Nifty Moves Past 8800

Fri, 13 Mar 09:30 am

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International market minted gains as the largest economy in the world revealed economic numbers that impressed investors. The U.S. market gained over 1.5% as the initial claim figures came in better than expected. European markets also showed optimism on most part of the day, however, closed mixed with moderate gains and losses. Asian stock markets are trading in the green on the back of positive international cues and the rate cut which bank of Korea implemented yesterday. Japanese, Chinese, Hong Kong, Taiwanese and Korean markets are trading with gains of 1.4%, 0.2%, 1%, 0.2% and 1%, respectively.

Indian markets provides a strong start as BSE Sensex and NSE-Nifty gained over 0.6% each with the opening bell. Investor optimism increased with the better than expected industrial production numbers and clearance of insurance bill that had been waiting over half a decade to be passed the Rajya Sabha. BSE Mid Cap and BSE Small Cap have gained over 0.4% and 0.6%, each. Among the sectoral indices, Informational Technology is trading with minor losses, however, banks and capital goods are leading with maximum gains.

Commodity prices continued to trade mixed. Gold price, per 10 grams, declined marginally to 0.14% or Rs 37 and is trading at Rs 25,640 levels, while silver prices, per kilogram has increased 0.8% or Rs 279 and is trading at Rs 35,300 levels. Crude oil prices tanked over 1.3% and per barrel is trading at Rs 2960. The value of Indian rupee has declined marginally by 0.03% or 0.02 to Rs 62.48 against the US Dollar.

Investors got a reason to cheer when the industrial growth increased 2.6%, as ompared to expectations of 0.5%. However, the two sectors namely consumer goods and power continue to remain sloppy. Consumer Price Index for the month of February came in slightly higher than expected. The CPI index came in at 5.37% compared to previous reading of 5.11%. Increase in the price of food articles, mainly vegetables, is primarily responsible for a high CPI. Rural inflation too inched up to 5.79% compared to earlier reading of 5.34%. According to leading financial sources, a rise in the inflation might rule out a possible rate cut which could have happened in the month of April.

The biggest realty company DLF gained over 1.5% after Bangalore based Blackstone group progressed in its talks to acquire 40% of DLF's Cybercity in Gurgaon. The Cybercity is spread over 10.37 million square feet. On acquisition of this space, Blackstone group will become the single largest owner of a commercial space in India. Apart from this the company also looks forward to sell its 2.9 million square foot space in Hinjewadi Pune. According to the company, the proceeds of this deal will be utilized in paying off the huge debt. As of December quarter, the company had a debt of over Rs 200 billion.