One thing is for certain, today the Indian Share Market will open on a highly positive note. Spirited run of US and European stocks on Tuesday and strong openings of Asian markets today will undoubtedly lead to a strong opening of the Indian stock market. An opening higher by 50 to 70 points in BSE Sensex is definitely on the cards.
U.S. stocks rallied on strong volume on Tuesday, as the S&P 500 witnessed a gain of 1.16 %, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy. Dow Jones Industrial Average was up by 115.57 points, or 0.87 %, while NASDAQ Composite witnessed a gain of 43.93 points, or 1.47 %. Banks, energy and technology - sectors that would benefit during economic expansion, led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.
Positive news in the home front will also acts as booster dose for the Indian markets. The passage of Banking Amendment Bill in the lower house of the Indian Parliament yesterday already boosted the market. On Thursday, the bill will be tabled in the upper house of the parliament, where also the bill will pass without much trouble. The banking bill will increase shareholders' voting rights to 26 percent from 10 percent in private sector banks, making investment more attractive to foreign players.
The legislation also clears the way for more corporate houses to run banks by enabling the Reserve Bank of India (RBI) to issue new bank licenses. This is indeed great news for Indian economy as the Indian market will now be more attractive for foreign players. Though, RBI decided to keep key interest rates unchanged yesterday, but provided sufficient hints that it would reduce them in January, giving some comfort to industry and banks which have been clamoring for a rate cut for quite some time. Thus overall, the market sentiment is very much positive and under most likelihood the market will see a positive run into the green zone today.
U.S. stocks rallied on strong volume on Tuesday, as the S&P 500 witnessed a gain of 1.16 %, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy. Dow Jones Industrial Average was up by 115.57 points, or 0.87 %, while NASDAQ Composite witnessed a gain of 43.93 points, or 1.47 %. Banks, energy and technology - sectors that would benefit during economic expansion, led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.
Positive news in the home front will also acts as booster dose for the Indian markets. The passage of Banking Amendment Bill in the lower house of the Indian Parliament yesterday already boosted the market. On Thursday, the bill will be tabled in the upper house of the parliament, where also the bill will pass without much trouble. The banking bill will increase shareholders' voting rights to 26 percent from 10 percent in private sector banks, making investment more attractive to foreign players.
The legislation also clears the way for more corporate houses to run banks by enabling the Reserve Bank of India (RBI) to issue new bank licenses. This is indeed great news for Indian economy as the Indian market will now be more attractive for foreign players. Though, RBI decided to keep key interest rates unchanged yesterday, but provided sufficient hints that it would reduce them in January, giving some comfort to industry and banks which have been clamoring for a rate cut for quite some time. Thus overall, the market sentiment is very much positive and under most likelihood the market will see a positive run into the green zone today.
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