Strong stimulus by Japan today has fuelled a global rise in stocks, which should continue
We had mentioned in Thursday's closing report that the indices may try to push further higher. Today the benchmark opened higher and then continued moving higher for the entire session today.
Sensex opened at 27,439 while Nifty opened at 8,201. Hitting the intra-day low at almost the same level, the benchmark began its onward journey. At the close of the session the benchmarks hit their intra-day high at 27,894 and 8,331. Sensex closed at 27,866 (up 520 points or 1.90%), while Nifty closed at 8,322 (up 153 points or 1.87%). NSE recorded a volume of 107.74 crore shares. India VIX rose 0.22% to close at 13.2950.
The Finance Minister pointed out among other things that the senior officers of the Central Board of Direct Taxes (CBDT) should not lose sight of domestic black money keeping in view of its much higher magnitude, while speaking at a Review Meeting of Principal Chief Commissioners, Principal Directors General, Chief Commissioners and Directors General of Income Tax in order to assess and analyse the achievements of the Budget Targets for Revenue Collections for the Financial Year 2014-15. He asked the senior officers of the income tax department to make their best efforts to chase those sectors where the domestic black money is most prevalent. He said that the recovery of black money and taxes due thereon will also help the department in achieving its tax collection targets.
Favourable steps taken by the government for property development and the construction sector helped the market move higher.
Fiscal deficit touched 82.6% of the budget estimates for 2014-15 to cross Rs 4.38 lakh crore at the end of September. During the same period of the 2013-14 fiscal, the deficit was at 76% of the budget estimates.
Hindustan Construction (11.64%) was among the top two gainers in ‘A’ group on the BSE. The company could stand to gain on the exchange in spite of posting poor net profit performance in its September 2014 quarter over the year ago period.
Titan (6.39%) was the top loser in ‘A’ group on the BSE. The stock hit its 52-week low on Thursday. It posted a net profit of Rs 239.98 crore for the September 2014 quarter as compared to Rs 186.65 crore in the September 2013 quarter. Revenue increased from Rs 2,328.97 crore to Rs 3,593.07 crore for the relevant period.
GAIL (3.83%) was among the top two gainers in the Sensex 30 pack. The stock hit its 52-week high today. It posted a net profit of Rs 1,302.90 crore for September 2014 quarter as compared to Rs 915.67 crore for September 2013 quarter. Revenue has increased from Rs 14,002.45 crore to Rs 14,129.72 crore for the relevant period.
Bharti Airtel (2.26%) was the lone loser in the Sensex 30 stock. The company has posted good net profit performance in its September 2014 quarter over the year ago period.
US indices closed in the positive on Thursday.
Among economic data in US, US GDP rose an annualized 3.5% in the three months ended September, after a 4.6% gain in the second quarter, a Commerce Department report showed yesterday. Separate data yesterday showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years.
All the Asian indices closed in the green. Nikkei 225 (4.83%) was the top gainer.
Bank of Japan (BOJ), after a monetary policy review today, unexpectedly boosted its unprecedented monetary easing.