Following
a positive opening and subsequent retreat, Indian equity markets
regained lost ground and are trading moderately higher in the late
morning session on Wednesday. Sensex was trading up around 0.33%, while
Nifty was up by 18.20 points. In currency markets, rupee appreciated
amid dollar selling by some banks and exporters. On sectoral front,
capital goods, FMCG, Oil & Gas and banking stocks were trading in
green, while IT, TECk and auto stocks were trading in red. Meanwhile,
Bharti Airtel stocks were leading the rally, on expectations that the
government will be forced to cut the reserve prices for the remaining
auctions of airwaves, thus improving the earnings outlook for the
sector. On global front, Asian shares rebounded as US equities rose on
solid data and the Federal Reserve's affirmation of its commitment to
monetary stimulus, but investors remained wary of political gridlock in
Italy reigniting the euro zone financial crisis. Back home, the market
breadth favoring negative trend; there were 1,377 shares on the losing
side against 964 shares on the gaining side while 112 shares remain
unchanged.
The BSE Sensex is currently trading at
19,078.33, up by 63.19 points or 0.33% after trading in a range of
19,137.39 and 18,997.82. There were 22 stocks advancing against 8
declines on the index.
The broader indices were trading mixed; the BSE Mid cap index was up by 0.01% and Small cap index was down by 0.39%.
The
top gaining sectoral indices on the BSE were, Capital Goods up by
1.50%, FMCG up by 0.78%, Oil & Gas up by 0.63%, Bankex up 0.57% and
Realty up by 0.49%, while IT down by 0.96%, TECk down by 0.41%, Auto
down by 0.26% and Health Care down by 0.24% were the top losers on the
BSE.
The top gainers on the Sensex were Bharti
Airtel up by 2.86%, L&T up by 1.88%, Bajaj Auto up by 1.71%, BHEL up
by 1.63% and ICICI Bank up by 1.35%.
On the flip
side, Tata Motors was down by 1.90%, Infosys was down by 1.84%, Gail
India was down by 1.84%, Hero MotoCorp was down by 0.96% and Dr Reddys
Lab was down by 0.86% were the top losers on the Sensex.
Meanwhile,
in a move to help rein-in the government’s annual borrowing and fiscal
deficit, the disinvestment proceeds from FY14 will be utilized to infuse
capital into central public sector units (CPSE). Minister of State for
Finance Namo Narain Meena said, 'the government has decided that the
disinvestment proceeds with effect from the fiscal year 2013-14 will be
used for subscribing to the shares being used by the central Public
sector enterprises (CPSEs), including public sector banks and public
sector insurance companies.’
The disinvestment
proceed would be credited to the National Investment Fund (NIF), which
was set up in 2005. Around 75 percent of the income from NIF is used to
finance selected social sector schemes, while the rest is utilized to
meet the capital investment requirements of profitable and revivable
central PSUs. As on August 31, 2012, the corpus in the NIF was Rs
1,814.45 crore.
However, the government in
November 2009 decided to utilize the proceeds from disinvestment only
for social sector spending because of the challenging economic situation
caused by global slowdown in 2008. This exemption is applicable till
March, 2013.
The CNX Nifty is currently trading at
5,779.55 up by 18.20 points or 0.32% after trading in a range of
5,796.50 and 5,749.70. There were 28 stocks advancing against 22
declines on the index.
The top gainers of the
Nifty were Bharti Airtel up by 2.71%, L&T up by 2.04%, Bajaj Auto up
by 2.00%, JP Associates up by 1.97% and BHEL up by 1.63%.
On
the flip side, Ranbaxy down by 4.13%, Tata Motors down by 1.97%, GAIL
down by 1.91%, Infosys down by 1.78% and HCL Tech down by 1.38% were the
major losers on the index.
Most of the Asian
equity indices were trading in the green; Shanghai Composite rose 0.01%,
Jakarta Composite strengthened 0.77%, KLSE Composite added 0.12%,
Straits Times jumped 0.22%, KOSPI Composite increased 0.23% and Taiwan
Weighted was up by 0.22%.
On the flip side, Hang Seng down by 0.06% and Nikkei 225 was down by 1.13%.
