Investors' sentiment towards international equity markets received a boost after the Federal Reserve Chairman provided clarity over raising of interest rates. While the Fed Reserve showed that they were in no hurry to raise the rates, they also removed the word "patience" giving a hint they might change the rates soon. European equities finished yesterday's trading session mixed as German market closed with losses of 0.5% while FTSE closed with gains of 1.6%. U.S. markets minted profits of over 1.3% after Fed's comments interest rates. Asian markets started their trading with gains of about 1%, however, losses of about 0.7% were witnessed by the Japanese market because of a stronger yen.
Indian markets too opened strong following the international cues comments of Fed Chief, Janet Yellen, over interest rates. BSE-Sensex gained over 200 points while NSE-Nifty gained over 50 points in the opening trade. S&P BSE Midcap and S&P BSE Smallcap have gained 0.8% and 0.6%, respectively. All the sectoral indices are trading in the green owing to increase in investor optimism towards equities.
Commodities showed positive movements after the investors' concern eased after the Fed comments. Gold prices, per 10 grams, gained 0.12% or Rs 25 and is available at Rs 25,650 levels while Silver prices also showed a positive momentum and gained 0.1% or Rs 40 and is trading at Rs 35, 400 levels. Crude oil prices continue to slide as international pressure continue to persist over domestic prices. Crude oil, per barrel, slid nearly 3.4% or Rs 60 and is currently available at Rs 2660 levels. Indian Rupee weakened 0.5% or 0.30 and is trading at Rs 62.38 against the U.S. Dollar. The declination in the Indian rupee is the effect of Fed's comments issued by Fed chief Janet Yellen.
Healthcare sector gained over 0.8% in early trade. As per the financial daily, Wockhardt said that USFDA did not find problems on the drugs manufactured from Aurangabad's L1- Chikalthana site. Reportedly, in November 2013, the FDA had issued a notice of non-compliance over good manufacturing practise. The last visit of the FDA in the site was the last leg of investigation and came out with no issues regarding control measures or data security. Shares of Wockhardt gained over 4% after such report.
Power companies, too, have witnessed gains, however, shares of NTPC fell nearly 1% after the Government issued a cabinet note to sell 10% of NTPC for disinvestment in the next financial year. The government plans to raise nearly Rs 695 bn that would cover nearly 3.9% of the fiscal deficit target. At 10% of NTPC on sale, the Government can raise about Rs 126 bn at current price. According to a leading financial source, the official proposal is yet to be declared, however, the stake might be sold at a discount of 4% - 5% to retail investors.