The Indian markets bucking global trends surged in last session on the back of local development of assembly elections results and benchmarks hit their lifetime highs. Today, the start is likely to remain positive, though global cautiousness may grip the markets in latter trade on concern of Fed tapering. Markets may get some support with Paris-based think tank OECD’s report that Indian economy is seeing a tentative positive change in momentum while most of the major economies are witnessing improved growth prospects. The trades will also be eyeing the rupee movement, which surged to its four months high in last session. Meanwhile, RBI Governor Raghuram Rajan has attributed the current economic woes to stimulus provided by the government to tide over the global crisis of 2008, saying that it eventually led to an overheated economy. There will be buzz in the telecom sector, as the Cabinet has fixed the minimum price for selling telecom spectrum at up to about half the rate set at the previous auction. It approved the start price for the sale of spectrum in the 1800 mega-Hertz band at a pan-India rate of Rs 1,765 crore per MHz, about 26 percent lower than the base price in the March sale, while for the 900 MHz band, it approved a rate about 53 percent lower than the previous auction price.
The US markets ended modestly higher in last session, though the trading remained somewhat subdued lacking any major announcement from the economy front and on concern that central bank may begin tapering its asset purchase plan next week. The Asian markets have made a mixed start and some of the indices are moving in and out of the red in early deals.
Back home, Indian equity benchmarks ended the session near record high level on Monday as Bhartiya Janata Party (BJP) emerged victorious with maximum seat count in four of the five states that went to polls in the month of November and December. Though, the benchmarks cooled off from day’s high in afternoon deals as select investors preferred cashing profits at record high level, but the frontline gauges managed to extend their rally for third straight day, with Sensex settling above its crucial 21,300 mark and Nifty ending near its psychological 6,350 bastion. Sentiments remained jubilant since morning as 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. Sentiments also were boosted on data showing that foreign funds remained buyers of Indian stocks on December 6, 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 863.77 crore on Friday, as per provisional data from the stock exchanges. Meanwhile, the global cues were mixed, while Asian shares ended positive after U.S jobs report offset concerns that the Federal Reserve may reduce its monetary stimulus this month, European markets were mostly negative. Back home, bourses also got sentimental boost after Indian rupee appreciated sharply in today’s trade to hit four month high level that was sub 61/$ mark in intra-day trade. However, the Indian currency came off highs and was trading at Rs 61.08/$ at the time of equity markets closing as compared with previous close of Rs 61.44/S. Sectorally, Public sector Oil Marketing Companies stocks viz. HPCL, BPCL and IOC, gained out of the Rupee’s appreciation. Meanwhile, rally in metal stocks too aided the sentiments. Scrips like, Hindalco Industries, Tata Steel, Jindal Steel & Power, Hindustan Zinc SAIL and Sesa Sterlite edged higher after upbeat Chinese trade data. Finally, the BSE Sensex surged by 329.89 points or 1.57%, to settle at 21326.42, while the CNX Nifty gained 104.00 points or 1.66% to settle at 6,363.90.
The US markets ended modestly higher in last session, though the trading remained somewhat subdued lacking any major announcement from the economy front and on concern that central bank may begin tapering its asset purchase plan next week. The Asian markets have made a mixed start and some of the indices are moving in and out of the red in early deals.
Back home, Indian equity benchmarks ended the session near record high level on Monday as Bhartiya Janata Party (BJP) emerged victorious with maximum seat count in four of the five states that went to polls in the month of November and December. Though, the benchmarks cooled off from day’s high in afternoon deals as select investors preferred cashing profits at record high level, but the frontline gauges managed to extend their rally for third straight day, with Sensex settling above its crucial 21,300 mark and Nifty ending near its psychological 6,350 bastion. Sentiments remained jubilant since morning as 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. Sentiments also were boosted on data showing that foreign funds remained buyers of Indian stocks on December 6, 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 863.77 crore on Friday, as per provisional data from the stock exchanges. Meanwhile, the global cues were mixed, while Asian shares ended positive after U.S jobs report offset concerns that the Federal Reserve may reduce its monetary stimulus this month, European markets were mostly negative. Back home, bourses also got sentimental boost after Indian rupee appreciated sharply in today’s trade to hit four month high level that was sub 61/$ mark in intra-day trade. However, the Indian currency came off highs and was trading at Rs 61.08/$ at the time of equity markets closing as compared with previous close of Rs 61.44/S. Sectorally, Public sector Oil Marketing Companies stocks viz. HPCL, BPCL and IOC, gained out of the Rupee’s appreciation. Meanwhile, rally in metal stocks too aided the sentiments. Scrips like, Hindalco Industries, Tata Steel, Jindal Steel & Power, Hindustan Zinc SAIL and Sesa Sterlite edged higher after upbeat Chinese trade data. Finally, the BSE Sensex surged by 329.89 points or 1.57%, to settle at 21326.42, while the CNX Nifty gained 104.00 points or 1.66% to settle at 6,363.90.
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