 "Markets cheer FDI reforms; Financials sag")
Markets continued to trade higher in the late-morning session this Wednesday after the government raised foreign direct investment limit in plethora of sectors to attract precious inflows.
In a closed-door meeting called by Prime Minister Manmohan Singh, the government allowed 100% FDI for telecom, single-brand retail and oil & gas spaces which now awaits cabinet approval before it can be implemented.
At 11:40AM, the 30-share Sensex gained 92 points at 19,943 and the 50-share Nifty rose 20 points at 5,975 levels.
The rupee today strengthened by 21 paise to hit a fresh two-week high of 59.10 in early trade at the Interbank Foreign Exchange market, after the government liberalised FDI limits in a dozen sectors.
The partially convertible currency traded at 59.29 versus yesterday’s close of 59.31 against the dollar.
Asian stocks outside Japan increased, with a regional benchmark index gaining for a third day, as material producers advanced ahead of Federal Reserve Chairman Ben S. Bernanke’s address to the U.S. Congress today.
Japan’s Nikkei declined 0.2% to 14,570, Singapore Straits Times declined 0.3% to 3,213, China’s Shanghai Composite index was up 0.02% at 2,066 while Hong Kong’s Hang Seng gained 0.2% to 21,370 today.
Among the key sectoral indices, FMCG, IT, power gained while realty, capital goods, bankex sectors dropped on the BSE.
The gainers included counters such as Dr Reddy’s rising 2%, TCS gained 1.8%, ITC rose 1.6%, NTPC and Tata Power added 1.5% each on the BSE.
The laggards were Tata Motors falling 2%, Coal India declining 1.3%, ICICI Bank and SBI dropped 1% each on the BSE.
The key notable movers included counters such as ITC is trading higher by 1.3% at Rs 365, extending its previous day’s 2.3% gain on the Bombay Stock Exchange (BSE).
Shares of the fast moving consumer goods (FMCG) company has outperformed the market by surging 17% from its recent low of Rs 314 touched on June 24 after the company hiked the prices of Gold Flake, its largest selling cigarette brand by over 7%. The benchmark Sensex has gained 7.5%, while FMCG index rose 12.7% during the same period.
Shares of telecom services providers are in focus after the government has hiked foreign direct investment (FDI) cap in the sector 100%, which likely to attract more stable foreign capital in the economy.
Idea Cellular, Bharti Airtel, Reliance Communications, MTNL and Tata Teleservices (Maharashtra) or TTML are trading higher by 1-7% on the Bombay Stock Exchange (BSE).
The broader markets traded higher with mid-caps and small-caps gaining 0.5-0.6 per cent on the BSE.
The market breadth was positive. Out of 1,946 stocks traded so far, 1,035 stocks advanced while 788 stocks declined on the BSE.
In a closed-door meeting called by Prime Minister Manmohan Singh, the government allowed 100% FDI for telecom, single-brand retail and oil & gas spaces which now awaits cabinet approval before it can be implemented.
At 11:40AM, the 30-share Sensex gained 92 points at 19,943 and the 50-share Nifty rose 20 points at 5,975 levels.
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Meanwhile, banking shares dropped for a second day after the RBI raised short-term interest rates in a bid to curb the rupee's slide.
The rupee today strengthened by 21 paise to hit a fresh two-week high of 59.10 in early trade at the Interbank Foreign Exchange market, after the government liberalised FDI limits in a dozen sectors.
The partially convertible currency traded at 59.29 versus yesterday’s close of 59.31 against the dollar.
Asian stocks outside Japan increased, with a regional benchmark index gaining for a third day, as material producers advanced ahead of Federal Reserve Chairman Ben S. Bernanke’s address to the U.S. Congress today.
Japan’s Nikkei declined 0.2% to 14,570, Singapore Straits Times declined 0.3% to 3,213, China’s Shanghai Composite index was up 0.02% at 2,066 while Hong Kong’s Hang Seng gained 0.2% to 21,370 today.
Among the key sectoral indices, FMCG, IT, power gained while realty, capital goods, bankex sectors dropped on the BSE.
The gainers included counters such as Dr Reddy’s rising 2%, TCS gained 1.8%, ITC rose 1.6%, NTPC and Tata Power added 1.5% each on the BSE.
The laggards were Tata Motors falling 2%, Coal India declining 1.3%, ICICI Bank and SBI dropped 1% each on the BSE.
The key notable movers included counters such as ITC is trading higher by 1.3% at Rs 365, extending its previous day’s 2.3% gain on the Bombay Stock Exchange (BSE).
Shares of the fast moving consumer goods (FMCG) company has outperformed the market by surging 17% from its recent low of Rs 314 touched on June 24 after the company hiked the prices of Gold Flake, its largest selling cigarette brand by over 7%. The benchmark Sensex has gained 7.5%, while FMCG index rose 12.7% during the same period.
Shares of telecom services providers are in focus after the government has hiked foreign direct investment (FDI) cap in the sector 100%, which likely to attract more stable foreign capital in the economy.
Idea Cellular, Bharti Airtel, Reliance Communications, MTNL and Tata Teleservices (Maharashtra) or TTML are trading higher by 1-7% on the Bombay Stock Exchange (BSE).
The broader markets traded higher with mid-caps and small-caps gaining 0.5-0.6 per cent on the BSE.
The market breadth was positive. Out of 1,946 stocks traded so far, 1,035 stocks advanced while 788 stocks declined on the BSE.