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Money Dec 24, 2012

Markets in green in quiet trade; Cairn up on value buying

By Firstbiz Staff

The Indian equity market started the week in green but trading remained quiet ahead of the Christmas holiday.

The Sensex opened at 19,317, up 0.39 percent and Nifty at 5869, up o.37 percent.

Asian shares steadied in quiet pre-holiday trade after a slump late last week, but markets have become more jittery about the risk of the United States failing to avert a fiscal crisis.

The Plan panel has warned that persistent policy logjam could pull down the annual average . Reuters

The White House on Friday tried to rescue stalled talks but there was little headway as lawmakers and President Barack Obama abandoned Washington for Christmas.

Many market players still expect both sides to reach a compromise before the year-end deadline but heightening tensions were likely to stifle trade already slowed by the holidays.

Domestically, the Plan panel has warned that persistent policy logjam could pull down the annual average economic growth rate in the 12th Five Year Plan (2012-17) to 5-5.5 percent, from 7.9 percent recorded in the 11th Plan.

In case the government pursues a well designed strategy, the annual average growth rate in the 5-year policy period could move up to 8.2 percent, said the 12th Plan draft document which will be placed before the country's apex policy making body National Development Council (NDC) on Thursday.

Meanwhile, India raised FII and FDI cap for asset reconstruction cos to 74 percent from current 49 percent.

Stocks in news

Glenmark Pharma opened up 2 percent after it signed development agreement with Forest Labs for Novel Agent and company told CNBC TV18 that it will receive $9 million as upfront payment.

Cairn India opened up 1 percent on value buying. The stock had fallen last week after CNBC TV18 reported that the company is facing reservoir problems in its Bhagyam field in Rajasthan.

by Firstbiz Staff

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