SENSEX 16649.05 +195.75
NIFTY 5049.65 +52.55
USD/INR
0055.17 -00.19
NASDAQ 2845.36 +00.64
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UPDATEDTIME 09.28 PM 07 JUNE 2012
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The Sensex rose
for a fourth consecutive session on Thursday to its highest close since May 7,
riding a global rally on continued expectations that monetary stimulus at home
and abroad would spark a recovery in risk assets.
Banks such as ICICI Bank extended a rally on hopes the Reserve Bank of India would cut interest rates on June 18, at a time when global investors are betting the Federal Reserve will ease monetary conditions for the US economy.
In a surprise move, China cut benchmark interest rates by 25 basis points to shore up slackening economic growth. The action came after the close of Indian stock markets.
Auto makers, which stand to benefit from lower domestic interest rates, gained on Thursday, getting an additional boost from optimism that the government will decide not to raise excise duties on diesel vehicle sales.
Still, India is seen faces steep fiscal and economic challenges, and some analysts doubt how much longer domestic equities can rally after posting their longest winning streak since early February.
The stance from foreign investors could be key. Foreign institutional investors net bought Rs 169 crore ($30.51 million) in equities on Wednesday, turning buyers for the first time in five sessions, but remain net sellers of Rs 1,808 crore so far in June, indicating they have sold into the rally.
"The rally is primarily driven from global market rally and improved sentiment, oil price coming down, and possibility of rate reduction by RBI has helped.
"But in the given time of global uncertainty, it is too early to say whether the rally can sustain."
Markets had already discounted a reduction in interest rates, and are vulnerable for falls, George added.
The 30-share BSE benchmark rose 1.2 per cent to end at 16,649.05 points.
Banks such as ICICI Bank extended a rally on hopes the Reserve Bank of India would cut interest rates on June 18, at a time when global investors are betting the Federal Reserve will ease monetary conditions for the US economy.
In a surprise move, China cut benchmark interest rates by 25 basis points to shore up slackening economic growth. The action came after the close of Indian stock markets.
Auto makers, which stand to benefit from lower domestic interest rates, gained on Thursday, getting an additional boost from optimism that the government will decide not to raise excise duties on diesel vehicle sales.
Still, India is seen faces steep fiscal and economic challenges, and some analysts doubt how much longer domestic equities can rally after posting their longest winning streak since early February.
The stance from foreign investors could be key. Foreign institutional investors net bought Rs 169 crore ($30.51 million) in equities on Wednesday, turning buyers for the first time in five sessions, but remain net sellers of Rs 1,808 crore so far in June, indicating they have sold into the rally.
"The rally is primarily driven from global market rally and improved sentiment, oil price coming down, and possibility of rate reduction by RBI has helped.
"But in the given time of global uncertainty, it is too early to say whether the rally can sustain."
Markets had already discounted a reduction in interest rates, and are vulnerable for falls, George added.
The 30-share BSE benchmark rose 1.2 per cent to end at 16,649.05 points.
The broader
50-share NSE index rose 1.05 per cent, to close at 5,049.65 points.
The slump in oil prices, the surprisingly weak growth seen in the first three months of the year, and more dovish comments from RBI Deputy Governor Subir Gokarn sparked hopes of interest rate cuts.
Banking shares, as measured by the NSE banking index, rose 2.1 per cent, marking a fourth consecutive winning session for a combined advance of 7.4 per cent, compared with a 4.3 per cent gain in the broader NSE index.
Axis Bank, ICICI Bank and HDFC Bank each ended up more than 3 per cent.
Shares in auto companies also rose on hopes the government will decide against implementing higher excise duties on diesel vehicle sales after top executives lobbied hard against the proposal.
India had mooted the plans after the government backed off initial plans to raise the price of diesel.
Maruti Suzuki India rose 3.2 per cent, while Mahindra and Mahindra ended 2.1 per cent higher.
Reliance Industries rose 0.75 per cent, paring earlier gains of as much as 2.2 per cent, as investors had hoped for more fireworks, though Chairman Mukesh Ambani said Reliance aims to double its operating profit in the next 4-5 years.
However, software services exporters fell after UBS predicted global tech spending from banks, financial services and insurance firms will fall 6 per cent in 2012, though adding Infosys would offer "better downside protection".
