Nifty aims 8,600 ahead of Q2 GDP; financials lead

The main gainers are Axis Bank, SBI, ICICI Bank, HDFC, HDFC Bank, M&M, TCS and Maruti Suzuki

Markets have started the trading session on a firm note with Indices hitting fresh record high ahead of the release of second quarter GDP data by the government later in the day.

Strong buying among financials shares and firm global cues has aided the Indices to hit all-time high in the opening trades.

By 9:30, the Sensex has opened higher by 291 points at 28,730 mark whereas the Nifty gas gained 87 points at 8,583 levels.

The broader markets are under performing the benchmark indices- BSE Midcap and Smallcap indices have gained nearly 1% as against the benchmark indices which have gained over 1%.

The market breadth in BSE remains firm with 1,177 shares advancing and 306 shares declining.

A Reuter’s survey has estimated the GDP growth rate for the July-September quarter to come around 5.1% down from 5.7% in the previous quarter.

Further, the Reserve Bank of India (RBI) on Thursday announced the final guidelines for setting up payment banks and small banks, to attract serious players and push financial inclusion. It allowed corporate houses, including telecom players and retail chains, to set up payment banks, and also gave them the option of forming joint ventures with commercial banks.

Brent crude oil fell $2 to a 50-month low under $76 a barrel on Thursday as oil producers in OPEC looked set to keep output unchanged despite a huge oversupply in world markets.

Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 389.73 crore on Thursday, as per provisional stock exchange data.

GLOBAL CUES

Japanese stocks gained ground on Friday as a weaker yen helped exporter stocks, while falling oil prices were seen as likely to stimulate global demand, supporting investor sentiment.

The Nikkei benchmark added 1% to 17,410.87 by 0125 GMT, and is on course for a monthly gain of around 6%. The Nikkei has risen over 10% since the Bank of Japan stunned markets with fresh easing on Oct 31

Japan's annual core consumer inflation slowed for a third straight month in October due to falling oil prices, highlighting the economic gloom facing Premier Shinzo Abe as he campaigns for a new mandate to implement his stalled recovery plan.

Brent crude oil fell $2 to a 50-month low under $76 a barrel on Thursday as oil producers in OPEC looked set to keep output unchanged despite a huge oversupply in world markets.

SECTORAL INDICES & STOCKS IN FOCUS

BSE Bankex has surged by almost 2% followed by counters like Auto, Consumer Durables, Capital Goods, FMCG, Healthcare, Metal, Oil & Gas and Power, all gaining by 1% each.

The main gainers are Axis Bank, SBI, ICICI Bank, HDFC, HDFC Bank, M&M, TCS and Maruti Suzuki.

Financial and bank shares are leading the gains. The Reserve Bank of India (RBI) on Thursday announced the final guidelines for setting up payment banks and small banks, to attract serious players and push financial inclusion.

It allowed corporate houses, including telecom players and retail chains, to set up payment banks, and also gave them the option of forming joint ventures with commercial banks. But small banks will be a no-go area for companies, including promoters of large non-banking financial companies. Small banks will, however, not have any geographical restriction, as proposed in the draft norms.

Jet Airways has gained around 10% as fall in crude prices is likely to improve company’s margins.