The Indian markets sobered after yesterday’s strong rally as the excitement over fiscal cliff subsided. Even a rise in Asian equities was not of much help for India as domestic economic worries impacted sentiment more.
The Sensex opened at 19728.66, up 0.07 percent and Nifty at 5997.20, up 0.07 percent.
The next big trigger for the markets will be the RBI’s policy review later this month.
“One of the biggest events of 2013, at least the first quarter has to be the RBI policy and the reduction in the interest rate. The budget and some more reforms are expected around that time,” said Dipan Mehta, member, BSE & NSE yesterday in an interview with CNBC TV18.
Most Asian stock markets edged higher on Thursday on hopes of a steady economic revival in China.
Stocks on Wall Street started 2013 with their best day in more than a year as relief over a last-minute deal in Washington to avert the “fiscal cliff” sparked a broad rally with technology and banking shares leading the move higher.
India’s record current account deficit is “worrying,” Finance Minister P Chidambaram said on Wednesday, and hinted at cutting gold imports to bolster weak external accounts that have brought back memories of a 1991 currency crisis.
Stocks in news
Jet Airways opened up 5 percent after reports that Etihad Airways is like to seal the deal next week for a 24 percent stake in the airline.
SpiceJet opened up 2.35 percent after reports that the Kalanithi Maran-owned budget carrier has shortlisted three foreign investors to raise $100-150 million by way of equity dilution and/or debt.
Kingfisher Airlines opened down 2 percent after Civil Aviation Minister Ajit Singh said the airline should present a satisfactory operating plan to the DGCA and work on its rescue plans for the sake of its employees, stakeholders and passengers.
Sun Pharma opened up 0.18 percent after the company said that it is open to acquisition opportunities in Europe and globally.