While the Indian bourses are closed today on account of a local holiday, here is a brief view of the global markets. The US markets closed on a positive note overnight, boosted by strong economic data. Asian markets were mostly higher in early trade on Friday as they brushed aside fears about the Eurozone debt crisis and on positive cues from the US. However, investors were cautious, opining that the markets were over-valued, and a correction was due.
The domestic market opened with marginal gains yesterday despite unsupportive global cues. Choppiness in the market was seen since the opening bell, with the indices swaying between both sides of the neutral line a number of times. The rise in the weekly food inflation numbers put some pressure on the indices, but a short while later the Reserve Bank of India (RBI) announced it was keeping its policy rates unchanged. The development pushed the indices on a higher trajectory. Profit-booking in noon trade pulled the indices lower again, to a new intraday low, but buying in select stocks thereafter resulted in the market vaulting into the green and closing off the day’s high.
The Sensex gained 217.08 points (1.10%) to settle at 19,864.85. The Nifty ended at 5,948.75, up 56.45 points (0.96%).
Wall Street settled in the green on Thursday on positive economic data. Initial jobless claims reported a surprise fall last week by 3,000 to 420,000, Labor Department figures showed. Housing starts rose to a 555,000 annual rate last month, up 3.9% from October, the Commerce Department said. Besides, the Federal Reserve Bank of Philadelphia’s general economic index rose to 24.3, beating analysts’ estimates.
The Dow gained 41.78 points (0.36%) at 11,499.25. The S&P 500 added 7.64 points (0.62%) at 1,242.87. The Nasdaq rose 20.09 points (0.77%) at 2,637.31.
Markets in Asia were mostly in the green as they brushed aside concerns about the European debt crisis and on positive economic data from the US, which signalled that the global recovery is on track.
The Hang Seng gained 0.02%, the KLSE Composite rose 0.08%, the Straits Times was up 0.23%, the Seoul Composite advanced 0.58% and the Taiwan Weighted surged 0.59%. On the other hand, the Shanghai Composite declined 0.33%, the Jakarta Composite was down 0.14% and the Nikkei 225 shed 0.10% in early trade.
After rising in September, foreign direct investment (FDI) inflows in the country dipped by about 40% to $1.4 billion in October over $2.3 billion in October 2009.
During the first seven months of 2010-11, India received FDI inflows worth $12.40 billion, according to Commerce and Industry Ministry.
The inflows remained low-key despite a recent World Bank study saying that the FDI flows into developing countries, including India, is expected to recover over the next couple of years and is projected to increase by 17% in 2010.
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