JUBILANT MOOD

Indian equities continued its jubilation mood on back of strong buying in frontline counters in the late morning session. On the global front, the Asian markets have rejoiced with the Fed decision and there is all green in the regional market with most of the indices trading higher by over two percent. US Federal Reserve's announcement that it will buy mortgage-backed securities to bolster economic growth has buoyed the markets across the globe. Japanese and the Chinese markets moved higher as the exporters to the US advanced. Commodities too have climbed after the Fed announcement on speculation that the added stimulus will boost demand. On the home turf, the traders were seen piling up position in Realty, Bankex and Metal sector. DLF, Unitech, Oberoi Realty, HDIL, Sobha Developers, Godrej Properties and Indiabulls Real Estate from Realty pack were seen trading in green edging the markets higher. HDFC Bank, ICICI Bank, SBI, Axis Bank, Kotak Mahindra Bank, Bank of Baroda and Indusind Bank from banking pack were seen trading firm in green. Meanwhile, the sentiments also remained higher as shares of 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.

In the scrip specific development, Lupin jumped as arm received USFDA approval for Generic Lexapro Tablets. Ranbaxy rose as arm received approval for setting up a Greenfield manufacturing facility in Malaysia. Indian Overseas Bank gained on inking distribution tie-up with Reliance Mutual Fund. Hero Moto Corp edged higher on tying up with Italy based two-wheeler design firm.

The NSE Nifty and BSE Sensex were managing to hold their psychological 5550 and 18,400 levels respectively. The market breadth on BSE was positive, in the ratio of 1571:662.

The BSE Sensex is currently trading at 18405.43 up by 384.27 points or 2.13% after touching a high of 18456.33 and low of 18284.75. All the 30 stocks on the Sensex were in green.

The broader indices were trading in green; the BSE Mid cap index was up by 1.13% and Small cap index was up by 1.23%.

On the BSE sectoral space, Realty up by 4.29%, Bankex up by 3.53%, Metal up by 3.22%, Auto up by 2.83% and CG up by 2.50% were the gainers. While, there was no losers on the index.

With all 30 stocks on the Sensex on advancing side, the top gainers were Hindalco Industries up by 5.30%, ICICI Bank up by 4.46%, Jindal Steel up by 4.39%, SBI up by 4.18% and Tata Motors up by 4.03%.

Meanwhile, Indian exports dropped by 9.7% in August to $22.3 billion on the global economic slowdown. The sluggish demand in Europe and US made the exports difficult. However, imports too declined 5.1% to $38 billion and ended up with a large trade deficit of $15.7 billion in August.

Commerce Secretary S R Rao said that during April-August period the exports fell about 6% from $127.6 billion to $120 billion and imports during the same period are behind by 6.2% to $191.1 billion in the same period last year. Trade deficit during the period stood at $71.1 billion. Exports had dropped 14.8% in July, giving some hope that they may stabilize at lower levels in the coming months.

SR Rao added that there is a slight improvement after the fall of exports in July. The new proposals announced in the annual supplement to Foreign Trade Policy (FTP) are possibly playing out. An improvement in the US market growth has given hope and it will sustain.

The S&P CNX Nifty is currently trading at 5,553.10, up by 117.75 points or 2.17% after trading in a range of 5,564.05 and 5,526.95. All the 50 stocks on the Nifty were in positive zone.

The top gainers of the Nifty were DLF up by 5.77%, Hindalco up by 5.66%, IDFC up by 5.00%, JP Associates up by 4.99% and Jindal Steel up by 4.87%.

All the Asian indices were trading in green; Nikkei 225 up by 2.12%, Jakarta Composite up by 2.02%, Hang Seng index up by 2.29%, Taiwan Weighted up by 1.93%, KLSE Composite up by 0.56%, Shanghai Composite up by 0.52%, Straits Times up by 1.26% and Kospi Composite Index up by 2.72% were the gainer.