The Indian markets went for humongous rally in last session with major indices gaining over a percent, backed by FII buying and some good earnings. Today, the start is likely to remain in green on sanguine global cues. Meanwhile, India has stressed on capital increase and reforms in the World Bank to reflect the new world order and enhance the capacity of the global institution to fund poverty alleviation programmes. Today, the gold loans companies are likely to be in action after the Reserve Bank of India (RBI) relaxed the Rs one lakh ceiling on loans against gold jewellery. Borrowers can now pledge their gold and get a higher value of loans, provided that the loan-to-value (LTV) ratio does not exceed 75% of the cost of the gold and is for non-agriculture purposes. The PSU sector stocks too will be buzzing today, as the finance minister Arun Jaitley has said that four public sector companies, which cannot be revived will be shut down and others have been advised to shape up to deal with free competition. Banking stocks too may see some action, as the RBI will start announcing the names of systemically important banks (D-SIBs) by August 2015.
There will be lots of result announcements too, to keep the markets buzzing. ABB India, Alstom T&D, Cairn India, Geometric, JSW Energy, L&T Finance Holdings, Mcleod Russel, MRF, NIIT and Yes Bank are among many to announce their numbers today.
The US markets after a day of consolidation once again moved higher in last session on some positive economic data, including a report from the National Association of Realtors showing more than expected surge in the existing home sales in the month of June. The Asian markets have made a green start, extending gains from a six-year high. There was some sense of relief among the regional indices on expectation that US Fed may not raise interest rates anytime soon given the low inflation data.
Back home, extending their winning streak for the sixth day in a row, Indian equity benchmarks staged an enthusiastic performance on Tuesday, by rallying over a percentage point and breaking lots of psychological levels in their northward journey. Sentiments remained positive since beginning of the trade and there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength, supported by sustained foreign capital inflows and encouraging first quarter earnings posted by blue-chip companies. Sentiments remained up-beat after Finance Minister Arun Jaitley exuded confidence that tax collection would exceed the set target during the current fiscal, however, more than positive global set-up, sharpened risk-appetite of market-participants. Investors also remained optimistic after Idea Cellular reported better-than-expected Q1 numbers. The company has reported 57.37% rise in its consolidated net profit at Rs 728.20 crore for the quarter as compared to Rs 462.71 crore for the same quarter in the previous year. Total income has increased by 15.63% at Rs 7560.99 crore for quarter under review as compared to Rs 6538.77 crore for the quarter ended June 30, 2013. Buying got intensified in last leg of trade as European counters made a firm start, while Asian markets too ended mostly in the green. Back home, frontline indices managed to settle near intraday high levels with Sensex surpassing its crucial 26,000 mark, while Nifty ended near its crucial 7,750 bastion. Rally in telecom shares too aided sentiments. Stocks like Bharti Airtel, Idea Cellular and Reliance Communication edged higher after the telecom regulator authority of India (TRAI) recommended allowing sharing of all categories of airwaves held by operators, the move could help companies to reduce cost of mobile services. Finally, the BSE Sensex surged by 310.63 points or 1.21%, to 26025.80, while the CNX Nifty soared by 83.65 points or 1.09%, to 7,767.85.
