The Indian equity markets see-sawed between red and green today, finally closing flat with marginal gains.
Sensex closed at 19501.08, up 0.17 percent and the Nifty closed at 5898.20, up 0.18 percent.
The next major trigger being the Union Budget of 2013 which will be presented on the 28th February which will determine whether the RBI decides to cut rates. The RBI is likely to cut interest rate in its next policy meet on March 19 provided government delivers a “credible budget” addressing fiscal consolidation and continues with the reform push, an HSBC report said.
Additionally, global rating agency Moody’s today warned that India’s widening trade deficit is “credit negative” for the country and also raises its vulnerability to global shocks. “Wider trade deficits can also weaken the currency, raising domestic prices of imported commodities, further fuelling India’s already high inflation rate,” Atsi Sheth, Vice President— Senior Analyst, Sovereign Risk Group, Moody’s Investors Service said.
In order to arrest its widening deficit, government is likely to take more steps to curb purchases of bullion, a senior official with India’s second-biggest gold importer, state-run MMTC , said, according to a Reuters report.
Stocks in news
Jet Airways closed down 8 percent after Etihad Airways chairman said the Abu Dhabi-based carrier needs to revise its deal to buy a stake in the Indian carrier.
Oil stocks closed with gains today after Oil Minister M Veerappa Moily today ruled out a roll back in the Rs 1.50 a litre hike in petrol and 45 paisa per litre increase in diesel rates saying only a small raise has been passed on to consumers. HPCL closed 1.13 percent up, BPCL closed up 0.14 percent.
Shares in DLF gain 5 percent after an executive indicated earnings would improve and said net debt would fall, according to analysts who attended the company's first ever post-results analyst meeting on Friday.
Public sector companies such as MMTC and Hindustan Copper gain 7.68 percent and 5 percent respectively on hopes of good demand in the upcoming stake sales by the government.