BHEL bags Rs 2,000 crore worth power project
GSK Pharma plans to launch vaccine, cancer drugs in 2011
Government likely to ease taxation on oil sector
Power Grid gets nod for investment proposal aggregating Rs 255.58 crore
Government sees inflation at 7% by fiscal end
Government might not be able to cut deficit much in next fiscal
Nestle India mulls to invest Rs 350 crore to set up new production facility
Jain Irrigation Systems to foray into bio-waste power generation commercially
MARKET INDISE
On Tuesday Jan 15 2011, The relief rally in the local equity markets continued for third consecutive session led by the gains in the Oil & Gas, Capital Goods, Banking and Auto stocks as bulls succeeded in taking the markets above the previous close even after galloping about 100 points from the highs of the trade. It seems that this pre-budget rally is on the back of short covering of positions rather than any fundamental change in economy or sentiment and that the market is likely to consolidate in coming days ahead of union budget. Earlier in the morning, local markets performing in tandem with the regional counterparts wriggled out of the red as investors welcomed the easing of political turmoil in Egypt that, in turn, led to a softening of crude prices. Though, some weak spells were witnessed in the Midcap index which edged lower by 0.07%, but both the barometer indices went home with gain of 0.39% (Sensex) and 0.41% (Nifty) respectively.
The BSE Sensex surged by 71.60 points or 0.39% to settle at 18,273.80 and NSE 50-share index Nifty closed up 25 points or 0.46% at 5481. In Sensex Only 14 stock declined against 16 advancing ones on the index. Broader indices were mixed. The BSE Mid-cap was down 0.07% and Small-cap indices gained 0.59% respectively. In the BSE sectoral space major indices were in green, Oil and Gas up by 1.85%, Bankex up by 1.53%, PSU up by 1.10%, Auto up by 0.71%, Power up by 0.14% and Consumer Durables (CD) up by 0.13%, were the major gainers. While, Capital Goods (CG) down by 1.75%, Realty down by 1.33%, Information Technology down by 0.40%, Healthcare down by 0.39% and Metal down by 0.36% were the major losers on the Index.
European markets gained weight after cautious start. FTSE gained 0.04%, CAC-40 advanced 0.36% and DAX climbed 0.19%. Asian markets ended mixed on Tuesday, with Japanese and Taiwanese stocks settling higher, supported by tamed China's CPI, while Hong Kong shares retreated amid worries that price pressures on the mainland will remain at elevated levels. Japan's Nikkei stock average edged up to register a 10-month closing high after Chinese inflation data helped ease concerns that the country will have to tighten monetary policy more aggressively as Chinese inflation was lower than expected at 4.9 percent in the year to January.
The fiscal deficit of the Union Government is likely to remain close to 5% for the next fiscal as well. Most economists feel that somewhat higher deficit can stem from increasing expenditure needs to continue and expand the social sector schemes like the national rural employment guarantee scheme etc. Union Finance Minister Pranab Mukherjee said on Monday, after the release of December inflation data, that inflation will come down to 7% by March end. 'I am hoping that inflation would be roughly around 7% (by fiscal end). I hope so. But I cannot firmly commit it,' Mukherjee said while reacting to latest inflation numbers. This indicates the stickiness of the ongoing inflation shock and government's lack of any short term tools against it.
MARKET OUTLOOK- CAUTIOUSLY OPTIMISTIC