Infosys shares rose 1.6 per cent, but Tata Consultancy Services fell 0.9 per cent, while Wipro declined 2.4 per cent. Among sectoral indices, the BSE Realty Index was up 1.7 percent, the BSE Bankex gained 1.71 percent, the BSE Metal Index advanced 1.2 percent and the BSE Auto Index moved 1.2 percent higher.
Sterlite Industries (4.06 percent), Hero MotoCorp (2.4 percent), Infosys Technologies (1.5 percent), DLF (2.6 percent), HDFC Bank (2.7 percent) and Reliance Industries (0.5 percent) are among the top Sensex gainers.
Wipro (1.62 percent), TCS (1.1 percent), GAIL (1.3 percent) and Hindalco Industries (0.5 percent) are among the LOSERS.
Shares in auto companies gained on hopes that the government will decide against implementing an excise duty on diesel vehicle sales. The tax proposal is being considered after the government backed off from initial plans to raise the price of diesel.
Tata Motors shares increased 1.1 percent, Maruti Suzuki gained 2.8 percent and Mahindra & Mahindra was up 1 percent, extending the rally this week.
The rupee fell to 55.14 against the dollar after hitting a two-week high of 54.19 earlier today on the back of gains in the stock markets.
The slump in oil prices, the surprisingly weak growth seen in the first three months of the year, and more dovish comments from RBI Deputy Governor Subir Gokarn sparked hopes of interest rate cuts.
Banking shares, as measured by the NSE banking index, rose 2.1 per cent, marking a fourth consecutive winning session for a combined advance of 7.4 per cent, compared with a 4.3 per cent gain in the broader NSE index.
Axis Bank, ICICI Bank and HDFC Bank each ended up more than 3 per cent.
Shares in auto companies also rose on hopes the government will decide against implementing higher excise duties on diesel vehicle sales after top executives lobbied hard against the proposal.
India had mooted the plans after the government backed off initial plans to raise the price of diesel.
Maruti Suzuki India rose 3.2 per cent, while Mahindra and Mahindra ended 2.1 per cent higher.
Reliance Industries rose 0.75 per cent, paring earlier gains of as much as 2.2 per cent, as investors had hoped for more fireworks, though Chairman Mukesh Ambani said Reliance aims to double its operating profit in the next 4-5 years.
However, software services exporters fell after UBS predicted global tech spending from banks, financial services and insurance firms will fall 6 per cent in 2012, though adding Infosys would offer "better downside protection".
Infosys shares rose 1.6 per cent, but Tata Consultancy Services fell 0.9 per cent, while Wipro declined 2.4 per cent. Among sectoral indices, the BSE Realty Index was up 1.7 percent, the BSE Bankex gained 1.71 percent, the BSE Metal Index advanced 1.2 percent and the BSE Auto Index moved 1.2 percent higher.
Sterlite Industries (4.06 percent), Hero MotoCorp (2.4 percent), Infosys Technologies (1.5 percent), DLF (2.6 percent), HDFC Bank (2.7 percent) and Reliance Industries (0.5 percent) are among the top Sensex gainers.
Wipro (1.62 percent), TCS (1.1 percent), GAIL (1.3 percent) and Hindalco Industries (0.5 percent) are among the LOSERS.
Shares in auto companies gained on hopes that the government will decide against implementing an excise duty on diesel vehicle sales. The tax proposal is being considered after the government backed off from initial plans to raise the price of diesel.
Tata Motors shares increased 1.1 percent, Maruti Suzuki gained 2.8 percent and Mahindra & Mahindra was up 1 percent, extending the rally this week.
The rupee fell to 55.14 against the dollar after hitting a two-week high of 54.19 earlier today on the back of gains in the stock markets.
Brent crude rose above $100 per
barrel on concerns of a drop in US stockpiles and on hopes of stimulus by
global banks.
Foreign institutional investors bought equities worth Rs 269.21 crore on Wednesday, according to provisional data.
European stocks climbed higher as investors continue to expect European policymakers to unveil measures to prop up the continent's ailing economy, although gains were cautious after the previous session's sharp rally.
Foreign institutional investors bought equities worth Rs 269.21 crore on Wednesday, according to provisional data.
European stocks climbed higher as investors continue to expect European policymakers to unveil measures to prop up the continent's ailing economy, although gains were cautious after the previous session's sharp rally.
Regards
RAKESH MAKIN
+91, 9041667797(DIRECT),
9915684997
OFF 0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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