Nifty ends at 7367, Sensex gains 319 points; SBI up 10%

23 May 2014

03:50 pm Oil subsidy
The government has ordered Oil and Natural Gas Corp (ONGC) to pay a record Rs 56,384 crore in subsidy to help state-owned fuel retailers cover part of the losses they incurred on diesel and cooking fuel in 2013-14. The Oil Ministry on May 21 asked ONGC and other state oil and gas producers Oil India and GAIL to shell out Rs 67,021.14 crore to cover for about 48 per cent of over Rs 140,000 crore loss retailers Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) incurred on selling diesel, LPG and kerosene below cost in 2013-14.

The government will chip in Rs 70,772 crore by way of cash subsidy, official sources said. Retailers sell diesel, domestic cooking gas (LPG) and kerosene at rates way below cost. The losses they incur is compensated by way of cash subsidy from government as well as assistance from upstream firms like ONGC.

03:40 pm Market closing
The market ended with hefty gains as it gears up for a new government with Narendra Modi swearing ceremony as new PM of India at 6 pm on Monday. The Sensex was up 318.95 points or 1.31 percent at 24693.35, and the Nifty was up 90.70 points or 1.25 percent at 7367.10. About 2198 shares have advanced, 845 shares declined, and 90 shares are unchanged.

SBI remained star of the day (gaining 10 percent) after it announced strong March quarter results.

Tata Power, Maruti Suzuki, NTPC and ONGC were other gainers in the Sensex. However, HDFC Bank, Infosys, ITC and HUL were major losers.

03:30 pm ITC Result
ITC, the cigarette-to-hotel-to-FMCG major, matched street expectations on overall basis with the fourth quarter (January-March) net profit rising 18 percent year-on-year to Rs 2,276 crore, driven by higher revenue. Gross revenue from its cigarette business rose 10.9 percent year-on-year to Rs 7,429 crore and EBIT margin expanded 280 basis points to 34.3 percent due to price hikes. Total FMCG gross revenue (cigarette as well as bakery & confectionery foods, apparel, education & stationery, personal care products etc) surged 11.5 percent to Rs 9,749.7 crore.

03:20 pm Boardroom
Riding on the back of robust sales in soaps and detergent segment, Jyothy Laboratories reported over two-fold increase in net profit in the fourth quarter. Going ahead, Ullas Kamath, Joint MD, Jyothy Laboratories, is confident of the company achieving 20-25 percent topline growth for FY15 and 14 percent margins in FY15.

In the fourth quarter, the company witnessed 15 percent volume growth. The quarter also included price hike of 7-8 percent.

''Extra promotional spends in FY14 led to margin miss,'' says Kamath. He added that the company plans to spend 8 percent of net sales on ad spends for mature brands.

He does not see significant debt repayment until FY16. The only debt that the company has is nonconvertible debentures payable in November 2016.

03:10 pm rupee outlook
Ray Farris of Credit Suisse expects the Indian currency to continue strengthening given that a stable government with a reformist ideology is coming to power. However, he doesn't expect the rupee to run-away from the current levels.

The rupee is trading at its highest levels since June 18, 2013.

In an interview to CNBC-TV18, he says that the Reserve Bank of India's (RBI) move to buy US dollar to contain currency's appreciation makes sense.

"We tend to think that in the wake of the election outcome and the result being that you have got a very stable government with a reformist ideology, there probably can be over the next year some further rupee strength. In the very near term history would suggest that there is probably a little bit more momentum. The last two elections saw the result generate momentum that lasted for a couple of months in the currency. The central bank seems to be trying to resist some of that strength, at least moderating the pace. I wouldn't expect the rupee to run away from here," he said.

02:55pm Interview
One of the benefits of sentiments turning positive are the green shoots seen in the commercial vehicles segment. Ramesh Iyer, MD, Mahindra & Mahindra Financial Services too concurs with the view, adding it is the hopes of a pick up in the country's infrastructure story that is leading to the segment witnessing positive interest.

Prior to the elections, most state governments had put a halt or had gone slow on infrastructure projects. Going ahead, Iyer sees a revival in some of these projects. He says new states such as Seemandhra too will embark upon the journey of infrastructure building soon, he adds, propelling demand for CVs.

