The BSE benchmark Sensex rose by over 72 points in early trade today on continued buying by funds and retailers after Prime Minister Manmohan Singh yesterday said the government is determined to take “tough” decisions to revive the economy.
The 30-share barometer,which had gained 153.97 points in yesterday’s session,rose by 72.21 points,or 0.43 per cent,to 16,932.01 with metals,capital goods and auto sector stocks leading the rise.
Similarly,the wide-based National Stock Exchange index Nifty moved up by 19.85 points,or 0.39 per cent,to 5,123.70.
“Like other countries,we too allowed the fiscal deficit to expand after 2008 to impart a stimulus. We are now focussing on reversing the expansion. This will require tough decisions,including on controlling subsidies,which we are determined to take,” Singh had said while addressing leaders of the G-20 nations in Mexico.
Besides,a firming trend on Asian bourses following overnight gains at the US market on hopes that the Federal Reserve would announce measures to stimulate the world’s biggest economy,also influenced the sentiment,traders said.
In the Asian region,Japan’s Nikkei was up by 0.96 per cent,while Hong Kong’s Hang Seng index gained 0.64 per cent in early trade. The US Dow Jones Industrial Average ended 0.75 per cent higher in yesterday’s trade.
Pre-Open: Sensex,Nifty stocks to watch
* The near-month derivative contract for India’s NSE index at Singapore Exchange rose 0.2 percent,while the MSCI Asia-Pacific ex-Japan also advanced 0.4 percent.
* Asian shares rose on Wednesday and the euro clung to most of the previous session’s gains as investors bet that Europe’s worsening debt crisis and faltering global growth will prompt major central banks to launch a new round of monetary stimulus.
* US stocks rose on Tuesday on hopes that the Federal Reserve will agree to extend stimulus measures as the economy struggles to recover and the euro zone’s debt crisis gets worse.
FACTORS TO WATCH
India’s refinery oil sales. (0230 GMT)
* Allcargo Logistics’ board meet to consider and approve a proposal for a share buyback.
* Lloyds Steel Industries’ board meet To consider Issue of Equity Shares on preferential basis.
INDIAN STOCKS TO WATCH
* India’s competition watchdog may slap a fine of about 30 billion rupees on top cement companies,ruling them guilty of forming a cartel and fixing prices in an order expected in a few days,official sources said.
* The Prime Minister’s Office (PMO) has called a meeting on Wednesday to revive the contentious issue of imposing duty on foreign power equipment in the country,according to three people familiar with the development.
* Bharat Light and Power,Tejpreet Chopra,and the Hyderabad-based Mytrah Energy are in the race to buy real estate firm DLF’s wind power business for around 10 billion rupees,according to sources familiar with the developments.
* DLF,the country’s largest real estate company,might offload stake in the Nagpur Information Technology Special Economic Zone after September,in the second round of fund-raising from non-core asset sales,according to unnamed sources.
* India’s Bharat Petroleum Corp has made its first payment for Iranian oil in rupees,two industry sources said on Tuesday,becoming the first refiner to use a payment channel that skirts tightening Western sanctions on Iran’s trade.
* The government has allocated 116 mines to Coal India for expansion to help it boost production capacity.
* ONGC Videsh Ltd,the overseas arm of Oil and Natural Gas Corp,is looking to sell a 50 per cent stake in its Cuban offshore blocks,a source privy to the development said.
* Jindal Steel & Power is likely to exit from a three-year long race for listed Australian coal explorer Rocklands Richfield,following an aggressive bid by China’s Linyi Mining Group,a person aware of the details said.
* Welspun Energy is in talks with renewable energy funds to sell a small stake in the company and raise $150-200 million for investments in wind energy farms,people close to the development said.
* A finance ministry panel looking into the controversial General Anti-Avoidance Rules (GAAR) would finalise its report by August after taking on board concerns of foreign institutional investors (FIIs) and other stake holders.
* Max India is likely to split its financial and healthcare businesses into separate entities as part of a restructuring process,a person familiar with the development said.
* Norway’s Telenor could exit India if licence prices at an upcoming auction prove expensive,the head of the mobile phone operator’s Asian operations said on Tuesday.
* Vodafone India plans to cuts 3G mobile data prices by 80%.
OTHER FACTORS TO WATCH
* Indian debt/FX factors to watch
* Euro dips,losses limited before Fed decision
* Brent slips under $96,Fed eyed * Foreign institutional investor flows
* For closing rates of Indian ADRs