The domestic markets after a cautious start have
started firming up in the mid morning trade with benchmarks trading
higher by over half a percent. While the oil and gas sector stocks have
taken the lead, the recently beaten down consumer durable, IT and metal
stocks are closely following it, after the positive development in
Europe over the weekend. German Chancellor and French President pledged
to come up with a new comprehensive package for solving the Europe's
sovereign debt problem. On the same time the defensive sectors like FMCG
and healthcare are lacking demand with the rise in risk appetite and
are marginally in red. Telecom stocks are giving mixed signals ahead of
the release of much-awaited new telecoms policy by the government today,
which is expected to include revised rules on grant and pricing of
second-generation radio airwaves.
The BSE Sensex is currently trading at 16,335.27, up by 102.73 points or 0.63%. The index has a touched a high and low of 16,348.76 and 16,230.77 respectively. There were 21 stocks advancing against 9 declines on the index.
The broader indices too were going neck-in-neck with their larger peers; the BSE Mid cap and Small cap indices gained 0.73% and 0.66% respectively.
On the sectoral front, the top gaining indices on the BSE were, Oil & Gas up by 1.21%, CD up by 1.11%, metal up by 1.02% and Power was up by 1.01%.
The top gainers on the Sensex were Tata Motors up by 2.30%, Sterlite Inds up by 2.12%, BHEL up by 2.10%, Tata Power up by 1.93% and HDFC was up by 1.82%. On the flip side, Maruti Suzuki down by 2.78%, Bharti Airtel down by 1.41%, L&T down by 1.04%, SBI down by 0.61% and Sun Pharma down by 0.56%.
Meanwhile, the government's decision to up its market borrowings in the second half, as it gets less funds from small savings and has other cash problems might have led the economist give a rethink on the fiscal deficit but the finance ministry still feels that it will not crowd out private sector requirement for funds, as the October-March period will also see higher spending than the first half.
The government has already decided to go for additional Rs 52,800 crore of borrowings in the second half over earlier estimates of Rs 1,67,200 crore. It will borrow from markets at 31.5 per cent more than the Budget estimates in the second half of the ongoing 2011-12. However, over 60 per cent of these borrowings are slated to be mopped up in the festival season, but the finance ministry has put its confidence that governments additional borrowing will not disturb resources for the industry as liquidity remains sufficient, citing the repo window of the Reserve Bank of India (RBI).
Banks have borrowed Rs 45,450 crore through daily repo window of the RBI, while the central bank has absorbed much higher amount of Rs 63,640 crore in the first week of October. The indicative calendar given by the RBI for market borrowings reveals that the government will mop up Rs 1,33,000 crore in the third quarter, compared to Rs 87,000 crore in the fourth quarter.
Though the situation don't seems that grave, going with the data of RBI but Industry, including real-estate players and consultants, do not share the finance ministry's views and have expressed their concerns. Especially, the real estate sector which has long been struggling with high interest rates and liquidity crunch. FICCI Secretary General Rajiv Kumar said the government was borrowing more in the busy season. 'October to December are months when the industry requires more funds, as it stocks sugarcane in these months among other needs,' he added.
The top gainers of the Nifty were IDFC up by 2.49%, tata motors up by 2.325, Sterlite Inds up by 2.07%, BHEL up by 2.03% and HDFC was up by 1.93%. The new entrant to the index Coal India, which replaced Reliance Capital was up by 0.99%.
On the flip side, maruti Suzuki down by 2.63%, ACC down by 1.44%, Bharti Airtel down by 1.41%, L&T down by 1.025 and Ranbaxy down by 1.01%, were the top loser on the index.
The Asian equity markets were trading mixed; Shanghai Composite was down by 0.27%, Hang Seng was down by 0.50%, KLSE Composite was down by 0.37%. On the other hand Jakarta Composite was up by 0.11%, Straits Times was up by 0.69%, Seoul Composite was up by 0.55% and Taiwan Weighted was up by 1.12%.
