The News International Team
9:50 am Buzzing: Shares of Hero MotoCorp jumped over 2 percent intraday on hopes of getting more foreign investors. The Reserve Bank of India has allowed foreign investors to buy up to 49 percent of the paid up capital in Hero MotoCorp.
“Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 percent of the paid up capital of Hero MotoCorp under the portfolio investment scheme,” the central bank said.
The stock has been on buyers’ radar in this month. It had hit record high at Rs 3099 per share intraday on October 22, hoping to rake in strong sales during the festive season.
Post Diwali, Sunil Munjal, Joint MD of Hero MotoCorp said in an interview to CNBC-TV18 that the festival period has been very kind to the industry. “A part of sales came from the branding, part came from the new launches and part of it also came from better logistics and planning and how to position the product across the market. Therefore, it was a combination of multiple things that are going on,” he added.
9:35 am Fed meet: The Fed is expected to announce the end of the extraordinary easing program it first launched during the financial crisis, and markets could shrug it off as long as the Fed sounds dovish. “Last month, there was this intense speculation about the Fed, and they delivered pretty much nothing. Now there’s no speculation, and they’re expected to deliver nothing,” said John Briggs, head of cross-asset strategy at RBS. Fed watchers say the Fed is unlikely to change the language in its statement about keeping rates low for a “considerable time.” That was the focus of speculation last month, as was the idea that it could alter the language about labor market conditions.
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The market has once again opened higher. The Nifty is inching closer to 8100, up 49.45 points at 8077.05. The Sensex is up 172.73 points at 27053.55. About 471 shares have advanced, 85 shares declined, and 16 shares are unchanged.
Hero, Tata Motors, HUL, M&M and ONGC are top gainers in the Sensex. Among the losers are Dr Reddy’s Labs and TCS.
The Indian rupee opened marginally higher at 61.25 per dollar against 61.32 Tuesday.
Dollar was subdued as investors waited for the latest guidance from the Federal Reserve, while a surprisingly dovish message from Sweden’s Central Bank saw the currency slump to four-year lows.
Himanshu Arora of Religare said, “USD-INR pair is expected to trade slightly higher today amid month-end dollar purchases by oil importers and caution that may persist in the market owing to ongoing US Fed meeting. Expect the trend for the USD-INR to be up and ranged between Rs 61.05-61.70/dollar.”
In the US, stocks rose, with the Dow industrials extending gains into a fourth day and the S&P 500 and Nasdaq composite higher on the month, as investors embraced corporate earnings, a rise in consumer sentiment and anticipated the end of the Federal Reserve’s bond buys.
European stocks ended firmly in positive territory, regaining some of Monday’s losses, as investors reacted to third-quarter earnings and prepared for a key monetary policy decision from the US.
In commodities, Brent crude prices were steady above USD 86 per barrel after industry data showed a rise in us crude inventories that was in line with expectations.
From precious metals space, gold hovered near USD 1,230 an ounce, clinging to gains from the previous session.