Indian market bounces back on rate cut hopes

SOURCE:RTT NEWS

Thursday, the Indian market is trading firm following a recovery in some Asian markets this morning. Realty and banking stocks are receiving good support after the Reserve Bank of India governor Subbarao indicated on Wednesday that there is more room left for interest rate cuts. Select metal and capital goods stocks are also showing notable gains. Traders await inflation data scheduled to be released this afternoon.

The BSE Sensex opened higher at 9,035 and rose further on widespread buying. However, the index has pared some of its gains since then and is now trading at 9,046, up 41 points or 0.46%. Meanwhile, the S&P CNX Nifty is trading at 2,788, up 0.44%.

On the BSE, the market breadth is positive, with 903 gainers compared to 486 stocks that are declining. The small-cap, the mid-cap and the broad-based BSE 500 indexes are outperforming the benchmarks.

Realty stocks are leading the bounce back amid reports that the commerce and industry ministry could relax end-use restrictions on surplus foreign direct investment funds

Unitech is rising 1.20% even as reports said that the company has dropped plans to develop two of its six information technology parks, as these have not attracted any leasing commitment from potential clients.
Among banking stocks, ICICI Bank is moving up 0.92% and HDFC Bank is rising 1.32% despite a sharp fall in their ADRs overnight.

Dena Bank and Oriental Bank of Commerce are adding more than 2% each on reports that the government would infuse capital into these public sector banks for maintaining their capital adequacy ratio at about 12%.

Reliance Industries is moving up 0.90% after oil minister Murli Deora said that the company will start selling natural gas from its eastern offshore KG-D6 fields by April to ease fuel deficit at power and fertilizer units. On the hand, Nagarjuna Fertilizers, which is expected to receive the first consignment of natural gas, is also gaining 0.31%.

Suzlon Energy is surging up 4.56% after REpower Systems AG, a unit of Suzlon, bagged a new order worth nearly 2 billion euro from RWE Innogy GmbH for supplying 250 offshore wind turbines.

MMTC is advancing 1.19% despite reports that the company has scrapped a tender to import 35,000 tonnes of raw sugar.

by RTT Staff Writer

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