The Indian markets finally broke the jinx of closing in red and the benchmarks managed some gains in last session, albeit modest. Today, the start once again is likely to be in red tailing the weakness in the regional markets on Fed concern. However, the Prime Minister Manmohan Singh sought to dispel apprehensions of the Indian diaspora on the state of the economy, saying the country was heading towards “better times” and there is no reason to despair. Also, the Economic Affairs Secretary Arvind Mayaram has said 2013-14 is likely to end with an economic growth of about 5 percent on the back of spurt in investment activities in the later half of the fiscal. There will be some action in pharma sector, as the government has decided to retain the policy of allowing 100 percent foreign investment in the existing pharma firms. The DIPP had earlier proposed stringent norms to tighten the Foreign Direct Investment (FDI) policy for the sector and asked for a reduction in the FDI cap to 49 percent from 100 percent in rare or critical pharma verticals. Gold finance companies too are likely to cheer the decision of Reserve Bank of India (RBI) to allow finance companies to offer loans of up to 75% of the value of pledged gold as against 60% earlier. There will be some buzz in the banking licence aspirants too, as the process of selecting new banking entities has been put on a fast track by the RBI.
The US markets made a mixed closing on Wednesday despite payroll processor ADP reporting that private sector employment increased by more than expected in the month of December. The Asian markets have mostly made a weak start with Fed minutes signaling more stimulus cuts and the Japanese market was down by over a percent on yen’s strength.
Back home, buoyed by firm global cues, Indian equity benchmarks, snapping their five days losing streak ended in the positive terrain on Wednesday for the first time in 2014. Though, the domestic bourses traded in narrow range, but in the green, throughout the session as investors opted for wait and watch approach ahead of the official start of the third quarter corporate earnings, beginning on January 10, 2013 with IT major Infosys and private sector bank IndusInd Bank. Supportive cues from US markets provided the much needed support to local markets initially and Rally in Asian markets too boosted the traders’ morale. However, disappointing start of European markets took its toll on domestic sentiments and capped the gains on the up-side. Back home, some support came in after Finance Minister P Chidambaram asked taxmen to step up collections in view of fiscal deficit threatening to exceed the target. Some support also came in from currency front where Indian rupee appreciated 19 paise to 62.16 at the time of equity markets closing, as against the previous close of 62.30 at the Interbank Foreign Exchange market. Stocks related to gold and jewellery space viz. Rajesh Exports, Shree Ganesh Jewellery, Gitanjali Gems, PC Jeweller etc. edged higher, as the Planning Commission member Saumitra Chaudhuri pitched for relaxation in curbs on gold imports citing improved current account deficit. Gold imports fell to 19.3 tonnes in November from a high of 162 tonnes in May in the wake of a series of curbs by both the government and the RBI. Additionally, shares of select public sector companies like, Coal India, IDBI Bank, Syndicate Bank, Allahabad Bank etc. edged higher on the buzz that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year. Finally, the BSE Sensex gained 36.14 points or 0.17%, to settle at 20729.38, while the CNX Nifty added 12.35 points or 0.20% to settle at 6,174.60.
The US markets made a mixed closing on Wednesday despite payroll processor ADP reporting that private sector employment increased by more than expected in the month of December. The Asian markets have mostly made a weak start with Fed minutes signaling more stimulus cuts and the Japanese market was down by over a percent on yen’s strength.
Back home, buoyed by firm global cues, Indian equity benchmarks, snapping their five days losing streak ended in the positive terrain on Wednesday for the first time in 2014. Though, the domestic bourses traded in narrow range, but in the green, throughout the session as investors opted for wait and watch approach ahead of the official start of the third quarter corporate earnings, beginning on January 10, 2013 with IT major Infosys and private sector bank IndusInd Bank. Supportive cues from US markets provided the much needed support to local markets initially and Rally in Asian markets too boosted the traders’ morale. However, disappointing start of European markets took its toll on domestic sentiments and capped the gains on the up-side. Back home, some support came in after Finance Minister P Chidambaram asked taxmen to step up collections in view of fiscal deficit threatening to exceed the target. Some support also came in from currency front where Indian rupee appreciated 19 paise to 62.16 at the time of equity markets closing, as against the previous close of 62.30 at the Interbank Foreign Exchange market. Stocks related to gold and jewellery space viz. Rajesh Exports, Shree Ganesh Jewellery, Gitanjali Gems, PC Jeweller etc. edged higher, as the Planning Commission member Saumitra Chaudhuri pitched for relaxation in curbs on gold imports citing improved current account deficit. Gold imports fell to 19.3 tonnes in November from a high of 162 tonnes in May in the wake of a series of curbs by both the government and the RBI. Additionally, shares of select public sector companies like, Coal India, IDBI Bank, Syndicate Bank, Allahabad Bank etc. edged higher on the buzz that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year. Finally, the BSE Sensex gained 36.14 points or 0.17%, to settle at 20729.38, while the CNX Nifty added 12.35 points or 0.20% to settle at 6,174.60.
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