Owing
to the positive momentum that persisted through the week Indian
benchmarks gained about half a percent in the late morning session and
also on hopes that the Reserve Bank of India may announce a rate cut in
its policy review later this month. The positively trending Asian
bourses added to the confidence of the traders. Sentiments got some
support on hopes of growth recovery in US after the number of Americans
who filed for unemployment benefits declined to a six-week low, showing
further improvement in the labour market. On the global front, Asian
markets too were trading in fine fettle at this point of time led by
over two percent surge in Japanese market as revised fourth-quarter
gross domestic product figures of the country showed the economy
returned to growth.
Back
home, the traders were seen piling up positions in Oil & Gas, PSU
and Metal, while selling was seen in IT and Tech sector. In scrip
specific actions, M&M gained after Nashik plant workers ended
their strike. L&T jumped after the company signed an agreement with
CMI Energy for extension of its licence territory to sell small heat
recovery steam generators to South East Asia and the Middle East.
Peninsula Land surged on report that the Aditya Birla Group's real
estate fund is close to buying a 50% stake in the company's 30-acre
township project in Pune for over Rs. 115 crore. Shares of Rashtriya
Chemical Fertilisers soared as the company launched its one-day offer
for sale (OFS) at Rs 45 per share. Utility vehicles maker M&M rose
on reports that the hike in excise duty on SUVs will not apply to
sub-Rs. 10 lakh vehicles.
Meanwhile, the NSE Nifty and BSE Sensex were trading just above their psychological 5900 and 19500 levels respectively.
The market breadth on BSE was showing positive trend with advances to declines in ratio of 1407: 688.
The
BSE Sensex is currently trading at 19561.68, up by 148.14 points or
0.76% after trading in a range of 19581.95 and 19477.61. There were 25
stocks advancing against 5 declines on the index.
The broader indices were trading in green; the BSE Mid cap index was up by 0.75% and Small cap index was up by 0.83%.
The
top gaining sectoral indices on the BSE were, Oil & Gas up by
1.67%, PSU up by 1.35%, Metal up by 1.28%, FMCG up by 1.07% and Consumer
Durables up by 1.04%.while, IT down by 0.71% and Tech down by 0.41%were
the losers on the BSE.
The
top gainers on the Sensex were Jindal Steel up by 3.35%, Hero MotoCorp
up by 2.26%, HDFC up by 2.09%, Tata Steel up by 2.07% and Gail India up
by 2.02%.
On
the flip side, Infosys was down by 1.25%, Dr Reddys Lab was down by
0.88%, Tata Motors was down by 0.82% , TCS was down by 0.78% and Bajaj
Auto was down by 0.20% were the top losers on the Sensex.
Meanwhile,
the Government said that it will reduce outgo on subsides from 2.6
percent of GDP in 2011-12 to 1.5 percent by the end of 12th Five Year
Plan (2012-17) through various reforms. The Government has also said
that pre-determined limits would be set for subsidies. The expenditures
on subsidies during the 11th Plan (2007-12) increased by 207 percent
from around Rs 70,926 crore to Rs 2,17,941 crore in 2011-12.
Government
feels that the high outgo on subsidies hurts the inclusive growth and
it should be contained within pre-determined limits. With this move, the
government will also achieve its fiscal deficit targets. The Finance
Ministry has pegged the overall fiscal deficit in 2013-14 at 4.8 percent
lower than the estimated 5.2 percent of GDP in current financial year.
Further,
the government has said that reducing subsidies will not hurt the poor
as some subsidies under the proposed Food Security Act will be
pre-determined and others such as on fertilisers can be redesigned to
serve their purpose at less cost. Subsidies on petroleum products which
are untargeted and do not benefit the poor would need to be reduced. The
government has made a provision of Rs 2, 31,084 crore on account of
subsidy outgo in the Budget for 2013-14.
The
CNX Nifty is currently trading at 5,908.35 up by 45.05 points or 0.77%
after trading in a range of 5,914.15 and 5,883.00. There were 43 stocks
advancing against 7 declines on the index. The top gainers of the Nifty
were BPCL up by 3.78%, Jindal Steel & Power up by 3.31%, GAIL up by
2.44%, Hero MotoCorp up by 2.41%, and HDFC up by 2.16%.
On
the flip side, Infosys down by 1.22%, Dr Reddy's Laboratories down by
0.77%, TCS down by 0.56%, DLF down by 0.43%, Bajaj-Auto down by 0.27%
and were the major losers on the index.
All
Asian equity indices were trading in the green; Hang Seng surged 400.70
points or 1.76% to 23,172.14, Jakarta Composite strengthened 23.02
points or 0.47% to 4,871.32, KLSE Composite rose 0.93 points or 0.06% to
1,65186, Nikkei 225 soared 288.17 points or 2.40% to 12,255.87 and
Taiwan Weighted was up by 48.98 points or 0.62% to 8,009.49.
On
the flip side, Shanghai Composite declined 4.29 points or 0.18% to
2,320.00, Straits Times slipped 3.57 points or 0.11% to 3,292.76 and
KOSPI Composite was down by 2.36 points or 0.12% to 2,002.04.
No comments:
Post a Comment