The Indian markets continued their rally and extended their gains by around half a percent in last session. Today, the start is likely to remain jubilant and markets will further high extending their gains. There will be buzz in the banking license hopefuls, as RBI after a gap of a decade and from 25 contenders has granted “in-principle” approval to only two applicants, State-run IDFC and Kolkata-based microfinance firm Bandhan Financial Services. While, there will be jubilation in IDFC stock, the contenders, including IFCI, Reliance Capital, Aditya Birla group, Bajaj Finance, Muthoot Finance, Religare, who lost in race may come into somber mood. Meanwhile, International Monetary Fund chief Christine Lagarde has called for more public and private investment to close infrastructure gaps in countries like India. There will be some buzz in the aviation stocks too, as the aviation minister Ajit Singh has given Tata-Singapore Airlines (SIA) the initial no objection certificate (NOC). The sugar stocks are likely to continue their upmove on a report of industry body ISMA, who has said that the country's sugar production has dropped by 7 percent to 21.5 million tonnes in the first six months of the current marketing year due to lower output in key producing states.
The US markets extended gains on the back of the release of some relatively upbeat economic data. Though, the trade remained lackluster throughout the day but trader applauded private-sector jobs data as well as solid factory orders numbers. The Asian markets have made a positive start taking cues from the US markets as the Japanese yen weakened to a two-month low and China’s government announced stimulus policies to support growth.
Back home, Wednesday’s session turned out to be a fabulous day of trade for the Indian equity markets, which scaled fresh highs for yet another session. Benchmark indices extended their winning streak for sixth straight day and hit fresh record high as pre-election rally, dubbed as a ‘hope rally’, continued amid firm global cues and sustained foreign fund inflow. Domestic bourses, after a gap-up opening, traded with traction throughout the session. Appreciation in Indian rupee too supported the sentiments. The partially convertible rupee continued its surge against the greenback and was trading at 59.79 a dollar at the time of equity markets closing, tracking robust foreign fund inflows. Labour Ministry report soothed sentiments further, the retail inflation for industrial workers eased to a two year low of 6.73 percent in February due to softening of prices of food items. Also, as the corporate India believes that the country’s economy could resurge to grow 6.5% this year if a strong reform-minded government comes to power after the upcoming parliament elections. Global cues too remained supportive as Asian markets ended higher,while European markets made a strong start. Back home, shares of companies that have applied for a banking licence edged higher after the Election Commission allowed the Reserve Bank of India (RBI) to issue new bank licences. Stocks of public sector oil marketing companies (OMCs) like, HPCL, BPCL and IOC edged higher after the under-recovery on High Speed Diesel, PDS Kerosene and Domestic LPG declined. Lower crude oil prices and higher rupee also aided gains in shares public sector OMCs. Additionally, shares of sugar manufacturer continued to trade higher for second day in a row on expectations of higher demand during the summer season from bulk consumers such as ice-cream makers in the spot market. Finally, the BSE Sensex gained 105.05 points or 0.47%, to settle at 22551.49, while the CNX Nifty was up by 31.50 points or 0.47% to settle at 6,752.55.
