Despite the absence of positive global cues, Indian equity markets bounced back to recover in green today as the Nifty ended above 6,000 and the Sensex above 19700.
“.We expect Nifty to consolidate between 5900 and 6050 with focus slowly shifting on corporate results. Infosys earnings and IIP on Jan 11 will be in focus in the near term,” said Amar Ambani; Head of Research, IIFL.
Perhaps, the finance ministry’s statement of economy moving in the right track to restrict fiscal deficit of 5.3% of the GDP in 2012-13, also buttressed the sentiment at D-street after rating agency Fitch warned of a possible India downgrade in the next 12-24 months.
The government has taken a number of steps to restrict the fiscal deficit to 5.3 percent of the GDP during the financial year, he said, the process would continue in the subsequent years as well.
Prime Minister Manmohan Singh’s speech that the government is determined to convert any setbacks into opportunities was also received well.
On the global front, Asian shares ended down on Tuesday as investors locked in profits after strong recent gains and on caution ahead of the US earnings season, with markets also watching political developments to resolve the debt ceiling issue.
Meanwhile, European shares too were trading mixed after an unexpected slump in German exports set a negative tone ahead of other data that will fill out the picture of the region’s economic health.
Stocks in news
Marico hit its 52-week high after it announced plans to demerge its services business Kaya into a separate listed firm.
Shares of United Spirits Ltd was down after reports said that Diageo’s mandatory tender offer to buy up to 26% of shares in the company has been postponed as the deal has yet to receive local regulatory approvals.
GMR Infrastructure Ltd stock ended lower after the company has terminated its contract with the National Highways Authority of India (NHAI) for building the Kishangarh-Udaipur-Ahmedabad Highway project.
All Telecom stocks such as Bharti Airtel, Idea Cellular and Reliance Communications were steady after a panel of ministers on spectrum recommended up to a 50% cut in the reserve price for airwaves used for CDMA-based mobile services.
Ajay Bijli-led PVR ended 10.45 percent higher after the company said it has purchased a controlling stake in Cinemax India Ltd.