Sensex gains 91 points, closes at 16,692

The Sensex closed at 16,692 as it gained 91 points from the previous day’s close, while the Nifty closed at 4,986, up 33 points on the back of strong global markets.

 

Reliance Industries Ltd (RIL) said today that it had made a gas discovery in one of its exploration blocks in the Krishna-Godavari basin off the country's eastern coast. RIL holds a 90% interest in the block, which covers an area of 3,288 sq km, and Hardy Exploration and Production (India) holds the rest. The stock remained flat.

 

Mahindra & Mahindra Financial Services jumped 2%, after the company said that Franklin Templeton Mutual Fund had hiked its stake in the company.

 

Sun TV Network rose 1%, after the company said that it will restructure its distribution business.

 

Golden Tobacco remained flat after the company’s board approved developing its property at Vile Parle, a Mumbai suburb.

 

Valiant Communications Ltd has formed a 100% wholly-owned subsidiary, Valiant Communications FZE, in the United Arab Emirates, to promote, market and provide pre- and post-sales support to customers of Valiant at the international level. The stock shot up 4%.

 

Aban Offshore Ltd’s wholly-owned subsidiary, Sinvest AS, has redeemed bonds having a principal amount aggregating to Norwegian kroner 1 billion (equivalent to Rs800 crore) along with accrued interest, on the due date of 22 December 2009. The stock was up 4%.

 

As per reports, corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in the corporate sector in the third quarter (October-December) of the current fiscal, pointing to a firm broad-based economic recovery. Corporate advance tax payments for the quarter were up 44% to Rs48,300 crore against a 3.7% decline in the April-June quarter and a 14.7% increase in the July-September quarter.

 

During the day, the deputy head of the planning commission Montek Singh Ahluwalia said that the sharp surge in food prices reflects the impact of the drought and inefficient distribution, which could not be addressed by monetary policy. He said that while the increase in food prices was to some extent expected, it remained a concern. Food prices rose an annual 20% in early December—but they should decline in January 2010 as the stock situation is relatively stable. He further added that problems such as this cannot be tackled by blunt instruments like monetary policy.

 

“Price increase at the retail level is much more than the increase at the wholesale level which is because of dysfunctionality in the distribution system and the ministry is looking into it. But whenever required, we should import,” Mr Singh said.

 

Finance secretary Ashok Chawla announced that the government is likely to offer cash instead of bonds to State-run oil firms for compensating them for selling fuel at lower than market prices, as per media reports. However, no decision has been taken on the compensation amount.

 

During the day, Asia’s key benchmark indices in Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.69%-1.91%. But China’s index fell 2.32% on concerns that more initial public offering subscriptions by the year-end could impact market liquidity.

 

On Monday, 21 December 2009, the Dow Jones Industrial Average was up 85 points while the S&P 500 and the Nasdaq Composite were up 12 points and 26 points respectively after a Bill to overhaul the US healthcare system, which is perceived as less damaging to industry profits than expected, passed a crucial test in the US Senate.

 

Meanwhile, rating agency Moody’s cut Greece’s debt to ‘A2’ from ‘A1’ over soaring deficits, becoming the third major rating agency to downgrade the highly-indebted country’s rating this month. Moody’s has kept Greece on a negative outlook. Its rating is still two notches above that of Fitch and S&P, which earlier this month cut their rating on the indebted country to ‘BBB+’, the euro area’s lowest level.

 

The UK economy shrank less than previously estimated in the third quarter as a jump in construction and fixed investments brought the longest recession on record closer to its end. According to the Office for National Statistics, UK’s gross domestic product (GDP) fell 0.2% from the second quarter, compared with a previous measurement of a 0.3% drop. The recession has now shaved 6% off GDP, the statistics office said.

 

The Confederation of British Industry raised its 2010 economic growth forecast and said that the Bank of England may pause its bond-purchase plan in February 2010. Meanwhile, policy-makers have pledged to print £200 billion of new money to stoke spending and shake off Britain’s longest recession on record.

 

In premarket trading, the Dow was trading 43 points higher.

 

  • Like this story? Get our top stories by email.

    User 

    COMMENTS

    manish

    1 decade ago

    The Global Markets gives out mixed cues this morning. U.S. stocks fell; erasing the previous session’s advance, after a smaller-than forecast gain in personal incomes added to concern the economic rebound may slow further. European stocks closed little changed after three weeks of declines for the Stoxx Europe 600 Index as a resurgence of takeover activity offset a retreat in auto industry shares. This morning Asian stocks fell, poised for a third decline in four months, as slower-than estimated growth in personal incomes in the U.S. heightened concern the economic recovery may slow and the yen strengthened. In commodities, Oil declined for a second day as slower-than-forecast growth in U.S. personal incomes added to concern that the pace of economic recovery in the world’s largest crude user may falter. Gold is set for the biggest monthly advance since April as signs that the global economic recovery may be faltering prompt investors to boost their holdings to try to preserve their wealth. Copper climbed to the highest price in four months on speculation that demand will rise as governments worldwide pledged to boost growth. The Indian markets trade on negative note this morning. Most of the sectoral indices trade in red this morning. FMCG and Healthcare indices trade flat in green. The main draggers are Oil & Gas, Realty and Metal indices declining more than one percentage points. Market breadth is negative with 754 advances against 1,833 declines. The Sensex trades in red at 17,908.90 declining 123.21 points or 0.68 percentage points. Nifty trades at 5379.05 declining by 36.40 points or 0.69 percentage points.

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    28 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 4 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)