The markets gained around 1.25% yesterday as rupee strengthened against the dollar and on the back of positive cues from global bourses. For the third day in a row Nifty managed to hit higher high and higher low.
Oil minister S Jaipal Reddy informed reporters that the government was not considering hike in diesel, kerosene and domestic cooking gas at the moment. The minister made the announcement after a meeting called by finance minister Pranab Mukherjee to discus the influence of the fuel price raise on inflation. While the move is seen as an attempt to appease political parties, it is expected to increase the subvention charge. After this announcement the optimism decreased, however buying in consumer durable, banking and power stocks led the markets up again. Nifty ended up 65.25 point , to close at 4985.65. It touched an intraday high of 4,994.95 and a low of 4,931.30 . Sensex ended up 199.02 points, at 16,416.84. It touched an intraday high of 16,439.97 and a low of 16,273.49.
US markets were closed on Monday due to Memorial Day holiday.
Asian shares opened positve across most bourses today on the back of surge in Spanish borrowing costs that added to the worries over Euro zone debt challenge. The is also a speculation that China will do more to boost its economy. Japan's Nikkei 225 index was trading 0.4% lower at 8,559.75 and Hong Kong 's Hang Seng index was trading lower at 18,771.12, down 0.16%. South Korea's Kospi index was trading 0.6% higher at 1835.45. China's Shanghai index was trading at 2364, up 0.1%.
Nifty and Sensex continued the rally for the second trading day on the back of increased buying by funds and retail investors among covering up by short sellers. The Indian rupee opened at 55.36 per dollar versus 55.18 yesterday. However, the markets are likely to become volatile ahead of the GDP figures, scheduled to be announced Thursday, and the May series F&O expiry. Sensex was up 109.47 points or 0.67% at 16327.29, and the Nifty was up 32.55 points or 0.66% at 4952.95.
Buying was seen in auto, IT, capital goods and metal stocks while FMCG stocks were trading weak. The market sentiment was also boosted by global rating agency Moody’s comment that the sliding rupee will not impact India’s sovereign ratings.
ONGC, Tata Motors, Sun Pharma, SAIL, IPCA Labs, Nagarjuna Construction Company and Aurobindo Pharma are among companies presenting their results today.
Other Economic and Political News:
- Subbarao indicates more interventions over Rs. Slide
- No plan to raise prices of diesel, LPG or kerosene: Government
- Assocham asks government to reduce taxes on petrol, diesel
- RBI eases banks' term deposit foreclosure restrictions
- Exposure limits of banks in gold loan NBFCs cut
- EGoM meet on June 5 for fixing spectrum base price
- OIL in talks to buy 51% stake in Reliance Gas Transportation
- Tata Motors signs distribution agreement in Myanmar
- Jindal Steel buys 10% stake in Gujarat NRE's Aussie subsidiary