The Indian markets picked up pace in the final hours of trade in last session to post handsome gains, supported by some better than expected earnings announcement from the banking sector, the rate sensetives’ too were in action. Today, the start is likely to be flat-to-positive as the regional cues are not very firm. Traders will be eyeing the rupee movement, as despite all the government and RBI measures it once again started depreciating, weighed down by the US dollar's gains against other currencies. International credit rating agency Moody’s has warned that the rupee fall may constrain country’s sovereign credit rating, as it will exacerbate inflationary and fiscal pressures. Meanwhile, RBI Governor D Subbarao has said that the currency’s exchange rate will largely be market-determined but central bank would intervene to prevent disruptions to macro-economic stability. Power sector will keep buzzing on report that an Empowered Group of Ministers headed by Defence Minister A.K. Antony will likely meet on July 25 to finalise the bidding norms for ultra mega power projects (UMPP). IT sector will be in cheerful mood as Tata Consultancy Services (TCS) has beaten the Street estimates with an excellent set of numbers for the June quarter.
There will be lots of important result announcements to keep the markets buzzing, Bajaj Auto, CRISIL, Eclerx Services, Federal Bank, HDFC, Hindustan Zinc, Hindustan Media, Hexaware Technologies, JK Paper, NIIT, Uco Bank, Unichem Lab and RIL are among the many to announce their numbers today.
The US markets extended their gaining streak in last session supported by slew of upbeat economic data. While, the initial jobless claim fell sharply in last week, index of regional manufacturing activity in Philadelphia unexpectedly jumped in July. The Asian markets have made a mixed start with some of the indices trading lower by over a percent in early deals, led by tech stocks after Google and Microsoft earnings missed estimates. Meanwhile, South Korean Finance Minister Hyun Oh Seok has called G-20 nations to coordinate to handle spillover of US Fed’s move of tapering stimulus measures.
Back home, extending their last session’s rally, Indian equity indices snapped Thursday’s trade near their intraday high with frontline gauges recapturing their crucial 6,000 (Nifty) and 20,100 (Sensex) bastions. Sentiments remained up-beat since beginning of the trade with leading industry bodies FICCI and CII welcoming the government’s step to raise foreign direct investment (FDI) limits in insurance, retail, telecom, defence and a host of other sectors. But, indices dipped to their intraday low level in noon deals, just managing to hold in green terrain, as market-participants, shunning the early optimism, resorted to profit-booking on account of Rupee’s weakness. Increased demand of dollar from importers amidst greenback’s strength in overseas market also weighed on the local unit, overriding the central bank’s attempt to stamp down on speculation. Sharp up-move in last leg of trade helped the market to end near intraday high, garnering gain of about a percentage point as recovery in European markets after a cautious start supported the sentiments. Rally in oil and gas counter too supported the sentiments after the Union Petroleum and Natural Gas Minister Veerappa Moily emphasized the need for greater investment in the oil and gas sector and has said that the government is committed to deal with the energy security issues. Meanwhile, sentiments across the globe remained up-beat after US Federal Reserve chairman Ben Bernanke suggested stimulus policies may continue for longer than expected. Back home, rally in power and fertilizer stocks too aided the sentiments as the government has decided not to divert supply of domestic gas from urea manufacturers to the fuel-starved power sector, while the empowered group of ministers (EGoM) on gas allocation will meet again on Monday to find some solution for the power sector. FMCG stocks like Hindustan Unilever, ITC, Dabur India and Godrej Consumer Products scaled record high, as a bountiful rainfall this year has prepared the ground for bumper harvest. Bounce back in rate sensitive sectors like realty and banking too supported the sentiments. Investors opted to pile up position in banking stocks after Axis Bank and Kotak Mahindra Bank reported better that expected Q1 numbers. Finally, the BSE Sensex surged 179.68 points or 0.90% to settle at 20128.41, while the CNX Nifty climbed by 64.75 points or 1.08 % to end at 6,038.05.
There will be lots of important result announcements to keep the markets buzzing, Bajaj Auto, CRISIL, Eclerx Services, Federal Bank, HDFC, Hindustan Zinc, Hindustan Media, Hexaware Technologies, JK Paper, NIIT, Uco Bank, Unichem Lab and RIL are among the many to announce their numbers today.
The US markets extended their gaining streak in last session supported by slew of upbeat economic data. While, the initial jobless claim fell sharply in last week, index of regional manufacturing activity in Philadelphia unexpectedly jumped in July. The Asian markets have made a mixed start with some of the indices trading lower by over a percent in early deals, led by tech stocks after Google and Microsoft earnings missed estimates. Meanwhile, South Korean Finance Minister Hyun Oh Seok has called G-20 nations to coordinate to handle spillover of US Fed’s move of tapering stimulus measures.
Back home, extending their last session’s rally, Indian equity indices snapped Thursday’s trade near their intraday high with frontline gauges recapturing their crucial 6,000 (Nifty) and 20,100 (Sensex) bastions. Sentiments remained up-beat since beginning of the trade with leading industry bodies FICCI and CII welcoming the government’s step to raise foreign direct investment (FDI) limits in insurance, retail, telecom, defence and a host of other sectors. But, indices dipped to their intraday low level in noon deals, just managing to hold in green terrain, as market-participants, shunning the early optimism, resorted to profit-booking on account of Rupee’s weakness. Increased demand of dollar from importers amidst greenback’s strength in overseas market also weighed on the local unit, overriding the central bank’s attempt to stamp down on speculation. Sharp up-move in last leg of trade helped the market to end near intraday high, garnering gain of about a percentage point as recovery in European markets after a cautious start supported the sentiments. Rally in oil and gas counter too supported the sentiments after the Union Petroleum and Natural Gas Minister Veerappa Moily emphasized the need for greater investment in the oil and gas sector and has said that the government is committed to deal with the energy security issues. Meanwhile, sentiments across the globe remained up-beat after US Federal Reserve chairman Ben Bernanke suggested stimulus policies may continue for longer than expected. Back home, rally in power and fertilizer stocks too aided the sentiments as the government has decided not to divert supply of domestic gas from urea manufacturers to the fuel-starved power sector, while the empowered group of ministers (EGoM) on gas allocation will meet again on Monday to find some solution for the power sector. FMCG stocks like Hindustan Unilever, ITC, Dabur India and Godrej Consumer Products scaled record high, as a bountiful rainfall this year has prepared the ground for bumper harvest. Bounce back in rate sensitive sectors like realty and banking too supported the sentiments. Investors opted to pile up position in banking stocks after Axis Bank and Kotak Mahindra Bank reported better that expected Q1 numbers. Finally, the BSE Sensex surged 179.68 points or 0.90% to settle at 20128.41, while the CNX Nifty climbed by 64.75 points or 1.08 % to end at 6,038.05.
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