Markets kick off 2013 in the green; KFA down 3% on licence suspension
The Indian equity markets started 2013 on a clean slate and rebounded after yesterday's close triggered by the decision made by the Obama government on the looming fiscal cliff.
The Indian equity markets started 2013 on a positive note as the indexes bounced back from yesterday's close as the US lawmakers were reported to have reached a deal to avert fiscal cliff at least temporarily.
The Sensex opened at 19564.12, up 0.71 percent, and the Nifty at 5946 , up 0.69percent.
The White House and congressional lawmakers have reached a deal to avoid the "fiscal cliff" that would delay harsh spending cuts by two months, Obama administration officials said on Monday.
US shares closed out 2012 with their strongest day in more than a month, pushing the S&P 500 up 13.4 percent for the year.
Domestically, India's current account deficit widened to a record high of 5.4 percent of GDP in the September quarter as exports growth slowed more sharply than imports, with a similar gap expected in the December quarter likely to prolong ther weakness in the rupee.
The Finance Ministry said that the nation's external debt increased by $20 billion over March-end level to $365.3 billion as of September end.
In 2013, global fund managers will keep a close watch on the economic fortunes of the BRIC countries. They are likely to load up on Indian stocks to fill out the holes in their portfolios.
"Not all BRICS are the same. I would group Brazil and India and put China and Russia on the other side. India and Brazil are really the attractive ones because of strong fundamentals and policy reforms. I think China everyone is wary of right now. Russia is Russia- it is a niche play and only for those who have a pass into the Kremlin," said Krishna K Gupta, general partner in Massachusetts-headquartered Romulus Capital.
Stocks in news
Axis Bank opened up 0.88 percent after the company raised Rs 2500 crore selling 10-yr bonds.
Kingfisher Airlines opened down 3 percent after its operating licences expired on Monday.
Dr Reddy's was the top gainer in the Sensex pack, followed by ONGC, HDFC, IndusInd Bank, ICICI Bank, Sun Pharma and Kotak Bank
Sensex rallies over 400 points in early trade; tracks gains in index majors TCS, Reliance Industries
The BSE index was trading 416.43 points or 0.85 percent higher at 49,366.19, while NSE Nifty surged 121.10 points or 0.82 percent to 14,845.90
The BSE index was trading 403.16 points or 0.82 percent lower at 48,758.65, while NSE Nifty fell 112.80 points or 0.76 percent to 14,737.95