MARKETS FIRM

Indian equity benchmarks made a positive start and are trading with a gain of over half a percent tracking firm cues from global markets. Overnight, the US markets closed mostly higher with Dow and S&P 500 ending at levels not seen in more than five years, mainly led by the financial sector and as investors digested another round of earnings reports. While, Asian markets were trading mostly higher on Wednesday morning trade with earnings providing a tailwind for Australian firms and pulling the local share benchmark close to three-year highs.

Back home, sustained buying in key heavyweights along with broader indices kept the markets on the positive side. Sentiments also got some support from realty sector as the Finance Ministry will consider four FDI proposals in single brand retailing, including that of Decathlon and Fossil Inc, worth Rs 750 crore. However, traders remained little cautious ahead of the WPI numbers which decides the RBI's course of action. Also, Prime Minister Manmohan Singh has cautioned that investment climate is getting affected by law and order situation along with land acquisition process, which are the responsibility of states and the Central Government level efforts are being made to streamline the clearance of investment proposals.

Most of the sectoral indices opened higher with the auto and realty leading the opening gains with over 1 per cent. Software, technology, consumer durables, oil and gas and capital goods indices were the other notable index movers in the opening trades while, fast moving consumer goods remained the lone loser on the BSE sectoral space. The broader indices were going neck-to-neck with benchmarks while, the market breadth on the BSE was positive; there were 1,125 shares on the gaining side against 587 shares on the losing side while 77 shares remain unchanged.

The BSE Sensex opened at 19,601.69; about 40 points higher compared to its previous closing of 19,561.04, and has touched a high and a low of 19,679.77 and 19,601.69 respectively.

The index is currently trading at 19,672.10, up by 111.06 points or 0.57%. There were 19 stocks advancing against 11 declines on the index.

The overall market breadth has made a positive start with 57.74% stocks advancing against 37.90% declines. The broader indices too were trading in-line with benchmarks; the BSE Mid cap and Small cap indices rose 0.70% and 0.45% respectively.

The top gaining sectoral indices on the BSE were, Auto up by 1.18%, Realty up by 1.09%, Teck up by 0.98%, IT up by 0.89% and Consumer Durables up by 0.77%. While, FMCG down by 0.09% was the sole loser on the index.

The top gainers on the Sensex were Tata Motors up by 3.08%, TCS up by 1.64%, Bharti Airtel up by 1.55%, HDFC up by 1.50% and Mahindra & Mahindra up by 1.27%.

On the flip side, Hindustan Unilever was down by 0.74%, Jindal Steel was down by 0.68%, Hero MotoCorp was down by 0.50%, Maruti Suzuki was down by 0.42% and Tata Steel was down by 0.40% were the top losers on the Sensex.

Meanwhile, with an aim to push banks to pursue its twin objectives of enhancing financial literacy and achieving financial inclusion, Deputy Governor RBI K C Chakrabarty said, arbitrary pricing of banking products and services must be avoided to bring these within the reach of the common man, which will help bring the marginalized sections of society to the mainstream.

While addressing an event on 'Banking as a Fundamental Right of People', Chakrabarty said, banking services have to be made accessible close to where the individual needs them, at prices he can afford, and in a transparent manner.

Concerned over the banks' financial inclusion efforts, he said the banking system despite being in existence for more than 200 years and several banks credited with more than 100 years of service, financial inclusion drive have not achieved the desired results. Way back in 2005, the RBI had launched a drive to extend banking services to all inhabitations in the country, considering the widespread exclusion of people from financial mainstream.

Banking services are now available in over two lakh villages, but about four lakh villages still have no access to the services. Further, as per Chakrabarty, banking services can be extended to un-banked centres in both rural and urban areas by leveraging on technology. Moreover, on taxation policies, he wants a complete restructuring of the policies taking away unnecessary and unreasonable exemptions and concessions.

The S&P CNX Nifty opened at 5,943.15; about 20 points higher compared to its previous closing of 5,922.50, and has touched a high and a low of 5,957.25 and 5,938.25 respectively.

The index is currently trading at 5,954.55, up by 32.05 points or 0.54%. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were HCL Tech up by 3.27%, Tata Motors up by 3.03%, JP Associate up by 1.80%, TCS up by 1.71% and HDFC up by 1.56%.

On the flip side, Hindustan Unilever down by 0.80%, Jindal Steel down by 0.68%, Tata Steel down by 0.52%, Maruti Suzuki down by 0.48% and Hero MotoCorp down by 0.42%, were the major losers on the index.

 Most of the Asian markets were trading in the green, Jakarta Composite rose 20.57 points or 0.45% to 4,568.82, KLSE Composite surged 8.68 points or 0.53% to 1,632.48, Straits Times strengthened 28.88 points or 0.88% to 3,299.18 and KOSPI Composite soared by 25.59 points or 1.32% to 1,971.38.

On the flip side, Nikkei 225 was down 95.78 points or 0.84% to 11,273.34.

China, Hong Kong and Taiwan are closed for trade today.