TT Epaper
The Telegraph
TT Photogallery
 
IN TODAY'S PAPER
WEEKLY FEATURES
CITIES AND REGIONS
ARCHIVES
Since 1st March, 1999
 
THE TELEGRAPH
 
 
CIMA Gallary

Multiple cues lift market mood

Mumbai, Jan. 14: The Sensex leapt to a two-year high closing at 19906.41 as a sense of relief rippled through the market after the government announced that it would defer the implementation of GAAR by two years.

The prospect of an imminent rate cut by the RBI — which brightened after inflation nudged lower to 7.18 per cent in December from 7.24 per cent — underpinned the bullish sentiment.

The pundits are talking effusively about a 50-basis-point cut in the repo rate when the central bank policymakers huddle on January 29. Others reckon that it will be a moderate cut of 25 basis points.

The benchmark index soared 242.77 points and is now just shy of the psychological peak of 20000.

The 50-share Nifty of the NSE shot up 72.75 points, or 1.22 per cent, to 6024.05.

Market observers said sentiment was positive as the third-quarter results season had started on a good note.

Investors were treated to another good news soon after when Union finance minister P. Chidambaram announced that the government had postponed the implementation of GAAR to April 2016.

The measure is expected to remove a major hurdle towards more foreign investments into the Indian stock markets.

An analyst with a foreign brokerage said stocks should continue to rally over the next few trading sessions as the Centre might come up with measures such as an increase in diesel prices, which the markets were expected to welcome.

A research report by Nomura today said the Sensex could hit the 21700-mark by the end of this year. According to Nomura, the market performance is likely to be dictated by domestic fundamentals, potential rate cuts and easier domestic liquidity.

Investor wealth zoomed Rs 84,000 crore to Rs 70.80 lakh crore as nearly five out of 10 stocks among 3,007 scrips traded on the BSE today closed with gains.

On the BSE, 11 out of 13 sectoral indices closed with gains though the realty sector was the largest percentage gainer on hopes of an impending rate cut. It was followed by IT, consumer durables, refinery and PSU stocks.

Rupee bounces back

The rupee today bounced back 27 paise to close at an over one-week high of 54.49 against the dollar.

The upward movement was aided by a good dose of dollar selling by exporters and some banks, amid a weak dollar overseas, forex dealers said. The domestic unit commenced a tad higher at 54.75 from last Friday’s close of 54.76 and touched a low of 54.82 before bouncing back to a high of 54.42 and ending at 54.49. This is its best closing since 54.35 on January 2.

 
 
" "