The Indian markets showed good enthusiasm in last session and benchmarks surged by over half a percent, good global cues and some government initiatives led the markets higher. Today the start of the new week and the penultimate day of the calendar year is likely to be positive tailing global peers. Traders will be taking support with the report showing signs of economic turnaround, the CII Business Confidence Index (BCI) rose sharply to 54.9 during the October-December period of 2013-14 fiscal, from 45.7 in the previous quarter. Also, the Deputy Chairman of Planning Commission Montek Singh Ahluwalia has said that the economic growth rate was expected to be at 7.5-8 percent next year. There will be some action in the power stocks, as the Cabinet Committee on Economic Affairs is likely to take up the Power Ministry's proposal to amend the Mega Power Policy this week. On the other hand the telecom stocks too will keep buzzing, as the government has delayed the planned mobile phone spectrum auction in the 900 and 1800 megahertz frequency bands by 10 days from the original schedule, it will now start on February 3. PSU OMC may come under pressure on talks of increasing the subsidized cylinder cap for households.
The US markets ended marginally down in last session lacking any major economic release, while majority of traders remained in holiday mood. The Asian markets have made a green start and Japanese market was trading higher as the yen touched a five-year low versus the dollar.
Back home, Indian equity benchmarks kick started the new F&O series on a positive note with frontline gauges garnering gain of over half percentage point on last trading day of the week, buoyed by supportive global cues coupled with appreciation in Indian rupee against dollar. During the session, the frontline equity indices traded in an extremely tight range hardly budging from the psychological 6,300 (Nifty) and 21,200 (Sensex) levels. Nevertheless, markets traded in the green terrain throughout the day and settled near their intraday high. Sentiments remained up-beat since morning after data showed that foreign funds were net buyers of Indian stocks on December 26, 2013. Some support also came in from currency front where Indian rupee appreciated against dollar on the back of dollar sale by state-run banks on behalf of the Reserve Bank of India (RBI). Supportive cues from US markets provided the much needed support to local markets in early deals; rally in Asian markets too boosted the traders’ morale. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated in the rally. Buying in select power space too supported the sentiments, as the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, relaxed the coal tapering linkage policy for nine power projects with investments worth Rs 60,000 crore. Moreover, sugar stocks too remained on the buyers’ radar as the cabinet okayed guidelines for interest-free loan to sugar mills, making it clear to sugar mill owners that the interest-free loan of Rs 6,600 crore is meant “exclusively” to pay the cane price including arrears to farmers. Rally in software and technology counters too aided the sentiments with stocks like Infosys, TCS, Wipro, Tech Mahindra and HCL Technologies all edging higher after recent data from US pointed to a sturdier US economy, further brightening the outlook for India’s export-dependent IT sector. Additionally, banking stocks too edged higher, with Axis bank extending previous session’s gains triggered by the government’s decision to clear a proposal of the bank for increase in foreign investment ceiling in the bank to 62% from 49%, while PSU banks, like Allahabad bank and Dena Bank, too were up on capital infusion from GoI. Finally, the BSE Sensex surged by 118.99 points or 0.56%, to settle at 21193.58, while the CNX Nifty gained 34.90 points or 0.56% to settle at 6,313.80.
The US markets ended marginally down in last session lacking any major economic release, while majority of traders remained in holiday mood. The Asian markets have made a green start and Japanese market was trading higher as the yen touched a five-year low versus the dollar.
Back home, Indian equity benchmarks kick started the new F&O series on a positive note with frontline gauges garnering gain of over half percentage point on last trading day of the week, buoyed by supportive global cues coupled with appreciation in Indian rupee against dollar. During the session, the frontline equity indices traded in an extremely tight range hardly budging from the psychological 6,300 (Nifty) and 21,200 (Sensex) levels. Nevertheless, markets traded in the green terrain throughout the day and settled near their intraday high. Sentiments remained up-beat since morning after data showed that foreign funds were net buyers of Indian stocks on December 26, 2013. Some support also came in from currency front where Indian rupee appreciated against dollar on the back of dollar sale by state-run banks on behalf of the Reserve Bank of India (RBI). Supportive cues from US markets provided the much needed support to local markets in early deals; rally in Asian markets too boosted the traders’ morale. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated in the rally. Buying in select power space too supported the sentiments, as the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, relaxed the coal tapering linkage policy for nine power projects with investments worth Rs 60,000 crore. Moreover, sugar stocks too remained on the buyers’ radar as the cabinet okayed guidelines for interest-free loan to sugar mills, making it clear to sugar mill owners that the interest-free loan of Rs 6,600 crore is meant “exclusively” to pay the cane price including arrears to farmers. Rally in software and technology counters too aided the sentiments with stocks like Infosys, TCS, Wipro, Tech Mahindra and HCL Technologies all edging higher after recent data from US pointed to a sturdier US economy, further brightening the outlook for India’s export-dependent IT sector. Additionally, banking stocks too edged higher, with Axis bank extending previous session’s gains triggered by the government’s decision to clear a proposal of the bank for increase in foreign investment ceiling in the bank to 62% from 49%, while PSU banks, like Allahabad bank and Dena Bank, too were up on capital infusion from GoI. Finally, the BSE Sensex surged by 118.99 points or 0.56%, to settle at 21193.58, while the CNX Nifty gained 34.90 points or 0.56% to settle at 6,313.80.
No comments:
Post a Comment