Wednesday 13 April 2016

Opening Bell - Sensex rallies over 250 points

At 9:15 AM, the S&P BSE Sensex is trading at 25,435 up 289 points, while NSE Nifty is trading at 7,777 up 68 points. 

Sensex goes Up
At 9:15 AM, the S&P BSE Sensex is trading at 25,435 up 289 points, while NSE Nifty is trading at 7,777 up 68 points.

The market seems to have reasons to rejoice. Better than expected macro numbers hint at ‘achche din’ for the economy. After spending three months in the negative territory, factory output finally rose on the back of a strong performance by mining and electricity sectors, while retail inflation moderated further in March. February IIP stood at 2% versus (-) 1.5% in January. Retail inflation (CPI) fell to 4.83%. Owing to the slowdown in China, low crude oil prices and overall sluggish trend in advanced economies, the International Monetary Fund (IMF) has cut its global growth forecast at 3.2% in 2016. However, IMF forecasts India to grow at the fastest pace of 7.25% in 2016. Another reason for cheer was that the seasonal rainfall during the forthcoming monsoon is likely to be 106% of the Long Period Average (LPA), according to IMF.

 Asian markets are doing well. US stock indices rallied on Tuesday after oil prices spurted above US$40 per barrel. Oil futures jumped on hopes that key oil producers will agree on an output freeze at their meeting this Sunday. Reports indicated that a possible output freeze by Saudi Arabia and Russia could help lay the groundwork for a broader accord among major oil producers.

US-traded crude oil futures surged by 4.5% to close at US$42.17 a barrel, its highest settlement for the year. The US dollar’s recovery against the Japanese yen also helped to boost demand for risky assets such as stocks.

The Dow Jones Industrial Average rose by 164.84 points, or 0.9% to close at 17,721.25 - marking its best daily gain since March 11. The S&P 500 index advanced by 19.73 points, or 1%, to end at 2,061.72 for a year-to-date (YTD) gain of 0.9%. The Nasdaq Composite Index gained 38.69 points, or 0.8%, to finish at 4,872.09.

Finance Minister Arun Jaitley leaves today for a week-long trip to the US to attend Spring Meetings of World Bank and IMF.

India will take part in a special OECD meet on April 13 in Paris to firm up cooperation between countries in the wake of the 'Panama Papers' leak that has seen the government here order a multi- agency probe after 500 Indians were named in it as holding offshore assets in the tax haven. 

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