Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Markets give big thumbs up to Fed
Thu, 19 Sep Closing

Indian equity markets opened with a huge gap up on the back of Fed maintaining status quo on its QE3 programme. The market continued to surge in the afternoon trading session and closed the day on a positive note. The Fed said that it would await evidence of stronger economic growth in the US before adjusting the pace of its bond-buying programme. It maintained that it would hold bond purchases steady at US $85 bn per month. The prospect of low US rates for longer should be a major relief to emerging markets which have been suffering from capital inflows back to the developed world. Realty, Banking and Capital Goods sectors were the leading pack of gainers. While the BSE Sensex closed higher by 684 points, the NSE-Nifty closed higher by 215 points. BSE Mid Cap and the BSE Small Cap closed on a positive note.

As regards global markets, Asian indices closed in the green. European indices have opened in the green. The rupee was trading at Rs 61.8 to the dollar at the time of writing.

Data from the Reserve Bank of India (RBI) showed that despite some banks raising lending rates, credit (loan) growth swelled 18% for the fortnight ended September 6. Deposits grew 13.3% during the fortnight. This is the first time in the current financial year that credit growth has peaked to this level. Previously, such growth was registered in June last year, when loan growth in the banking system touched 18.3% in the fortnight ended June 1, 2012. Despite higher deposit rates, deposit growth has continued below the 14% mark in this financial year.

According to a leading financial daily, in an attempt to contain current account deficit (CAD) that puts pressure on the rupee, the government is considering making it mandatory for trade with a few countries to take place in local currencies to reduce dependence on the dollar. The commerce ministry constituted a task force in August to explore the possibility of India trading in local currencies with some key trading partners. The panel is expected to submit its report in the first week of October. The task force is currently exploring whether to seek trade in local currency with countries with which India has a deficit, surplus or balanced trade. While the possible trading partners with whom India could seek such arrangements are yet to be finalized, countries like China and Japan have already shown interest.

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

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Markets give big thumbs up to Fed". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms