The Indian markets moved higher after a day of consolidation in last session. Today, the start of the F&O expiry session is likely to be good and Nifty may reclaim its crucial psychological level of 7950, though some volatility too can be expected in the latter part of the trade. Traders will be getting some support with Finance Minister Arun Jaitley’s statement that the General Anti Avoidance Rules (GAAR) were being revisited and that a decision would be taken soon, adding that the date of GAAR coming into force would also be looked at afresh. India Inc is also likely to cheer the announcement of Reserve Bank of India (RBI) simplifying external commercial borrowing (ECB) norms. The central bank also allowed companies to raise fresh funds through ECBs where the average maturity period (AMP) exceeds the residual maturity of the existing ECB under automatic route, with certain riders. There will be some buzz in the infra stocks, as the Union Cabinet has given full authority to the road transport and highways ministry to ease the rigid model concession agreement (MCA) to speed up delivery of highway projects.
The US markets ended flat with S&P holding the historic 2000 mark, traders remained on sidelines lacking any major economic announcements amid a mixed bag of corporate earnings and eyeing second estimate of gross domestic product to be announced on Thursday. The Asian markets have made a mixed start, although most of the indices are extending their gains the Japanese market has given up its early advances. The Chinese market was trading higher on report that industrial-company profits expanded by 13.5 percent in July.
Back home, coming out of consolidation mood, Indian equity benchmarks once again scaled fresh all time closing high levels, gaining around half a percent buoyed by firm global cues. Key indices traded comfortably in the green throughout the session on penultimate session of August F&O series. Sentiments remained up-beat amid expectations that further monetary stimulus in the euro zone could trigger more foreign fund flows to emerging markets. Investors were also awaiting Q1FY15 GDP data and Current Account Deficit numbers, due later in the week. Street widely expects Asia’s third largest economy is likely to grow 5.3% in the first quarter of this fiscal year (April-March), up from 4.6 percent in January-March, which would be the fastest since the quarter that ended in March 2012. Supportive cues from US markets provided the much needed support to local markets initially on the back of strong economic data and a flurry of merger news. Asian markets too ended mostly in the green. Back home, sentiments remained up-beat after Oil Ministry said that it will seek Cabinet nod for freeing diesel prices after retail rates achieve parity with global levels, and has proposed to cut subsidy payout by upstream firms like ONGC and Oil India by half. Banking stocks too remained on buyers’ radar after the State Bank of India and HDFC brought down home loan rates, compelling others to follow suite. Besides, the software and technology pack witnessed buying and ended in the positive territory on news of encouraging US economic data. Finally, the BSE Sensex surged by 117.34 points or 0.44%, to 26560.15, while the CNX Nifty gained 31.30 points or 0.40% to 7,936.05.
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