15th Feb,2012,Wednesday
The Bombay Stock Exchange's Sensexgained momentum after a positive start and breached psychological resistance level of 18000 as sentiments turned bullish following rally in the Asian markets. Expectations of interest rate cuts on the back of easing inflation and hopes of economic reforms also boosted sentiments.
Rally was seen in Asian markets after the Bank of Japan said it will pump $130 billion more in the economy. There are reports that Bank of China will expand investments in Europe.
Back home, inflation in January slipped 6.6 per cent in January 2012 as against 7.5 per cent a month ago.
"As regards monetary policy, such a trend of easing price pressures should give the RBI confidence to move further on its path of reversing the monetary cycle. Therefore, given the tight liquidity deficit conditions, we expect another CRR cut by the central bank in March though as of now, a repo rate cut remains a close call with the RBI keenly watching the incoming data, particularly Q3 GDP, to assess the deterioration in the growth momentum," said Edelweiss report.
According to media reports, the government may go ahead with its divestments plans with stake sale in public sector companies ONGC and BHEL. This is likely to help government reduce its fiscal deficit.
Foreign institutional investors have turned bullish on the Indian markets and continued to pump in dollars in Indian equities. As per provisional data, they bought equities worth 1030.12 crore on Tuesday. The FIIs have invested 9588.68 crore so this month.
At 9:45 am; the Sensex was at 18073.12, up 224.55 points or 1.26 per cent. It touched intraday high of 18078.26 and low of 18000.30
The National Stock Exchange's Nifty was at 5481, up 64.95 points or 1.20 per cent. The broader index touched a high of 5484.45 and low of 5460.60 in early trad
The Bombay Stock Exchange's Sensexgained momentum after a positive start and breached psychological resistance level of 18000 as sentiments turned bullish following rally in the Asian markets. Expectations of interest rate cuts on the back of easing inflation and hopes of economic reforms also boosted sentiments.
Rally was seen in Asian markets after the Bank of Japan said it will pump $130 billion more in the economy. There are reports that Bank of China will expand investments in Europe.
Back home, inflation in January slipped 6.6 per cent in January 2012 as against 7.5 per cent a month ago.
"As regards monetary policy, such a trend of easing price pressures should give the RBI confidence to move further on its path of reversing the monetary cycle. Therefore, given the tight liquidity deficit conditions, we expect another CRR cut by the central bank in March though as of now, a repo rate cut remains a close call with the RBI keenly watching the incoming data, particularly Q3 GDP, to assess the deterioration in the growth momentum," said Edelweiss report.
According to media reports, the government may go ahead with its divestments plans with stake sale in public sector companies ONGC and BHEL. This is likely to help government reduce its fiscal deficit.
Foreign institutional investors have turned bullish on the Indian markets and continued to pump in dollars in Indian equities. As per provisional data, they bought equities worth 1030.12 crore on Tuesday. The FIIs have invested 9588.68 crore so this month.
At 9:45 am; the Sensex was at 18073.12, up 224.55 points or 1.26 per cent. It touched intraday high of 18078.26 and low of 18000.30
The National Stock Exchange's Nifty was at 5481, up 64.95 points or 1.20 per cent. The broader index touched a high of 5484.45 and low of 5460.60 in early trad
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