The Indian markets sensing the positive development in Europe made marginal gains in last session. IT and technology stocks took the lead, while the buying in blue-chips too supported the markets to close in green. Today, the start is likely to be a gap-up one and the indices may recover their major losses of the week in early trade. Traders will also be eyeing the political development as today is the last day of parliament’s monsoon session. The FIIs too may get enticed to the markets as there is a buzz that Securities and Exchange Board of India is planning to relax collateral norms for FIIs. At present, FIIs are asked to give full collateral in cash for derivatives as well as the cash segment. However, one of the deputy governors of the RBI has said that the risks to financial stability have worsened in the country and has asked banks to be cautious to avert spike in bad loans, especially from restructured assets. The PSU oil marketing companies (OMCs) are likely to remain buzzing on report that government may allow OMCs to go ahead with a petrol price hike of Rs 5 per litre, as early as this week only. There is likely to be buzz in the power sector too, after industry body Assocham said that nearly 80 per cent of the coal-based power projects in the private sector are far behind the schedule of commissioning.
Jubilant US markets surged to their highest level in over last four years on Thursday supported by the better domestic economic data and new bond-buying program in Europe aimed at containing the region’s debt crisis. The Asian markets too are thrilled and most of them have made a good start, surging by over a percent on ECBs decision to an unlimited bond-purchase program.
Back home, key domestic benchmarks edged higher on Thursday, after witnessing a steep fall in previous session, on hopes that the European Central Bank (ECB) will announce a bond-market intervention at its policy meeting later in the global day. Bourses struggled for direction throughout the first half of day’s trade however gained strength in second half following firm European counters while, buying in public sector oil marketing companies too aided the sentiments. Stocks like BPCL, HPCL and IOC all edged higher by about a percent triggered by hopes that the prices of petrol, diesel and LPG may be hiked next week after Finance Ministry told the Petroleum Ministry that it has no funds left to subsidise fuels. The increase could result in petrol turning costlier by Rs 4 a litre, diesel by Rs 5 and LPG by Rs 50 a cylinder. Software pack, throughout the session, provided strength to the bourses gaining over a percentage point after the rupee dropped to its lowest level in three weeks against the dollar on September 6, 2012. Stocks like Wipro, TCS, Infosys and HCL Technology rose by 1-5 percent. Auto stocks also lent support to the indices as M&M, Maruti Suzuki and Hero MotoCorp all edged higher on buzz that the government may not go for slapping an additional tax on diesel cars instead it is thinking of hiking the prices of diesel to generate revenues. Some strength also came in after media shares like Zee Entertainment Enterprises, Dish TV India, Wire & Wireless India, NDTV, TV Today Network and Sun TV Network surged on renewed buying ahead of the October 31, 2012 deadline for cable TV digitization in four metro cities of Delhi, Mumbai, Kolkata and Chennai. Moreover, banking related stocks were mostly higher on bargain hunting after recent losses. However, the gains remain capped by FMCG segment, which lost over one and half a percent on profit booking after gaining continuously from past few days. The BSE Sensex gained 32.93 points or 0.19% to settle at 17,346.27, while the S&P CNX Nifty rose by 12.70 points or 0.24% to close at 5,238.40.
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