The Indian markets after a volatile session managed a positive end in the last session. Today, the start of the new series is likely to be a bit cautious even though the global cues are positive. Traders will be taking a breather going ahead to the New Year. Meanwhile, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said that India should reduce its debt within 5-6 years by putting fiscal policy on the right path. Ahluwalia has also said that implementation of the Goods and Services Tax (GST) will be the best signal to tell investors globally that “India is open for business.” The power sector stocks will keep buzzing, 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. There will be some action in sugar stocks as well, 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.
The US markets continued their bull run after the Christmas break, following upbeat jobs data as Labor Department reported a steep drop in weekly jobless claims in the week ended December 21st. The Asian markets have made mostly a green start and barring Japanese Nikkei, all are trading higher. Nikkei has fallen despite the yen weakening to a five-year low on speculation the Bank of Japan will sustain monetary easing.
Back home, the December series futures and options contract expiry day, despite late hour volatility, largely remained a quiet session, lacking the flavor of high volatility, which typically surfaces on an F&O contract expiry day. Nevertheless, the frontline indices witnessed consolidation through the day’s trade snapping the session with modest gains. The gauges gained about three percentage points in the December F&O series and traders were seen rolling-over their position to fresh month F&O contract on cautious hopes that the Reserve Bank of India (RBI) will surprise markets by cutting interest rates at its policy review in January 2014. The bourses traded with traction through-out the session as sentiments remained up-beat after Mauritius said that it has put additional safeguards in place for global business companies operating from its jurisdiction to ensure their substantial presence there and to boost its image as a preferred global financial centre. Some support also came in from report that revenues from service tax, the new focus area for the finance ministry, have grown over 300 times in the past two decades, besides, the number of assessees have gone up over 400 times since 1994-95. Global cues too remained supportive. Back home, some support came in from rally in public sector oil marketing companies (OMCs). Stocks like BPCL, HPCL and IOC edged higher on reports that the oil ministry has decided to move a Cabinet note for a higher increase in diesel price - in line with Rs 5 raise recommended by the Kirit Parikh committee. Moreover, power stocks too remained on buyers’ radar after CCEA approved mega power policy, wherein it approved changes in tapering coal linkage policy. Sugar stocks like, Shree Renuka Sugars, Bajaj Hindusthan, Balrampur Chini, Triveni Engineering and Rana Sugars all edged higher after the Cabinet Committee on Economic Affairs approved the guidelines for financial assistance to the sugar industry for payment of cane price arrears. Additionally, fertilizer stocks remained upbeat on reports that fertilizer Ministry was seriously considering industry's demand to raise the fixed production cost incurred by manufacturers. Finally, the BSE Sensex gained 41.88 points or 0.20%, to settle at 21074.59, while the CNX Nifty added 10.50 points or 0.17% to settle at 6,278.90.
