Reform Hopes Lift Markets

After opening on a flat note, the Indian markets gained strong momentum in the afternoon trade and then finally closed higher over 1% for the second consecutive day in a row. Stable global cues and hopes of reform measures post the appointment of P Chidambaram as the new Indian FM lifted investor sentiments. Earlier, in the course of a press meet, the FM announced plans to reduce the fiscal deficit and address the tax concerns of overseas investors to bring the economy onto the growth track.

A positive set of global cues continued to cheer the Asian markets too. Earlier in the day, the Hang Seng, Nikkei and Shanghai closed higher by 0.37%, 0.87% and 0.13% respectively. Investors are also waiting for the Chinese economic data due to be announced on Thursday, Aug 9.

The European markets are looking lacklustre and are trading on a mixed note. DAX and CAC are up by 0.33% and 0.47% respectively, but FTSE is 0.34% down. Investors seem to have taken a cautious view over the measures to be announced by the ECB, taking profits in the face of an uncertain outlook.

Dow Jones Futures is currently trading 9 points or 0.07% up at 13076, indicating a positive sentiment. Better-than-expected US payrolls kept the sentiments positive.

Back home, the major sectoral gainers were IT, Auto, Teck and Realty, which closed higher over 1.5% each. In the losers pack, Pharma and Consumer Durables closed down by 0.11% and 0.05% respectively.

The IT stocks gained strongly in today’s trade, taking the markets higher. TCS and Infosys registered gains of 2.86% and 1.90% respectively. The Auto stocks too looked quite firm today, higher by 1.74%. Auto companies like Tata Motors, Bharat Forge and Bajaj Auto closed higher by 4.42%, 3.95% and 2.16% respectively.

On the other hand, Bharti Airtel, Reliance Industries and Sterlite Industries closed down by over 0.30% each.

SpiceJet surged by 11.80% to Rs 36 today after the company reported strong results for the Jun 2012 quarter. The company's net sales jumped by 51.1% to Rs 1406 crore, and it reported a net profit of Rs 56.15 crore against a loss of Rs 71 crore in the same period last year.

The market breadth, which indicates the overall health of the market, remained positive for today. Out of the 3270 stocks traded on the BSE, 1745 advanced, 1387 declined and 138 remained unchanged.