It's a strong start to the Indian markets with the Sensex rising 100 points and Nifty around 30 points in opening trade. Perhaps rating agency Moody's reaffirming India's rating as stable right before the opening bell has added momentum to the market.
In a statement, Moody's said the outlook on its Baa3 rating for India is stable, in part due to the country's high savings and investment rates,as India debated whether the country can avoid credit downgrades from other rating agencies.
However, the rating is constrained by the credit challenges posed by India’s poor social and physical infrastructure, low per capita income, high government deficit and debt ratios, a complex regulatory environment, and a tendency towards inflation, it said.
Globally', Greece's international lenders have agreed on rescuing the near-bankrupt economy. The package will reduce Greek debt by 40 billion euros, cutting it to 124 percent of gross domestic product by 2020, via a package of steps.
At 9:18am, the BSE Sensex was trading at 18645, up 108 points and NSE Nifty was quoting at 5,666, up 30 points.
RIL, Infosys, TCS, Wipro, ONGC, Bajaj Auto, ICICI Bank, BHEL, Tata Motors, Dr Reddys Lab, Tata Power, Hindalco Inds, Hero MotoCorp, Cipla, HDFC, Coal India, Tata Steel, are among gainers in Sensex and Nifty.
Sun Pharma, PowerGrid are among the losers in Sensex and Nifty.
Meanwhile, the UPA coordination committee will meet today to discuss the provision of voting, while Prime Minister Manmohan Singh, too, will be meeting Congress allies to end deadlock over FDI in Parliament.
There is is likely to be some buzz in the telecom sector, as the Reserve Bank of India has relaxed overseas borrowing rules for successful bidders in the airwaves auction, making it easier for them to raise money to pay the government.
There is some good news for the capital goods sector too, as the Minister of Heavy Industry and Public Enterprises has pitched for incentivising capital goods, particularly for export.
Stocks in news
SpiceJet is still up 1.35 percent at Rs 45 despite Air Asia denying bidding for any Indian budget carrier. On Monday the stock had soared on speculation that AirAsia, the Malaysian low-cost carrier, is looking to buy stake in the Kalanithi-owned airline. However, AirAsia’s group chief executive, Tony Fernandes, was quoted as saying by the Business Standard that: “AirAsia rejects the speculation surrounding our possible expansion in India. These reports are completely incorrect.”
Jet Airways is down around 3 percent a day after a govt source said the airline is talking to Etihad for a possible minority stake
Tata Steel rose 1.01% to Rs 375.25, with the stock extending Monday's 1.96% gains triggered by the company's announcement of restructuring plans to improve competitiveness of its UK operations through market cycles.
RIL is up 0.66 percent after it reportedly wrote to the Oil Secretary that Hoarding gas in the case of D1-D3 reservoir (in KG-D6 block) is a technical impossibility .