(RTTNews) - Wednesday, the Indian market is set to sustain the Diwali good run, tracking the positive sentiment across the global markets. Short covering ahead of the expiry of October series derivatives contract on Wednesday may push key indexes sharply higher. However, the market is likely to remain volatile due to profit taking and closing of long positions ahead of a public holiday on Thursday.

The Indian market vaulted in a special muhurat session on Tuesday, helped by firm global cues and festive mood on account of the new year - Samvat 2065. The market sentiment was also boosted by the capital market regulator Sebi’s decision to relax the creeping acquisition norms and to allow promoters to annually raise stake by 5% till their holding reaches 75%. The BSE Sensex ended at 9,008, up 499 points or 5.85% and the S&P CNX Nifty finished at 2,692, up 168 points or 6.64%. All the 30 Sensex stocks ended in positive territory. The market breadth was extremely positive, with 1860 shares gaining compared to 437 stocks that declined. Realty, capital goods, power and metal stocks lead the gainers.

Overnight, the US markets soared on bargain hunting amid expectations that Federal Reserve will announce a cut in interest rates on Wednesday. The Nasdaq Composite index jumped 9.53%, the Dow Jones Industrial Average climbed 10.88% and the S&P 500 index surged up 10.79%. All the Indian ADRs ended sharply higher. Wipro (up 22.84%), Sterlite Industries (up 21.55%), ICICI Bank (up 18.96%), Satyam Computers (up 16.83%), HDFC Bank (up 16.17%) and Infosys (up 15.55%) were some of the prominent gainers.

Currently, markets across the Asia-Pacific region are rising sharply, tracking a massive rally on Wall Street overnight, as hopes for further rate cuts to shore up the global economy increased. China’s Shanghai Composite index is up 0.56%, Hong Kong’s Hang Seng index is rising 5.26% and Japan’s Nikkei 225 index is adding 6.39%.

Meanwhile, crude oil for December delivery is trading firm at $64.70 a barrel, up 3.14% in Asian trading following a surge in global equities and on reports that OPEC will meet once again before December to consider a second cut in production.

The forex market remained shut on Tuesday on account of a festival holiday. On Monday, the rupee settled at 49.87/88 against the dollar compared to its previous close of 49.95/96, helped by intervention from the RBI.

Stocks to Watch

Realty stocks may come under selling pressure on reports that the Sebi may impose limits on fund allocation to certain sectors in fixed maturity plans to discourage mutual funds’ high exposure to the real estate sector.

Gokaldas Exports may attract buying on reports that that Anand Jain, chairman of Jai Cop and a close confidante of Reliance Industries chairman Mukesh Ambani, has picked up nearly 10% equity stake in the company. Sasken Communication Technologies may be in focus after the company said that it has purchased 14,49,742 equity shares from the open market

Shipping Corporation Of India could see some activity after the company said it has taken physical delivery of its Cellular Container Vessel of 4400 TEU Capacity - “m.v. SCI Mumbai”. Alok Industries may be in focus after the company’s board of directors approved a resolution to raise resources up to Rs.300 crore through a rights issue to its shareholders.

Patni Computer Systems is likely to move after the company said the company’s board of directors have decided to close the buyback offer after the company bought back 1,09, 57,082 equity shares from the open market for a consideration of approximately Rs.2, 370 million.

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Posted in Categories: Japan, Releases, Stocks, USA.

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