti Suzuki down by 1.61%, Wipro down by 0.84%, BPCL down by 0.21%, and Dr Reddy down by 0.21% remained the top losers on the index.
Most of the Asian equity indices were trading in the green; Hang Seng surged by 271.69 points or 1.41% to 19,546.65, Jakarta Composite gained 5.86 points or 0.14% to 4,091.17, Nikkei 225 added 53.14 points or 0.62% to 8,619.78, Straits Times was up by 20.04 points or 0.67% to 3,018.60, Kospi Composite gained 15.19 points or 0.84% to 1,844.39 and Taiwan Weighted added 45.50 points or 0.62% to 7,168.74.
Shanghai Composite was down by 1.47 points or 0.07% to 2,127.30, KLSE Composite was marginally down by 0.96 points or 0.05% at 1,624.91.
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