The BSE Sensex is trading up 225 points and the NSE-Nifty is trading up 58 points. The BSE Mid Cap index is trading up 0.8%, while the BSE Small Cap index is trading up 0.9% today. The rupee is trading at 59.9 to the US dollar.
In a big boost for market sentiment, the international rating agency Fitch has upgraded its GDP growth estimates for the Indian economy. From its earlier estimate of 5% and 6% for FY15 and FY16, the agency now believes that GDP growth could be higher by 0.5%. Thus it has forecast growth of 5.5% and 6.5% for FY15 and FY16 respectively. The upgrade is largely due to the positive announcements made by the new government regarding reforms. However, Fitch has warned that a lot needs to be done for these estimates to be achieved. Also, the poor monsoon could derail the positive sentiment in the economy. It is interesting to note that the same agency had threatened to downgrade India's sovereign rating to junk status two years ago.
Auto stocks are trading firm today led by heavy buying interest in Force Motors and TVS Motors. As per a leading business daily, two & three wheelers major Bajaj Auto released its June sales volumes. The company's overall sales volumes declined by 13% to 305,000 units compared to that of previous month of May 2014. This was largely led by a 16.3% fall in motorcycles sales in June at 262,000 units. However, the three wheelers sales were up 13% month on month (MoM) to 43,263 units. The dismal performance was witnessed in exports sales as well, which were down by 13.5% MoM. In fact, the overall sales increased marginally by 3% on a YoY basis in the month of June 2014. The company is planning to launch an upgraded version of its popular Discover motorcycle in the next month. It aims to recoup its lost market share from the upgraded version of the bike. The stock is higher by 0.9% today.