The infra push will not only aid the CV segment, but all automobiles segments, he adds. Iyer believes the only thing to watch out for now would be the monsoons. If rains are average plus, then it'll be a good time for automobiles sector across the country September-October onwards.

02:40pm HDFC Bank in focus, down 2%
The final decision on HDFC Bank's proposal to raise foreign shareholding will be taken by the Foreign Investment Promotion Board, the Finance Ministry said today.

"It (ambiguities in HDFC Bank's proposal) will be cleared in the FIPB," Economic Affairs Secretary Arvind Mayaram said, adding that individual departments have their views on the
proposal.

HDFC Bank's proposal for increasing foreign holding in the bank to 67.55 percent from 49 percent was first listed on the agenda of the FIPB in November 2013. However, the proposal could not be taken up because the Department of Industrial Policy and Promotion (DIPP), the nodal agency for framing FDI policy, has been arguing that any
increase in foreign shareholding would result in breach of the FDI guidelines, reports PTI.

02:25pm Market Expert
R Sreesankar, Head - Institutional Equities at Prabhudas Lilladher expects the Nifty to break the 9,000 level in the next 18-24 months on hopes of economy recovery and earnings momentum.

He recommends investors to buy on dips and expand their portfolio.

Continuing his bullish tone, he adds that Indian equity market is ripe for a big bull rally if we see good governance from the new government.

02:15pm SBI on fire
India's biggest lender State Bank of India (SBI) has reported fourth quarter net profit of Rs 3,041 crore, down 7.8 percent compared to Rs 3,299 crore in same quarter last year. Higher other income, improvement in asset quality and net interest income helped the net profit beat analysts' expectations.

According to CNBC-TV18 poll estimates, analysts had expected the bank to report net profit of Rs 2,824 crore and net interest income of Rs 13,036 crore for the quarter.

Asset quality of the bank improved significantly on sequential basis with the gross non-performing assets (NPA) falling 78 basis points (up 20 bps Y-o-Y) to 4.95 percent and net NPAs declining 67 bps (up 47 bps Y-o-Y) to 2.57 percent in the quarter gone by.

02:00pm Equity benchmarks gained further in afternoon trade with the Sensex rising more than 250 points supported by top lender State Bank of India that gained 10 percent post better improvement in Q4 asset quality.

The Sensex rose 276.67 points or 1.14 percent to 24651.07 and the Nifty advanced 74.45 points or 1.02 percent to 7350.85. About 2084 shares have advanced, 869 shares declined, and 98 shares are unchanged.

Tata Power rallied nearly 6 percent followed by Maruti Suzuki, ONGC, Bharti Airtel, Sesa Sterlite, NTPC, Tata Steel, BHEL and Wipro with 2-4 percent. Index heavyweights Reliance Industries and HDFC gained 1.9 percent and 1 percent, respectively.

2:00 pm Results: ITC, the cigarette-to-hotel-to-FMCG major, matched street expectations on overall basis with the fourth quarter (January-March) net profit rising 18 percent year-on-year to Rs 2,276 crore, driven by higher revenue.

According to CNBC-TV18 poll estimates, analysts had estimated net profit of Rs 2,230 crore on revenue of Rs 9,295 crore for the quarter.

Net sales grew 11.8 percent to Rs 9145 crore from Rs 8180 crore year-on-year.

1:50 pm Interview: One of the benefits of sentiments turning positive are the green shoots seen in the commercial vehicles segment. Ramesh Iyer, MD, Mahindra & Mahindra Financial Services too concurs with the view, adding it is the hopes of a pick up in the country's infrastructure story that is leading to the segment witnessing positive interest.

1:40 pm Market outlook: Nandan Chakraborty, MD - Institutional Equity Research from Axis Capital feels that global cues remain the biggest driver FOR Indian capital market. In an interview to CNBC-TV18, he said the Indian stock market has been rallying and scaling new highs on hopes of a stable government and economic recovery. Chakraborty sees no sign of the market peaking out. ''We see mid-teen EPS growth for FY15 and FY16. An EPS re-rating will follow PE rating in the market,'' he added. He expects to see another 20-30 percent rise in shares on PE re-rating.

His wish list from the new elected government includes good governance and focus on key reforms relating agriculture, land and job creation. ''The BJP has to ensure that the poor do not feel excluded,'' he said.

