Key benchmark ended the trading session having advanced 0.43% each after the government released the IIP figures for January 2012.
The Sensex ended (provisional) at 17,578, up 75 points and the Nifty at 5,357, up 23 points.
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(updated at 1430 hours)
Having come off the day's high after the government released the IIP figures for January 2012, markets are witnessing positive trades in the afternoon deals. The BSE Sensex is at 17,580, up 77 points while the Nifty is at 5,256, up 22 points.
Earlier in the day, the BSE Sensex touched the day's high at 17,772 and the day's low at 17,495.
According to data released today, Index of Industrial Production or the IIP grew by 6.8% year-on-year in January 2012. The cumulative growth for the period April-January 2011-12 stands at 4.0% over the corresponding period of the previous year, the government data shows. A good industrial output print for February would mean India's economy is moving to a normal growth trajectory, the deputy chairman of the Planning Commission, Montek Singh Ahluwalia, said today.
Meanwhile, European markets are lower today with shares in London off the most. The FTSE 100 is down 0.43% while Germany's DAX is off 0.42% and France's CAC 40 is lower by 0.34%.
In Asia, Japan's Nikkei share average dipped after breaking above 10,000 to a fresh seven-month high as hedge funds locked in profits following a 3.7% rally in the previous two sessions and 17% so far this year. The Nikkei slipped 0.4% to 9,890. The Shanghai Composite index ended marginally lower by 0.19% while the Hang Seng ended at 21,134, up 0.23%.
Back home, BSE Capital Goods, Oil & Gas and Consumer Durables indices, up 1-2% each, are leading the gains.
According to the industrial output data, the capital goods sector registered a contraction of just -1.5% in January compared with a contraction of -16.3% in December. Havells India, Larsen & Toubro, BEML, BHEL and Punj Lloyd, up 1-3% each, are the prominent gainers from the Capital Goods' space. L&T has gained 3%, extending its Friday's 5% rally after the Board decided to bifurcate the role of Chairman and Managing Director into two positions. The company has appointed Mr K Venkataramanan as Chief Executive Office and Managing Director with effect from April 1, 2012 while Mr. A. M. Naik, will continue as Executive Chairman of the Group.
Banking shares have rallied on the bourses after higher than expected cut in the cash reserve ratio by the Reserve Bank of India (RBI), that would help ease the liquidity situation in the banking system.The RBI on Friday after market hours reduced the CRR — the portion of deposits banks have to keep with the central bank — by 75 basis points. This will infuse Rs 48,000 crore liquidity into the system. BSE Bankex index has advanced 1% at 12,210. Among individual stocks, State Bank of India, Federal Bank, ICICI Bank and Punjab National Bank, up 1-4% each, are the prominent gainers.
On the Sensex, SBI, L&T, Reliance Industries, Bajaj Auto and BHEL are the top gainers, having gained 2-4% each. The losers from the pack are Cipla, Tata Power, ONGC, Infosys and Mahindra & Mahindra, down 2% each.
Railway stocks have moved up this morning on hopes of positive changes in the upcoming Railway Budget 2012. On Wednesday, March 14, Minister for Railways, Dinesh Trivedi would be presenting the Railway Budget for the financial year 2012-2013.
According to reports, industry experts hope that the railway Budget will reduce export levy on iron ore fines which would,in turn, push up exports. Given the financial condition of railways, this Rail Budget is also likely to seek a two-year moratorium on paying dividend to the government.
From individual stocks, Titagarh Wagons has gained 1% at Rs 433. BEML has added 2.2% to Rs 682. Stone India is up 1.7% at Rs 36 while Kalindee Rail Nigam has moved up 1% to Rs 114.
The overall market breadth is positive as 1,503 stocks have advanced against 1,194 declining ones, on the BSE.
