Benchmarks extend last session’s jubilation ahead of exit poll results

Extending last session’s jubilation, Indian equity benchmarks are trading with a gain of over a percentage point in early deals on Monday with frontline gauges surpassing their crucial 23,200 (Sensex) and 6,900 (Nifty) levels ahead of exit poll results. Sentiments remained sanguine at the prospect of a Narendra Modi-led, stable government after May 16. The final day of voting is set for Monday and the exit polls that are expected to trickle in post 6 pm today. The campaigning for the Lok Sabha elections 2014 has come to an end and 41 constituencies, including Varanasi, would go to the polls. Moreover, the April CPI and March IIP data, scheduled to be released next week, would also influence sentiment going ahead. On the global front, Asian shares were trading mixed at this point of time as investors turned cautious due to re-emergence of tensions in Ukraine and Russia. While, the US markets ended higher in last session as the technology shares rebounded and also as the US wholesale inventories rose more than expected in March. Back home, on the sectoral front, oil and gas, banking and capital goods witnessed the maximum gain in trade, while software, technology and healthcare remained the top losers on the BSE sectoral space. The broader indices too were trading with traction at this point of time, while the market breadth on the BSE was positive; there were 1,086 shares on the gaining side against 638 shares on the losing side while 91 shares remain unchanged. The BSE Sensex opened at 23031.11; about 37 points higher compared to its previous closing of 22994.23. The BSE Sensex is currently trading at 23267.52, up by 273.29 points or 1.19% after trading in a range of 23410.36 and 23008.65. 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 0.66% and Small cap index gained 0.58%. The top gaining sectoral indices on the BSE were, Oil and Gas up by 2.67%, Bankex up by 1.74%, Capital Goods up by 1.54%, Auto up by 1.13% and Power up by 1.10%, while Software down by 0.24%, Healthcare down by 0.03% and Technology down by 0.23% were the losers. The top gainers on the Sensex were RIL up by 3.55%, SBI up by 2.61%, Axis Bank up by 1.28%, ONGC up by 2.23% and Coal India up by 2.07%. On the flip side, TCS was down by 1.52%, Sun Pharma was down by 1.13%, Hindalco was down by 1.11%, Wipro was down by 1.06% and Cipla down by 0.62% were the top losers on the Sensex. Meanwhile, industry body Assocham in its latest report has stated that about 5 percent deficit rains due to possible El Nino factor could impact Indian economic growth by 1.75 percent (Rs 1,80,000 crore) in the current fiscal year. The report highlighted that as about 60 per cent of net sown area of the country is rain-fed, the deficiency in rains could have a significant bearing on India’s agriculture sector and will raise food inflation in the country. Besides, below normal rains can also affect lakhs of unskilled jobs in India. Agriculture sector represent around 15 percent share in the country GDP and provides employment to large number of people in the country. Assocham report highlighted that India must have good agricultural performance, as a rise in farm sector is estimated to lift demand for industrial goods and services. It mentioned that about 30 per cent of the manufacturing sector is agriculture-based and a bumper crop ensures the supply of raw material for industry at relatively lower prices. India is expected to witness below normal monsoon this year with met department forecasting 95 per cent rainfall because of the El-Nino effect. Meanwhile, the industry body has submitted a report to government which suggests a 12-point strategy in order to contain drought-like situation in country. Industry chamber stated that government must expand the farm insurance cover, advise financial institutions to settle crop insurance claims and distribute high quality seeds of alternate crops in drought-hit areas without delay. Further, Assocham suggested the government to bring down the cereal inflation by liquidating the extra stock and keep minimum support price (MSP) attractive for alternative crops to be cultivated in drought-hit areas. Moreover, Assocham also recommended measures like scrapping of the APMC Act, fuel subsidy to farmers to protect standing crops and free flow of agriculture goods across states to bridge demand- supply gap among others. The CNX Nifty opened at 6,863.40; about 5 points higher as compared to its previous closing of 6,858.80.  The CNX Nifty is currently trading at 6,933.90 up by 75.10 points or 1.09% after trading in a range of 6,975.70 and 6,862.90. There were 42 stocks advancing against 8 declines on the index. The top gainers of the Nifty were RIL up by 3.44%, Indusind Bank up by 2.78%, SBI up by 2.64%, Ambuja Cement up by 2.56% and Axis Bank up by 2.48%. On the flip side, TCS down by 1.52%, Wipro down by 1.50%, Sun Pharma down by 1.29%, Hindalco down by 1.28% and MCDOWELL-N down by 0.52% were the top losers on the index. Asian equity indices were trading on mixed; Shanghai Composite increased by 38.29 points or 1.90% to 2,049.43, Hang Seng surged by 375.12 points or 1.72% to 22,238.11, Jakarta Composite added 18.02 points or 0.37% to 4,916.15 and Seoul Composite was up by 7.99 points or 0.41% to 1,964.54. On the flip side, KLSE Composite declined 0.15 points or 0.01% to 1,866.57, Nikkei 225 tumbled by 18.33 points or 0.13% to 14,181.26, Straits Times slipped by 18.62 points or 0.57% to 3,233.51 and Taiwan Weighted was down by 52.41 points or 0.59% to 8,837.28.