Markets, rupee open strong; is green the flavour of the day?
The Indian markets in green and the indices may extend their gains as Prime Minister Manmohan Singh has finally stepped in to assuage investors concern and has convened a meeting on Wednesday to review big-ticket infrastructure projects.
The Indian markets in green and the indices may extend their gains as Prime Minister Manmohan Singh has finally stepped in to assuage investors concern and has convened a meeting on Wednesday to review big-ticket infrastructure projects. The Sensex opened 80 points higher at 16065 while the Nifty opened 30 points higher at 4878 levels. The rupee has opened at 55.39/$ vs 55.66/$ on Monday.
Asian markets too are trading with a positive bias. US markets closed flat. Barring Germany, most big European indices finished higher.
Stocks leading gains on the Sensex are ITC up 0.9 percent, ICICI Bank gains 1.1 percentt, SBI rises 1.4 percent and HDFC Bank is up 1 percent. Top Nifty gainers include Reliance Infra ( up 1.8 percent), Jaiprakash Associates (up 2 percent) and Cairn India up 1.8 percent.
Market analyst Sudarshan Sukhani of s2analytics.com said the Nifty is in a trading range of 4,800-5,000. "We do have some move on the upside before resistance comes in. So, a long position probably is a better idea," he told CNBC-TV18 in an interview.
RBI's deputy governor, Subir Gokarn has hinted at a possibility of a rate cut on June 18 citing dismal GDP data and softening crude prices. However, the onus stays on the Centre for controlling the worsening fiscal balance.
Meanwhile, the PM and the FM see the current slowdown as just a blip and continue to believe in India's long-term potential. The PM has called a meeting of infrastructure ministries while the FM is said to review FDI in Pharma space.
Investors will also be hoping for some action from the G-7 policy meeting later today to stem the global growth concerns. Finance ministers and central bank governors from G-7 countries will hold a call today to discuss the European debt crisis.
Stocks in news
The telecom stocks too will keep buzzing as an empowered group of ministers (EGoM) headed by Finance Minister Pranab Mukherjee, will meet today to decide on the base price for the much-awaited auction of telecom spectrum. Telecom Commission (TC) in its last meeting has left the decision on the EGoM for fixing the spectrum price to be auctioned, and asked Telecom Regulatory Authority of India (TRAI) Chairman to analyse the reserve prices proposed earlier and their impact.
CBI officials are being briefed by coal ministry officials on the process of coal block allocation, and monitoring the same post allocation. As per complaints filed with CVC, irregularities post allocation are being looked at by the CBI and they'll examine change in ownership, delay in exploration and status of end use plants.
Hero MotoCorp will invest Rs 2,575 cr to set up two new manufacturing plants in Gujarat and Rajasthan and a new R&D centre by 2013-14. The stock is up almost a percent.
Future Group has decided to sell a 54% stake in Future Capital Holdings to private equity major Warburg Pincus. Shares in Future Capital rise 2.33 percent to Rs 147 .
Punjab National Bank, which had proposed to buy 30% in MetLife Insurance has reworked the sale agreement amidst the insurance regulator's discomfort with the deal structure.
Coal India has directed its subsidiaries to enter into fuel supply agreements with power units coming up between January 2012 and March 2015, bringing a respite to fuel starved power companies.
EIH Associated Hotels, a part of the Oberoi Group, plans to raise Rs110 cr by issuing equity shares on a rights basis to its existing shareholders.
PNGRB versus IGL case, sources indicate that the Petroleum and Natural Gas Regulatory Board is yet to decide its next move in the case with Indraprastha Gas and that they will decide moving Supreme Court in one week.
Coal India directs its subsidiaries to sign FSA with power units: Reports stated that the development comes in the wake of Coal Ministry, last month, directing the public sector company to enter into pacts with power units which will commission during the period.
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ICICI Bank shares gain 4% to Rs 316; market capitalisation rises by Rs 8,051 cr as MD & CEO Chanda Kochhar quits
Shares of ICICI Bank rose by 4 percent on Thursday, adding Rs 8,051 crore to its market valuation, after its Managing Director and CEO Chanda Kochhar quit the bank.
Continuing Friday's momentum, Sensex opens around nearly 155 points up at 16,992.44 and Nifty is up 44 points at 5143 ahead of the RBI policy review on Tuesday 31 July.
The Sensex opened up 2 percent at 18381.94 and the Nifty 1.95 percent at 5541.15.