FIIs bet big on reforms, pump in over Rs 9,000 cr in Sep
Overseas borrowing tax cut may result in $2 bn additional inflows

Money Sep 24, 2012

After Friday's rally, Sensex opens in red on profit-booking

By Firstbiz Staff

After a stellar session on Friday, Indian markets opened in the red today on sluggish global cues and some profit taking, though volatility too is likely to creep in with the start of the September months F&O expiry week. The Sensex had on Friday surged to a new 14-month high after Samajwadi Party reassured the government of its support when Trinamool Congress pulled out of the UPA coalition. The approval to Rajiv Gandhi Equity Savings Scheme (RGESS) to encourage first-time retail investors to invest in stocks has also lifted investor confidence.

"After a huge rally last week, markets may see some profit-booking at higher levels. Stocks may consolidate. A similar sharp rally may not happen this week but the positive
sentiment is likely to prevail in near-term," said Rajesh Jain, EVP retail research, Religare Securities.

Reuters

The BSE Sensex was trading at 18,761, up 8 points over the previous close, while the Nifty
was quoting at 5,708, up 17 points over the previous close.The rupee rose sharply in choppy opening trades with pair at 53.11/12 after rising to 53.52 initially, 53.45/46 last close.

"There is panic selling from exporters on fears the rupee will strengthen more," a senior dealer with a state-run bank told Reuters due to talk of NDF arbitrage-related selling.

India may raise the overseas borrowing limit by Indian corporates by $10 billion to $50 billion in a bid to draw more capital, an unnamed finance ministry official told The Economic Times.

Infosys, Wipro, HDFC Bank, ICICI Bank, Maruti Suzuki, M&M, Tata Steel, HDFC, BHEL, Tata Power, SBI, Bharti Airtel, NTPC, are among gainers in Sensex and Nifty.
RIL, TCS, Coal India, L&T, ONGC, Tata Motors and HUL indices are among losers in Sensex and Nifty.

The BSE Small-Cap index and BSE Mid- Cap index was trading flat.

Traders will be expecting more hints from the government regarding reforms, as in an address to nation Prime Minister Manmohan Singh justified the government's decision and said that the government would take more reforms measures to pull the country out of a 1991-type economic abyss,

Deputy Chairman of the Planning Commission Montek Singh Ahluwalia too, allaying fears of FDI in retail has said that it's not a threat to small retailers and modern retail was an expanding segment and it would more than double in a very short time.

Meanwhile, the export oriented stocks will be in focus as the Ficci's Export Survey has said that export target of $360 billion for the current fiscal is unlikely to be achieved due to the global demand slowdown.

The PSU oil marketing companies too may keep buzzing on report of their plan to revise petrol prices downward due to falling international crude oil prices and a strengthening rupee.

Stocks in news

Tata Power, Adani Power, Reliance Infrastructure and BHEL gained 1-2.5%. GVK Power surged 4% as Mint reported that the company is seeking 660% hike in aeronautical tariff and also introduction of user development fee.

PFC and REC were up 2-3% on hopes of restructuring of loans given to power sector.

Jet Airways is down nearly 1% as the company has reportedly announce up to 40% discounts on tickets booked a month in advance and also fighting for its market share.

United Spirits surged 5.5% on reports of Mallya closing in on the deal with Diageo.

ONGC stock is in the red ahead of the company's annual shareholder meet today, which will be followed by a press conference

With inputs from Agencies

by Firstbiz Staff

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