After trading in the positive territory during post noon trading session, the Indian equity markets gained further ground and closed in the green. While the BSE-Sensex today closed higher by 245 points, the NSE-Nifty closed higher by 66 points. Midcaps and Smallcaps too closed in the green today. While the BSE Mid Cap index was up by 0.36% the BSE Small Cap index closed higher by 0.57%. Metal and IT stocks were the biggest gainers today.
As regards global markets, