Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets cheer FDI reforms
Wed, 17 Jul 09:30 am

The major Asian stock markets have opened the day on a mixed note with South Korea (up 0.9%) and Indonesia (up 0.7%) leading the gains. However, markets in China (down 0.4%) and Japan (down 0.6%) are trading weak. The Indian equity markets indices have opened the day on a firm note. Barring banking, all sectoral indices have opened in the green with stocks in the capital goods and power space leading the gains.

The Sensex today is up by around 80 points (0.4%), while the NSE-Nifty is up by around 18 points (0.3%). Mid and small cap stocks have also opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.4% each. The rupee is trading at Rs 59.21 to the US dollar.

In order to boost investor sentiments in a tough economic environment, the Government has raised the FDI (Foreign Direct Investment) ceiling in 12 sectors. This includes telecom and defence sectors. In the financial sector, the FDI limit has been raised for asset reconstruction companies and credit information bureaus .The cap is also likely to be raised in insurance and pension to 49%. However, the move will be conditional to parliamentary approval. For several other sectors such as oil and gas refining and stock exchanges, the government has decided to allow FDI without prior approval. The Government has deferred a decision on raising limit in civil aviation from 49% to 74% on account of security concerns in ground handling and customs.

Energy stocks have opened the day on a mixed note with Castrol Ltd and Indraprastha Gas Ltd leading the gains. However, Chennai Petroleum Corporation Ltd and Petronet LNG are leading the losses. As per a leading financial daily, Mr. B.K Chaturvedi, a member of Planning Commission has stated that the government could consider asking state-owned upstream explorers such as Oil and Natural Gas Corp. Ltd (ONGC) and Oil India Ltd (OIL) for a subsidy mechanism. The mechanism would ease the impact of the hike in the price of natural gas on power and fertilizer companies. He suggested that the move to raise gas prices will certainly have an impact on power and fertilizer segments. He said that a lot of gas is produced by ONGC, OIL and others. So, there is a chance the government may turn to them.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Markets cheer FDI reforms". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.