GAP UP START

Key domestic bourses have made a gap up opening after the US Federal Reserve announced an aggressive new stimulus to drive job creation in the US economy. Much awaited diesel price hike by the government also boosted the investors' sentiment. The government raised diesel prices by Rs 5 per litre (excluding VAT). Diesel will now cost approximately Rs 47/litre in Delhi. The price revision comes after more than a year. Cues from global front remained jubilant as the US markets surged overnight nearing to their highest finish since late 2007 while, all the Asian counters too railed after Federal Reserve announced its decision to launch further stimulus measures largely termed as QE3, to boost the economy. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 18,350 and 5,500 mark respectively.

The sentiments also remained higher as shares of state-run downstream and upstream oil companies such as IOC, BPCL, HPCL, Gail, ONGC and Oil India all edged higher after the government announced a steep hike in diesel prices and slashed LPG subsidy while leaving prices of petrol and kerosene unchanged. Moreover, metal shares rallied amid speculation that stimulus measures by the US, Europe and China will revive demand for the industrial commodities. Rate sensitives banking, realty and auto shares were also up on hope that the RBI on September 17, 2012 will announce reduction in policy rates. The broader indices too were trading on a firm note and market breadth on the BSE was strong; there were 1,256 shares on the gaining side against 466 shares on the losing side while 64 shares remained unchanged.

The BSE Sensex opened at 18,284.75; about 263 points higher compared to its previous closing of 18,021.16, and has touched a high of 18,456.33 while low remain its opening.

The index is currently trading at 18,359.40, up by 338.24 points or 1.88%. There were 28 stocks advancing against only 2 declines on the index.

The overall market breadth has made a strong start with 70.32% stocks advancing against 26.09% declines. The broader indices too were trading on firm note; the BSE Mid cap and Small cap indices rose 0.94% and 0.97% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 3.04%, Bankex up by 2.97%, Auto up by 2.59%, Realty up by 2.55% and Oil and Gas up by 1.92%. While, there were no losers on the index.

The top gainers on the Sensex were Hindalco up by 4.94%, Jindal Steel up by 4.93%, ICICI Bank up by 4.83%, Tata Motors up by 4.73% and SBI up by 4.35%. While ITC down by 0.20% and Cipla down by 0.11% remained the only losers on the Sensex.

Meanwhile, to arrest the declining industrial growth, Cabinet Secretary Ajit Seth while attending a high level meeting on manufacturing said, several policy measures are on the card to support investment climate. The meeting comes in the wake of negative growth in the manufacturing sector.

In July, the country's overall industrial output expanded by just 0.1 per cent as against 3.7 per cent in the same month last year, mainly due to declining manufacturing sector growth. The manufacturing sector, which constitutes 75 per cent of the index, reported a decline of 0.2% in July, and 0.9 per cent in the April-July period, as against growth of 3.1% in the same month previous year.

By adding further he said the government is committed to take steps to continue the growth momentum forward. On issues pertaining to certain changes being proposed in the country's tax regime, he said, government would like to see that we have investor friendly environment.

The S&P CNX Nifty opened at 5,528.35; about 39 points higher compared to its previous closing of 5,435.35, and has touched a high and a low of 5,564.05 and 5,526.95 respectively.

The index is currently trading at 5,536.80, higher by 101.45 points or 1.87%. There were 48 stocks advancing against just 2 declines on the index.

The top gainers of the Nifty were Jindal Steel up by 4.99%, Hindalco up by 4.93%, ICICI Bank up by 4.77%, Tata Motors up by 4.68% and SBI up by 4.41%.

On the flip side, ITC down by 0.17% and Cipla down by 0.16% remained the only losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up by 8.44 points or 0.40% to 2,118.82, Hang Seng surged by 518.63 points or 2.59% to 20,566.26, Jakarta Composite was higher by 81.70 points or 1.97% to 4,251.30, KLSE Composite gained 9.64 points or 0.59% to 1,638.04, Nikkei 225 surged by 161.90 points or 1.80% to 9,156.44, Straits Times added 39.72 points or 1.34% to 3,069.16, Kospi Composite surged by 51.31 points or 2.61% to 2,001.38 and Taiwan Weighted rushed by 118.80 points or 1.56% to 7,696.94.