The Indian market is likely to open in the green today with the indices expected to strike new all-time highs, continuing the splendid performance seen last week. The US markets closed with marginal gains on Friday while most Asian markets were trading higher in early trade on positive US jobs data, an indication that the world’s largest economy is on the recovery path. The SGX Nifty was 24 points up at 6,333 compared to its previous close of 6,309.
The Reserve Bank of India's (RBI) monetary policy review on Tuesday and the fresh stimulus announced by the US Federal Reserve on Wednesday took the key indices to new 34-month highs at the end of the holiday-shortened week. This apart, a slew of positive domestic economic indicators and institutional participation also helped the market rally. The market closed the week with gains of 4%; the Sensex surged 861.23 points and the Nifty added 264.10 points
Samvat 2067 started with the Sensex posting a fresh all-time closing high in the Muhurat trading session on Friday at 21,004, up 111 points (0.53%). The Nifty closed the session up 30.65 points (0.49%) at 6,312. Earlier, the indices added to the previous day's momentum and the positive cues from the global front. The market pared some gains but eventually the Sensex and the Nifty broke new barriers, a sign of good things to come.
The Asian pack was mostly in the green in early trade on Monday, taking cues from positive US employment data. Meanwhile the Bank of Japan (BoJ) announced that it will buy 150 billion yen ($1.8 billion) in domestic government debt on 11th November through a new fund focussed at boosting demand and curbing deflation. The BoJ announced last month that its 5 trillion yen fund will buy about 3.5 trillion yen in government debt and the balance will be used to purchase assets such as commercial paper, exchange traded funds and real estate investment trusts.
The Shanghai Composite was up 0.63%, the KLSE Composite was up 0.70%, Nikkei 225 surged 0.91% and Straits Times rose 0.59%. On the other hand, the Hang Seng was down 0.16%, Seoul Composite was down 0.09% and the Taiwan Weighted fell 0.16% in early trade. . The SGX Nifty was 24 points up at 6,333 compared to its previous close of 6,309.
The US markets closed in the green on Friday. The indices witnessed a flat ending after the Labor Department report showed that employers added 151,000 jobs last month, the first gain since May and better than expected. But payroll data was overshadowed by the unemployment rate which remained stuck at 9.6% for the third straight month.
The Dow added 9.24 points (0.08%) at 11,444. The S&P 500 gained 4.79 points (0.39%) to 1,225. The Nasdaq rose 1.64 points (0.06%) to 2,579.
The Government is set to come out with an amendment in the Companies Act in the winter session of Parliament, to converge the Indian accounting norms with International Financial Reporting Standards (IFRS) by April 2011.
Even as over 1,000 large Indian companies are gearing up to prepare their account books as per the IFRS by the coming fiscal, some issues including tax implications under the new accounting regime are yet to be resolved.
Also, various stakeholders have given their inputs to the Corporate Affairs Ministry, the nodal ministry for formulating these standards, for consideration.
The government on Sunday fixed the price band at Rs85-Rs90 per share for around Rs7,600 crore follow-on public offer (FPO) of state-run transmission company Power Grid Corporation of India.
The FPO comprises over 84 crore equity shares of Rs10 each constituting 20% of existing paid-up capital. At the upper end of the price band, the issue will fetch up to Rs7,600 crore.
The FPO of the company hits the market on 9th November while the bid closes on 11th November for institutional investors and on 12th November 12 for retail and non-institutional bidders.