Markets edge higher on falling global commodities

Markets notched up gains in late-afternoon session this Thursday after prices of global commodities such as brent crude and gold slipped further, that will help bride the burgeoning current account deficit (CAD).

If this declining trend in commodity prices holds, CAD could come down to around three per cent in 2013-14 due to the lower import bill, said analysts.

Meanwhile, rate-sensitive sectors such as banks, real-estate gained amid hopes that the central bank would ease monetary policy more aggressively next month to boost growth into the Asia’s third-biggest economy.

At 2:05PM, the Bombay Stock Exchange's 30-share index Sensex gained 171 points at 18,872.54 while the National Stock Exchange's 50-share Nifty rose 50 points at 5,739.65. Indian financial markets will remain shut tomorrow on account of Ram Navmi.

Brent Futures for June delivery traded at $98.01 per barrel after slipping to its 9-month low of below $97 a barrel intra-day . Likewise, Gold Futures for June contract eased by Rs 232, or 0.90%, to Rs 25,447 per 10 gm.

Global risk appetite was weak after disappointing corporate earnings of Bank of America coupled with weak revenue forecast for Apple Inc. Apple Inc shares tumbled on worries about weakening demand for the iPhone and iPad.

Asian markets traded mixed with China’s Shanghai Composite Index up 0.17% to 2,197, Hong Kong’s Hang Seng declined 0.26 % to 21,512, Singapore’s Straits Times fell 0.06% to 3,289 while Japan’s Nikkei was down 1% to 13,220.

In Europe, France’s CAC rose 0.8% to 3,628, Germany’s DAX added 0.5% to 7,539 and UK’s FTSE was up 6,264.

Back home, the key sectoral indices such as consumer durables, autos, banks, metals, capital goods, PSU gained while IT, metal, FMCG and healthcare sectors declined on BSE.

The gainers on the Sensex at this hour were Bharti Airtel rising 3.8%, Larsen & Toubro and BHEL gained 2.7% and 0.5% respectively, HDFC, SBI and ICICI Bank rose between 1.5-2.5% on the BSE.

The laggards were Wipro and TCS dropping 3% and 0.7% respectively, Hero MotoCorp shed 1%, Sun Pharma declined 0.6% while Cipla fell 0.2% on the BSE.

The key notable movers at this hour are, Wipro which is trading lower by 3% at Rs 365 ahead of its January-March quarter (Q4) earnings due on tomorrow, April 19.

Shares of metal companies are trading lower by up to 3% in noon deals after the Supreme Court (SC) today cancelled all the mining leases for extraction of iron ore in 49 category C mines in Bellary, Tumkur and Chitradurga districts of Karnataka.

Among the individual stocks,NMDC is the largest loser, down 3% at Rs 124 on BSE. JSW Steel, Steel Authority of India, Jindal Steel and Power, Sterlite Industries and Tata Steel are trading lower by 1- 2%.

Gayatri Projects has soared 13.5% to Rs 77.95 after the company said its arm has executed power purchase agreement (PPA) with Andhra Pradesh government for its 1,320 MW power plant in the state.

The broader markets gained with mid-caps and small-caps adding 0.4-0.6% on BSE.

The market breadth was positive. Out of 2,293 stocks traded, 1,162 stocks gained compared to 992 declined on BSE.