BSE Sensex gains 79 points in early trade

Written by PTI | Mumbai | Updated: Feb 27 2013, 15:20pm hrs
SensexForeign investors bought 0.74 bn Rs of stocks, while domestic institutions sold 1.60 bn Rs of stocks. (Reuters)
The BSE benchmark Sensex gained over 79 points in early trade today on emergence of buying by funds and retailers at existing lower levels amid a firming Asian trend.

The 30-share barometer rose by 79.18 points, or 0.42 per cent, to 19,094.32. The index had lost 316.55 points in the previous session.

Similarly, the wide-based National Stock Exchange index Nifty moved up by 20.95 points, or 0.56 per cent, to 5,782.30.

Realty, metal and oil and gas sector stocks led the recovery.

Brokers said emergence of buying by funds and retailers at existing lower levels amid a firming trend in the Asian region mainly buoyed the trading sentiments.

Meanwhile, in Asia, Hong Kong's Hang Seng index rose by 0.56 per cent, while Japan's Nikkei up by 0.17 per cent in early trade. The US Dow Jones Industrial Average ended 0.84 per cent higher in yesterday's trade.

* Nifty futures on the Singapore Exchange rose 0.3 percent. The MSCI-Asia Pacific index, excluding Japan rose 0.5%

* Asian shares rebounded on Wednesday 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.

* Foreign investors bought 0.74 billion rupees of stocks, while domestic institutions sold 1.60 billion rupees of stocks on Tuesday when the BSE index fell 1.64 percent.

* The Indian government will present an annual report on the health of the economy, which is battling the worst slowdown in a decade. (0530 GMT)

GLOBAL MARKETS ROUNDUP

* Asian shares rebounded on Wednesday as U.S. 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 re-igniting the euro zone financial crisis.

* The yen held near one-month highs on Wednesday, remaining susceptible to bursts of short-covering as political uncertainty in Italy kept the euro under the gun.

* Brent crude oil fell to a one-month low under $113 a barrel on Tuesday as inconclusive Italian election results revived investor concerns about instability in the euro zone and about future demand for fuel.

* U.S. Treasuries prices fell on Tuesday, though yields held near their lowest levels in a month, as political instability in Italy boosted demand for lower risk assets and after Federal Reserve Chairman Ben Bernanke defended the U.S. central bank's bond purchases.

OVERNIGHT NEWS

* After long failing to act on foreign investor complaints, Indian policy makers find themselves in an ironic bind: As global interest in Indian derivatives surges, it is Singapore, not Mumbai, that is reaping the benefits.

* India reined in spending on its vast but decrepit rail network on Tuesday, setting the tone for what is expected to be the most austere federal budget in years in two days' time as the government struggles to tame its fiscal deficit.

KEY FACTORS/EVENTS TO WATCH

* The Indian government will present an annual report on the health of the economy, which is battling the worst slowdown in a decade, at 0530 GMT.

MAJOR DEALS/ACQUISITIONS

* Leading mortgage financier Housing Development Finance Corp fixed a minimum 5 billion rupees three-year bond at 9.35 percent via Axis Bank. This is the third issue from the borrower in less than 10 days. (IFR)

* State-run Steel Authority of India (SAIL) has invited bids for an at least 1.5 billion-rupee bond sale on Wednesday. SAIL has capped the coupon rate at 8.70 percent. Pay-in is targeted for March 6. The bonds are locally rated Triple A by Crisil and India Ratings. (IFR)

LIQUIDITY

* The RBI said on Tuesday it accepted all 39 bids for 1.15 billion rupees at its one-day repo auction, through which it injects cash into the banking system. It also accepted the sole bid for 250 million rupees at its reverse repo auction, through which it absorbs cash from the system.

* Indian banks' refinancing with RBI rises to 256.10 billion rupees.

* Indian banks' cash balances with RBI fall to 2.60 trillion rupees.