Global markets, including India, jumped on Friday after eurozone leaders agreed on measures to reduce borrowing costs in Spain and Italy and, finally, the recapitalization of banks in the region. Dalal Street's rally was even more pronounced with the Sensex has risen by as much as 439 points, its biggest gain in a single day in 2012 so far in the back of clarity in the rules of tax evasion and increased optimism about further reforms. Following the example, the rupee posted its biggest daily gain in three years and settled in 55.60/61, increased by 3.1 percent from its previous close.
The benchmark BSE sped past the 17,000 mark as market players encouraged a statement from the PMO indicated the possibility that the controversial general anti-avoidance rules for tax (GAAR) guidelines, released by the night Ministry of Finance on Thursday night, which is further diluted. Dalal Street received new impetus in improving the shares of Morgan Stanley in India and a strong rebound in the rupee helped sentiment. The upgrade comes at a time when Prime Minister Manmohan Singh has taken over the Treasury Department, and said he will take steps to revive economic growth.
With bulls back in action, the Sensex was set at 17,429.98 - a level last seen in April 19 - 439.22 points higher, or 2.59 percent. The wealth of investors, or the market capitalization increased by 1.17 lakh crore rupees 61.52 lakh crore rupees. The rupee rose 2.7 percent in the week, its biggest weekly gain in more than two years.
Among the major markets of Asia, Hong Kong's Hang Seng index rose 2.2 percent, while Japan's Nikkei Stock Average shot up to end 1.5 percent higher. Moreover, Shanghai, China, the Composite Index gained 1.4 percent, the Kospi in South Korea rose 1.9 percent, Australia's S & P / ASX 200 index rose 1.2 percent and TAIEX Taiwan rose 1.8 percent.
Dipen Shah, head of basic research, Kotak Securities, said: "In a major announcement, the EU leaders said the European stability mechanism would be able to lend directly to banks to recapitalize, without a preferential status of old . eurozone leaders also agreed to take emergency measures to lower Italy and rising borrowing costs of Spain and create a single supervisory body for banks in the euro zone later this year, a first step towards joining the European banking . Apart from this, optimism over the government's fiscal reforms in India supports markets. "
"We remain optimistic in the face of the reforms with Prime Minister now handling the finance portfolio as well. The reforms also could allow more flexibility to the RBI in determining fiscal policy," said Shah.
"The improved global risk environment and hopes of significant political reforms in the country after Prime Minister Manmohan Singh, took over the Finance Ministry boosted the rupee," said a currency trader.
The benchmark BSE sped past the 17,000 mark as market players encouraged a statement from the PMO indicated the possibility that the controversial general anti-avoidance rules for tax (GAAR) guidelines, released by the night Ministry of Finance on Thursday night, which is further diluted. Dalal Street received new impetus in improving the shares of Morgan Stanley in India and a strong rebound in the rupee helped sentiment. The upgrade comes at a time when Prime Minister Manmohan Singh has taken over the Treasury Department, and said he will take steps to revive economic growth.
With bulls back in action, the Sensex was set at 17,429.98 - a level last seen in April 19 - 439.22 points higher, or 2.59 percent. The wealth of investors, or the market capitalization increased by 1.17 lakh crore rupees 61.52 lakh crore rupees. The rupee rose 2.7 percent in the week, its biggest weekly gain in more than two years.
Among the major markets of Asia, Hong Kong's Hang Seng index rose 2.2 percent, while Japan's Nikkei Stock Average shot up to end 1.5 percent higher. Moreover, Shanghai, China, the Composite Index gained 1.4 percent, the Kospi in South Korea rose 1.9 percent, Australia's S & P / ASX 200 index rose 1.2 percent and TAIEX Taiwan rose 1.8 percent.
Dipen Shah, head of basic research, Kotak Securities, said: "In a major announcement, the EU leaders said the European stability mechanism would be able to lend directly to banks to recapitalize, without a preferential status of old . eurozone leaders also agreed to take emergency measures to lower Italy and rising borrowing costs of Spain and create a single supervisory body for banks in the euro zone later this year, a first step towards joining the European banking . Apart from this, optimism over the government's fiscal reforms in India supports markets. "
"We remain optimistic in the face of the reforms with Prime Minister now handling the finance portfolio as well. The reforms also could allow more flexibility to the RBI in determining fiscal policy," said Shah.
"The improved global risk environment and hopes of significant political reforms in the country after Prime Minister Manmohan Singh, took over the Finance Ministry boosted the rupee," said a currency trader.
No comments:
Post a Comment