1:30 pm Buzzing: Shares of Ashok Leyland zoomed 19 percent, hitting 4.5-year high at Rs 34.45 per share intraday Friday on the back of March quarter earnings. It reported a net loss of Rs13 crore, adjusted for exceptional gain on account of sale of non core assets, which is much-lower-than expectations.

Brokerages are impressed by the auto-maker's results. Bank of America Merill Lynch has upgrades the stock to buy with a raised target of Rs 40 from Rs 18.8 per share. The firm expects it to be re-rated and sees improving financial health and sustainable cash flows as key positives.

Motilal Oswal maintains buy rating as it feels Ashok Leyland is best placed to play the commercial vehicle segment. Its margins rebound strongly with EBITDA margin improving from -5 percent in Q3FY14 to 6 percent in Q4FY14.

1:15 pm Results: State Bank of India (SBI) has reported fourth quarter net profit of Rs 3,041 crore, down 7.8 percent compared to Rs 3,299 crore in same quarter last year. Higher other income, improvement in asset quality and net interest income helped the net profit beat analysts' expectations.

According to CNBC-TV18 poll estimates, analysts had expected the bank to report net profit of Rs 2,824 crore and net interest income of Rs 13,036 crore for the quarter.

The market is extending rally with support from capital goods and realty stocks. The Nifty is inching close to 7350, up 46.55 points at 7322.95. The Sensex is up 178.58 points at 24552.98.

About 1986 shares have advanced, 840 shares declined, and 97 shares are unchanged. SBI, Tata Power, NTPC, Bharti Airtel and Sesa Sterlite are top gainers in the Sensex. Among the losers are Hindalco, HDFC Bank, GAIL, Bajaj Auto and Tata Motors.

In a CNBC-TV18 exclusive, Deepak Parekh, Chairman of HDFC says he is not running for finance ministry but adds that he will do whatever the government asks him. He believes oil import bill should be the government's biggest priority.

Asian shares edged up to one-year highs as investors welcomed signs of improving momentum in the world's biggest economies, with Tokyo's Nikkei poised to score its first weekly gain in nearly a month thanks to a weaker yen.

Financial spreadbetters expected a mixed open for Europe, however, due to caution ahead of weekend elections in the Ukraine and European Union. Britain's FTSE was seen opening flat, Germany's DAX up 0.1 percent and France's CAC 0.1 percent lower.

"Despite modest gains in overnight markets, European traders are showing some hesitation ahead of the Ukrainian and European election results," said Jonathan Sudaria, a dealer at London Capital Group.

12:45pm Ashoka Buildcon hits record high, up 9.5%
Shares in Ashoka Buildcon surge as much as 14.7 percent to a record high of Rs 152 rupees after US-based global investment management firm GMO bought 1.5 million shares in the company on Thursday in a transaction estimated at about 183 million rupees (USd 3.13 million).

GMO Emerging Domestic Opportunities Fund bought the shares at an average price of Rs 122 per share in a block deal, NSE data shows.

On Monday, GMO bought about half a million shares in J Kumar Infraprojects , another midcap infrastructure company.

12:35pm ITC in focus ahead of earnings
Cigarettes-to-hotels-to-FMCG major ITC will announce its fourth quarter (January-March) earnings today. Analysts say overall numbers are expected to be strong with cigarette business margins continuing to improve year-on-year. However, they expect cigarette volume to decline 2-3 percent Y-o-Y.

According to the poll, pricing growth of 19 percent on the back of recent price hikes (15 percent in Bristol; 17 percent in Wills; 5 percent in Classic) and control over costs should enable cigarette net sales and PBIT growth of 14 percent and 20 percent, respectively.

According to CNBC-TV18 poll estimates, analysts expect ITC's profit after tax to increase 15.7 percent year-on-year to Rs 2,230 crore and net sales to rise 13.6 percent to Rs 9,295 crore in the quarter ended March 2014.

12:20pm Interview
Ashok Leyland, India's second-largest commercial vehicle maker, believes the worst is over for the company. It reported a 142.3 percent growth in net profit in the fourth quarter at Rs 363.4 crore in the quarter ended March 2014 , driven by income from sale of investments and property. The profit in same quarter last year was Rs 150 crore.

The company recorded exceptional gains of Rs 376.09 crore in fourth quarter FY14. It earned net profit of Rs 220.09 crore on sale of long-term investments and Rs 159.15 crore on sale of immovable properties.

