The Indian equity markets opened higher today as the government’s rail fare increase announcement cemented the belief that the United Progressive Alliance is going ahead with the reforms agenda.
At 09:31 a.m, the benchmark indices were up 0.4 percent. The Sensex was at 19742.88 and the Nifty at 5994.85.
The government yesterday announced an increase in railway fares after dithering for 10 years.
According to media reports, the government is also planning to increase the fuel prices and an announcement is likely today.
Global cues also supported the domestic positive sentiment. According to Reuters, Asian shares rose as much stronger-than-expected Chinese trade data magnified positive momentum overnight from global markets and kept alive hopes for a recovery in the world’s second-largest economy.
Stocks in news
ONGC was up 2.6 percent as sentiment for the stock has improved after Motilal Oswal’s buy rating on the stock. “After a flat production trend, we believe ONGC is again set for a growth phase and expect ONGC group to post production CAGR of 3.3 percent in FY12-15E,” a note by the brokerage said.
Oil marketing companies Bharat Petroleum Corp, Hindustan Petroleum Corp and Indian Oil Corp were up on expectation that the government will announce a fuel price increase soon. The stocks were up up to 2.5 percent.
IndusInd Bank was up about 2 percent after the bank posted robust earnings. Religare said “the results were strong on all key operating metrics”.
“PAT was up 30% YoY to Rs 2.7bn. Asset quality was stable and provisions remained low despite provisions for one corporate account. Core fee income has moderated but remained healthy at 32% YoY. CASA mobilisation was also strong driven by increase in saving deposits,” the brokerage said in a note.