It's a positive start to the Indian markets today as Asian markets are trading with a positive bias too even though US markets were largely flat while European indices closed lower. The Indian government has not yielded to political pressure on reforms andwent ahead implementing its decisions to allow FDI in multi-brand retail and liberalise foreign investment in aviation and broadcasting sectors. This tough stance was much needed and hopefully will sustain.
While the Sensex is up around 1,32 percent at 18590 levels, the Nifty is up 0.94 percent at 5606 levels.
Sudarshan Sukhani, market analyst at s2analytics.com says the market is expected to decide its direction now. "So far, this is a small correction. Traders should be positioned to buy this correction today. They should keep a stop loss assuming that this may not work out," he told CNBC-TV18 in an interview.
Meanwhile the Prime Minister is scheduled to address the nation today to explain the Centre's rationale behind recent reforms.
The bailout package for power distribution companies will now be taken up by the cabinet, when its meets next Tuesday. The package argues for enhanced private sector involvement in distribution and binds the states to a set of mandatory conditions.
Stocks in news
Shares in Reliance Communications rose more than 4 percent after it increased mobile phone call prices by about a quarter in four telecom zones. Reliance Communications increased the base rate for local calls to 1.5 paisa from 1.2 paisa in the Bihar, Madhya Pradesh, Gujarat and Himachal Pradesh telecoms zones, Gurdeep Singh, head of the company's mobile phone business, told Reuters.
Pantaloon Retail was trading over 7 percent higher at Rs 187.60 and Shoppers Stop was up 3.3 per cent to Rs 393.00 after the government notified rules for allowing foreign retailers such as Walmart and Carrefour to set up stores in India.
In the aviation space, Kingfisher Airlines is up 4.3 percent to Rs 13.04 and Jet Airways was up 1.5 percent to Rs 365.65.
The oil marketing companies are likely to remain in focus today as the government may go for giving some relief in diesel too after in a move to placate resentment related to cap on LPG cylinders, Congress ruled states were asked to increase the number of subsidised cylinders from six to nine per family in a year. However, credit rating agency Moody's has said that any such step would limit government's subsidy reduction plan.
Insurance-related stocks extend gains this morning. Reliance Capital is up 7 percent on hopes that govt will allow increased FDI in the sector.
Infosys has overhauled its client engagement strategy by dedicating senior executives to watch over each of its top customers, its latest adjustment in the face of complaints that the company may be losing its mojo. The stock is up half a percent at Rs 2627.25.
Undeterred by the ongoing economic conditions, Mahindra and Mahindra has launched Quanto, the first compact sports utility vehicle in the country.The stock is up 1.19 percent.
Wockhardt has said the trustees of its foreign currency convertible bonds have withdrawn their winding-up petition against the company from the Bombay High Court. Wockhardt had restructured its Rs3400 crore foreign currency debt following the global downturn. The stock is up 2.5 percent.
Essar Ports is up 2 percent after the company said it has refinanced a debt of Rs 405 crore in Essar Bulk Terminal, a dry bulk port and terminal in Hazira in Gujarat, by using the take out finance scheme of India Infrastructure Finance Company.
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