It’s a choppy session today after yesterday’s multi-month high rally as thee euphoria surrounding the cabinet meeting which approved FDI in insurance and pension is not really boosting sentiment on the Street. UPA seems to be in a hurry to launch crucial ‘reforms’ in a bid to boost flagging growth but the reforms drive could face hurdles in Parliament; and the government’s strategy to clear critical reform bills will be crucial.
The Sensex rose as much as 70 points minutes after the opening bell, but is now just marginally in green, up 0.04 percent at 19066 and the Nifty, up 0.02 percent at 5788 levels. The rupee rose to a near six-month high in opening trade even though reforms will face a tough fight in parliament.At 9.02 a.m. local time, the rupee was at 51.43/45 as against 51.74/75 Thursday close. It rose to 51.32, its highest since April 13.
“Markets have achieved a significant breakout on the upside above 5757 but now, caution is advised as profit booking from higher levels may catch the traders on the wrong foot and trap them,” said Anand Rathi in a note today.
The brokerage says that since today is the twenty first day of the market tise, traders will maintain a cautious approach. ” Today Nifty has to cross 5800 and hold 5760 for a move towards 5850 & 5950 on higher side. On the other hand, if Nifty slips below 5760 and closes below 5720, then selling pressure could be intensified towards 5520 & 5450 levels too.”
Investors will keep a close eye on shares of companies engaged in the insurance business after the Cabinet cleared all amendments in the insurance bill. Reliance Capital and Max India were up 3-5 percent while Bajaj Finserv gained 0.7 percent. Aditya Birla Nuvo rose 2 percent and Aditya Birla Money was up 8 percent.
RIL, Coal India, BHEL, Bajaj Auto, NTPC, ITC, HDFC Bank,Maruti, Tata Steel, L&T, ONGC, L&T, Tata Power, HUL, Tata Motors are among gainers in Sensex and Nifty. Infosys, TCS, Wipro, HDFC, ICICI Bank, Sun Pharma, Bharti Airtel, Cipla are among losers in Sensex and Nifty.The Cabinet has ALSO approved the draft 12th Five-Year Plan (2012-13 to 2016-17) document, which aims at an average annual GDP growth of 8.2%.The Centre on Thursday approved an outlay of Rs 884.07 crore for the first component of the end-to-end computerisation of Targeted Public Distribution System.
The Centre aksi approved the proposal of granting international airport status to five airports in the country, including Mangalore.
The Reserve Bank of India (RBI) on Thursday said that the Government’s final data on the fiscal deficit for this financial year would be important in deciding its monetary policy. RBI Governor D Subbarao said “In the next few weeks, we have to determine what the final outcome might be. That would determine our monetary policy calculation.”
The Forward Markets Commission (FMC), which regulates the commodities trading, could soon become an autonomous regulatory body like RBI, Sebi and IRDA if Parliament passes the amendments to the Forward Contracts Regulation Act (FCRA).
Trinamool Congress chief Mamata Banerjee has indicated that her party may bring a ‘no-confidence motion’ against UPA II government in the next Parliament Session.
Stocks in News
Housing Development Finance Corp falls 3.2 percent as US private equity firm Carlyle Group is set to sell a 3.7 percent stake to raise as much as $861 million. Carlyle is selling about 57 million shares of HDFC in a price band of Rs 760 to Rs 781.25 a share – a discount of 1-3.7 percent from the lender’s closing price on Thursday of Rs 789.05.
strong>Kingfisher Airlinesgot a lifeline as banks agreed to release Rs. 60 crore for the airline to pay its employees. Oil India Ltd( OIL) and IndianOil Corporation ( IOC) have joined the great shale oil & gas rush in the US, jointly picking up 30% stake in a field owned by Houston-based Carrizo Oil & Gas.