During the long phase of downturn, Vinod Dasari, company managing director says Ashok Leyland used the opportunity to transform itself and some of the results can be seen in margin improvements. The company has reduced working capital requirements to record low levels, improved quality and reduced fixed cost base, he says.

Most corporates are now factoring in an improvement in economy and general demand scenario. Dasari too expects to see improvement in the second half of FY15 for trucks. He further adds: "I expect 8-10 percent improvement. Also in the bus segment, there should be natural improvement and carry forward of JNNURM 2 orders which didn't happen last year, which will bring roughly 10-15 percent improvement in the bus market also."

12:10pm FII View
Deutsche Bank downgrades Indian stocks to "neutral" from "neutral/overweight" relative to other global emerging markets, saying valuations, after a sharp rally on Bharatiya Janata Party's (BJP) decisive election win, appear "very stretched" against lower GDP growth, reports Reuters.

"We acknowledge that there is the potential for massive long-term upside, but we suspect that there needs to be further economic pain before the agenda for more fundamental reform to governance practices becomes clearer," Deutsche said in a report on Thursday.

12:00pm The market maintained its strong momentum in noon trade helped by consistent buying in oil & gas, banking & financials (except HDFC Bank) and capital goods stocks.

The Sensex climbed 228.50 points or 0.94 percent to 24602.90 and the Nifty rose 61.30 points or 0.84 percent to 7337.70. The broader markets continue to outperform benchmarks with the BSE Midcap and Smallcap indices rising 1.2 percent and 1.7 percent, respectively. Advancing shares outnumbered declining ones by a ratio of 2006 to 784 on the BSE.

Index heavyweight Reliance Industries, HDFC, Larsen & Toubro and Infosys gained 1-1.5 percent. Top lender State Bank of India jumped 2.4 percent ahead of Q4 earnings while its rival HDFC Bank fell 1.7 percent as media report suggests that the government has rejected plea to raise FII investment limit in the bank.

Top telecom operator Bharti Airtel and Vedanta Resources' subsidiary Sesa Sterlite spiked 4 percent each followed by NTPC, BHEL and Tata Power with 3 percent.

12:00 pm Downgrade: Deutsche Bank downgrades Indian stocks to "neutral" from "neutral/overweight" relative to other global emerging markets, saying valuations, after a sharp rally on Bharatiya Janata Party's (BJP) decisive election win, appear "very stretched" against lower GDP growth. The Nifty has risen 24.4 percent since September 13 when Narendra Modi was declared as BJP's prime ministerial candidate, with overseas funds pumping over USD 14 billion in the cash shares over that period.

The investment bank says it still prefers India to the other BRICs, but advises non-emerging market investors to wait for a better buying opportunity.

11:50 am Boardroom: Ashok Leyland, India's second-largest commercial vehicle maker, believes the worst is over for the company. It reported a 142.3 percent growth in net profit in the fourth quarter at Rs 363.4 crore in the quarter ended March 2014, driven by income from sale of investments and property. The profit in same quarter last year was Rs 150 crore.

11:40 am FII view: Bharat Iyer, JP Morgan says portfolio stance is based on global growth recovery which is expected to accelerate in second half of 2014. ''Preferred domestic sectors likely to benefit from the local cyclical recovery are high-quality financials, commercial vehicles and cement companies,'' he adds.

He further says, more importantly, the brokerage house believes any policy reform by the incoming government to kick start the investment cycle will initially have to start with the resources sector.

Meanwhile, Chris Wood, CLSA believes it has been a week of important political developments in Asia and, in the case of India, a momentous one. According to him, indeed in greed & fear's view this has been the most important Indian election since independence.

''The asset allocation was adjusted last Friday in view of Modi's landslide victory to increase the overweight. Greed & fear will now be looking for opportunities to increase the weighting further,'' Wood adds.

11:30 am Result poll: Chennai-based power equipment maker BGR Energy will announce its fourth quarter (January-March) earnings today. Analysts expect the company to report muted revenue growth on slower execution of orders in EPC projects and high base.

The company has failed to report any order wins in Q4FY14. Analysts feel consistent high share of EPC revenues may pull down margins that will remain under pressure as the company commenced execution of low margins NTPC orders I.

Interest costs may be elevated during the quarter on yearly basis but sequentially that may be stable.

