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Benchmark indices are trading on a strong note with Indices scaling all time high led by fall in global oil prices and sustained buying in financial shares post RBI norms.
Investors are also eyeing the release of second quarter GDP data by the government later in the day. 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.
By 10:25, the Sensex was higher by 291 points at 28,730 mark whereas the Nifty gained 87 points at 8,583 levels.
The broader markets are performing well in line with the benchmark indices- BSE Midcap and Smallcap indices have gained between 0.9-1.1%. The market breadth in BSE remains firm with 1,461 shares advancing and 587 shares declining.
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.
The rupee is trading at 61.91/92, slightly higher compared with Thursday's 61.8750/8850 close. Month-end dollar demand from importers is likely to hurt the Indian unit.
Among Asian markets, 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
SECTORS & STOCKS
BSE Bankex has surged by almost 3% followed by counters like Auto, Consumer Durables, Capital Goods, Healthcare, Oil & Gas and Realty, all gaining between 1-1.5%.
From the financial space, SBI, Axis Bank, ICICI Bank, HDFC and HDFC Bank have zoomed between 1-4%. The Bank Nifty is trading at 18, 496 up by nearly 3%.
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.
Other notable gainers are M&M, Tata Motors, Hero Moto, Maruti Suzuki and L&T.
Meanwhile, shares of all three listed state-owned oil marketing companies – Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) are trading higher between 4-5% on BSE after Brent crude fell $5.17 to $72.58 a barrel on Thursday.
“Brent oil fell more than $6 to $71.25 a barrel, its weakest since July 2010, after OPEC ministers meeting in Vienna left the group's output ceiling unchanged despite huge global oversupply, marking a major shift away from its long-standing policy of defending prices”, the Reuters report suggests.
Shares of six companies that entered the National Stock Exchange’s (NSE) futures & options (F&O) segment from today are trading higher by up to 5% in early morning deals.
