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Govt reforms, FIIs to keep mkt positive momentum going

The Indian equity market is likely to continue with its positive momentum on the back of foreign flows and government reforms. Strong buy figures of Rs 1,040 crore were seen from FIIs in cash and derivatives post reform boost from the government.

The benchmark indices are expected to open in green with the SGX Nifty trading at 7922, up 20 points around 8:00 hrs.

The benchmarks started of the Diwali week with more than a percent gain on Monday, rejoicing after the BJP election win, diesel deregulation and gas price hike announced over the weekend.

The 30-share BSE Sensex climbed 321.32 points or 1.23 percent to close at 26429.85 and the 50-share NSE Nifty jumped 99.70 points or 1.28 percent to 7879.40. The broader markets rallied too with the BSE Midcap gaining over a percent.

In US the stocks climbed, with the S&P 500 marking its longest winning run in a month, as Apple’s quarterly results outdid disappointment that came with a reduced outlook from IBM.

Apple reported earnings per share of USD 1.42 on revenue of USD 42.1 billion, easily beating analysts’ expectations. They also gave sales guidance for the current quarter of USD 63.50 to USD 66.50 billion, at the high end of current analysts’ estimates.

In Europe, shares closed lower with investors reacting to corporate earnings and acquisition deals rather than the positive trend set in Asian markets.

Asia stocks seem to have paused after yesterday’s big rally. Nikkei is lower after the index witnessed its biggest daily rise in more than a year. The stronger yen is also dragging the index down further

The mood is cautious ahead of key Chinese economic data. Chinese third-quarter GDP, industrial output, fixed asset investment and retail sales for September.

In the currency space, major currencies traded in tight ranges with investors facing a vacuum of data and modest price changes in global markets.

Among commodities, Brent crude prices slip below USD 86 per barrel resuming a downward move that took the global oil benchmark to near a four-year low last week as supply overwhelmed weak demand in several key markets.

From precious metals space, gold prices rise to USD 1,245 an ounce as renewed weakness in European stocks boosted interest in the metal as an alternative asset, though a tentative recovery in risk appetite in other markets limited its gains.

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