The Indian equity markets are trading firm in the afternoon session and it seems bulls are not going to stop, continuing their gains for seventh straight day in a row helping the benchmark scale its new nine week high. Mirroring their larger counterparts, broader markets too are trading in the green with BSE Mid-cap and Small-cap indices gaining 1.20% and 1.95%, respectively. While, the US markets closed on the higher note overnight all other Asian peers are trading in the positive terrain indicating strong investors' sentiments except Shanghai Composite which is marginally down. The market breadth on the BSE was in favour of advances in the ratio of 1980:675 while 83 scrips unchanged.
Meanwhile, In a move that will help boost the prospects of Indian textile players in an increasingly competitive global export market, the government has on Tuesday increased the allocation for modernization of the textiles industry to Rs 15,404 crore from earlier sanction of Rs 8,000 crore to be disbursed within the current Five Year Plan ending March 2012. In a positive development for the coal and mining projects awaiting a nod from the environment ministry, the second meeting of the group of ministers (GoM) on coal mining in go and 'no-go' areas will be held early next months, according to the information released by the coal ministry. All the textile companies are in jubilant mood with the decision, Arvind was up by 14.32%, Alok Industries was up by 5.19%, Abhishek Inds was up by 6.85% and Indo Rama Synthetics was up by 2.72%.
The BSE Sensex surged 183.86 points or 0.96% at 19,304.66. The index touched a high and a low of 19,340.93 and 19,178.77, respectively.
The BSE Mid-cap and Small-cap indices soared 1.20% and 1.95%, respectively.
All the sectoral indices on the BSE were trading in the green barring FMCG which is down by 0.19%. Consumer Durable up 3.64% Realty up 1.75%, Capital Goods up 1.56%, Auto up 1.43% and Health Care up 1.23% were the major gainers.
The top gainers on the Sensex were M&M up 3.34%, JP Associates up 2.26%, Cipla up 2.20%, L&T up 2.18% and DLF up 1.84%.
On the flip side, ITC down 0.78%, Bharti Airtel down 0.32% and Hindalco down by 0.07% were the only losers on the index.
Meanwhile, India's core sector, comprising of six infrastructure industries, has registered a growth of 6.8% in the month of February, raising hopes that the performance of the overall index of industrial production (IIP) will also be better in the month under review. The core sector has a weight of 26.7% in the overall IIP and includes crude oil, petroleum refinery, coal, electricity, cement and steel.
Looking at the individual performance, crude oil with a weight of 4.17% in the IIP recorded the best show with a strong growth of 12.2% in February 2011 against a growth rate of 4.0% in February 2010. Cumulative production of crude production grew 11.9% during April-February period of current financial year against 0.3% during the same period of the last fiscal.
Electricity generation (weight of 10.17% in IIP) has also been showing good performance off late and recorded a growth of 7.2% in the month under review against a growth rate of 6.9% in February 2010. On a cumulative basis electricity generation has grown 5.4% during April-February 2010-11 period compared to 6.0% during the same period of 2009-10.
Cement and steel were two better performing sectors indicating that infra activity was finally picking up in country after showing significant slowdown in second half of last year. Cement production (weight of 1.99% in IIP) recorded a growth of 6.5% in the month under review as compared with 7.9% in the same month a year ago. Production of finished steel (weight of 5.13 per cent in IIP) on the other hand recorded a growth of 11.5% in February 2011 against a negative (-) 0.2% in February 2010.The cumulative growth in the two industries stands respectively at 4.3% and 8.1%.
However, petroleum refinery production that has a weight of 2.0% in IIP continued its poor run showing a growth if just 3.2% against a growth of 0.7% in the year-ago period. In the financial year so far, petroleum refinery production has recorded a growth of 2.5% against (-) 0.4% during the same period of 2009-10.
Coal was the worst performing sector (weight of 3.2 per cent in IIP) where production recorded a negative growth at (-) 5.7% in February 2011 against a growth rate of 6.7% in February 2010. Coal production has grown just 0.1% during April-February 2010-11 against an increase of 7.9% during the same period of 2009-10. If coal production continues to remain poor in coming months as well, it can impact electricity production as well which is otherwise showing significant traction.
The S&P CNX Nifty gained 54.80 points or 0.96% at 5791.15. The index touched high of 5800.10 and a low of 5753.90, respectively.
The top gainers on the Nifty were M&M up 3.34%, Ambuja Cement up 3.32%, L&T up 2.45%, JP Associates up 2.32% and SBI up 2.20%.
On the other hand, HCL Tech down 1.25%, ITC down 0.59%, Bharti Airtel down 0.55%, Cairn down 0.45% and Hindalco down 0.34% were the major losers on the index.
The much awaited draft guidelines for giving new banking licenses would be released by the Reserve Bank of India (RBI) in the next few days itself, said the Indian government on Monday. The same will be put in public domain for comments and after taking into account the response of various stakeholders to the draft guidelines, final guidelines will be released.
All the Asian markets are trading in green barring Shanghai Composite. Shanghai Composite down 0.10%, Hang Seng advances 1.63%, Jakarta Composite up 1.16%, KLSE Composite up 0.76%, Nikkei 225 advanced 2.64%, Straits Times up 1.49%, Seoul Composite advances 0.93% and Taiwan Weighted up 0.58%.
No comments:
Post a Comment