The Indian equity markets seemed to be consolidating at the current levels and opened with slight gains after Christmas. There were no major local or global triggers for a sharp movement in prices.
The Sensex opened at 19315.64, up 0.31 percent and the Nifty at 5867.45, up 0.20 percent.
Globally, expectations that Japan’s incoming prime minister will pursue drastic stimulus policies to drive the country’s economy out of deflation helped weaken the yen and underpinned the Nikkei on Wednesday, while Asian shares were capped in thin holiday trade. US lawmakers and President Barack Obama were on Christmas holiday and talks on a resolution to fiscal cliff were unlikely to resume until later in the week.
The rupee opened higher against the dollar at 55.06.
A PTI report said the Indian government is likely to announce sops for exporters as part of initiatives to support sagging economic activities.
To add impetus to exports, the government is likely to extend the subsidised loan facility by one more year to exporters as part of the package expected to be announced today, to help them tide over the impact of global slowdown.
“The Commerce Ministry has discussed all the issues with its Finance counterpart. They may extend the interest subvention scheme for one more year and this time sectors like engineering and textiles would be included,” an official was quoted as saying in the report.
The Reserve Bank is also conducting an open market purchase auction of government securities on December 28. This is expected to pump in Rs 8,000 crore into the market, helping ease the tight liquidity situation.
Stocks in news
Kingfisher Airlines opened up 2.38 percent after the company submitted its revival plan to the regulator DGCA.
Binani Industries opened up 0.92 percent after the company said its Board has given in-principle approval to divest its holding in subsidiary firm Binani Cement by up to 40 percent.
Petronet LNG opened up 1 percent after Qatar Petroleum has expressed interest in buying 5.2 percent stake in the company, a potentially conflict of interest proposition as it will give the gas supplier a vantage position in India ‘s largest fuel importer.
Pharma stocks including Cipla, Sun Pharma and Ranbaxy opened up after the Planning Commission set a target for the pharmaceutical industry to reach $100 billion by 2020 and account for five percent share of the global drug industry in the next five years.