After witnessing drubbing in the last session, Indian equity benchmarks have made a positive start and are trading in fine fettle in early deals on Wednesday buoyed by firm global cues. The S&P 500 closed at a record high for a second straight session on Tuesday, buoyed by the latest round of merger activity and as expectations for rate cuts at the European Central Bank stoked investors’ appetite for equities. The Asian markets were trading mostly in the green at this point of time after China reported industrial profits increased by 10 percent this year through April from the same period in 2013.

Back home, sentiments remained up-beat as investors continued to buy beaten down but fundamentally strong stocks. Select stocks from realty counter were trading higher on a report that government is likely to grant infrastructure tag to low-cost housing segment, which will enable real-estate developers to get finance from banks and for longer tenures. However, some cautiousness crept after Finance Ministry said that it has to be watchful of the Current Account Deficit (CAD) as well as the rupee because global markets are still volatile.

On the sectoral front, capital goods, software and technology witnessed the maximum gain in trade, while metal, power and realty remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1,270 shares on the gaining side against 566 shares on the losing side while 47 shares remain unchanged.

The BSE Sensex is currently trading at 24601.07, up by 51.56 points or 0.21% after trading in a range of 24643.33 and 24552.76. There were 14 stocks advancing against 16 declines on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.66% and Small cap index up by 1.19%.

The top gaining sectoral indices on the BSE were, Capital Goods up by 1.65%, IT up by 0.85%, TECK up by 0.79%, Power up by 0.53% and Consumer Durables up by 0.30% while Metal down by 0.97%, Realty down  by 0.39%, PSU down  by 0.29%, Auto  down by 0.11%, and FMCG up by 0.10% were the top losers.

The top gainers on the Sensex were BHEL up by 3.81%, Hero MotoCorp up by 2.46%, Maruti Suzuki up by 1.71%, L&T up by 1.69% and ICICI Bank up by 1.07%. On the flip side, Coal India was down by  3.33%, Hindalco Inds was down by 1.37%, Tata Motors  was down by 1.13% , SSLT was down by 1.03%  and ONGC was down by 0.94%  were the losers on the Sensex.

Meanwhile, According to Petroleum Ministry, under-recoveries on sensitive petroleum products are likely to fall 20 percent from Rs 1,39,869 crore during FY14 to Rs 1,11,000 crore in FY15. The oil ministry highlighted that in the financial year 2015, the oil subsidy burden for new government will be the lowest since 2011-12. The loss on diesel, kerosene and cooking gas (LPG) is expected to be Rs 35,000 crore, Rs 29,000 crore and Rs 47,000 crore in FY15 mainly due to decline in the diesel subsidy and increase in prices owing to the diesel decontrol measures (Rs 9.06 a litre) since January 2013.

The Petroleum Ministry further highlighted that the appreciation in rupee’s value has also helped bring the figure down. The Ministry’s calculations are based on the crude oil prices at $105-108 a barrel and the rupee at about 58/dollar. Presently, public sector companies Bharat Petroleum Corporation, Indian Oil Corporation and Hindustan Petroleum Corporation are incurring a daily loss of Rs 318 crore on the sale of diesel, kerosene and cooking gas.

An appreciation in rupee value against the dollar cut Rs 10,000 crore on the under-recovery front. Over the past couple of months, Indian rupee has appreciated and if the current trend continues coupled with new government’s move to keep increasing the diesel prices monthly by 50 paise a litre, the under-recovery on high-speed diesel will be wiped out in six months. Overall under-recoveries will further decline if the new government implements the suggestions of the Kirit Parikh committee, which recommended a Rs 5/litre increase in diesel prices, Rs 250-a-cylinder rise in LPG prices and a Rs 4/litre rise in kerosene prices.

The CNX Nifty is currently trading at 7,332.25 up by 14.25 points or 0.19% after trading in a range of 7,344.75 and 7,317.35. There were 27 stocks advancing against 22 declines while 1 stock remained unchanged on the index.

The top gainers of the Nifty were BHEL up by 3.68%, Ambuja Cement up by 2.52%, ACC up by 2.15%, Hero Moto Co up by 2.00% and Maruti up by 1.85%. On the flip side, Coal India down by 3.41%, DLF down by 1.96%, Kotak Bank down by 1.65%, Asian Paint down by 1.60% and Hindalco down by 1.34% were the top losers on the index.

Asian markets were trading  in green; Shanghai Composite gained 3.21 points or 0.16% to 2,037.78, Hang Seng improved 192.12 points or 0.84% to 23,136.42, Jakarta Composite strengthened by 7.98 points or 0.16% to 4,971.90, KLSE Composite rose 0.59 points or 0.03% to 1,868.16, Nikkei 225 spurted by 50.64 points or 0.35% to 14,687.16, Straits Times increased by 1.26 points or 0.04% to 3,275.32, Seoul Composite jumped 12.61 points or 0.63% to 2,010.24 and Taiwan Weighted was up by 30.00 points or 0.33% to 9,085.29.