Exports sops, rate cut hopes prop Sensex; banks surge
Markets close in red on expiry day; PC Jeweller up 10% in debut

Money Dec 27, 2012

Sensex opens flat; SpiceJet up on fund raising news

By Firstbiz Staff

The Indian equity markets opened marginally up on general bullishness on domestic economy. However, subdued global cues capped the gains.

The Sensex opened at 19451, up 0.17 percent and the Nifty at 5913, up 0.12 percent.

Asian shares were capped on Thursday on investor edginess about the chances of U.S. lawmakers striking a deal to avoid a fiscal crunch by 31 December, while the yen stayed under pressure on the prospect of drastic monetary easing and massive fiscal spending.

Additionally, government decided to extend interest subsidy for some exports until March 2014. Reuters

Commerce Minister Anand Sharma on Wednesday said Swedish furniture giant Ikea may finally get approval to follow its global model here too, giving rise to hopes that the government is resolute on bringing in further economic reforms.

"The government has taken note of the representation that Ikea has made in this regard and a favourable view has been taken so that we accept their global model and the process of FIPB's formal approval is currently underway," Sharma said.

On the economy front, the Planning Commission yesterday said it will pitch for a lower average annual growth rate of 8 percent for the 12th Five Year Plan as against the projected 8.2 percent. The National Development Council (NDC) will meet in New Delhi today.

"Our objective is that we should be going in for a more optimistic scenario ...And probably if we reflect, what we now know (is that) instead of 8.2 percent, it would be better to pitch it at 8 percent. I would raise that issue in the NDC," Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

Stocks in news

Maruti Suzuki opened up close to a percent as the company is considering setting up its first overseas assembly plant in Africa as it seeks to revive flagging exports.

Hindustan Oil Exploration Company opened up 6 percent after Business Standard reported that Italian promoter Eni is in talks to sell its 47 percent stake in the company at Rs 135-140 a share.

SpiceJet opened up 1.15 percent after the company gets nod to raise Rs 145 crore through issue of debentures & warrants on preferential basis to its promoter Kalanithi Maran.

by Firstbiz Staff

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