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Last Updated : Sep 09, 2015 12:59 PM IST | Source:

Sensex, Nifty maintain strong uptrend; Nikkei ends 7.7% up

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices gaining 2 percent each. About 1803 shares have advanced against 534 shares declined on the Bombay Stock Exchange.

Moneycontrol Bureau

12:59 pm Market extends rally:
The Sensex gained 455.41 points or 1.80 percent at 25773.28 and the Nifty rallied 144.35 points or 1.88 percent to 7832.60.

About 1860 shares have advanced, 570 shares declined, and 82 shares are unchanged on the BSE.

12:55 pm Cabinet
has approved a 6 percent hike in dearness allowance for central government employees.

12:45 pm China changes GDP method:
China's statistics bureau said today it has changed the way quarterly gross domestic product data is calculated, a move it calls a step to adopt international standards and improve the accuracy of Chinese numbers.

There has long been widespread scepticism about the reliability of Chinese data, especially as the government has sought to tamp market expectations of a protracted slowdown in the world's second-largest economy.

The move by the National Bureau of Statistics (NBS) comes after China said in July its annual growth rate in the second quarter was 7.0 percent, the same as in January-March. Many economists believe the April-June pace was lower.


The combined economic output of China's provinces has long exceeded that of the national level compiled by the bureau, raising suspicion that some growth-obsessed local officials have cooked the books.

Now, China is calculating GDP based on economic activity of each quarter to make the data "more accurate in measuring the seasonal economic activity and more sensitive in capturing information on short-term fluctuations", the NBS said.

Previously, China's quarterly GDP data, in terms of value and growth rates, was derived from cumulated figures rather than economic activity of that particular quarter, the bureau said.

12:30 pm FM on tax disputes:
India is seeking to resolve pending tax disputes with investors and hopes to resolve "legacy" issues in short order, Finance Minister Arun Jaitley said on Wednesday.

Arun Jaitley was speaking after the finance ministry decided last week not to press claims for a Minimum Alternate Tax (MAT) against foreign portfolio investors. India remains locked in major back-tax disputes with telecoms group Vodafone and Cairn Energy.

Without referring to individual disputes, Jaitley said the government was trying to resolve pending tax disputes, many of them outside the courts, and said that these legacy issues would be resolved "in not much time".

12:15 pm Market Expert:
At a time when volatility-hit street is hinting at jettisoning equities in favour of fixed income, JP Morgan believes equities will beat all other asset classes in 3-5 years.

Chief India Economist Sajid Chinoy, Head Of Currency Research suggested that collapsing commodity will keep emerging market wobbly but is good for global growth on the whole. India specifically will be a beneficiary.

Speaking of possibilities in Indian equities, Bharat Iyer (Head of Equity Research) said 2015 will be a year of consolidation but one can expect returns of 15-18 percent over next 3-4 years. He is constructive on IT  and Healthcare.

On Fed rate hike, Brijen Puri (Head Of Currency Research) said a rate hike is imminent. He said Fed will raise rates by December, if not September.

12:00 pm Market Check

The market has maintained its strong momentum in noon trade with the Sensex rising 430.14 points or 1.70 percent to 25748.01 and the Nifty climbing 136.05 points or 1.77 percent to 7824.30. Technology, banking & financials, metals and auto stocks drove the rally.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices gaining 2 percent each. About 1803 shares have advanced against 534 shares declined on the Bombay Stock Exchange.

Asian stocks were on a roll Wednesday, with Japan's Nikkei 225 index at the epicenter of the monstrous rally, as investor confidence got a boost from the strong rally in offshore markets.

The Nikkei index at the Tokyo Stock Exchange staged a spectacular comeback, a day after crashing 2.4 percent to erase all gains made this year, thanks to hopes for more growth-supportive policies in the Asian economic giant. Earlier in the day, Prime Minister Shinzo Abe told a meeting of investors that he would seek to lower the corporate tax rate by at least 3.3 percentage points next financial year, Reuters reported. Analysts say Abe's comments bode well for the outlook for Japan Inc and helped to improve trading sentiment.

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First Published on Sep 9, 2015 12:00 pm
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