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The market will rally further as long as it stays above 8,082
We had mentioned in Wednesday’s closing report that CNX Nifty may rally on a close above 8,080 today. Nifty opened higher than this level and managed to stay above it, throughout the day. Today’s optimism broke the sequential fall after the Federal Reserve pledged to be patient on interest-rate increases, last night.
S&P BSE Sensex opened at 27,054 while Nifty opened at 8,139. After a range bound session upto 1.00 pm, during which the indices hit their respective lows at 26,901 and 8,085 the indices started moving higher. The benchmark hit a high at 27,181 and 8,174. Sensex closed at 27,127 (up 416 points or 1.56%) while Nifty closed at 8,159 (up 130 points or 1.61%). NSE recorded a volume of 80.72 crore shares. India VIX fell 13.75% to close at 14.5975.
India's Union Cabinet on Wednesday reportedly approved a constitutional amendment bill to provide the legal framework for rolling out a nationwide goods and services tax.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval to ratify the methodology adopted to recalculate the incentive rate for bi-monthly periods of April-May, 2014, June-July, 2014 and August – September, 2014 towards marketing and promotion services for raw sugar production.
The government today came out with draft rules for e-auction of 92 cancelled coal mines in the first phase, fixing a floor price of Rs150 per tonne for sectors like steel, sponge iron, cement and captive power.
The government said it has decided to set up of Power System Operation Corporation (POSOCO), as an independent government company for reforms in power sector. Torrent Power (11.93%) was among the top two gainers in ‘A’ group on the BSE. The stock hit its 52-week high today.
Hindalco (4.31%) was among the top two gainers in Sensex 30 pack. The stock was in news as BSE had asked for clarification from the company with respect to news appearing in media titled “Special Court rejects closure & orders CBI to further investigate the coal scam involving Hindalco.” The company replied that while the CBI has given its closure report, the court asked for further investigation on few specific aspects. As the matter is between the CBI and the Court, and also sub judice, it is inappropriate for it to comment.
Mahindra & Mahindra (0.46%) was the top loser among Sensex-30 stocks.
On Wednesday, US indices closed in the green. The Federal Reserve after two-day policy meet yesterday said, it will be patient when it comes to the timing of rate increases, replacing a pledge in its statement to keep borrowing costs near zero for a “considerable time,” and raising its assessment of the job market.
US consumer-price index dropped 0.3% in November from the previous month, the most since December 2008, after being little changed the prior month, a Labor Department report showed yesterday.
Except for Shanghai Composite (0.11%) and Seoul Composite (0.14%) all the other Asian indices closed in the green. SET Composite of Thailand (2.47%) was the top gainer.
European indices were trading in the green. US Futures too were trading sharply higher.
In Greece, Prime Minister Antonis Samaras failed to get enough support for his nominee in a parliamentary vote for a new head of state. If Samaras also fails to get enough support for his candidate in the second and third round of votes, snap elections will take place in early 2015.