The Indian equity markets inched up and opened in the green tracking the global markets.
The Sensex opened at 19788.78, up 0.23 percent, and Nifty at 6012.80, up 0.18 percent.
Globally, Asian shares inched up on Wednesday but the upside was limited as investors waited warily for corporate earnings season to kick off in full force, preferring in the meantime to book profits from a sharp rally at the start of the year.
Global shares fell and bond prices rose on Tuesday, with investors cautious ahead of a US earnings season expected to show sluggish growth in quarterly corporate profits.
Fitch Ratings yesterday reiterated on Tuesday its “negative” outlook on India’s sovereign credit rating, citing concerns about slowing economic growth, persistent inflationary pressures and an uncertain fiscal outlook. Reacting to this, the Finance Ministry today said it is not worried about the threat of ratings downgrade by global agencies like Fitch as it is moving on the right track and will restrict fiscal deficit to 5.3 percent of the GDP in 2012-13.
Stocks in news
RIL opened up 0.48 percent after it applied for de-notifying 40 percent of its Gujarat SEZ.
Kingfisher Airlines extended losses and opened down 3 percent as the airline is yet to see any respite for its troubles.
Bharti Airtel opened up 1.30 percent after The Economic Times reported the company has increased 2G data tariffs to improve margins. Competitors Vodafone and Idea Cellular are expected to follow suit.
Bank of India opened up 1.31 percent after the bank’s board has approved raising tier-I capital by issuing fresh shares to the government and other investors.
Tata Motors opened up 3.39 percent after global brokerages including Credit Suisse and CLSA continue to be bullish on the prospects of Tata Motors. Tata Motors’ domestic sales remain sluggish, but analysts are upbeat about sales outlook of its UK based subsidiary Jaguar Land Rover.