The Indian markets witnessed fireworks in last session, though missing the all time high levels just by a whisker, but still the major bourses managed an all time closing high. Today, the start of the new month and new series is likely to be in green with fireworks continuing on the Diwali eve. The markets will be getting boost from the macro front, where the core sector industries recorded 8 percent growth in September, highest in the past 11 months. The growth in the eight infrastructure industries was mainly due to expansion in crude oil, steel and electricity production. Also, the Department of Economic Affairs Secretary Arvind Mayaram has said that the government will meet the fiscal deficit target of 4.8 percent of GDP for the current financial year. The statement came after the data showed that the fiscal deficit at the end of six months of the 2013-14 fiscal year reached 76% of the full-year estimate of Rs 5.43 lakh crore. There is another supportive cue for the markets, it has been reported that foreign direct investment (FDI) in India increased by about 35 percent to $13.6 billion during the first half of 2013 with merger and acquisitions accounting for the bulk of inflows. There will be buzz in the PSU oil marketing companies, as the petrol price was cut by Rs 1.15 a litre, while diesel prices were raised by 50 paise per litre. ATF prices too have been reduced by 4.5 percent.
There will be lots of important result announcements too, to keep the markets buzzing, 3I Infotech, AIA Engineering, Berger Paints, Eveready Inds, Kansai Nerolac, Punj Lloyd etc will be announcing their numbers today.
The US markets extended their fall on the last day of the month, mainly induced by late hour selling. Though, there were some good economic reports but the traders remained cautious with the next stance of Federal Reserve’s outlook for monetary policy. The Asian markets have made a mixed start with some of the indices marginally in red. The Chinese market was trading in green, as a manufacturing gauge of the country rose more than estimated to an 18-month high in October.
Back home, Thursday turned out to be a remarkable day of trade for Indian equity markets with both the frontline indices, after trading choppy for most part of the session, changed gears in late trade to end near their all time high. Earlier, the domestic markets made lackluster start tailing sluggish global cues as the Fed indicated that it may start paring stimulus sooner than previously forecasted. But, buying which emerged in last leg of trade helped key gauges to end the last day of Futures & Options expiry of October month in a great style, near their psychological 21,200 (Sensex) and 6,300 (Nifty) levels led by public sector banks such as State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Union Bank of India etc, which edged higher on hopes of stabilizing asset quality and valuations. Sentiments also got some boost after Reserve Bank Governor Raghuram Rajan said that India now is in a better position to face the US Federal Reserve’s unwinding of its easy money policy whenever it takes place. Global cues remained weak with all the Asian counters ending in the red after the US Federal Reserve’s latest policy outlook was deemed less dovish than some had wagered on, lifting both bond yields and the dollar. Back home, sentiments remained up-beat after foreign investors remained net buyers for 19th consecutive session on October 30, buying shares worth a net Rs 1016.77 crore. Some boost to the local bourses came in after investors continued buying public sector oil marketing companies viz. BPCL, HPCL and IOC after the recommendations of expert panel headed by former Planning Commission member Kirit S Parikh that Diesel prices should be hiked by a steep Rs 5 per litre, kerosene by Rs 4 a litre and cooking gas (LPG) rates by Rs 250 per cylinder immediately to cut fuel subsidy bill by Rs 72,000 crore. Also, it suggested that the number of subsidised cooking gas cylinders supplied to households in a year should be cut to 6 bottles of 14.2-kg from the current quota of 9. Meanwhile, slew of strong second quarter result from public sector lenders too boosted the sentiments. Allahabad Bank reported a rise of 17.76% in its net profit at Rs 275.81 crore for the quarter ended September 30, 2013 as compared to Rs 234.20 crore for the same quarter in the previous year. Moreover, bank of India reported over two fold jump in its net profit at Rs 621.77 crore for the quarter ended September 30, 2013 as compared to Rs 301.85 crore for the same quarter in the previous year. Finally, the BSE Sensex surged by 130.55 points or 0.62%, to settle at 21164.52, while the CNX Nifty gained 47.45 points or 0.76% to settle at 6,299.15.
There will be lots of important result announcements too, to keep the markets buzzing, 3I Infotech, AIA Engineering, Berger Paints, Eveready Inds, Kansai Nerolac, Punj Lloyd etc will be announcing their numbers today.
The US markets extended their fall on the last day of the month, mainly induced by late hour selling. Though, there were some good economic reports but the traders remained cautious with the next stance of Federal Reserve’s outlook for monetary policy. The Asian markets have made a mixed start with some of the indices marginally in red. The Chinese market was trading in green, as a manufacturing gauge of the country rose more than estimated to an 18-month high in October.
Back home, Thursday turned out to be a remarkable day of trade for Indian equity markets with both the frontline indices, after trading choppy for most part of the session, changed gears in late trade to end near their all time high. Earlier, the domestic markets made lackluster start tailing sluggish global cues as the Fed indicated that it may start paring stimulus sooner than previously forecasted. But, buying which emerged in last leg of trade helped key gauges to end the last day of Futures & Options expiry of October month in a great style, near their psychological 21,200 (Sensex) and 6,300 (Nifty) levels led by public sector banks such as State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Union Bank of India etc, which edged higher on hopes of stabilizing asset quality and valuations. Sentiments also got some boost after Reserve Bank Governor Raghuram Rajan said that India now is in a better position to face the US Federal Reserve’s unwinding of its easy money policy whenever it takes place. Global cues remained weak with all the Asian counters ending in the red after the US Federal Reserve’s latest policy outlook was deemed less dovish than some had wagered on, lifting both bond yields and the dollar. Back home, sentiments remained up-beat after foreign investors remained net buyers for 19th consecutive session on October 30, buying shares worth a net Rs 1016.77 crore. Some boost to the local bourses came in after investors continued buying public sector oil marketing companies viz. BPCL, HPCL and IOC after the recommendations of expert panel headed by former Planning Commission member Kirit S Parikh that Diesel prices should be hiked by a steep Rs 5 per litre, kerosene by Rs 4 a litre and cooking gas (LPG) rates by Rs 250 per cylinder immediately to cut fuel subsidy bill by Rs 72,000 crore. Also, it suggested that the number of subsidised cooking gas cylinders supplied to households in a year should be cut to 6 bottles of 14.2-kg from the current quota of 9. Meanwhile, slew of strong second quarter result from public sector lenders too boosted the sentiments. Allahabad Bank reported a rise of 17.76% in its net profit at Rs 275.81 crore for the quarter ended September 30, 2013 as compared to Rs 234.20 crore for the same quarter in the previous year. Moreover, bank of India reported over two fold jump in its net profit at Rs 621.77 crore for the quarter ended September 30, 2013 as compared to Rs 301.85 crore for the same quarter in the previous year. Finally, the BSE Sensex surged by 130.55 points or 0.62%, to settle at 21164.52, while the CNX Nifty gained 47.45 points or 0.76% to settle at 6,299.15.
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