Indian equity benchmarks exhibited a strong performance in last session with frontline gauges garnering gain of over a percentage point, buoyed by hopes of 4-0 sweep for Bharatiya Janata Party (BJP) in state elections. Today, the start is likely to be on a higher side as investors may cheer election results of state assembly. The poll results lived up to the street’s expectations of a win for the pro-growth BJP, which could also prompt foreign fund managers to bet on the return of the NDA-led coalition at the Centre after the Lok Sabha elections next year. Meanwhile, the investors will closely watch proceedings of the ongoing winter session of Parliament, where there a total of 29 bills for consideration and passage, 5 new bills for introduction and 2 bills listed for introduction, consideration and passing. Moreover, there will be some buzz in the sugar sector, as Agriculture minister Sharad Pawar on Friday announced a slew of recommendations for the sector, which is battling high cost of inputs such as cane and low market prices. An informal panel of ministers headed by Pawar recommended a 12% interest subsidy on Rs7,200-crore loans for sugar mills to pay cane farmers, restructuring of loans under RBI guidelines, doubling the mandatory blending of ethanol in petrol to 10% and a possibility to increase import duty on sugar.
The US markets ended higher on the back of better than expected monthly jobs report. The report showed that non-farm payroll employment rose by 203,000 jobs in November following a revised increase of 200,000 jobs in October. All the Asian equity markets have made a positive start led by Japanese Nikkei, up by around two percent as an upbeat U.S. jobs report hurting the yen and triggering some hectic buying at several counters.
Back home, Indian equity benchmarks ended the session slightly in the green terrain on Friday, with Nifty recapturing its crucial 6,250 mark ahead of state assembly election results due on Sunday. Earlier, sentiments remained up-beat on report that the gross direct tax receipts of the government in April-November period this year rose by 13.18% from a year ago to Rs 3.7 lakh crore, a bit lower than the 18% growth officially projected. Net direct tax receipts in the same period rose 14.6% to Rs 3.1 lakh crore. However, profit booking was witnessed at higher levels and benchmarks turned red in noon deals. Some concern also came in after global ratings agency Moody’s cautioned that there could be downward pressure on India’s sovereign rating if growth weakens further and high inflation persists. The frontline gauges soon recovered as sentiments got bolstered in last leg of trade after sugar stocks like, Balrampur Chini, Shree Renuka Sugars, Bajaj Hindusthan, Triveni Engineering, Rana Sugars all edged higher on report that the sugar industry will be getting a loan of Rs 7,200 crore from the banks, for which the Centre will give an interest subvention of 12%. Some support also came in from report that foreign institutional investors (FIIs) have continued to pour money into the Indian equity markets, with their net inflow in calendar year (CY) 2013 crossing a milestone figure of Rs 100,000 crore on December 5, 2013. As per official data, the inflows have touched a whooping Rs 100,432 crore on year-to-date (YTD) basis. Global cues remained mixed, while Asian market mostly closed in red, European markets were positive ahead of monthly jobs report from the US. Back home, strengthening rupee too aided the sentiments. Meanwhile, rally in PSU oil marketing companies too added to the upside of the markets. Stocks like BPCL and IOC edged higher in early deals after diesel demand declined this fiscal as monthly price hikes and increased power generation clipped consumption of India’s most consumed fuel. Stocks related to public sector undertaking too remained on buyers’ radar after strong demand from investors for follow on public offer of state-run Power Grid Corporation of India. Finally, the BSE Sensex gained 38.72 points or 0.18%, to settle at 20996.53, while the CNX Nifty added 18.80 points or 0.30% to settle at 6,259.90.
The US markets ended higher on the back of better than expected monthly jobs report. The report showed that non-farm payroll employment rose by 203,000 jobs in November following a revised increase of 200,000 jobs in October. All the Asian equity markets have made a positive start led by Japanese Nikkei, up by around two percent as an upbeat U.S. jobs report hurting the yen and triggering some hectic buying at several counters.
Back home, Indian equity benchmarks ended the session slightly in the green terrain on Friday, with Nifty recapturing its crucial 6,250 mark ahead of state assembly election results due on Sunday. Earlier, sentiments remained up-beat on report that the gross direct tax receipts of the government in April-November period this year rose by 13.18% from a year ago to Rs 3.7 lakh crore, a bit lower than the 18% growth officially projected. Net direct tax receipts in the same period rose 14.6% to Rs 3.1 lakh crore. However, profit booking was witnessed at higher levels and benchmarks turned red in noon deals. Some concern also came in after global ratings agency Moody’s cautioned that there could be downward pressure on India’s sovereign rating if growth weakens further and high inflation persists. The frontline gauges soon recovered as sentiments got bolstered in last leg of trade after sugar stocks like, Balrampur Chini, Shree Renuka Sugars, Bajaj Hindusthan, Triveni Engineering, Rana Sugars all edged higher on report that the sugar industry will be getting a loan of Rs 7,200 crore from the banks, for which the Centre will give an interest subvention of 12%. Some support also came in from report that foreign institutional investors (FIIs) have continued to pour money into the Indian equity markets, with their net inflow in calendar year (CY) 2013 crossing a milestone figure of Rs 100,000 crore on December 5, 2013. As per official data, the inflows have touched a whooping Rs 100,432 crore on year-to-date (YTD) basis. Global cues remained mixed, while Asian market mostly closed in red, European markets were positive ahead of monthly jobs report from the US. Back home, strengthening rupee too aided the sentiments. Meanwhile, rally in PSU oil marketing companies too added to the upside of the markets. Stocks like BPCL and IOC edged higher in early deals after diesel demand declined this fiscal as monthly price hikes and increased power generation clipped consumption of India’s most consumed fuel. Stocks related to public sector undertaking too remained on buyers’ radar after strong demand from investors for follow on public offer of state-run Power Grid Corporation of India. Finally, the BSE Sensex gained 38.72 points or 0.18%, to settle at 20996.53, while the CNX Nifty added 18.80 points or 0.30% to settle at 6,259.90.
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