Rush of positive news and developments pushed the Indian stock market indices to two-year high by the end of today’s trading. The general sentiment in the market was highly buoyant throughout the day and is reflected in trading pattern as well. The indices remained in positive territory all throughout the day’s trading and a continuous uptrend was noticed.
Tata Consultancy Services Ltd (TCS), India's No 1 software services exporter, beat the market expectation by reporting a 23 per cent rise in quarterly profit, fueling hopes of a broad pickup in tech spending. Government’s decision to postpone the controversial rules on tax avoidance, General Anti Avoidance Rule (GAAR) till 2016 earned a positive market reaction as it would help in attracting more capital inflows. Reports of a decline in inflation based on wholesale prices to 7.18 per cent in December raised hopes of a repo rate cut by RBI when it meets to revise the monetary policy on January 29. The rally was further supported by a surge in most of the Asian markets and a higher opening in Europe after Federal Reserve Bank of Chicago said the central bank should continue to support the global economic recovery.
At the end of today’s trading, the benchmark BSE Sensex notched up a gain of 242.77 points (1.23%) to close at 19906.41. It had earlier touched a day's high of 19948 and a day's low of 19689. It opened at 19689. The broader NSE Nifty surged up by 72.75 points (1.22%), to close at 6024.05. It earlier touched a day’s high of 6,036 and a day’s low of 5962. It opened at 5,967.
Today’s rally is the biggest single-day percentage gain since November 29, 2012. Shares of RIL, Infosys, TCS, ICICI Bank, Tata Steel, Dr Reddys Lab, Tata Motors, NTPC, Bharti Airtel, Jindal Steel, Hero MotoCorp, ONGC, Tata Motors, Hindalco Inds, BHEL, are among gainers in Sensex and Nifty. While shares of Wipro, Tata Power, SBI, HDFC Bank, Coal India, Sun Pharma, M&M, Bajaj Auto, Maruti are among losers in Sensex and Nifty.
The BSE Midcap index rose by 1.20%, while the BSE Smallcap index was up by 0.74% in trade today. 11 of the 13 BSE sectoral indices closed in the green zone except. Auto and HC which were the only losing sectors down by 0.46% and 0.06% respectively. Top gainers are: BSE Realty up by 5.01%, BSE IT rising by 2.57%, BSE TECk up by 2.37%.
The market breadth stood in favor of advances. Of the 3007 stocks traded on the BSE, 1394 (46.36%) rose, 878 (29.20%) fell and 735 (24.44%) stocks remained unchanged.
Reports of Apple cutting orders of ihone 5 components due to weak demand saw US shares opening the day’s trading on weak note. Both NASDAQ and Dow are trading in negative territory at present. However Federal Reserve chairman Ben Bernanke who is scheduled to give a speech and take public questions at the University of Michigan on issues of economy and fiscal cliff will be closely watched.
On the domestic front, government’s decision on postponing the implementation of GAAR by two years will certainly witness more foreign capital inflow in the Indian market. The General Anti-Avoidance Rules (GAAR), aimed at companies and investors routing money through tax havens such as Mauritius, had been scheduled to be implemented from April 2014. They will now come into effect from April 1, 2016. India gets nearly 40 per cent of its total foreign direct investment inflows through Mauritius, besides large portfolio investments.
Investment bank, Nomura projecting BSE index to touch 21,700 by the end of 2013 on the back of positive factors including potential rate cuts, easier domestic liquidity and reform momentum and J.P. Morgan's upgrading stocks of real estate developer DLF to "overweight" from "neutral" showed the underlying strength of the Indian market.
Tata Consultancy Services Ltd (TCS), India's No 1 software services exporter, beat the market expectation by reporting a 23 per cent rise in quarterly profit, fueling hopes of a broad pickup in tech spending. Government’s decision to postpone the controversial rules on tax avoidance, General Anti Avoidance Rule (GAAR) till 2016 earned a positive market reaction as it would help in attracting more capital inflows. Reports of a decline in inflation based on wholesale prices to 7.18 per cent in December raised hopes of a repo rate cut by RBI when it meets to revise the monetary policy on January 29. The rally was further supported by a surge in most of the Asian markets and a higher opening in Europe after Federal Reserve Bank of Chicago said the central bank should continue to support the global economic recovery.
At the end of today’s trading, the benchmark BSE Sensex notched up a gain of 242.77 points (1.23%) to close at 19906.41. It had earlier touched a day's high of 19948 and a day's low of 19689. It opened at 19689. The broader NSE Nifty surged up by 72.75 points (1.22%), to close at 6024.05. It earlier touched a day’s high of 6,036 and a day’s low of 5962. It opened at 5,967.
Today’s rally is the biggest single-day percentage gain since November 29, 2012. Shares of RIL, Infosys, TCS, ICICI Bank, Tata Steel, Dr Reddys Lab, Tata Motors, NTPC, Bharti Airtel, Jindal Steel, Hero MotoCorp, ONGC, Tata Motors, Hindalco Inds, BHEL, are among gainers in Sensex and Nifty. While shares of Wipro, Tata Power, SBI, HDFC Bank, Coal India, Sun Pharma, M&M, Bajaj Auto, Maruti are among losers in Sensex and Nifty.
The BSE Midcap index rose by 1.20%, while the BSE Smallcap index was up by 0.74% in trade today. 11 of the 13 BSE sectoral indices closed in the green zone except. Auto and HC which were the only losing sectors down by 0.46% and 0.06% respectively. Top gainers are: BSE Realty up by 5.01%, BSE IT rising by 2.57%, BSE TECk up by 2.37%.
The market breadth stood in favor of advances. Of the 3007 stocks traded on the BSE, 1394 (46.36%) rose, 878 (29.20%) fell and 735 (24.44%) stocks remained unchanged.
Tomorrow’s market outlook
Reports of Apple cutting orders of ihone 5 components due to weak demand saw US shares opening the day’s trading on weak note. Both NASDAQ and Dow are trading in negative territory at present. However Federal Reserve chairman Ben Bernanke who is scheduled to give a speech and take public questions at the University of Michigan on issues of economy and fiscal cliff will be closely watched.
On the domestic front, government’s decision on postponing the implementation of GAAR by two years will certainly witness more foreign capital inflow in the Indian market. The General Anti-Avoidance Rules (GAAR), aimed at companies and investors routing money through tax havens such as Mauritius, had been scheduled to be implemented from April 2014. They will now come into effect from April 1, 2016. India gets nearly 40 per cent of its total foreign direct investment inflows through Mauritius, besides large portfolio investments.
Investment bank, Nomura projecting BSE index to touch 21,700 by the end of 2013 on the back of positive factors including potential rate cuts, easier domestic liquidity and reform momentum and J.P. Morgan's upgrading stocks of real estate developer DLF to "overweight" from "neutral" showed the underlying strength of the Indian market.
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