Monday, the Indian market is trading firm following positive global cues and in reaction to a slew of measures announced by policy makers over the weekend to enhance liquidity, lower borrowing costs and revive economic growth.
Markets across the Asia-Pacific region are trading higher on optimism that tax cuts and government asset purchases will curb the global slowdown.
Metal, banking and realty stocks are leading the rally. On the BSE, the market breadth is extremely positive, with 1391 advances compared to 389 stocks that are declining.
After moving in a narrow range of 10,130-10,069 so far during the day, the BSE Sensx is trading at 10,081, up 123 points or 1.23%, while the S&P CNX Nifty is trading at 3,074, up 0.90%. The broad-based BSE 500 is up 1.32% and the small-cap and the mid-cap indexes are gaining more than 1.50% each, outperforming the benchmarks.
Jaiprakash Associates, Hindalco Industries, Sterlite Industries, ICICI Bank, Tata Steel, Reliance Infrastructure, Reliance Communication, State Bank of India, Tata Power, DLF, Tata Motors, Mahindra & Mahindra and Larsen & Toubro are the major gainers.
However, Satyam Computers, Bharti Airtel, Hindustan Unilever, NTPC and ITC are coming under selling pressure.
BHEL is up 1.47% on reports that it will sign a joint venture agreement with UK's Sheffield to make forging equipment. State-owned oil-marketing companies HPCL, BPCL and IOC are trading weak after crude oil surged to $47 a barrel.
Sona Koyo Steering Systems is gaining 2.41% following reports that it is holding talks with private equity investors for raising nearly $100 million to part-finance its expansion and acquisition plans. Satyam Computers is losing 3.52% on reports that the statutory auditor for Satyam, PricewaterhouseCoopers (PwC), may review its "continuance" with the troubled software firm.
Hindustan Zinc is up 3.76%, Tata Steel is gaining 3.51%, JSW Steel is adding 1.85% and SAIL is up 2.21% as the withdrawal of exemptions on basic customs duty on TMT bars and a 5% customs duty on zinc and ferro alloys is expected to guard these companies against cheap imports.
Cement stocks such as ACC is up 1.69%, Ambuja Cement is gaining 2.24%, Shree Cement is up 2.24%, JK Lakshmi is surging up 3.56% and Binani is adding 3.56% on expectations that cement prices may stay firm in the northern region after the government restored the counter-vailing duty (CVD) and special CVD on imported cement, which was removed 19 months ago to contain inflation.
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