The Indian equity markets paired some of its early
gains but still remained in the positive territory awaiting the
announcement of mid quarter review of monetary policy from the Reserve
Bank of India. However, after a series of setbacks in recent days
appreciation in rupee helped the Nifty touch 4800-mark and the Sensex
above 16000-level. On Thursday, the central bank stepped in with some
measures to halt the rupee's slide by curbing speculation in the
forwards market by reducing trading limits for banks in the forex
market. The move by the apex bank will make it tough for traders to keep
positions open for a long time. On sectoral front, all indices were
in the positive terrain barring IT. The Indian rupee rebounded against
the US dollar today following Reserve Bank of India's intervention in
the currency market. Meanwhile, the RBI has kept the CRR and Repo rates
unchanged as per the market expectations. CRR kept unchanged at 6%, Repo
rates unchanged at 8% and Reverse Repo Rate unchanged at 7.5%.
Further the central bank says that it may reverse rate tightening cycle
in in coming monetary policy reviews. On the global front, markets in
the Asia-Pacific region markets were quite supportive. Back home, the
market breadth was favoring the positive trend; there were 1522 shares
on the gaining side against 790 shares on the losing side while 107
shares remained unchanged.
The BSE Sensex is currently trading at 16,035.78, up by 199.31 points or 1.26%. The index has touched a high and low of 16,053.64 and 15,866.63 respectively. There were 26 stocks advancing against just 3 declining ones on the index, and one remained unchanged.
The broader indices too were in fine contour; the BSE Mid cap and Small cap indices surged 0.97% and 0.96% respectively.
The top gaining sectoral indices on the BSE were, CD up by 2.72%, Auto up by 2.32%, Bankex up by 1.79%, Power up by 1.70% and PSU up by 1.36%. While, IT down by 0.14% remained the lone loser on the index.
The top gainers on the Sensex were Bharti Airtel up by 3.93%, Tata Motors up by 3.10%, Bajaj Auto up by 2.78%, Hindalco Industries up by 2.67% and M&M up by 2.62%.
On the flip side, TCS down by 1.11%, Wipro down by 0.91% and Sun Pharmaceuticals down by 0.09% were the top losers on the Sensex.
Meanwhile, despite the bearish sentiment of the capital market, ongoing debt crisis in European nations and slowdown in domestic economic activities, the finance ministry is confident of meeting the shortfall in the disinvestment targets of Rs 40,000 crore set for the 2011-12. However, till now, the government has only generated Rs 1,145 crore from the disinvestment of public sector units (PSUs).
Experts are of the view that the government may miss the target by huge margin unless some alternative steps are pursued in right earnest. Any shortfall in disinvestment target would only further worsen the fiscal deficit situation, and weakening investor confidence.
R Gopalan, Secretary, Department of Economic Affairs, under the finance ministry, said, 'there are number of ways in which we are trying to meet the shortfall. Those are under various stages of decision making. We in the Budget division feel that it is possible to get that money this year by the kind of means we are pursuing at this point of time.'
Gopalan, however, denied to spell out the other options being pursued as the government was yet to take a final call on them. Though, the industry is assuming that the government may push LIC to buy portion of government stake in certain listed profit making PSUs. The government on the other hand is also considering an option of buy-back of government shareholding by cash rich PSUs such as Coal India.
However, planning commission member Saumitra Chaudhuri has raised concerns over meeting the disinvestment targets for current year, because of the volatile market conditions. Last week, in its Mid-Year Analysis 2011-12 tabled in Lok Sabha, the government said meeting the disinvestment target is a stiff task.
The top gainers of the Nifty were Bharti Airtel up by 3.98%, Dr Reddy up by 3.33%, Tata Motors up by 3.30%, Bajaj Auto up by 3.00% and GAIL up by 2.95%.
On the flip side, TCS down by 1.35%, Wipro down by 1.28%, HCL Tech down by 0.76%, Ranbaxy down by 0.36% and Sun Pharmaceuticals down by 0.33% were the major losers on the index.
