Indian equity markets added additional gains to their kitty today as the Street cheered the reduction of petrol price, revision of GAAR rules and and hopes for a solution to the Eurozone crisis as the EU leaders gathered in Brussels proposed a common financial supervisor.
Sensex, after bundling up hatrick of points, is trading above the 17300 psychological level, up 350 points at 17350 levels while the 50 share index, Nifty is trading over 100 points up at 5250 levels. The Indian rupee appreciated by 34 points to 56.46 as against the US dollar.
In a relief to inflation-battered common man, petrol price was on Thursday cut by Rs 2.46 per litre, the second reduction this month. The reduction in rates follows a Rs 2.02 a litre cut in prices from June 3.
Investor’s at Dalal Street also had one more reason to rejoice except for petrol price cut, which was the new draft guidelines on the general anti-avoidance rules (GAAR) announced late night yesterday. According to the guidelines, the tax evasion rule will be invoked only in those cases where foreign investors have opted to take the benefit of tax avoidance treaties. The rules would not apply retrospectively and will be triggered only above a certain income threshold.
Further, sanguine global leads, after Eurozone leaders agreed on Friday to take emergency action to bring down Italy’s and Spain’s spiralling borrowing costs and to create a single supervisory body for eurzone banks by the end of this year, also boosted the demand of risky asset class.
The euro gained versus the US dollar along with Asian stock indices and US stock futures post the announcement by the EU leaders. Spot gold and crude oil futures also advanced while the dollar index fell below the 82 mark. European leaders also agreed to drop the condition that emergency loans to Spanish banks give their governments preferred creditor status.US markets recovered in late trade on reports that EU leaders had agreed on a ‘compact for growth and jobs.’ But, the European indices fell owing to weakness in banks.
Buying witnessed was across the board, however, stocks from Capital Goods, Bankex and Power counters were among the best performers on the BSE Sectoral chart. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1545:622, while 93 shares remained unchanged.
The broader indices too amassed additional gains; the BSE Mid cap and Small cap indices spurted by 1.03% and 0.95% respectively.
All the 13 sectoral indices on BSE were on the gaining side, however, the top gaining sectoral indices were, Capital Goods (CG) up by 2.73%, Bankex up by 2.30%, Power up by 2.25%, Auto up by 2.05% and FMCG up by 2.00%. Since all the stocks were on advancing side, there were no losers, however, the top gainers on the Sensex were Sun Pharma up by 3.27%, Maruti Suzuki up by 3.26%, L&T up by 3.20%, ICICI Bank up by 3.15% and Mahindra & Mahindra up by 3.13%.
Meanwhile, according to the recent data released by the Petroleum & Natural Gas Ministry, the production of crude oil in India registered a trivial increase of 0.5% in May to 3.25 million tonnes. May month’s crude oil output at 3.25 million metric tonnes, which is equal to 768,200 barrels a day, rose marginally from 3.23 million tonnes in the same month last year period, but failed to surpass the government’s forecast of 3.33 million tonnes.
Stocks that are moving in trade today:
Great Eastern Shipping Company rose 2.14 percent at Rs. 248 on BSE after the company said it has signed a contract to sell Jag Viraj, a liquefied petroleum gas carrier.
Cairn India tanked over 6% after sources said its parent company Cairn Energy Plc sold more than 6 crore shares in its Indian unit today.
Bharat Heavy Electricals rose 2.83% to Rs 227.45 on BSE, with the stock extending 3-day 1.7% gains triggered by the company securing a contract worth Rs. 950 crore for a 1,020 megawatts hydroelectric project in Bhutan.
Shares of three public sector oil marketing companies fell on BSE after these companies announced reduction in petrol prices by Rs. 2.46 per litre effective today, 29 June 2012.HPCL (down 0.97%), BPCL (down 0.45%) and Indian Oil Corporation (IOC) (down 0.33%), edged lower.
NCC is up 8 percent after Rakesh Jhunjhunwala has hiked his stake to 7.98% from 7.70% after buying 7.5 lakh shares from the open market.
The Department of Telecom is likely to slap Rs 1,594 crore in penalties on five mobile phone firms for under reporting revenues. RCom will have to pay Rs 551 crore, Bharti will have to shell out Rs 292 crore, Idea will be asked to shell out Rs 113 crore, Tata Tele will have to pay Rs 273 crore, and Tata Communication might have to pay Rs 120 crore.