Apr 30, 2012, 03.39 PM IST
A softer dollar kept the euro near three-week highs on Monday and European shares followed Asian markets higher as disappointing U.S. growth raised expectations that the Federal Reserve would consider more monetary easing.
Trading was expected to be light ahead of May Day holidays on Tuesday and before the European Central Bank's meeting later in the week where policymakers will consider the declining health of the region's economy.
"The weaker-than-expected US GDP report has re-heightened speculation over the prospect of further monetary stimulus from the Fed, weighing upon the dollar," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ, Ltd.
Top gainers on the Nifty were TCS, DLF, Infosys, Reliance Infra and IDFC. Top losers on the Nifty were BHEL, Dr Reddys Labs, Maruti Suzuki, Axis Bank and Ranbaxy Labs.
Credit rating agency Moody's has reportedly reviewed three Indian banks for downgrades, which includes HDFC Bank, ICICI Bank and Axis Bank.
Oriental Bank of Commerce shed 6.46% after net profit fell 20.6% to Rs 264.90 crore. The bank reported 29.22% growth in total income to Rs 4564.53 crore in Q4 March 2012 over Q4 March 2011.
The bottomline of Bank of India shot up by 93.00% to Rs 952.73 crore in the quarter ended March 2012 as against Rs 493.64 crore during the previous quarter ended March 2011. The operating income surged 23.84% to Rs 7810.62 crore as against Rs 6306.93 crore in the same period.
Godrej Consumer Products sales rose by 19.88% to Rs 784.34 crore in the quarter ended March 2012 as against Rs 654.28 crore in the previous quarter ended March 2011. Net profit was up 43.51% from Rs 110.42 crore to Rs 158.46 crore.
The speculation of QE3 sent the dollar to a two-month low against a basket of currencies of 78.64, leaving the euro mostly steady around the $1.3245 mark.
Spanish 10-year bond yields were trading just below the 6 percent level after the government reported the economy had contracted by 0.3 percent in the first quarter, which was better than forecast.
European shares climbed for a fifth straight session, tracking the firmer markets globally.
Spain in Recession
Spain's economy slipped into recession in the first quarter as domestic demand shrank, data showed on Monday, with deep government spending cuts in an uphill battle to trim the public deficit likely to delay any return to growth.
(With inputs from Reuters)
The Indian market surged higher in morning trade to hit highest level in one week. The barometer index, Nifty was inching towards 5250 mark. IT stocks were trading firm on back of short covering and weak rupee. Banking stocks extended rally on buzz that Cabinet has cleared the much awaited Banking Law (Amendment) Bill.
SENSEX-NIFTY-INFOSYS:BSE Sensex gains; Infosys leads way
Lack of cues meant no big bang opening for the Nifty on Monday morning as the Chinese and Japanese markets were shut today. The Indian Metrological Department's projection of normal rains in the monsoon period is the only positive news for the market. However, news of Spain's credit rating downgrade will keep traders on their toes.
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