 "Nifty opens above 8,300 as ECB sparks a global rally")
Benchmark Indices continue to climb higher in morning trades tracking a rally in world stocks after the European Central Bank hinted at possibility of injecting more stimulus to the economy as early as in December. The rally is led by oil&gas and financial shares.
At 10:40 AM, the 30 share Sensex was at 27,507, up by 215 points while the CNX Nifty was at 8,310 points, up by 58 points.
The top gainers on the Sensex are NTPC, ONGC, ICICI Bank, Gail, and ITC, all up between 1.8-2.8% each
The top losers on the Sensex are Bharti Airtel, Wipro, Maruti, Dr. Reddy’s, and L&T, all down between 0.4-2% each.
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(updated 9:40 AM)
Markets today witnessed a gap-up opening following on footsteps of global peers after the European Central Bank (ECB) chief Draghi hinted at injecting more stimulus in the economy and to boost the economy further considering options that include a further reduction in the deposit rate.
At 9:35 AM, the 30 share Sensex was at 27,516, up by 228 points while the CNX Nifty was at 8,314 points, up by 62 points.
The broader markets are in line with their larger peers with BSE Midcap and Smallcap indices up by 0.6% each. The market breadth is robust with 899 advances against 164 declines on the BSE.
Meanwhile, the Reserve Bank of India (RBI) on Thursday announced a gold monetisation scheme (GMS) that allows individuals, trusts and mutual funds to deposit gold with banks and earn an interest on it. Prime Minister Narendra Modi will launch the scheme on November 5.
Further, government is likely to meet its fiscal deficit target this year despite risks of shortfall in tax collection and disinvestment proceeds, as it may go for a small reduction in public spending, says a report.
On Wednesday, Foreign Institutional Investors (FIIs) were the net sellers to the tune of Rs 48 as per provisional stock exchange data.
RESULTS CALENDAR
Asian Paints, Bharti Infra, Cholaman Investment & Finance, Rallis India, Symphony will announce their Q2 earnings today.
GLOBAL MARKETS
Asia extended a global stocks rally on Friday after the European Central Bank signalled its readiness to inject more stimulus, helping the dollar scale a fresh two-month peak against the euro.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6%, on track for a modest weekly loss of about 0.1%.
Japan's Nikkei stock index was up 2.3%, poised to gain more than 3% for the week.
After the ECB held policy steady at its meeting on Thursday as widely expected, central bank chief Mario Draghi told a news conference that ECB policymakers were "open to the full menu of monetary policy" to stoke the euro zone economy as needed.
STOCKS IN FOCUS
All the sectoral indices are strongly positive with BSE Oil&Gas and Bankex indices leading the rally, up between 1.2-1.3% each
Bank Nifty is outperforming the markets and is pulling the rally, up by 198 points or 1.12%. Following the ECB’s decision to inject fresh stimulus into the economy, stocks across the world are rally. From the financial and banking pack, HDFC Twins, SBI, Axis Bank, ICICI Bank are all up between 1-1.5% each
Crude oil prices edged up, taking heart from the improved risk sentiment but still pressured by concern about high US crude inventories and the stronger dollar. ONGC and Reliance Industries are up between 1.4-1.7% each.
Sun Pharmaceutical Industries said that the company along with its subsidiary has entered into a settlement agreement with Acorda Therapeutics. Inc. to resolve the pending patent litigation involving Ampyra (dalfampridine) extended-release tablets in the United States. The stock has gained 1%
Cairn India's consolidated net profit fell 70.46% to Rs 672.67 crore on 39.95% decline in total income to Rs 2743.28 crore in Q2 September 2015 over Q2 September 2014. The stock has jumped 3.5%
Wipro reported 7% net profit growth in the September quarter to Rs 2,235 crore. The company, however, cautioned that lower productivity for clients during the holiday season in the US and Europe could hit business in the October-December quarter.
With revenue of Rs 12,513 crore, it met the lower end of its guidance. Margins, at 20.7 per cent, were slightly lower than the 21 per cent reported in the previous quarter. The stock is the biggest loser with losses of 1.7%
Other notable gainers on Sensex are Tata Steel, Vedanta, GAIL, NTPC, ITC, all up between 1.8-2.5% each.
