Thursday 19 September 2013

Sensex above 20,000 as Fed refrains from tapering

The broader markets gained with mid-caps and small-caps rising 0.6-1 per cent on the BSE.

Markets opened on a strong note with benchmark index Sensex surging above 20,000 levels in early trades on back of fresh buying by the overseas investors in sectors like banks and real estate.

Risk appetite got a boost after the Federal Reserve chief Ben Bernanke surprised markets by continuing with its $85 billion dollar stimulus injection plan.

At 9:20AM, the 30-share Sensex rose 535.95 points at 20,499 and the 50-share Nifty added 170 points at 6,070   levels.

Domestically, the Reserve Bank of India’s monetary policy this Friday-- the first under the new governor, Raghuram Rajan-- will be very crucial.

Market will now see whether the central bank withdraws the liquidity-tightening measures announced mid-July. According to markets participants, it will be difficult for Rajan to cut interest rate, as headline inflation inched up in August.

The broader markets gained with mid-caps and small-caps rising 0.6-1 per cent on the BSE.

The market breadth was positive. Out of 537 stocks traded, 464 stocks advanced while 60 stocks declined on the BSE.


FII Flows

Foreign Institutional Investors had pumped dollars into Indian markets, net-buying shares worth Rs 580 crore on Wednesday, according to provisional data.

So far this month, these investors have bought to the tune of over Rs 7,000 crore, after selling shares worth about Rs 22,000 crore in the preceding three months.


RUPEE

Rupee strengthened significantly in today’s trade tracking other emerging market currencies after US Federal Reserve continued with its bond-buying plan.

At 9:20AM, the partially convertible rupee was trading at 61.90 per dollar against the yesterday’s close of 63.38 on the Interbank Foreign Exchange.


GLOBAL MARKETS

Asian stocks jumped to a four-month high, bond yields and credit risk declined while industrial metals rallied after the Federal Reserve unexpectedly refrained from reducing U.S. economic stimulus.

Japan’s Nikkei rose 1.3% to 14,697, Singapore’s Straits Times gained 1.6% at 3,248, China’s Shanghai Composite index was flat at 2,191 while Hong Kong’s Hang Seng added 1.7% to 23,511 today.


STOCK MOVERS

Domestically, all the key sectoral indices gained with realty, banks, FMCG, consumer durables, oil & gas, healthcare indices leading the gains on the BSE.

The gainers included counters such as ICICI Bank and HDFC Bank gaining 4-5% each, BHEL surged 4%, SBI added 4.1% on the BSE.

The laggards were Infosys declining 0.2% on the BSE.

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