Sensex up 41 points on rate cut hopes

Jan 28 2013, 09:53 IST
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Sensex rose 41 pts in early trade on sustained buying by participants on hopes RBI will cut interest rate. (Reuters) Sensex rose 41 pts in early trade on sustained buying by participants on hopes RBI will cut interest rate. (Reuters)
SummarySensex rose 41 pts in early trade on sustained buying by participants on hopes RBI will cut interest rate.

The BSE benchmark Sensex today rose over 41 points in early trade on sustained buying by participants on hopes Reserve Bank of India will cut interest rate tomorrow and better-than-expected corporate earnings.

The 30-share barometer, which had gained 179.75 points in the previous session on Friday, rose by 41.10 points, or 0.20 per cent, to 20,144.63, with realty, banking and auto sector stocks leading the rise.

Similarly, the wide-based National Stock Exchange index Nifty gained 9.40 points, or 0.15 per cent, to 6,084.05.

Brokers said increased buying by funds on hopes that the RBI may announce a rate cut in its monetary policy review tomorrow, influenced the trading sentiments.

Besides, better-than-expected quarterly earnings by Maruti and Reliance Power and a firming trend in the Asian region also had a positive impact, they said.

Meanwhile, in Asia, Japan's Nikkei was up by 0.70 percent, while Hong Kong's Hang Seng gained 0.35 per cent.The US Dow Jones Industrial Average ended 0.51 per cent higher on Friday.

Stocks to watch-Jan 28


Nifty futures on the Singapore Exchange rose 0.1 percent. The MSCI-Asia Pacific index, excluding Japan was down 0.13 percent.

South Korean shares were hit by earnings worries, dragging down the broader Asian share index, but improving economic prospects in Europe and solid U.S. earnings underpinned sentiment.

The Standard & Poor's 500 index closed above 1,500 for the first time in more than five years on Friday as strong U.S. earnings reports helped the benchmark extend its rally to eight days.


The Reserve Bank of India will release its macro-economic review for Oct-Dec quarter report (1130 GMT)

JSW Steel Ltd earnings

Morgan Stanley intends to allow its banking licence in India to lapse as part of its changed business strategy.

Finance minister P Chidambaram may limit subsidies on food, fertilisers and oil at 1.9 trillion rupees for the next financial year to send out a strong signal on fiscal consolidation, an official involved in the exercise, who is not permitted to talk to the media, said.

L Capital is vying with Kohlberg Kravis Roberts & Co LP to buy up to 4 billion rupees stake in home-grown slimming and beauty services chain VLCC, said at least two people familiar with the matter, adding that the company is worth more than $300 million.


India's plan to raise about $2 billion selling a stake in power producer NTPC Ltd will likely take place on Feb. 7, three sources with direct knowledge of the situation said on Friday.

Coal India Ltd said in a court filing The Children's Investment Fund cannot force the state firm to raise prices for the interest of a particular shareholder, and that the company and its directors are under no obligation to sell coal at international prices.

Coal India is facing a lawsuit from TCI, with a hearing at Calcutta High Court to be heard on Wednesday.


Reliance Industries Ltd's fourth generation long-term evolution services are expected to be launched between June and August, at least starting with Mumbai, New Delhi and Jamnagar, vendors in discussion with the company said.

Norway's Telenor is unlikely to bid in an auction for mobile licences in Mumbai unless India halves the fee, its Chief Executive Jon Fredrik Baksaas said on Friday. AUTOS

Maruti Suzuki India Ltd has purchased the land for its fourth plant in India, with a view to roughly doubling annual production capacity to about 3 million units, the Nikkei business daily said on Sunday.

Ashok Leyland Ltd is hoping to raise around 5 billion rupees by offloads stakes in some of its subsidiaries as well as IndusInd Bank Ltd, chief financial officer K Sridharan told analysts.


Jet Airways (India) Ltd will sell a 24 percent stake to Etihad Airways for around $300 million, according to two people close to the development, neither of whom wanted to be named.

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