Resistance is at 17,900 but the market is bent on pushing higher
The market ended in the green for the second day in a row on strong global cues and on positive domestic economic news. The Sensex settled at 17,833, up 182 points (1%) and the Nifty closed at 5,352, up 55 points (1%). The indices started the day with a sharp rise, taking support from Asian markets. Trading was range-bound till mid-afternoon. The market regained its strength on the positive sentiment supported by upward revision in the gross domestic product (GDP) growth by the IMF.
Asian stocks were up for a second day on Friday, on positive US economic data. Key benchmark indices in Hong Kong, Indonesia, China, Taiwan, Singapore, Japan and South Korea were up by 0.5% to 2.3%.
Wall Street was up for the third straight day on Thursday on investors' optimism supported by the decline in jobless claims. Initial claims on State unemployment benefits dropped 21,000 to a seasonally-adjusted 454,000 in the week ended 3rd July, the lowest level since early May, the US Labor Department said. The Dow was up 120.7 points, (1.2%) at 10,139. The S&P 500 was up 9.9 points (0.9%) at 1,070.2. The Nasdaq was up 15.9 points (0.7%) at 2,175.4.
European Central Bank president Jean-Claude Trichet dismissed the idea that the cost-cutting measures taken by the governments in various euro nations would bring about recession.
The International Monetary Fund (IMF) on Thursday raised its world output forecast for 2010, citing solid growth in the first half, especially in Asia. It, however, expressed its concern over the downside risks flowing from Europe. The multilateral lender revised its 2010 world GDP forecast to 4.6%, up from a previous forecast in April of 4.2%. The 2011 GDP forecast was unchanged at 4.3%.
South Korea's central bank raised its key interest rate from a record low amid prospects for growth in the country's economy. The Bank of Korea announced that it had lifted the benchmark seven-day repurchase rate to 2.25% from 2% earlier.
Back home, the IMF raised India's growth forecast for 2010 to 9.5%, stating that favourable financing conditions and robust corporate profits will accelerate economic expansion. The IMF expects India's economy to grow at 8.5% in 2011.
India said that it will be committed to the Doha round of global trade talks and does not believe that bilateral and regional trade deals will affect the multilateral process. Trade minister Anand Sharma opined that an acceptable global trade agenda was the need of the hour for economic recovery.
Foreign institutional investors were net buyers in the equities segment, purchasing stocks worth Rs957 crore on Thursday. Domestic institutional investors were net sellers of shares worth Rs270 crore.
McNally Bharat Engineering Company (down 1.2%) has received orders for supply of a pre-treatment plant package for NTPC's Vindhyachal Super Thermal Power Project, Stage IV (2X500MW) for a total value of Rs33.77 crore. The scheduled time for completion is 24 months.
Pratibha Industries (down 0.6%) has secured an annuity project from the National Highways Authority of India (NHAI). Total annuities receivable from NHAI is Rs336.70 crore. The project, a joint venture with Abhyudaya Housing and Construction, involves two-laning with paved shoulders of the Bhopal-Sanchi section of NH-86. The construction period is two years and the payments shall be through semi-annual annuities of Rs12.95 crore for 13 years.
Titagarh Wagons (up 3%) said that The Commercial Court, Paris, has declared the company as winner of a bid for acquisition as a going concern, of the assets and business of a rolling stock manufacturing unit situated in France.
Shree Renuka Sugars (up 3.1%) has completed the acquisition of controlling stake of 50.34% in Equipav SA Acucar e Alcool, a Brazilian sugar and ethanol production company. Following this, Equipav has become a subsidiary of the Indian sugar major. The principal secured lenders have approved an acceptable debt-restructuring package to be stretched over 10 years.
China has taken a serious note of the issue and stated that it would negotiate with the Indian side after making the facts clear
Voicing its concern over reports that its telecom companies have been blacklisted by India, China today asked New Delhi to treat its firms fairly and called for an open and transparent system for them to operate in, reports PTI.
"We have noticed the list and are making an investigation. We hope India will provide a fair, open and transparent investment environment for Chinese companies," Chinese minister of commerce Chen Deming said today.
He was referring to reports that appeared in a section of the Indian media, which stated that some Chinese companies were being blacklisted by the Indian government.
The list includes 25 Chinese vendors, including Huawei and ZTE, official news agency Xinhua reported.
"We will investigate through normal channels between the two governments, and communicate and negotiate with the Indian side after making the facts clear," Mr Chen said.
Apparently referring to talks on the issue between National Security Advisor (NSA) Shivshankar Menon and Chinese leaders, Mr Chen said Indian authorities had given the assurance that their new security regulations would be fair and transparent, and not discriminatory to Chinese companies.
"We will wait and see," he said.
The Chinese minister also stated that China would strengthen communications with India to effect a sound investment environment for companies from the two countries.
After the talks, Mr Menon had told the media on 6th July that India is in the process of finalising an "open and non-discriminatory system" to import telecom equipment and address the concerns of all sections of the sector.
The state-run Global Times had carried a report on the alleged blacklisting and criticised the move by terming it discriminatory.
"Although India has publicly assured that it is not banning Chinese telecom products, a recent Indian media report revealed that its government has a blacklist that actually bars 25 Chinese telecom manufacturers in the name of security precautions," the daily said in its editorial, adding that the matter was confirmed by the Chinese embassy in India on Wednesday.
"Telecom equipment produced by big Chinese companies such as Huawei and ZTE have been exported to many countries and regions in the world and worked perfectly well without complaints about security glitches. Then why these worries in India when it comes to Chinese products, while other foreign brands such as Nokia and Siemens were given the green light," it asked.
"This is not the first time the Indian government has raised its big stick against Chinese companies and products.
By adopting protectionist measures against Chinese batteries, clothing, toys, electronics, motorcycles and even cars, the Indian government has been raising barriers against high-tech equipment from China in recent years," the newspaper said.
"Chinese telecom operations in India hire 90% of their staffers locally. It was not only job opportunities they have provided, but also products priced lower than other foreign brands. Therefore, banning Chinese brands will not help either side," it added.
"Chinese people respect India as an admirable Asian neighbour and have never been suspicious of its ambitions or jealous of its advancement in certain areas, such as the IT industry. In contrast, India has not reciprocated with due respect or trust. Both countries should believe that Asia is big enough to withstand and benefit from the rise of two powers," it said.
Auto parts and equipment maker Steel Strips Wheels Ltd (SSWL) said it received an export order from the German car maker Audi. The awarded business has a potential of export worth over $38 million over five years period, SSWL said in a regulatory filing. The Chandigarh-based company said it expects to start supplies in the first quarter of 2011.
On Friday, SSWL shares closed 9.9% higher at Rs196 on the Bombay Stock Exchange, while the Sensex ended at 1% up at 17,833 points.