The BSE Sensex is currently trading at 16,335.27, up by 102.73 points or 0.63%. The index has a touched a high and low of 16,348.76 and 16,230.77 respectively. There were 21 stocks advancing against 9 declines on the index.
The broader indices too were going neck-in-neck with their larger peers; the BSE Mid cap and Small cap indices gained 0.73% and 0.66% respectively.
On the sectoral front, the top gaining indices on the BSE were, Oil & Gas up by 1.21%, CD up by 1.11%, metal up by 1.02% and Power was up by 1.01%.
The top gainers on the Sensex were Tata Motors up by 2.30%, Sterlite Inds up by 2.12%, BHEL up by 2.10%, Tata Power up by 1.93% and HDFC was up by 1.82%. On the flip side, Maruti Suzuki down by 2.78%, Bharti Airtel down by 1.41%, L&T down by 1.04%, SBI down by 0.61% and Sun Pharma down by 0.56%.
Meanwhile, the government's decision to up its market borrowings in the second half, as it gets less funds from small savings and has other cash problems might have led the economist give a rethink on the fiscal deficit but the finance ministry still feels that it will not crowd out private sector requirement for funds, as the October-March period will also see higher spending than the first half.
The government has already decided to go for additional Rs 52,800 crore of borrowings in the second half over earlier estimates of Rs 1,67,200 crore. It will borrow from markets at 31.5 per cent more than the Budget estimates in the second half of the ongoing 2011-12. However, over 60 per cent of these borrowings are slated to be mopped up in the festival season, but the finance ministry has put its confidence that governments additional borrowing will not disturb resources for the industry as liquidity remains sufficient, citing the repo window of the Reserve Bank of India (RBI).
Banks have borrowed Rs 45,450 crore through daily repo window of the RBI, while the central bank has absorbed much higher amount of Rs 63,640 crore in the first week of October. The indicative calendar given by the RBI for market borrowings reveals that the government will mop up Rs 1,33,000 crore in the third quarter, compared to Rs 87,000 crore in the fourth quarter.
Though the situation don't seems that grave, going with the data of RBI but Industry, including real-estate players and consultants, do not share the finance ministry's views and have expressed their concerns. Especially, the real estate sector which has long been struggling with high interest rates and liquidity crunch. FICCI Secretary General Rajiv Kumar said the government was borrowing more in the busy season. 'October to December are months when the industry requires more funds, as it stocks sugarcane in these months among other needs,' he added.
In
order to meet its expenditure in the second half of the fiscal, the
government in consultation with the Reserve Bank has recently decided to
borrow Rs 52,800 crore from the market, over and above Rs 4.17 lakh
crore estimated earlier. The government proposes to bring fiscal deficit
to 4.6% of the Gross Domestic Product (GDP) during 2011-12 from 5.1% in
the previous fiscal.
The S&P CNX Nifty is currently trading at
4,916.75, higher by 28.70 points or 0.59%. The index has touched a high
and low of 4,919.10 and 4,882.05 respectively. There were 34 stocks
advancing against 15 declines on the index and one stock remained
unchanged. The top gainers of the Nifty were IDFC up by 2.49%, tata motors up by 2.325, Sterlite Inds up by 2.07%, BHEL up by 2.03% and HDFC was up by 1.93%. The new entrant to the index Coal India, which replaced Reliance Capital was up by 0.99%.
On the flip side, maruti Suzuki down by 2.63%, ACC down by 1.44%, Bharti Airtel down by 1.41%, L&T down by 1.025 and Ranbaxy down by 1.01%, were the top loser on the index.
The Asian equity markets were trading mixed; Shanghai Composite was down by 0.27%, Hang Seng was down by 0.50%, KLSE Composite was down by 0.37%. On the other hand Jakarta Composite was up by 0.11%, Straits Times was up by 0.69%, Seoul Composite was up by 0.55% and Taiwan Weighted was up by 1.12%.
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