SMART BOUNCE

After witnessing steep fall in previous session, key Indian benchmarks have exhibited a smart recovery on Friday's morning trade as the government notified FDI in Retail, Aviation, Broadcasting and Power Exchanges. The sentiment also remained upbeat on reports indicating that the Centre could announce further reform-centric measures in the near term to counter the lingering impression of policy paralysis. Meanwhile, retail and aviation stocks picked up momentum in early trade after the government braved intense political opposition to notify rules for allowing foreign retailers such as Walmart and Carrefour to set up stores in India on Thursday. Stocks like Pantaloon Retail, Shoppers Stop, Kingfisher, Jet Airways and Spicejet all edged higher in the opening deal.

Global cues too remained supportive as all the Asian counters were trading in the green at this point of time supported by the gains in commodity stocks; however data from China and Europe to the US raised concern about global growth. Japanese market has recovered after yesterday falling the most in three weeks on the back of gain in defensive shares. Though, the US markets made a mixed closing overnight.

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 18,550 and 5,600 mark respectively. All the sectoral indices started in the green. The top gainers in the opening trades were Capital Goods, Realty and Bankex indices up over 1.5 percent each. Auto, metal, Power, FMCG and Consumer Durables indices up by over a percent were the other sectoral gainers. The broader indices too were trading on a firm note and market breadth on the BSE was strong; there were 1,182 shares on the gaining side against 292 shares on the losing side while 43 shares remain unchanged.

The BSE Sensex opened at 18,411.20; about 62 points higher compared to its previous closing of 18,349.25, and has touched a high of 18,587.15 while low remain its opening.

The index is currently trading at 18,571.72, up by 222.47 points or 1.21%. There were 29 stocks advancing against only 1 decline on the index.

The overall market breadth has made a strong start with 77.92% stocks advancing against 19.25% declines. The broader indices too were trading in-line with benchmarks; the BSE Mid cap and Small cap indices rose 1.20% and 1.03% respectively.

The top gaining sectoral indices on the BSE were, CG up by 1.90%, Bankex up by 1.67%, Realty up by 1.62%, Power up by 1.48% and Metal up by 1.47%. While, there were no losers on the index.

The top gainers on the Sensex were ICICI Bank up by 2.70%, BHEL up by 2.42%, L&T up by 2.32%, HDFC up by 2.24% and Sterlite Industries up by 2.22%. While GAIL India down by 0.01% remained the only loser on the Sensex.

Meanwhile, despite a relentless demand from the Opposition and UPA allies, the Deputy Chief of the Planning Commission, Montek Singh Ahluwalia opposed the rollback of diesel prices which it peaked to Rs 5 straight, stating that it will cause loss of credibility on government. Ahluwalia pointed out that the centre's decision on hiking diesel prices was inevitable; otherwise it might have worsened the financial condition of oil companies, which already claims that it is selling diesel for a huge price loss. 

The Deputy Chief also claimed that India's diesel prices are lower than neighboring nations and the cut in subsidy of diesel prices would affect only people who use cars, and not lower middle class. And, noted that curtailing expenditure on health and education is only other way to reduce the mounting fiscal deficit. He commented that to maintain fiscal credibility the government is trying to break logjam against policy reforms on the need for fiscal discipline for the country.

He also expressed hopes that nation's rating is likely to go up amid aggressive policy reforms to trigger the growth.UPA governments' twin decisions on fuel price hike and allowing Foreign Direct Investments in retail sector has called up nation- wide spread protest, while its allies and opposition called it anti-people policies.

The S&P CNX Nifty opened at 5,577.00; about 22 points higher compared to its previous closing of 5,554.25, and has touched a high and a low of 5,628.60 and 5,575.45 respectively.

The index is currently trading at 5,626.85, higher by 72.60 points or 1.31%. There were 49 stocks advancing against only 1 decline on the index.

The top gainers of the Nifty were Reliance Infra up by 3.39%, Axis Bank up by 3.17%, BHEL up by 2.89%, ICICI Bank up by 2.70% and Cairn up by 2.54%. On the flip side, BPCL down by 0.88% remained the only losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up by 9.10 points or 0.45% to 2,033.93, Hang Seng surged by 162.63 points or 0.79% to 20,753.55, Jakarta Composite was higher by 4.46 points or 0.07% to 4,220.12, KLSE Composite was marginally up by 1.36 points or 0.08% to 1,626.87, Nikkei 225 surged by 55.31 points or 0.61% to 9,142.29, Straits Times added 11.50 points or 0.37% to 3,074.09, Kospi Composite gained 9.33 points or 0.47% to 2,000.06 and Taiwan Weighted added 19.58 points or 0.25% to 7,746.58.