The BSE Sensex continued to rally for the fourth consecutive
session on Monday. It rose
The Sensex was up 266.41 points to close at 18886.13, and
the Nifty gained 78.95 points at 5550.75 while BSE Midcap and Small cap indices
rose 1-1.4% on Monday.
The Indian rupee which weakened in early trade picked itself
up as some public sector banks sold the green-back towards the end of the
trading session. The rupee, which was stuck in a 65.80-66.10 per dollar range
for most of the day, closed 30 paise weaker at 66-to-the dollar.
Macros take centre stage
The Upper House of parliament has passed the Food Security
Bill, rejecting amendments sought by the BJP and other opposition parties. The
bill is now just one step short of becoming a law.
Petroleum Minister, Veerappa Moily has said that all options
are on the table to cut the fuel subsidy bill. He has refused to categorically
admit or rule out a one-time diesel price hike and hints at increasing imports
from Iran as the under-recovery burden for this fiscal is likely to sky-rocket
beyond Rs. 1.6 lakh crore.
Asian Markets
Asian markets gained for the second day on back of upbeat
factory data around the globe, while a delay in a potential US strike on Syria
diminished the safe-haven appeal of gold and the yen. MSCI's index of
Asia-Pacific shares outside Japan added 0.3 %, building on Monday's 1.2 % rise
and Japan's Nikkei stock average added 1.9%.
European Markets
European markets stage nearly a 2% rally across the board
buoyed by positive manufacturing data and the Vodafone-Verizon deal. The USD 130
billion deal was completed shortly after the close of markets. What also aided
sentiment was the strong chinese and European factory data which boosted hopes
that the global economy is growing out of stagnation.
US Markets
The US markets were shut on Monday for the Labor Day
holiday.
Other asset classes
In the currency space, the dollar index gains to 82.3
levels, while the euro has slipped a bit and the yen is trading at a one-month
low nearing 100 against the dollar.
In commodities, Brent Crude is steady around USD 114/barrel
as a military strike against Syria looks less imminent and worries over
possible middle-east supply disruptions receded. Nymex is trading near USD 107
per barrel.
From precious metals space gold prices edge lower to USD
1390 per ounce as a delay in military action against Syria and improved
economic data from China and Europe boosted the appetite for riskier assets.
Silver gained as much as 3.8% intra-day.
Stocks in News
ITC is looking to build on yesterday's gains. Agency reports
indicate that ITC has hiked cigarette prices by Rs 14 per 20 pack across
brands.
Bharti Airtel could see some green as well as they have
announced a revision in some post paid mobile rates effective from September 8.
Local and STD rates of 50 paise per minute to Airtel mobiles will be increased
to 60 paise, while calls to landlines will go up to 90 paise per minute from 60
paise.
Mahindra and Mahindra (M&M) is likely to be under
pressure reacting to lower tractor sales. However, the company's arm Ssangyong
has seen a 27% (YoY) increase in sales at over 11,600 units.
Escorts too will be reacting negatively to lower August
sales with total tractor sales at just under 4000 units vs 6,790 units (MoM)
and domestic tractor sales at 3,800 plus vs 6,743 units (MoM)
