 "Sensex crosses 17k, rupee rebounds on hopes for policy, currency measures")
The markets have opened on a positive noteas the Sensex crossed the psychological 17,000 mark in opening trade. The BSE Sensex is up 0.7 percent at 17,090 while the S&P CNX Nifty is up 37 points to 5,183. Rupee have strengthened in early morning trade on the back of assurance from the Government that it will soon announce policy measures to restore investor confidence in the Indian economy and check the steep fall in the rupee. The RBI may also unveil fresh measures to strengthen the rupee.At 9.10 am, the rupee was at 56.73/74 to the dollar versus its 57.12/13 Friday close. The rupee has hit two consecutive record lows last week, falling to as low as 57.32 to the dollar on Friday.
So, it remains to be seen what new measures the Government and/or the RBI announce this week to check the freefall in the rupee. Markets will also be keen to know as to who would take charge of the Finance Ministry once Pranab Mukherjee moves to Rashtrapati Bhavan.
All the BSE Sectoral indices are trading in the green led by realty (1.4 percent) followed by Consumer Durables (1.33 percent) and Bankex (1.3 percent).
The market breadth is positive. On the BSE, 1,186 stocks had advanced while 349 declined. The rupee, which had crossed the 57 level has appreciated and is now at 56.7 against the dollar. The Finance Minister had said on Saturday that the government will unveil measures on Monday to arrest the slide of the currency. The rupee hit a record low of 57.35 against the dollar last week.
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In order to help the rupee, the Reserve Bank of India (RBI) and the government are reportedly expected to announce a slew of measures. The authorities may also provide interest relief for exporters. The government may also increase the cap for foreign investors buying corporate and government bonds. A higher limit will help the country attract more foreign exchange, thereby providing support to the Indian rupee.
In the 30-share Sensex pack, all except Infosys are trading in the green.
Stock specific news:
•Coal India gained over 1.5 percent as the company hiked prices in select Western blocks by 10-15 percent.
•Cairn India gained 1.3 percent after US crude oil futures crossed $80 per barrel as tropical storm Debby gathered steam off the Gulf of Mexico coast.
Meanwhile, the retail stocks are likely to be in positive mood as the narrowing window of opportunity to act will likely force the government to undertake some long-overdue economic reforms like implementing FDI in multi-brand retail within the next three to six months. Apart from this there will be lots of scrip specific actions to keep the markets buzzing.
HCC gained 4% after The Economic Times reports that bankers have agreed to give HCC additional loan of Rs 1500 crore if promoters infuse Rs 302 crore.