According to CNBC-TV18 poll estimates, analysts expect profit after tax of the company to fall 28.9 percent year-on-year to Rs 38.3 crore and total income from operations to slip 7 percent to Rs 989 crore in the quarter ended March 2014.

11:20 am Buzzing: Shares of SpiceJet soared 11 percent intraday as the debt-ridden carrier is close to selling some overseas slots to Qatar Airways.

The Gulf carrier is likely to invest in SpiceJet by purchasing its parking slots overseas. Officials of the state-run Qatar Investment Promotion Authority are likely to meet the top brass of SpiceJet shortly. The Kalanithi Maran-promoted domestic airline had earlier this week said it was in "advanced stage of discussions" with an overseas entity for capital infusion.

Qatar Airways has evinced interest in buying some of the SpiceJet's overseas slots as part of its strategy to enter the country's aviation market.

The market is gearing up for Narendra Modi to be sworn in as the new PM of India. The Sensex is up 200.12 points at 24574.52 and the Nifty is up 57.90 points at 7334.30.

About 1877 shares have advanced, 632 shares declined, and 82 shares are unchanged.

Capital goods and IT indices are in good shape with gains of over 1 percent each. However, Bankex is in red. Bharti Airtel is up 4 percent while BHEL, Sesa Sterlite, NTPC and ONGC are top gainers in the Sensex. Among the losers are Hindalco, HDFC Bank, Bajaj Auto and SBI.

The rupee is trading close to one-year highs. Equity market sentiment supports. However, dollar purchases by importers and state owned banks on behalf of RBI limits gains.

Gilts trade slightly higher as appetite improves. Gains seen capped ahead of the gilt auction.

Commodities saw range bound trade with gold subdued on pressure of gold ETF selling. Brent is still firm above USD 110 per barrel.

Asian markets are mostly higher. Japanese are markets higher on account of a weaker yen. Thailand is in focus as its army chief seized control of the government in a bloodless coup saying the military has to intervene in order to end the country's six month old political deadlock.
10:59am Market Update

The Sensex rose 182.18 points or 0.75 percent to 24556.58 and the Nifty advanced 51.75 points or 0.71 percent to 7328.15. About 1838 shares have advanced, 686 shares declined, and 106 shares are unchanged.

10:55am ITC sees buying interest
Cigarettes-to-hotels-to-FMCG major ITC will announce its fourth quarter (January-March) earnings today. Analysts say overall numbers are expected to be strong with cigarette business margins continuing to improve year-on-year. However, they expect cigarette volume to decline 2-3 percent Y-o-Y.

10:45am Interview
After having clocked a consolidated net profit of Rs 75.34 crore for Q4 FY14, Anil Jain, managing director, Jain Irrigation System says the company is likely to perform better in FY15.

Speaking to CNBC-TV18 on the company's Q4 earnings, Jain says the company is likely to post 18-20 percent growth in FY15.

''While hailstorms in Maharashtra and the code of conduct did hamper our sales, our margins at EBITDA levels were higher this quarter. We also pared our debt by Rs 250 crore so that's one positive,'' says Jain.

On the road ahead, Jain says the company may see 37 percent business in the first half of the financial year (H1FY15) and the rest 63 percent in H2 FY15 vis a vis its 40:60 ratio.

''We will also do well in our pipeline business if the infrastructure sector picks up,'' he highlights.

10:35am SBI gains 0.5% ahead of Q4 nos
Analysts expect profit after tax and net interest income of State Bank of India to be better than previous quarters.

According to CNBC-TV18 poll estimates, analysts expect profit to fall 14 percent year-on-year to Rs 2,824 crore while net interest income (NII) - the difference between interest earned and interest expended - may increase 18 percent to Rs 13,036 crore during January-March quarter.

They expect restructuring of assets to be higher during the quarter. After third quarter earnings, the management had said the restructuring of assets (including corporate debt restructuring) would be worth Rs 9,500-9,800 crore. The bank had positively surprised in Q3 with restructuring of Rs 3,900 crore as against analysts' forecast of Rs 6,000-8,000 crore.

10:25am FII View
Chris Wood, CLSA believes it has been a week of important political developments in Asia and, in the case of India, a momentous one. According to him, indeed in greed & fear's view this has been the most important Indian election since independence.

