Wednesday, Dec 07, 2022

Sensex zooms 287 pts in early trade

Sensex surged over 287 points in early trade on flurry of buying by funds and retail investors.

The BSE benchmark Sensex surged over 287 points in early trade today on flurry of buying by funds and retail investors,driven by a firm trend in global markets after the European Central Bank unveiled a plan to help ailing eurozone countries.

The 30-share barometer,which had gained 32.93 points in the previous session,shot up by 287.09 points,or 1.65 per cent,to 17,633.36.

All sectoral indices,led by metal,auto and banking,were trading in the positive zone with gains of up to 2.25 per cent.

Similarly,the wide-based National Stock Exchange index Nifty regained psychological 5,300 points level by spurting 86.00 points,or 1.64 per cent,at 5,324.40.

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Brokers said sentiment turned better on widespread buying by funds and retail investors in line with a firm trend overseas after European Central Bank unveiled a plan to buy the bonds of troubled eurozone nations in a bid to tackle the

region’s long-running debt crisis.

In Asian region,Japan’s Nikkei was up 2.08 per cent,while Hong Kong’s Hang Seng index gained 2.19 per cent in early trade today.

The US Dow Jones Industrial Average had ended 1.87 per cent higher in yesterday’s trade.

Indian stocks to watch-Sept 7



Nifty futures on Singapore Exchange rose 0.9 percent while the MSCI-Asia Pacific index excluding Japan rose 1.4 per cent.

U.S. stocks closed at multi-year highs on Thursday,with the S&P 500 ending at its highest level since before the collapse of Lehman Brothers as investors hailed a new European bond-buying program aimed at stemming the region’s debt crisis.

Asian shares rose and the euro steadied on Friday after the European Central Bank outlined its bond-buying scheme to help calm the euro zone’s debt crisis,while firm U.S. data fed speculation of a strong jobs report later in the day.



Oil Minister Jaipal Reddy and Chairman of Indian Oil Corp to be present at an event. (0530GMT)

RBI to release weekly forex,bank loans data. (0530GMT)



Seventeen large companies including Adani Power ,Bharti Airtel and Jaiprakash Associates have an increased probability of financial stress,while 20 other companies are borderline cases,according to a study by investment bank Morgan Stanley.

The heavy industries,steel,and power ministries have opposed stake sale in state-run firms under their administrative control,creating a potential roadblock for Finance Minister P Chidambaram’s plans of aggressively pursuing the disinvestment programme.

India approved 11 foreign direct investment proposals worth 20.68 billion rupees ($371.5 million) including 8.08-billion-rupee plans of Mauritius-based Cloverdell Investments,according to a government statement.

Nexus Venture Partners has raised $270 million (15 billion rupees) for its third fund,joining a select group of VC firms that have raised capital this year in the middle of a tough economic environment.


India may exempt individual foreign investors and trusts that invest directly in the capital markets from the need to acquire a Permanent Account Number (PAN),a mandatory requirement for all tax payers.

The country’s top sleuth,the national auditor and the chief vigilance officer are expected to meet to coordinate their action over the controversial allocation of coal blocks before the matter is taken up by Parliament’s Public Accounts Committee (PAC).


Raheja-led Exide Industries is intensifying efforts to buy out ING’s 26 percent stake in their insurance joint ventures as the Dutch financial conglomerate is finding it difficult to find a buyer more than 3 years after beginning the search,two people familiar with the matter said.

The Parthasarathi Shome panel’s recommendation of abolishing short-term capital gains tax has thrown up various possibilities before the finance ministry including making amendment in the Finance Act,2012,to implement it even before the next Budget.


The finance ministry on Thursday reiterated that the tax department would not take a rash decision in the Vodafone case and would act in accordance with the law.

The Reserve Bank of India needs to bring down the cash reserve ratio (CRR) and control credit flow through open market operations,C. Rangarajan,chairman,Prime Minister’s Economic Advisory Council,said.

The banking regulator is unhappy with the Life Insurance Corporation (LIC) of India holding more than 10 percent stake in State Bank of India,the country’s largest lender. LIC stake in SBI was 11.05 per cent,as on June 30.

Banks that want to leave a loan consortium can do so only after finding a replacement,if the recommendations of a committee on joint lending are implemented.

Videocon Industries is one of the front runners to buy out Deccan Chargers,the Deccan Chronicle Holdings Ltd -owned Indian Premier League’s Hyderabad franchisee.


Vedanta Aluminium’s plan to shut its alumina refinery in eastern India will not hit its aluminium output because it aims to treble imports of the raw material,a company official said.

Bharat Petroleum Corp’s Mumbai refinery and all other units have heightened security and the Central Industrial Security Force (CISF),which looks after the security,has issued fresh instructions to their own staff and also employees at the sensitive sites.


India’s largest business process outsourcing company Genpact said it is putting in place a strategy to capitalise on opportunities in the US healthcare sector,which could see a fresh wave of outsourcing with new policies that call for widespread reforms.

Tech Mahindra will borrow from subsidiary Mahindra Satyam to partly fund its $87- illion acquisition of Hutchison Global Services,the Indian back office of Hutchinson Whampoa.

The first conference hosted by the government ahead of the 2G auction today saw no participation from any new foreign player,indicating that the foreign telcos may give the auction process a miss.


Reliance Infrastructure is looking for buyers for its unit that handles non-metro airport projects,people close to the development said.


Japan’s Suzuki Motor Corp said production at its Indian unit Maruti Suzuki’s riot-hit Manesar plant is likely to reach 800 to 850 vehicles per day in the first half of September. It could take also more time until Maruti,which accounted for about 28 percent of Suzuki’s net profit in the fiscal year ended March 2012,can resume production at the pre-riot level of about 1,700 vehicles a day,Chairman Osamu Suzuki said.

Utility vehicle maker Mahindra & Mahindra,which is developing two new platforms in association with Korean subsidiary Ssangyong Motor Corporation,may bring to the Indian market a compact crossover utility vehicle (CUV) in 2015.


Indian debt/FX factors to watch

ECB bond plan cheers euro,Aussie dollar

Oil settles higher on drop in U.S. inventory and ECB

Foreign institutional investor flows

For closing rates of Indian ADRs

First published on: 07-09-2012 at 09:56:13 am
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