'India is possibly the most fiscally constrained market in the region.'
In the Sensex pack, Axis Bank, Tata Motors, Infosys, Kotak Bank, HDFC Bank, RIL, Bajaj Auto, SBI, HUL, Tata Steel, Vedanta, HFDC, TCS, ITC and Sun Pharma jumped up to 4.64 per cent.
The rupee, which has appreciated nine per cent this year, much to the chagrin of exporters, is likely to become stable around Rs 40 a dollar mark, the Institute of Economic Growth has said.
With a rate cut in the US driving the Sensex beyond 20,000 mark, analysts expect the next thousand point milestone well before the US central bank's next rate review meeting in January.
The foreign inflows to the country will remain unchanged as the cut in the interest rates by US Federal Reserve is too minimal to affect the global investment scenario, analysts say.The US market went up after the rate cut was announced and some of the Asia markets also gained. Indian markets too opened higher on Thursday but Sensex plunged about 200 points due to profit booking, Kejriwal added.
The National Stock Exchange index, Nifty, on Thursday scaled another milestone crossing the 6,000 mark in early morning trade, adding the last 1,000 points in 24 trading sessions. The wide-based Nifty, went up by 111.30 point to touch an intra-day high of 6,011.95 points in early trade on heavy buying by foreign funds after the US Federal Reserve slashed interest rates by 25 basis points on Wednesday.
Aggressive rate hikes by the US Federal Reserve could result in a flight of capital from emerging markets like India, says B Gopkumar, chief executive officer, Reliance Securities.
Rupee edges higher against dollar at close.
A day after Federal Reserve Chairman Ben Bernanke announced the rate cut, FIIs bought shares worth over Rs 2,400 crore (Rs 24 billion), lifting the index up by 650 points, one of its biggest intra-day gains.
Hawkish guidance by the US Fed raises concerns it could tie the hands of RBI from trimming rates.
Analysis by the Business Standard Research Bureau shows that, of 128 sectors, the market capitalisation of 54 sectors on Wednesday was below the level in May 2006. Likewise, nearly 47 per cent of stocks are languishing.
The rupee has been Asia's best-performing currency this year, climbing 11 per cent against the dollar. In May 1998, the currency had closed at 39.22 to a dollar, which was actually a deprecation from its 1991 levels of around 20.
The Indian financial system is driven more by the domestic factors and "Fed rate cut is one of the triggers to review rates ", said Union Bank Bank of India chairman M V Nair.
The Federal Open Market Committee's statement after meeting in Washington said inflation has been "elevated" and remains a risk, using words identical to the last decision on June 29.\n\n
Indian banks are facing restrictions in opening new branches in the US, Finance Minister P Chidambaram told the Rajya Sabha on Tuesday.
"I think the Fed is out of control. I think what they're doing is wrong. Under the Obama administration, you had a lot of help because they had very little interest," Trump told reporters at the White House Thursday while responding to questions on the down sliding of the stock market for a second consecutive day.
Gold prices rose further by Rs 10 to Rs 27,500 per ten grams in the national capital today on the back of pick-up in buying by jewellers to meet wedding season demand.
FII inflows have been among the major factors behind the recent upsurge on the bourses.
The US Fed also said that the unemployment rate too would rise to 5.7 per cent.
The upcoming general elections will be the focus and the economy and market performance will pivot around that event. The general consensus is that the India stock market should be up around 10 per cent by the end of the year.
Silver halted its four-day rising trend and declined by Rs 65 to Rs 41,000 per kg.
Rupee, he said, is not in shambles and "we should not be overtly pessimistic".
The dollar index was down by 0.02 per cent against a basket of six major currencies.
In India, it is not easy to fight it out with the large banks which are nimble-footed and technology-savvy and are continuously innovating on the retail turf with newer products for customer acquisition.
There is anecdotal evidence that the US economy is really, sharply slowing.
Rupee weakened by 10 paise to end at 66.14 against the dollar due to month-end demand from importers and banks.
The Indian stock markets' buoyant reaction to US Fed's decision to halt the interest rate hikes seems to reflect the growing clout of FIIs on the domestic bourses, which were falling like ninepins not long time back.\n
If indeed we want the board to manage the RBI, probably the government should take a close look at the US Federal Reserve system which has a two-part structure - a central authority in Washington, DC, and a decentralised network of 12 Federal Reserve Banks located throughout the country, says Tamal Bandyopadhyay.
Gold hits Rs.11,360, thanks to rate cuts by US Fed Bank and a languishing dollar.
Under-Secretary-General and head of the Office for Internal Oversight Services Dileep Nair is accused of misusing funds from the UN oil for food program for Iraq.
Index heavyweights Reliance Industries and ITC were the top losers along with ICICI Bank and SBI
Direct investors should stagger their investments over 1-2 months.
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