10:20am Reliance Communications up 2%
Shares of Reliance Communication surged 2 percent on buzz that it is likely to acquire stake in a Chinese telecom company. Media reports indicate that Chinese firm Citic Telecom is in discussions with Reliance Communications to buy a significant stake in its sub-marine cable business, Global Cloud Xchange.

10:10am Rupee outlook
Ray Farris of Credit Suisse expects the Indian currency to continue strengthening given that a stable government with a reformist ideology is coming to power. However, he doesn't expect the rupee to run-away from the current levels.

In an interview to CNBC-TV18, he says that the Reserve Bank of India's (RBI) move to buy US dollar to contain currency's appreciation makes sense.

10:00am Equity benchmarks extended rally with the Sensex rising over 250 pts supported by index heavyweights like Reliance Industries, HDFC, L&T and ITC that gained 1-2 percent.

The Sensex rose 264.51 points or 1.09 percent to 24638.91 and the Nifty advanced 67.30 points or 0.92 percent to 7343.70. The BSE Midcap and Smallcap indices gained 1.2 percent and 1.8 percent, respectively. About 1653 shares have advanced, 451 shares declined, and 71 shares are unchanged.

BHEL topped the buying list, rising over 4.5 percent followed by Bharti Airtel, Sesa Sterlite, NTPC, M&M, DLF, Jindal Steel and IDFC with 2.5-4 percent.

However, Hindalco Industries, HDFC Bank, Bajaj Auto, GAIL, Power Grid Corporation and Asian Paints were top losers.

9:50 am Buzzing: Reliance Communications surged after media reports suggested that the Indian company was in talks with China's Citic Telecom over an undersea cable joint venture, citing unnamed people familiar with the talks.

Reliance Communications shares were trading up 3 percent.If completed, the move would create a 50-50 joint venture valuing Reliance Communications' cable assets at USD 1 billion, the media report said.

Both Reliance Communications, India's fourth-biggest mobile phone operator by customers and controlled by billionaire Anil Ambani, and Citic Telecom declined comment on the report on Thursday.

9:40 am Poll: Country's largest lender State Bank of India (SBI) will announce its fourth quarter (January-March) earnings today. Analysts expect profit after tax and net interest income of the bank to be better than previous quarters.

After third quarter earnings, the management had said the restructuring of assets (including corporate debt restructuring) would be worth Rs 9,500-9,800 crore. The bank had positively surprised in Q3 with restructuring of Rs 3,900 crore as against analysts' forecast of Rs 6,000-8,000 crore.

9:30 am Oil subsidy woes: The government has ordered oil companies to provide USD 11.4 billion subsidy for 2013-14 to help cover losses of state retailers that sell fuels at cheaper rates - a jump of 12 percent from the previous year, reports Reuters quoting sources.

The government regulates retail prices of liquefied petroleum gas, kerosene and diesel to keep prices under check for the masses, leading to revenue losses at Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp. State-run Oil and Natural Gas Corp, Oil India Ltd and GAIL (India) sell crude and related products at a discount to the retailers, who also get some cash subsidies from the government.

The market has opened on higher note once again with the Nifty hitting 7300. The Nifty is up 30.10 points at 7306.50 and the Sensex is up 127.32 points at 24501.72. About 678 shares have advanced, 82 shares declined, and 16 shares are unchanged.

NTPC, Tata Power, Sesa Sterlite, BHEL and Maruti Suzuki are top gainers in the Sensex. Among the top losers are HDFC Bank, GAIL, Hindalco, Infosys and Wipro.

The Indian rupee has opened flat at 58.46 a dollar on Friday as against previous day's closing value of 58.47 a dollar.

Himanshu Arora, Religare says the rupee is expected trade lower in today's session amid strong global sentiments and US Federal Reserve's signals of stable interest rates.
"Improved Chinese factory activity and strength in domestic equities may also support rupee. The range for the day seen at 58.20-58.62/USD," he added.

Global markets too closed in the green territory with US stocks extending the prior day's rally. European shares closed slightly higher, after wavering throughout the day following mixed manufacturing and services data. Asian markets opened higher but geopolitical risks in Thailand and Ukraine may limit gains.

In commodities, crude was trading near USD 110 supported by better-than-expected data on china's manufacturing industry and a large draw in US crude oil stocks.

And precious metal gold saw a fall in its prices at USD 1295 as but a drop in holdings of the top bullion-backed fund to five-year lows kept gains in check.