It is a good start to the Indian markets after Wednesday’s holiday even though November derivative contracts are set to expire today. The political uncertainty has eased and looks like the Parliament is finally ready to function. The government may agree to a discussion and vote on FDI in retail. While the UPA will manage the numbers in Lok Sabha, its influence in the Rajya Sabha could be restricted.
The Sensex, however, jumped 100 points in opening trade at 18936.70 while the Nifty surged 25 points at 5753.
Brokerage Morgan Stanley feels the earnings growth is likely to improve over the next 4-6 quarters. “Therefore, we believe, the earnings revisions breadth will also rise and that is good for share prices. However, the recovery in earnings is likely to be at a steady pace unless there is a major positive change in the investment rate or the current account,” the broking firm said in a report.
Even Goldman Sachs has upgraded India to overweight from market weight on hopes of growth recovery and inflation moderation ahead. Goldman Sachs expects India GDP growth to rise to 6.5 percent in 2013 from 5.4 percent in 2012.
The investment bank has set a target of 6600 for the Nifty by the year end, while market analyst Sudarshan Sukhani expects it to hit 6,000. “Now, we are looking at a short-term uptrend that is having a strong momentum,” he told CNBC-TV18 in an interview.
Globally, Asian markets are mostly trading higher. US stocks ended up on Wednesday as investors welcomed comments from President Obama and House Speaker John Boehner on the fiscal cliff negotiations. Barack Obama and his republican counterpart are hopeful of reaching an agreement as soon as possible.
The European Commission has approved Spain’s plans to restructure four of its weakest banks, clearing the way for them to receive nearly €37 billion in fresh capital from the eurozone’s bailout fund.
Stocks in news
GMR Infrastructure is down 3.3 percent after the Maldives government snapped its $500 million airport project at Male. The group is ontemplating a legal action against the Maldives government. According to the duly signed concession agreement, the Maldives government will have to re-imburse GMR in case there is any termination.
Shares in Apollo Hospitals fell as much as 11.4 percent in opening trade a day after sources said CLSA is selling its stake for $135 million
TCS is up marginally after the IT major bagged another contract from the UK Government. It has secured five year contract with the UK Home office to implement their disclosure and barring service.