Cues: Are domestic factors pushing market near 25000?

Indian market

The BSE Sensex yesterday closed the day at 20101.82, up 62.78. The government on Monday hiked the import duty on gold and platinum to 6 percent from 4 percent with immediate effect - a move aimed at curbing imports of the precious metals to check the widening current account deficit.

On the earnings front, HDFC Bank too announced its quarterly numbers where it posted a 16% in net profit at Rs 1140 crore. FMGC major, HUL, will today announce it quarterly numbers. On the other hand the foreign investment promotion board (FIPB) has given its approval for IKEA's Rs 10,000 crore investment proposal.

IKEA will be able to sell its entire product line up and set up cafes, but this is subject to approval from the cabinet committee of economic affairs (CCEA). With measures to curtail CAD, clearance of IKEA's investment proposal and continuous slow upward movement of the Sensex are these factors cementing the road for 25,000 rally in times to come.

Asian markets

Asian markets were trading lower. China's Shanghai Composite slipped 0.90% or 20.93 points at 2,307.29. Hong Kong's Hang Seng was down 0.19% or 45.60 points at 23,545.31. Japan's Nikkei shed 0.12% or 13.13 points at 10,734.61. Singapore's Straits Times was down 0.31% or 10.04 points at 3,211.28. South Korea's Seoul Composite was flat at 1,987.08. Taiwan's Taiwan Weighted was down 0.23% or 17.96 points at 7,706.96.

Europe ends higher

European markets closed higher, managing to hold onto earlier gains as investor sentiment was buoyed by an agreement among US. Republicans on Friday to extend the debt ceiling for three months.

Currency

The euro is holding firm above 1.33 to the dollar. The dollar index is above the 80 mark the yen hovers around 2 and a half year lows versus the dollar.

Commodities

Brent crude soft on the back of oversupply concerns. Brent hovers around USD 111 levels.

Gold

Gold rises on progress in US Budget talks.