DIRECTIONLESS

Buoyed by sanguine global cues, Indian benchmarks are trading slightly higher in the Monday's morning session with both the frontline gauges surpassing their crucial 5,950 (Nifty) and 19,700 (Sensex) levels. The US markets extended their gains on the final day of the week on getting better than expected jobs data, unemployment rate too declined, boosting the sentiments of the traders while, most of the Asian equity indices were trading higher in the Monday's morning trade. Meanwhile, Japanese Nikkei hit a fresh 4-1/2 year high as weaker yen fuelled gains in exporters. However, Chinese Shanghai Composite dipped as disappointing economic data fuelled concerns about China's economy.

Back home, gains remain capped as investors opted to stay sideways ahead of IIP data to be released tomorrow and the inflation numbers to be announced later in the week. Buying in aviation stocks too boosted the sentiments. Scrips like Spicejet, Jet Air India and Global Vectra edged higher after the Cabinet Committee on Security (CCS) on March 8, 2013, cleared Flexible Use of Airspace (FUA) by civil and military users. On the sectoral front, healthcare witnessed the maximum gains in trade followed by auto and oil and gas while, metal, capital goods and software remained the top losers on the BSE sectoral space. The broader indices were outperforming benchmarks while, the market breadth on the BSE was positive; there were 1,088 shares on the gaining side against 791 shares on the losing side while 119 shares remain unchanged.

The BSE Sensex opened at 19,679.88; about 3 points lower compared to its previous closing of 19,683.23, and has touched a high and a low of 19,581.95 and 19,477.61 respectively.

The index is currently trading at 19,710.14, up by 26.91 points or 0.14%. There were 16 stocks advancing against 14 declines on the index.

The overall market breadth has made a strong start with 55.28% stocks advancing against 39.84% declines. The broader indices were trading in-line with benchmarks; the BSE Mid cap and Small cap indices rose by 0.30% and 0.34% respectively. 

The top gaining sectoral indices on the BSE were, Health Care up by 0.62%, Auto up by 0.45%, Oil & Gas up by 0.38%, PSU up by 0.34% and Power up by 0.29% while, Metal down by 0.57%, Capital Goods down by 0.45% and IT down by 0.03% were the only losers on the sectoral index.

The top gainers on the Sensex were Sun Pharma up by 2.13%, Mahindra & Mahindra up by 1.96%, Coal India up by 1.61%, HDFC up by 1.17% and Maruti Suzuki up by 0.86%.

On the flip side, Sterlite Industries was down by 1.54%, Hindalco Industries was down by 1.43%, Jindal Steel was down by 1.21%, L&T was down by 1.13% and Tata Steel was down by 0.84% were the top losers on the Sensex.

Meanwhile, though surging current account deficit is a big problem for now, Planning Commission Montek Singh Ahluwalia believes that India has all the requirements to return to a GDP growth rate of 8-percent in the coming years. While addressing an event he said, 'India has averaged 7.5% growth in the last 10 years. It should have done that for 15 years but it is possible to bring it back to the average performance of the last decade. The target for 2013-14 is 6.5-7% and then accelerate further.

As per Ahluwalia, economic growth is important but that growth should be inclusive and sustainable. By adding further he said that in recent years, India has posted high economic growth, but it was not an inclusive growth and the latest data indicates that the pace of poverty reduction has increased. For the current fiscal, the economy is expected to grow by a little over 5 percent, but it is not a big disaster as the whole world is experiencing a slowing of growth, he added.

On the global scenario, Ahluwalia said, the current state of the economy is challenging, but the global financial system appears to be stabilizing. The focus of government policy is to attract the foreign investment and with the recovery of global economy, the country will re-assure foreign investors as India is a good bet for foreign investment. India has the human resources in place and an expanding private sector, the only problem is the current account deficit, which needs to be contained.

The CNX Nifty opened at 5,946.10; about flat as compared to its previous closing of 5,945.70, and has touched a high and a low of 5,961.80 and 5,946.05 respectively.

The index is currently trading at 5,954.00, up by 8.30 points or 0.14%. There were 27 stocks advancing against 23 declines on the index.

The top gainers of the Nifty were Siemens up by 2.36%, Sun Pharmaceuticals up by 2.15%, Ranbaxy up by 2.08%, M&M up by 1.80% and Coal India up by 1.38%.

On the flip side, JP Associate down by 1.54%, Hindalco down by 1.53%, Sesa Goa down by 1.41%, Jindal Steel & Power down by 1.38% and L&T down by 1.15%, were the major losers on the index.

Most of the Asian equity indices were trading in the green; Hang Seng rose 102.43 points or 0.44% to 23,194.38, Nikkei 225 strengthened 58.46 points or 0.48% to 12,342.08, Straits Times increased 3.93 points or 0.12% to 3,293.46, Taiwan Weighted added 32.14 points or 0.40% to 8,047.28 and Jakarta Composite was up by 1.90 points or 0.04% to 4,876.40.

On the flip side, Shanghai Composite slipped 5.57 points or 0.24% to 2,313.04, KLSE Composite dipped 1.67 points or 0.10% to 1,652.29 and KOSPI Composite was down by 4.84 points or 0.24% to 2,001.17.