After two previous lacklustre trading sessions, the Indian markets surged in opening trade today. The Sensex is up 170 points, or 1 percent at 19043 on hopes of reforms and more reforms. The NSE Nifty was quoting at 5,777, up 45 points over the previous close.The Indian rupee too continued to appreciate, rising by 23 paise to 51.93 against the US dollar.
India's Union Cabinet will consider raising the FDI cap in insurance sector to 49 per cent and opening the pension sector to foreign investment besides creation of a
National Investment Board. The Cabinet will also consider a number of other crucial
measures like giving more powers to commodity market regulator FMC, Competition Bill to bring all sectors under Companies Act, and model tripartite agreement for operationalising the Infrastructure Development Fund (IDF).
This is the second time within a month that the cabinet would consider such major proposals to push reform initiative.The only worry is a few of these bills could face stiff floor test in the Parliament during the winter session. The bills require parliamentary approval before becoming law.
Globally, reports on US jobs and service industries beat economist estimates. European indices closed mixed amid no sign of stability in the debt-strapped region's economy while Asian benchmarks are indecisive. Chinese markets remain shut for a week-long national holidays.
Spanish bond auctions, policy decisions by the Bank of England and ECB, and FOMC minutes are among the key global events to keep on one’s radar today.
Meanwhile,Mitt Romney said he doesn’t have a $5 trillion tax cut in mind even as President Obama claims otherwise, as the first presidential debate got underway in the US. Arguing that the Republican nominee Romney was likely to skew tax cuts towards the wealthy, Obama said either it would add to the deficit or the middle class would be taxed further.
Stocks in news
BPCL rose over 2% on sharp fall in crude oil prices yesterday.
The UB group stocks will once again be in limelight, while the deal between Diageo and United Spirits is said to be in the last leg, on the same time talks between the Kingfisher Airlines management and its pilots, engineers failed, as the employees rejected the offer for part payment.
RIL has clinched separate deals for producing oil from two fields in Venezuela and getting a 15-year commitment for supply of crude to its two refineries.
Gujarat State Petroleum Corporation (GSPC) on Wednesday signed an agreement to acquire British Gas's (BG) 65.12% stake in its Indian subsidiary Gujarat Gas Company for Rs. 2464 crore.
The Prime Minister's Economic Advisory Council Chairman C Rangarajan on Wednesday said he expected the rupee to stay at current levels on hopes that capital inflows would pick up in the second half of the current financial year.
The Reserve Bank of India (RBI) deputy governor, Subir Gokarn has said that the rising subsidy bill would be a hindrance to controlling inflation and fuelling growth.
A panel on Wednesday recommended raising railway passenger fares and electricity tariff among a string of measures needed to fast track infrastructure development.