All the Asian equity indices were trading in the green; Hang Seng gained 0.46%, Jakarta Composite rose 1.51%, Nikkei 225 added 0.25%, Straits Times accumulated 0.33%, Seoul Composite surged 1.30% and Taiwan Weighted was up by 0.30%.On the flip side, Shanghai Composite down by 0.31% was the lone loser amongst the Asian pack.
The BSE Sensex is currently trading at 16,035.78, up by 199.31 points or 1.26%. The index has touched a high and low of 16,053.64 and 15,866.63 respectively. There were 26 stocks advancing against just 3 declining ones on the index, and one remained unchanged.
The broader indices too were in fine contour; the BSE Mid cap and Small cap indices surged 0.97% and 0.96% respectively.
The top gaining sectoral indices on the BSE were, CD up by 2.72%, Auto up by 2.32%, Bankex up by 1.79%, Power up by 1.70% and PSU up by 1.36%. While, IT down by 0.14% remained the lone loser on the index.
The top gainers on the Sensex were Bharti Airtel up by 3.93%, Tata Motors up by 3.10%, Bajaj Auto up by 2.78%, Hindalco Industries up by 2.67% and M&M up by 2.62%.
On the flip side, TCS down by 1.11%, Wipro down by 0.91% and Sun Pharmaceuticals down by 0.09% were the top losers on the Sensex.
Meanwhile, despite the bearish sentiment of the capital market, ongoing debt crisis in European nations and slowdown in domestic economic activities, the finance ministry is confident of meeting the shortfall in the disinvestment targets of Rs 40,000 crore set for the 2011-12. However, till now, the government has only generated Rs 1,145 crore from the disinvestment of public sector units (PSUs).
Experts are of the view that the government may miss the target by huge margin unless some alternative steps are pursued in right earnest. Any shortfall in disinvestment target would only further worsen the fiscal deficit situation, and weakening investor confidence.
R Gopalan, Secretary, Department of Economic Affairs, under the finance ministry, said, 'there are number of ways in which we are trying to meet the shortfall. Those are under various stages of decision making. We in the Budget division feel that it is possible to get that money this year by the kind of means we are pursuing at this point of time.'
Gopalan, however, denied to spell out the other options being pursued as the government was yet to take a final call on them. Though, the industry is assuming that the government may push LIC to buy portion of government stake in certain listed profit making PSUs. The government on the other hand is also considering an option of buy-back of government shareholding by cash rich PSUs such as Coal India.
However, planning commission member Saumitra Chaudhuri has raised concerns over meeting the disinvestment targets for current year, because of the volatile market conditions. Last week, in its Mid-Year Analysis 2011-12 tabled in Lok Sabha, the government said meeting the disinvestment target is a stiff task.
Recently,
the Department of Disinvestment had circulated a Cabinet note seeking
the views of different ministries on asking certain PSUs under them to
explore options of buy-back of shares. Around 12 cash-rich PSUs such as
Coal India, SAIL, NMDC, ONGC and NTPC have been identified for the
purpose. The Cabinet Committee on Economic Affairs has already approved
disinvestments in SAIL, ONGC, Hindustan Copper, BHEL and NBCC.
The S&P CNX Nifty is currently trading at
4,804.20, higher by 57.85 points or 1.22%. The index has touched a high
and low of 4,815.75 and 4,752.50 respectively. There were 43 stocks
advancing against just 6 declining ones on the index and one remained
unchanged. The top gainers of the Nifty were Bharti Airtel up by 3.98%, Dr Reddy up by 3.33%, Tata Motors up by 3.30%, Bajaj Auto up by 3.00% and GAIL up by 2.95%.
On the flip side, TCS down by 1.35%, Wipro down by 1.28%, HCL Tech down by 0.76%, Ranbaxy down by 0.36% and Sun Pharmaceuticals down by 0.33% were the major losers on the index.
All the Asian equity indices were trading in the green; Hang Seng gained 0.46%, Jakarta Composite rose 1.51%, Nikkei 225 added 0.25%, Straits Times accumulated 0.33%, Seoul Composite surged 1.30% and Taiwan Weighted was up by 0.30%.On the flip side, Shanghai Composite down by 0.31% was the lone loser amongst the Asian pack.
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