The News International Team
The Nifty managed to reclaim 7,750 after a choppy session on Friday. With positive global cues, a strong reform momentum and an election verdict in favour of Narendra Modi-led BJP in Maharashtra and Haryana, the market may see a gap up opening in today’s trade.
The government has begun with the mother of all reforms. It has raised the gas prices to USD 5.6 per unit effective from November with a review every six months. Oil major RIL will get a premium price for discoveries in deep water, ultra deep water discoveries, but the full benefit of the price hike will be passed on only after the resolution of pending arbitration.
Also, in a huge boost to public sector oil companies, diesel price deregulation finally sees the light of the day. Government has deregulated the price of diesel, linking it to global market prices. Diesel has now become cheaper by Rs 3.37.
It was a massive victory for the BJP in Maharashtra. It came out as the single largest party in the state with 123 seats in Haryana. The BJP will be forming the government for the first time. It created a record getting majority on its own in Haryana assembly winning 47 seats.
On the earnings front, stable asset quality helped Axis Bank deliver a strong set of second quarter numbers net interest income surges 20 percent, pushes net profits up 18 percent.
Cement giant Ultratech Cement also posted better than expected topline in Q2FY15 owing to strong volumes and strong realizations.
Telecom major Idea will be reporting its second quarter numbers today.
US stocks rallied, softening a fourth week of losses, as investors bet on further stimulus from central banks and corporations including General Electric and Morgan Stanley reported profits that topped expectations.
Meanwhile Fed Chair, Janet Yellen believes that the widening inequality paused during recession, has resumed in recovery.
In economic data, new-home construction climbed 6.3 percent in August, signaling improvement in the US residential real-estate market.
Also the preliminary read for consumer sentiment in October came in at 86.4 versus 84.0 estimate.
Europe shares saw strong gains on Friday, ending the day firmly in positive territory, as investors searched for bargains after heavy selling, and reassuring words from members of the US Federal Reserve helped to boost sentiment.
Asian markets gained in a broad rally on Monday. The Nikkei rebounded from four-month low while Kospi recovered from eight-month low.
Dollar gained after upbeat data restored some calm to the financial markets, prompting equities to rally back from deep losses and triggering a rise in treasury yields.
Nymex crude futures bounce back after a three-week fall that pulled prices to their lowest since 2012 amid abundant supply and slack demand. Brent crude too rises to 86 dollars per barrel.