Andrew L D'Cunha
Mumbai, Nov 3: The Indian market had shown a fair resilience against negative eurozone news and recovered to a positive territory today even as uncertainty looms over the Greece bailout plan. The BSE Sensex which touched intraday low of 17278 recovered all losses and bounced back more than 200 points to close at 17482 up by 17 points led by support from Reliance Industries, Bharti, BHEL, SBI, NTPC and DLF.
Pull back in European markets too helped the sentiments. Power stocks rallied after the government meeting on import duty for foreign power equipment. BHEL shot up 4.18% and Tata Power rallied over 3% while NTPC gained 1%. The market recovered after a weak start triggered by lower Asian shares. Nifty closed at 5266, up 7 points after touching low of 5202 in trade. Market is expected to be volatile and range bound till there is clarity on Greece.
Indian markets closed lower yesterday after European markets lost from their early gains as investors kept themselves away from the markets ahead of the summit of Group of 20 countries and worries raised by Greece after the announcement of public referendum to pass the austerity package. Asian markets fall after European debt crisis getting severe after Greek Prime Minister’s call for a referendum in the country. France and Germany say a sixth tranche of aid for Greece won’t be paid unless the country decides to adopt the European proposals outlined last week to help the region out of its sovereign-debt crisis.
The Greek ruling party lawmaker Dimitris Lintzeris has called on Prime Minister George Papandreou to resign from his post over his decision to hold referendum on the European Union's bailout plan. Meanwhile the Greek Prime Minister George Papandreou has called an emergency cabinet meeting. There are reports that the European Union may ask Greece to exit from eurozone if it doesn't accept the plan. Markets are waiting for G-20 Summit for a conclusive decision.
US stocks rallied yesterday after the Federal Reserve noted the economy strengthened in the third quarter, an industry report found better-than-expected jobs growth in October and worries about the latest upset in the European Union ebbed. The Dow Jones Industrial Average closed up 178 points.
Inflation 12.21%
Indian Food inflation rose to 12.21% during the week ended October 22, with expensive vegetables, pulses, fruits and milk, putting more burden on the common man. Food inflation, as measured by the Wholesale Price Index (WPI), stood at 11.43% in the previous week. Finance Minister Pranab Mukherjee expressed grave concern over rising food inflation, even as he attributed the latest spike in prices to increased demand during the festive season.
Gold up on weaker rupee
India gold price up on Thursday afternoon supported a weaker rupee. The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.15% higher Rs 27,631 per 10 grams. The Indian rupee fell on heightened worries about foreign fund outflows as investors fled risky assets across markets and on dollar demand from domestic oil companies.
Andrew L D'Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. Email: finadvisoryltd@yahoo.com