The Indian equity markets are trading firm after making a positive start tracking positive cues from global equity indices. The US markets made a good bounce back overnight on sign that European leaders are getting closer to agreeing on a broad approach to dealing with the region's debt troubles while; all the Asian markets barring KLSE Composite were trading in the positive terrain at this point of time, indicating strong investors' sentiment. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to trade comfortably over their crucial 18,500 and 5,550 mark respectively. On the sectoral front, software witnessed the maximum gain in trade followed by pharma and energy, while there were no losers on the NSE sectoral space. Meanwhile, textile stocks viz., Alok Industries, Vardhman Textile and Grasim Industries all were trading with a gain in the range of 0.50-1.50 percent on the buzz that the government is mulling to allow an export of 8 lakh more bales of cotton. The government had on June 8 allowed the export of 10 lakh bales of 170 kg each beyond the earlier ceiling of 55 lakh bales for the current cotton season (October 2010-September 2011). The broader indices on the NSE were outperforming benchmarks. The market breadth on the NSE was positive; there were 860 shares on the gaining side against 284 shares on the losing side.
The index is currently trading at 18,546.16, up by 109.97 points or 0.59%. Due to some technical issues the BSE data were not getting updated.
Meanwhile, to meet the growing demand of energy, India is considering creating a sovereign wealth fund (SWF) with above $10 billion, from its foreign-exchange reserves to buy energy assets overseas. Though the plan of creating country's first SWF is still in its early stage but has started facing headwinds as the Reserve Bank of India had raised its concern over using foreign exchange reserves for SWF.
India's energy demand is increasing with the economic growth and development, and as the traditional source of energy is expected to shrink in future, the unconventional energy sources like shale gas, coal-bed methane and oil sands are attracting attention of fastest growing countries like China and India. In recent time, China has outpaced India in race to acquire oil and coal blocks in different parts of world, to meet its growing demand for the energy. The petroleum ministry had suggested setting up such mechanism in order to secure country's energy supply against the growing demand.
However, Reserve Bank of India is not in a favor of using foreign reserves for financing the SEF, as the reserves are used for financing country's Current Account Deficit (CAD). During 2010-11, India's CAD was 2.6% of Gross Domestic Product and in the first week of July, country's foreign exchange reserves stood at more than $314 billion as on July 8.
The deputy Chairman of Planning Commission, Montek Singh Ahluwalia said 'There is a group which is examining this but no decision has been taken.' The original size of the fund was $10 billion but since commodity prices have increased, the size of fund, if approved could be higher.
The index is currently trading at 5,470.55, higher by 28.95 points or 0.52%. There were 47 stocks advancing against just 3 declines on the index.
The overall market breadth has made a strong start with 860 stocks advancing against 284 declines. The broader indices on the NSE were out performing benchmarks. The NSE CNX Midcap and CNX Nifty Junior indices surged 0.80% and 0.66% respectively
The top gaining sectoral indices on the NSE were, CNX IT up by 0.78%, CNX Pharma up by 0.76%, CNX Energy up by 0.72%, CNX Services up by 0.69% and Bank Nifty was up by 0.69%. While, there were no losers on the index.
The top gainers of the Nifty were Ambuja Cement up by 1.70%, Tata Power up by 1.49%, Dr Reddy up by 1.03%, GAIL up by 0.89% and NTPC up by 0.85%.
On the flip side, Jindal Steel down by 0.23%, Cairn down by 0.09% and ITC down by 0.07%, were the only losers on the index.
All the Asian equity indices barring KLSE Composite were trading in the green; Shanghai Composite was up 12.50 points or 0.45% to 2,778.40, Hang Seng was up 370.76 points or 1.69% to 22,358.05, Jakarta Composite was up 20.33 points or 0.50% to 4,088.40, Nikkei 225 was up 113.47 points or 1.13% t o10,123.86, Straits Times was up 31.50 points or 1.00% to 3,170.01, Seoul Composite was up 18.82 points or 0.88% to 2,163.86 and Taiwan Weighted was up 62.02 points or 0.71% to 8,779.16.
On the flip side, KLSE Composite was down by 2.65 points or 0.17% to 1,563.16.
The index is currently trading at 18,546.16, up by 109.97 points or 0.59%. Due to some technical issues the BSE data were not getting updated.
Meanwhile, to meet the growing demand of energy, India is considering creating a sovereign wealth fund (SWF) with above $10 billion, from its foreign-exchange reserves to buy energy assets overseas. Though the plan of creating country's first SWF is still in its early stage but has started facing headwinds as the Reserve Bank of India had raised its concern over using foreign exchange reserves for SWF.
India's energy demand is increasing with the economic growth and development, and as the traditional source of energy is expected to shrink in future, the unconventional energy sources like shale gas, coal-bed methane and oil sands are attracting attention of fastest growing countries like China and India. In recent time, China has outpaced India in race to acquire oil and coal blocks in different parts of world, to meet its growing demand for the energy. The petroleum ministry had suggested setting up such mechanism in order to secure country's energy supply against the growing demand.
However, Reserve Bank of India is not in a favor of using foreign reserves for financing the SEF, as the reserves are used for financing country's Current Account Deficit (CAD). During 2010-11, India's CAD was 2.6% of Gross Domestic Product and in the first week of July, country's foreign exchange reserves stood at more than $314 billion as on July 8.
The deputy Chairman of Planning Commission, Montek Singh Ahluwalia said 'There is a group which is examining this but no decision has been taken.' The original size of the fund was $10 billion but since commodity prices have increased, the size of fund, if approved could be higher.
However, the government is considering other option and can put aside funds for SWF from budget. But government is less likely to fund SWF through budgetary allocations as it may find it difficult in current fiscal year and in coming year government is expected to spend on populist schemes as there in elections in Utter Pradesh and Gujarat.
The S&P CNX Nifty opened at 5,576.95; about 35 points higher compared to its previous closing of 5,541.60, and has touched a high and a low of 5,585.35 and 5,567.10 respectively. The index is currently trading at 5,470.55, higher by 28.95 points or 0.52%. There were 47 stocks advancing against just 3 declines on the index.
The overall market breadth has made a strong start with 860 stocks advancing against 284 declines. The broader indices on the NSE were out performing benchmarks. The NSE CNX Midcap and CNX Nifty Junior indices surged 0.80% and 0.66% respectively
The top gaining sectoral indices on the NSE were, CNX IT up by 0.78%, CNX Pharma up by 0.76%, CNX Energy up by 0.72%, CNX Services up by 0.69% and Bank Nifty was up by 0.69%. While, there were no losers on the index.
The top gainers of the Nifty were Ambuja Cement up by 1.70%, Tata Power up by 1.49%, Dr Reddy up by 1.03%, GAIL up by 0.89% and NTPC up by 0.85%.
On the flip side, Jindal Steel down by 0.23%, Cairn down by 0.09% and ITC down by 0.07%, were the only losers on the index.
All the Asian equity indices barring KLSE Composite were trading in the green; Shanghai Composite was up 12.50 points or 0.45% to 2,778.40, Hang Seng was up 370.76 points or 1.69% to 22,358.05, Jakarta Composite was up 20.33 points or 0.50% to 4,088.40, Nikkei 225 was up 113.47 points or 1.13% t o10,123.86, Straits Times was up 31.50 points or 1.00% to 3,170.01, Seoul Composite was up 18.82 points or 0.88% to 2,163.86 and Taiwan Weighted was up 62.02 points or 0.71% to 8,779.16.
On the flip side, KLSE Composite was down by 2.65 points or 0.17% to 1,563.16.
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