The Indian markets despite volatility and few dips into red, managed to extend their gaining momentum in last session. Today, the start is likely to be soft-to-cautious tailing the global indices and traders will be waiting for more cues for further course of action. There will be some somberness in the markets, as the Paris-based Organisation for Economic Co-operation and Development (OECD) has said that Indian economy is expected to improve marginally in the current financial year with its GDP at market price projected to expand by 3.4 percent from 3.3 percent in the previous fiscal. There will be some buzz in the NBFCs segment as the Supreme Court has issued notice to the Centre on a writ petition for a direction seeking the constitution of an expert committee of SEBI, RBI, Finance Ministry, Enforcement Directorate and Serious Fraud Investigation Office officials to devise a long-term plan to end all the unauthorised and illegal deposit schemes. There will be some action in infra sector too as the Finance Ministry is firming up plans for a new Infrastructure Trust Fund aimed at accelerating the flow of long-term investments in various projects.
The US markets ended lower ahead of the Fed Chairman Ben Bernanke’s speech and traders largely shrugged off a report from the Labor Department showing that employee compensation costs rose by slightly less than expected in the third quarter. The Asian markets are mostly in red after Ben Bernanke said low US interest rates will continue long after the central bank ends its program of bond buying.
Back home, Tuesday was the day of consolidation for the Indian markets when bulls taking a breather from their last session’s rally, just tried to hold their gains. The global cues were not very supportive and traders opted to remain on sidelines to get some cues. However, there were some instances of profit booking too that dragged the markets in red for a couple of time, though there was simultaneous bounce back that took the markets back into green. The market sentiments were supported by rupee strength for the second straight session as stronger rupee could help to reduce import bill and current account deficit. Also, PMEAC Chairman C Rangarajan stated that country’s current account deficit (CAD) will be contained well below the targeted limit. The global cues remained sluggish since morning as the US markets ended mostly lower overnight on profit booking, while the Asian pack made a mixed start and despite some recovery ended in the same state. The European markets too made a soft start and pressured the local markets. Back home, despite some volatility the markets managed to extend their gaining streak for the third consecutive session, albeit marginally. The rupee strength supported equity markets which traded near the 62/$ level with the Reserve Bank of India’s ongoing bonds purchase worth Rs 8,000 crore this week under the open market operations (OMO) to inject liquidity in the system. There was some cautiousness in the early deals of the markets related to stock market regulator Securities & Exchange Board of India (Sebi) tightening disclosure norms for listed companies. The regulator has empowered stock exchanges to make its current system more effective while monitoring disclosures made on shareholding pattern, financial results and on other price-sensitive information. While there was a pause in the surge what the markets have been witnessing since last two sessions, but the rate sensitives’ once again remained on forefront, though there was some somberness in the defensive. Realty and Capital Goods counter added another over a percent for the day, while the Consumer Durables and FMCG lost about half a percent. The non sectoral aviation pack too was in jubilant mood on report that the domestic airlines flew 50.08 lakh passengers in October this year, up by almost 10 percent increase over the 45.55 lakh passengers carried by them in the same period last year. Finally, the BSE Sensex surged by 40.08 points or 0.19%, to settle at 20890.82, while the CNX Nifty added 14.35 points or 0.23% to settle at 6,203.35.
The US markets ended lower ahead of the Fed Chairman Ben Bernanke’s speech and traders largely shrugged off a report from the Labor Department showing that employee compensation costs rose by slightly less than expected in the third quarter. The Asian markets are mostly in red after Ben Bernanke said low US interest rates will continue long after the central bank ends its program of bond buying.
Back home, Tuesday was the day of consolidation for the Indian markets when bulls taking a breather from their last session’s rally, just tried to hold their gains. The global cues were not very supportive and traders opted to remain on sidelines to get some cues. However, there were some instances of profit booking too that dragged the markets in red for a couple of time, though there was simultaneous bounce back that took the markets back into green. The market sentiments were supported by rupee strength for the second straight session as stronger rupee could help to reduce import bill and current account deficit. Also, PMEAC Chairman C Rangarajan stated that country’s current account deficit (CAD) will be contained well below the targeted limit. The global cues remained sluggish since morning as the US markets ended mostly lower overnight on profit booking, while the Asian pack made a mixed start and despite some recovery ended in the same state. The European markets too made a soft start and pressured the local markets. Back home, despite some volatility the markets managed to extend their gaining streak for the third consecutive session, albeit marginally. The rupee strength supported equity markets which traded near the 62/$ level with the Reserve Bank of India’s ongoing bonds purchase worth Rs 8,000 crore this week under the open market operations (OMO) to inject liquidity in the system. There was some cautiousness in the early deals of the markets related to stock market regulator Securities & Exchange Board of India (Sebi) tightening disclosure norms for listed companies. The regulator has empowered stock exchanges to make its current system more effective while monitoring disclosures made on shareholding pattern, financial results and on other price-sensitive information. While there was a pause in the surge what the markets have been witnessing since last two sessions, but the rate sensitives’ once again remained on forefront, though there was some somberness in the defensive. Realty and Capital Goods counter added another over a percent for the day, while the Consumer Durables and FMCG lost about half a percent. The non sectoral aviation pack too was in jubilant mood on report that the domestic airlines flew 50.08 lakh passengers in October this year, up by almost 10 percent increase over the 45.55 lakh passengers carried by them in the same period last year. Finally, the BSE Sensex surged by 40.08 points or 0.19%, to settle at 20890.82, while the CNX Nifty added 14.35 points or 0.23% to settle at 6,203.35.
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