Dow, S&P @ new highs: Will Nifty rally significantly today?
Wall Street rallied to session highs with the Dow and S&P 500 surging to new record levels. European markets also reported 1-2 percent gains on Wednesday.
April 11, 2013 / 09:15 IST
Wall Street rallied to session highs with the Dow and S&P 500 surging to new record levels. European markets also reported 1-2 percent gains on Wednesday.
Indian equity benchmarks rallied on Wednesday after a sedate start led by demand for banks and IT shares. The Sensex gained 188 points to close at 18414.45, and the Nifty rose 64 points to 5558.70.Asian markets followed suit today morning, tracking Wall Street gains. At 7: 36 am (IST) China's Shanghai Composite was up 0.28% or 6.21 points at 2,232.34.Hong Kong's Hang Seng rose 0.75% or 165.37 points at 22,199.93. Japan's Nikkei added 0.75% or 99.66 points at 13,387.79.Singapore's Straits Times gained 0.32% or 10.59 points at 3,303.84. South Korea's Seoul Composite was down 0.39% or 7.62 points at 1,927.96. Taiwan's Taiwan Weighted advanced 0.62% or 47.83 points at 7,800.63.The US markets soared broadly across the board to finish near session highs, propelling the Dow and S&P 500 to new record levels, boosted by strong gains in techs. The CBOE volatility index dipped below 13. The US Fed released the minutes of its latest meeting several hours earlier than planned and minutes from the most recent Fed meeting suggest that a few policymakers expected to slow the pace of asset purchases by mid-year and end them later this year.Meanwhile, US president Barack Obama sent his Budget proposals for 2014 to the Congress. The budget plan proposes further tax increases, including a special tax on the wealthy called the Buffett tax. Obama has also proposed further spending cuts and reductions in the growth of social security and Medicare.In key data to watch out for in the US today, weekly jobless claims are expected to slip to 365,000. Export prices are expected to see 0.1% rise, while import price may contract by 0.5%.European markets rallied On Wednesday closing at 1-week highs with investor sentiment boosted by US stocks reaching record highs, and a successful Italian bond auction. In the debt market, Italy’s borrowing costs declined as it sold bonds worth 11 billion euros at an auction. Yield on one year bonds slipped to 0.922 percent, lowest since January. Yield on 91-day bills also eased to 0.243 percent. On the data front - French industrial production picked up by 0.7% in February, which was above analysts' expectations and better than the 0.8 percent fall for the month before.Currency The euro is steady above 1.30 to the dollar. The dollar index is at 82.60 levels. The yen slipped close to 100 levels.CommoditiesCrude prices softened with Brent trading around USD 105 per barrel. From the precious metals space, gold prices slipped to USD 1,555 levels. Stocks to watch Back home, Tata Motors will be in focus today. Jaguar Land Rover reported very strong retail sales for the month of March, much better than estimates. Total sales jumped to 53,772 vehicles compared to 26,000 plus vehicles last month. Telecom stocks like Bharti and Idea would also be in focus today. The 3G intra-circle roaming case will come up for hearing at the Supreme Court today. Bharti, Vodafone And Idea have formed 3G ICR pacts and earlier this week the apex court had directed against any coercive action and ordered to maintain status quo till today. Legal sources indicate Bharti, Vodafone & Idea may continue services as per the intra circle roaming pactsKFA CEO Sanjay Agarwal met the aviation regulator, DGCA on Wednesday and submitted its revival plan. Talking to the media after the meet, the KFA ceo said that the grounded airline plans to start operations with 5 airbus planes and 2 ATRS. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
