Mumbai: The benchmark indices surged higher after the government's economic stimulus package and RBI's rate cut move. Positive global cues and a 4.5 per cent jump in the SGX Nifty was another indication for today's sharp upmove.
Buying is seen across the board. All sectoral indices are in green. Realty, banking, auto, and infrastructure stocks are seeing huge buying interest.
The Sensex rose 441 points to 9,406 and the Nifty gained 120 points to 2,834, at 9:55 am. CNX Midcap 100 went up 83 points to 3,438.
HDFC Bank, HDFC, ICICI Bank, SBI, Unitech, DLF, Maruti, L&T, BHEL and Bharti Airtel are biggest gainers.
Market breadth is positive; about 450 shares have advanced while 36 shares have declined on the NSE in early trade.
The Government of India has announced a Rs 20,000-crore fiscal stimulus package on Sunday. The central bank, Reserve Bank of India has cut repo rate by 100 bps to 6.5 per cent and reverse repo rate by 100 bps to 5 per cent, both rates got effective from Monday.
The government has cut 4 per cent ad valorem cenvat rate on non-petroleum products and will provide additional Rs 1,400 crore for textile upgradation fund. Exporters will get 2 per cent interest subvention up to March '09. Export duty on iron ore fines will be eliminated and on iron ore lumps will be reduced to 5 per cent.
Asian markets are trading strong following positive cues from US. Hang Seng went up 7.5 per cent. Nikkei and Kospi jumped 4.5-5.5 per cent. Shanghai and Taiwan rose 2.5-4 per cent.
Crude January Futures took support from OPEC talks. Crude has declined 25 per cent last week to near $40 a barrel on the NYMEX. It is currently trading at around USD 42.8 to a barrel.
OPEC President said looking at significant output cut on December 17 meet. Analysts are estimating at 2 million bpd cut.
US markets bounced in the final hour of trading led by insurance companies and shrugged off biggest monthly job loss in 34 years. US Insurance companies surged 14 per cent on reports that US state regulators is considering easing life insurer rules.
The Dow gained 259.18 points, or 3.09 per cent, to 8,635.42. The S&P 500 index rose 30.85 points, or 3.65 per cent, to 876.07, and the Nasdaq composite index advanced 63.75 points, or 4.41 per cent, to 1,509.31
Market cues:
FIIs net buy USD 111.1 million in equity on December 4
NSE F&O Open Interest down by Rs 502 crore at Rs 44,068 crore
RBI cuts Repo, Reverse Repo by 100 bps each w.e.f today, no change in CRR and SLR
Govt releases stimulus package, excise cut by 4% across the board
Maruti, Tata Motors, Hero Honda, M&M to pass on excise duty cut to consumers
Govt cuts petrol prices by Rs 5/l, diesel by Rs 2/l
ICICI Bank cuts home loan rates for loans up to Rs 20 lakh by 150 bps
Election results in Delhi, Rajasthan, MP, Chhattisgarh and Mizoram today
F&O cues:
Futures Open Int down by Rs 876 crore, Options Open Int up by Rs 374 crore
Nifty Futures shed 11 lakh shares in Open Int, at 3-point discount
Stock Futures Open Int unchanged
Nifty Open Interest PCR at 1.08 versus 1.15
Nifty Puts shed 5 lakh, Calls add 13 lakh shares in Open Int
Nifty 2600 Put sheds 3.8 lakh shares in Open Int
Nifty 2500 Put sheds 3.4 lakh shares in Open Int
Nifty 2900 Call adds 4.5 lakh shares in Open Int
Comments
0 comment