SENSEX 17278.85 +93.84
NIFTY 5242.70 +26.40
USD/INR 0055.28 +00.23
NASDAQ 2967.41 +24.81
GOLD 29252.00 +93.00
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UPDATEDTIME 09.28 PM 19 JULY 2012
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The BSE Sensex rose
on Thursday to its highest close in a week as Reliance Industries gained
a day before its quarterly earnings, while Infosys rallied after
healthy U.S. earnings improved confidence in global IT spending.
Power equipment makers such as Bharat Heavy Electrical also rallied on hopes the government would impose import duties, while hopes for policy reforms boosted sectors expected to benefit such as airlines.
However, Maruti Suzuki slumped, posting its biggest daily percentage fall in two years, after halting production at a factory in north India because of violent clashes between workers and managers.
The outlook for Indian markets still hinge on any potential reforms after the presidential elections taking place on Thursday. Caution also prevails after the weather office said rains so far in the monsoon season are 22 percent below average, raising worries about rural consumption.
I think the market was led by a short-covering rally in anticipation of the presidential elections, as nothing has changed fundamentally.
The market is going to be cautious post elections. If the government takes any actions on parliamentary reforms such as allowing FDI in insurance and retail sectors, and lowering subsidies for fertilizers and fuels, the markets would react positively.
The 30-share BSE index rose 0.55 percent to 17,278.85 points, posting a second consecutive daily gain that allowed it to post its highest close since July 11.
The 50-share NSE index rose 0.51 percent to end at 5,242.70 points. Reliance Industries rose 1.7 percent ahead of its April-June quarter earnings on Friday, and helped after Nomura upgraded the stock to 'outperform', citing valuations and benefits from a weak currency.
Shares in Infosys rose 3 percent, benefitting from a global risk rally after healthy profits from U.S. companies such as Intel and Honeywell reduced some of the recent concerns about the world's largest economy.
Infosys shares are still down 9.1 percent since sharply cutting their guidance for the fiscal year a week ago.
Shares in Bharat Heavy Electricals gained 2.5 percent and Larsen & Toubro rose 0.4 percent on media reports the Indian government cabinet will meet on Thursday to discuss import duties in power equipments.
Shares in Steel Authority of India's rose 0.2 percent as the government was also expected to discuss a potential stake sale, though analysts warned India was unlikely to do so unless share prices recovered further.
Potential policy reforms were also a factor on Thursday, as state assemblies and parliament were widely expected to elect former finance minister Pranab Mukherjee to the ceremonial post of president. Results are due on Sunday.
Investors believe the polls open a much-hyped political window billed as the best chance for the government to launch a wave of reforms and reverse an economic slowdown.
Kingfisher Airlines surged 9.6 percent, on hopes the government would open the sector to foreign investment
Power equipment makers such as Bharat Heavy Electrical also rallied on hopes the government would impose import duties, while hopes for policy reforms boosted sectors expected to benefit such as airlines.
However, Maruti Suzuki slumped, posting its biggest daily percentage fall in two years, after halting production at a factory in north India because of violent clashes between workers and managers.
The outlook for Indian markets still hinge on any potential reforms after the presidential elections taking place on Thursday. Caution also prevails after the weather office said rains so far in the monsoon season are 22 percent below average, raising worries about rural consumption.
I think the market was led by a short-covering rally in anticipation of the presidential elections, as nothing has changed fundamentally.
The market is going to be cautious post elections. If the government takes any actions on parliamentary reforms such as allowing FDI in insurance and retail sectors, and lowering subsidies for fertilizers and fuels, the markets would react positively.
The 30-share BSE index rose 0.55 percent to 17,278.85 points, posting a second consecutive daily gain that allowed it to post its highest close since July 11.
The 50-share NSE index rose 0.51 percent to end at 5,242.70 points. Reliance Industries rose 1.7 percent ahead of its April-June quarter earnings on Friday, and helped after Nomura upgraded the stock to 'outperform', citing valuations and benefits from a weak currency.
Shares in Infosys rose 3 percent, benefitting from a global risk rally after healthy profits from U.S. companies such as Intel and Honeywell reduced some of the recent concerns about the world's largest economy.
Infosys shares are still down 9.1 percent since sharply cutting their guidance for the fiscal year a week ago.
Shares in Bharat Heavy Electricals gained 2.5 percent and Larsen & Toubro rose 0.4 percent on media reports the Indian government cabinet will meet on Thursday to discuss import duties in power equipments.
Shares in Steel Authority of India's rose 0.2 percent as the government was also expected to discuss a potential stake sale, though analysts warned India was unlikely to do so unless share prices recovered further.
Potential policy reforms were also a factor on Thursday, as state assemblies and parliament were widely expected to elect former finance minister Pranab Mukherjee to the ceremonial post of president. Results are due on Sunday.
Investors believe the polls open a much-hyped political window billed as the best chance for the government to launch a wave of reforms and reverse an economic slowdown.
Kingfisher Airlines surged 9.6 percent, on hopes the government would open the sector to foreign investment
Regards
RAKESH MAKIN
+91, 9041667797(DIRECT),
9915684997
OFF 0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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