Mumbai: Positive global cues on anticipation of coordinated rescue effort from the G-20 meeting during the weekend and decline in inflation to single digit, helped the markets to bounce back in opening trade, after Wednesday's dismal trade.
Buying is seen in banking, realty, capital goods, power, metal and telecom stocks.
At 0957 hrs IST, the Sensex rose 204 points to 9,740 and the Nifty gained 64 points at 2,912. CNX Midcap 100 jumped 77 points to 3,738.
ICICI Bank, Suzlon Energy, Reliance Infrastructure, Sterlite Inds, Tata Communication, Tata Steel, Unitech, DLF, Reliance Communication, HDFC Bank, PNB, Wipro, Jaiprakash Associates, Hindalco, Bharti Airtel, ONGC, Reliance Industries and NTPC are gainers.
Tata Teleservices (Maharashtra) jumped 11%, as NTT DoCoMo is going to buy 26% stake in parent company, Tata Teleservices and will make open offer for another 20% stake Tata Tele (Maha).
Inflation for the week-ended November 1 has come in single-digit at 8.98% compared with 10.72% the week earlier.
There are expectations that as the inflation is on downtrend, experts see rate cut in near term.
Yes Bank feels that the week-ended November 1 inflation below 10% has come in sooner than expected. "We see a 50 bps repo rate and 25-50 bps reverse repo rate cut in the near-term. We expect RBI to infuse more liquidity."
Finance Minister sources said that RBI may cut benchmark rates post G-20 meet. They also see more rate action from RBI on inflation plunge.
Asian markets are trading higher. Nikkei and Hang Seng rose 3.5-4%. Shanghai, Taiwan, Jakarta and Straits Times jumped 1-2%. Kospi rose 0.5%.
It is a sea of green across Asian markets after yesterday’s slam down that most of these markets experienced. Stephan Davis, CEO of Javelin Wealth Management believes that the overall outlook for the markets, if one takes more than a 24 hour view is pretty grim.
The rally seen in Asian markets today is a an outcome of short covering plus a bit of buying interest following rather oversold positions earlier on in the week, said Davis.
US stocks rallied the most in two weeks and bounced back from 5 ½ year low, with the S&P 500 index jumping 6% in the final hour, as investors snapped up the cheapest energy shares on record and real-estate companies gained after CB Richard Ellis raised cash in a share sale.
The Dow gained 552.59 points, or 6.67%, to 8,835.25. The S&P 500 index advanced 58.99 points, or 6.92%, to 911.29. The Nasdaq composite index added 97.49 points, or 6.50%, to 1,596.70.
Global markets are anticipating coordinated rescue effort from G-20 meeting during the weekend.
Market cues:
Inflation cools sharply to 8.98%, led primarily by decline in global commodity prices
FIIs net sell USD 66.1 million in equity
MFs net sell Rs 222.2 crore in equity
NSE F&O Open Interest down by Rs 1,233 crore at Rs 48,917 crore
F&O cues:
Futures Open Int down by Rs 1,029 crore, Options Open Int down by Rs 204 crore
Nifty Futures shed 12.5 lakh shares in Open Int, at 5-pt discount
Nifty Open Int Put-Call ratio at 1.07 versus 1.16
Nifty Puts shed 20 lakh, Calls add 9.5 lakh shares in Open Int
Nifty 2900 Put sheds 10.6 lakh shares in Open Int
Nifty 2900 Call adds 5.6 lakh shares in Open Int
Nifty 3000 Call adds 3.5 lakh shares in Open Int
Stock Futures Open Int unchanged
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