Nifty opens above 8300, Sensex climbs over 100pts; Tata Steel up
Tata Steel, Dr Reddy's Labs, HDFC bank, Infosys and ICICI Bank are top gainers in the Sensex.
9:55 am World Bank report: The World Bank today decelerated India's growth for 2016-17 fiscal to a "still robust" 7 percent from its previous estimate of 7.6 due to demonetisation, but asserted that the country would regain momentum in the following years with 7.6 and 7.8 percent growth.
"The immediate withdrawal of a large volume of currency in circulation and subsequent replacement with new notes announced by the government in November contributed to slowing growth in 2016," the World Bank said in its latest report.
In its first report after November's demonetisation, the World Bank said, "Indian growth is estimated to have decelerated to a still robust 7 percent (in fiscal 2017 ending on March 31, 2017), with continued tailwinds from low oil prices and solid agricultural output partly offset by challenges associated with the withdrawal of a large volume of currency in circulation and subsequent replacement with new notes."
9:45 am Exclusive: Global private firm TPG is likely to buy stake in Fortis Healthcare.
According to sources, the quantum of stake to be acquired may be around 20 percent in Gurgaon-based healthcare company for Rs 2,000 to Rs 2,300 crore.
TPG is also likely to get 1 or 2 board seats in Fortis post deal. Promoters of Fortis are expected to retain around 40 percent stake in the company.
News on proposal for the stake sale in the hospital chain has been doing the rounds for a long time. PE giants like Bain Capital and KKR, apart from TPG, were in the race for equity in Fortis.
9:30 am FII view: Ajay Kapur of Bank of America Merrill Lynch says Global Equity Risk-Love indicator is in euphoria. Survey data are boisterously bullish, economic surprises are elevated, and market volatility is suppressed, despite rising economic uncertainty.
Meanwhile, in emerging markets, while the panic of early November is behind, animal spirits remain subdued, he says.
According to him, the divergence between developed markets and emerging markets is exploitable.
The market has opened on a higher note with the Nifty reclaiming 8300. The market will also take cues as investors looked to President-elect Donald Trump's news conference later in the day for any clues to his policies on tax, fiscal spending, international trade and currencies. The 50-share index is up 42.20 points or 0.5 percent at 8330.80. The Sensex is up 131.59 points or 0.5 percent at 27031.15.
Tata Steel, Dr Reddy's Labs, HDFC Bank, Infosys and ICICI Bank are top gainers in the Sensex.
The Indian rupee opened lower by 5 paise at 68.23 per dollar on Wednesday versus previous close 68.18.
NS Venkatesh of Lakshmi Vilas Bank said, "The rupee is expected to trade steadily in a narrow range of 68.15-68.35/dollar."
US dollar held steady ahead of US president-elect Donald Trump's first news conference set for today, while the Mexican peso hit a record low. Investors fretted that trump, who takes office on January 20, could shake markets by taking an aggressive line on issues such as trade policy.
Asian shares stood near two-month highs. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early Wednesday trade.
It stood at its two-month highs, essentially coming back to where it was just before the US election after recovering from their losses of over five percent. Japan's Nikkei ticked up 0.2 percent.
The S&P 500 ended the day unchanged on Tuesday as lower oil prices hurt energy stocks, offsetting advances in healthcare and financial sectors, while the Nasdaq ended at another record high.
Traders were holding fire ahead of the upcoming corporate earnings season and the January 20 inauguration after which they expect a better sense as to whether President-elect Donald Trump will fulfil campaign promises of fiscal stimulus, lower tax and lighter regulation.
The Dow Jones Industrial Average ended down 31.85 points, or 0.16 percent, at 19,855.53, the S&P 500 was unchanged at 2,268.9 and the Nasdaq Composite added 20.00 points, or 0.36 percent, to 5,551.82.