The Indian markets went for a rally in last session, with high beta gaining momentum in the latter part of the trade and pushing Sensex above historical closing high of 25,000. Today, the start is likely to be in green taking cues from the global markets and Nifty may reclaim its crucial psychological level of 7,500 in the very early part of trade. Meanwhile, in a pre-Budget consultation with agriculturists Finance Minister Arun Jaitley has assured them that despite resource constraints, the Government would try its best to boost the sector. Sugar stocks are likely to remain in limelight after the government said that it was examining the possibility of giving additional interest-free loans of Rs 4,400 crore to cash-starved sugar mills to clear dues to cane farmers. Today, there will be buzz in the PSU oil marketing companies too, as an expert committee has recommended the reinstatement of LPG subsidy transfer scheme after streamlining some processes as it helps prevent pilferages. The export oriented stocks too are likely to remain in jubilant mood with Federation of Indian Export Organisations (FIEO) saying that India’s exports are expected to touch $360 billion in the current fiscal from $312.35 billion in 2013-14.
The US markets extended their gains in last session after the European Central Bank (ECB) announced its decision to cut its benchmark interest rate by 10 basis points to 0.15 percent and also lowered its deposit rate to negative 0.1 percent. The ECB stimulus kept the major indices firmly positive throughout the day. The Asian markets have mostly made a positive start with unprecedented low rates from the ECB boosting emerging-market currencies. Though, the Chinese market was marginally in red despite IMF saying that country’s policy makers still have tools to keep economic growth at a medium to high level.
Back home, resuming their northward journey, boisterous benchmarks showcased an enthusiastic performance on Thursday, by rallying over a percentage point. Though, domestic bourses made a choppy start and the indices even went on to test important psychological 24,700 (Sensex) and 7,350 (Nifty) levels, but the key gauges got solid support around those intraday low levels as they convalesced from thereon as investors continued hunt for fundamentally strong stocks. Frontline indices not only ended near their intraday high levels but also recorded their all time closing high, settling comfortably above their crucial 7,450(Nifty) and 25,000 (Sensex) bastions as investors took to hefty across the board buying. Sentiments got bolstered after the India Meteorological Department (IMD) has forecasted that conditions are favourable for the onset of the southwest monsoon over Kerala and its further advance into some more parts of south Arabian Sea, remaining parts of Maldives-Comorin area, some parts of Tamil Nadu and the Bay of Bengal during the next 48 hours. Meanwhile, Prime Minister, Narendra Modi met the Secretaries of all government departments to outline his agenda of governance and in a positive step he said that the Government’s priority is to revamp the economy and asked the officials to prepare presentations on the contributions their Ministries can make to the revival. In a separate development, industry body Confederation of Indian Industry (CII) has called for a comprehensive review of the new Companies Act 2013 and the rules issued there under. On the global front, European markets were trading slightly in the red in early deals, however, most of the Asian counters ended in the green terrain. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Finally, the BSE Sensex soared by 213.68 points or 0.86%, to 25019.51, while the CNX Nifty surged by 71.85 points or 0.97%, to 7,474.10.
