The market breadth was strong as 25 shares from the 30-member Sensex pack advanced, brokers said. Asian markets, which opened before Indian market were mostly in green. US markets ended higher yesterday. Later, the 30-share BSE Sensex was up 146.93 points or 0.94 per cent at 15,794.45. It opened with an upward gap of 127.28 points at 15,771.72 and advanced further to hit a high of 15,827.87 in early trade. In the early trade the maximum gain was 183.43 points. It even recorded a low at 15,657.18 in early trade.
The broader based S&P CNX Nifty opened flat at 4735.65 points from its last finish, later it was up 30.85 points or 0.65 per cent at 4,765.35.
The total traded volumes may take a hit today due to the absence of participation from arbitrageurs. As per reports, many jobbers and arbitrageurs will stay away from market and will not trade today to express concern over the impact of the proposed withdrawal of securities transaction tax (STT) benefit under Section 88E on their business. The change in tax treatment on STT comes into effect today.
India's largest tractor maker in terms of sales, Mahindra&Mahindra (M&M) surged by 2.78 per cent to Rs 715 on volumes of 8064 shares. It was the top gainer from Sensex pack.
Housing Development Finance Corporation was up by 2.36 per cent to Rs 2440, followed by Hindustan Unilever by 2.10 per cent to Rs 233.50, and Hindalco Industries by 1.97 pr cent to Rs 168, edged higher from the Sensex pack.
India's largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose by 1.13 per cent to Rs 2290 on 52,712 shares. The stock moved in a range of Rs 2265.25 and Rs 2294.25 so far during the mid-session.
Bharat Heavy Electricals, the country's largest state run engineering company in terms of order book position, slipped by 1.30 per cent to Rs 2030. It was the top loser from the Sensex pack.
Bharti Airtel was down by 1.21 per cent to Rs 813.50 and Tata Steel eased by 0.80 per cent to Rs 687.50, slipped from the Sensex pack.
Among the side counters, Alkyl Amines was up by 20 per cent to Rs 96, Ador Multiproducts hiked by 19.15 per cent to Rs 21.15, and Indowind Energy hardened by 16.50 per cent to Rs 79.45.
Bosch Chasiss Systems was down by 10 per cent to Rs 621.90, Safari Industries eased by 10.83 per cent to Rs 25.10 and Milkfood slipped by 7.68 per cent to Rs 361.35.
The market sentiment remains edgy as Indian companies are sitting on huge losses on account of the forex derivative transactions they undertook last year. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc has hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.
Finance Minister P Chidambaram yesterday, announced a slew of measures, in an attempt to rein in commodity prices. The measures include a total ban on non-basmati rice exports, a reduction in import duty on edible oils, allowing states to impose stock limits with traders, and also warning the steel lobby to hold the priceline.
Meanwhile, the Reserve Bank of India's governor in a statement on the same day said that he was ready to tackle unacceptably high inflation, underscoring the seriousness across government quarters on tackling the issue.
Asian markets were trading mixed today as Hang Seng was up by 1.31 per cent at 23,149.15 followed by Japan's Nikkei by 1.75 per cent at 12,744.87. Singapore's Straits Times by 0.76 per cent at 3,030.25 and South Korea's Seoul Composite by 0.36 per cent to 1,710.08, which helped to boost in domestic bounces, brokers pointed out.
However, China's Shanghai Composite index was down by 2.96 per cent to 3,369.99, and Taiwan's Taiwan Weighted index eased by 1.17 per cent at 8,472.10.
US markets ended higher yesterday, after a plan for regulatory overhaul raised hopes for calmer financial markets. The Dow Jones industrial average added 46.49 points, or 0.38 per cent, to 12,262.89. The S&P 500 index rose by 7.48 points, or 0.57 per cent, to 1,322.70, and the Nasdaq Composite index gained by 17.92 points, or 0.79 per cent to 2,279.10, brokers added.