The Indian markets made a good bounce back in the late trade of last session, despite being pressured by the weakness in rupee and heavy selling in banking stocks. Today, the start is likely to be modestly in green and the indices are likely to extend their momentum, as in a surprise move, the Reserve Bank of India (RBI) on Monday eased the liquidity tightening measures it had initiated earlier, by reducing the marginal standing facility (MSF) rate by a further 50 basis points (bps). The measure is likely to help the NBFCs and smaller wholesale-funded banks and easing the short-term rates and liquidity in the banking system. Meanwhile, India has lodged a strong protest against some of the proposals in the World Trade Organization's (WTO) planned agreement on trade facilitation as it will force the government to undertake major changes, including the way the Budget is presented. WTO has asked India to work out a solution to the vexed issue of food security programme ahead of the Bali ministerial meeting in December. There will be some buzz in the telecom sector, as the Telecom Commission has accepted telecom regulator’s proposal to permit spectrum trading and sharing, though it has asked TRAI to work out the modalities before implementing it.
The US markets continued their downward slide in the new week with major indices losing about a percent, as lawmakers failed to make any progress on resolving the impasse over a government spending bill. The Asian markets have made a mixed start and some of the indices are marginally in red concerned about the US developments after President Barack Obama reiterated that he won’t negotiate with Republicans over the shutdown.
Back home, Indian equity benchmarks, despite sluggish opening, managed to end the extremely volatile session near the neutral lines on Monday. Buying which emerged in late trade mainly acted as saving grace for domestic equity markets and helped Nifty to re-conquer its crucial 5,900 mark, while Sensex just shied away from 19,900 mark. Earlier, markets made a shaky start tracking weakness in Asian markets; moreover investors opted to remain on sidelines ahead of the Infosys’ quarterly results later this week that will kick start the earnings season for July-September quarter. Some cautiousness also came in after study by CII Ascon showed that industrial growth in the three months ended 30 September remained dismal despite the government introducing a number of reform measures to boost the economy. Choppy start in European counterparts too dampened the sentiments, moreover, most of the Asian markets shut shop in the red terrain with investors choosing to trim down positions on account of US lawmakers’ wrangle over the debt limit and partial government shutdown. Back home, weakness in Indian rupee against dollar too dampened the sentiments. Moreover, stocks related to banking sector remained under heavy selling pressure, led by the sharp fall of ICICI Bank which slipped by 1.50% on reports of raising an alarm over loan default by Dabhol power plant after being rendered idle due to fuel supply issues. However, key bourses witnessed sharp recovery in last leg of trade, supported by buying in software and technology counters on rupee weakness against the dollar. Sentiments also got some support as shares of metal companies continued their northward journey after encouraging data from China and on hopes of higher net profit growth on sequential basis. Additionally, shares of select non-banking finance companies (NBFC) that applied for the banking licenses edged higher after Finance Minister P Chidambaram said that the Reserve Bank of India (RBI) would shortly issue seven licenses. Finally, the BSE Sensex lost 20.85 points or 0.10%, to settle at 19895.10, while the CNX Nifty declined by 1.15 points or 0.02% to settle at 5,906.15.
The US markets continued their downward slide in the new week with major indices losing about a percent, as lawmakers failed to make any progress on resolving the impasse over a government spending bill. The Asian markets have made a mixed start and some of the indices are marginally in red concerned about the US developments after President Barack Obama reiterated that he won’t negotiate with Republicans over the shutdown.
Back home, Indian equity benchmarks, despite sluggish opening, managed to end the extremely volatile session near the neutral lines on Monday. Buying which emerged in late trade mainly acted as saving grace for domestic equity markets and helped Nifty to re-conquer its crucial 5,900 mark, while Sensex just shied away from 19,900 mark. Earlier, markets made a shaky start tracking weakness in Asian markets; moreover investors opted to remain on sidelines ahead of the Infosys’ quarterly results later this week that will kick start the earnings season for July-September quarter. Some cautiousness also came in after study by CII Ascon showed that industrial growth in the three months ended 30 September remained dismal despite the government introducing a number of reform measures to boost the economy. Choppy start in European counterparts too dampened the sentiments, moreover, most of the Asian markets shut shop in the red terrain with investors choosing to trim down positions on account of US lawmakers’ wrangle over the debt limit and partial government shutdown. Back home, weakness in Indian rupee against dollar too dampened the sentiments. Moreover, stocks related to banking sector remained under heavy selling pressure, led by the sharp fall of ICICI Bank which slipped by 1.50% on reports of raising an alarm over loan default by Dabhol power plant after being rendered idle due to fuel supply issues. However, key bourses witnessed sharp recovery in last leg of trade, supported by buying in software and technology counters on rupee weakness against the dollar. Sentiments also got some support as shares of metal companies continued their northward journey after encouraging data from China and on hopes of higher net profit growth on sequential basis. Additionally, shares of select non-banking finance companies (NBFC) that applied for the banking licenses edged higher after Finance Minister P Chidambaram said that the Reserve Bank of India (RBI) would shortly issue seven licenses. Finally, the BSE Sensex lost 20.85 points or 0.10%, to settle at 19895.10, while the CNX Nifty declined by 1.15 points or 0.02% to settle at 5,906.15.
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