The Indian markets were buoyed by Mayawati‘s support for FDI in multi-brand retail.
Sensex, which has seen a drop of 0.63 percent in the afternoon session, picked up pace to close at 19487, up 0.49 percent and the Nifty at 5931, up 0.52 percent.
The Congress-led UPA is almost sure to win the voting on FDI in retail in the Rajay Sabha after BSP chief Mayawati decided to support the government. Economists, however, seem unimpressed. Leading Japanese brokerage Nomura today said the government could miss the fiscal deficit target of 5.3 percent by 50 basis points on poor revenue mop-up .
It said even the 10 percent cut on non-plan expenditure may not help meet the revised target. “Although purse-strings are being tightened, we expect a fiscal deficit of 5.8 percent of GDP this fiscal, as revenue collection continues to be disappointing,” Nomura India chief economist Sonal Varma said in a research note.
However, there might be some respite for the rupee. Credit Agricole said the rupee could rise to 52 per dollar by end of 2013 and it is the bank’s top pick among the emerging markets.
British lender Barclays also said the RBI is likely to leave the policy rates unchanged at the December 18 review and that a lending rate cut may happen only in the January policy announcement.
Stocks in news
Maruti Suzuki closed up 0.45 percent after the company announced a price hike from January owing to margin pressure.
GMR closed down 1 percent after the Singapore Court ruled in Maldives’ favour.
IT stocks continued to remain beaten down on weak revenue outlook. TCS closed down 1.25 percent , Infosys closed down 1.78 percent and Wipro closed down 0.25 percent.
Retail stocks jumped up on UPA’s FDI win. Pantaloon Retail closed up 0.36 percent, Shoppers Stop closed up 0.95 percent and Koutons Retail India closed up 5 percent.
Adani Power, JP Infratech and Indiabulls Finance were among the top Sensex gainers and United Spirits, Hexaware Technologies and HCL Tech were among top Sensex losers today.