Nifty crosses 4900 on positive global cues; telcos gain
However the main worry is that FII flows have not turned around. In fact, reports suggest some of them have switched to offshore alternatives to trade in Indian equities due to GAAR.
Sensex opens 150 points higher at 16180 levels while the Nifty has crossed the 4900-mark and is currently trading 50 points higher at 4913 thanks to encouraging global cues. The main worry is that FII flows have not turned around. In fact, reports suggest some of them have switched to offshore alternatives to trade in Indian equities due to GAAR.Concerns of Spain will continue weighing and the markets will wait for the European indices to open, for further direction.
The rupee strengthened against the dollar today, on the back of a mild recovery in risk demand that boosted Asian equities.At 9:07 am, the partially convertible rupee was at 55.47/48 per dollar, and above its previous close of 55.64/65.
All eyes are on monsoon. Another normal rainy season is crucial for India, which is battling a global slowdown and policy inaction.
Both the Nifty and the Sensex are trading at their highest points of the day.BSE realty index is the top sectoral gainer, up 1.42 percent. DB Realty rises 2.6 percent, HDIL gains 2.4 percent. Unitech is up 2.2 percent, DLF gains 1.5 percent The BSE bankex is up 1.5 percent; SBI up 1.7 percent, ICICI, HDFC Bank gain 1.4 percent each. The top Nifty gainers are Sesa Goa, Jaiprakash Associates Tata Steel and Wipro .
The Large-Cap shares are out-performing their small-cap and mid-cap peers so far in the session. But, the market breadth is positive and all sectoral indices are trading with a positive bias.
Export oriented companies are likely to rejoice with government unveiling a seven pronged strategy, including subsidized loans and other sops, to boost exports. However, the telecom stock may remain dull as the EGoM headed by Pranab Mukherjee has once again pushed the decision on reserve price for the 2G spectrum auction to another day. However, the markets are likely to get some comfort with the chief economic adviser to Finance Minister, Kaushik Basu's statement that the country is having a contingency plan to deal with the European crisis and there are different crisis management groups within the government to deal with such a possible scenario.
Meanwhile, Prime Minister Manmohan Singh has called a meeting on infrastructure today, which is expected to finalise an Airline Hub Policy and give a push to setting up of 17 new airports, including seven international ones.
Stocks in news
Gujarat Pipavav up 4.5% as the Board of Directors approved the project expansion plan for Pipavav Port at a total cost of Rs 1,097 crore.
Chambal Fertiliser and RCF gain 1.6-2% on reports that government may consider urea price hike of 10%.
The oil ministry has received a communication from the Petroleum and Natural Gas Regulatory Board saying the licence for one pipeline being planned by GAIL and four by Reliance Gas Transportation Infrastructure should be revoked as work has not progressed on the projects for a long time. Gail is up almost 1 percent at Rs 323.30.
The heads of the top three telecom operators - Bharti Airtel, Vodafone India and Idea Cellular - sought Finance Minister's "urgent and personal" intervention to stop the re-farming of spectrum proposed by the telecom regulator, saying it would have serious impact on the industry.
Essar Oil announced completion of its Rs 10000 cr expansion project at the Vadinar refinery in Gujarat, taking the annual capacity to 20 million tonnes, four months ahead of schedule. The stock is up 4 percent.
Maruti Suzuki has cut production of models such as the Alto, WagonR, Eeco and A-Star over the last few days by about 8 percent of its monthly capacity.
Lupin has received approval from the US Food and Drug Administration to market its generic Suprax capsules, used for treating bacterial infections, in the American market
The Indian markets opened in the green with the Sensex opening at 17762.91, up by 0.43 percent and Nifty 0.32 percent at 5384.45 with Infosys opening 2 percent higher after the visa case against the IT heavyweight was dismissed by the Alabama Court.
The Indian stock markets opened flat today on lack of any domestic triggers after the fall in factory output data for June dampened sentiment on Thursday.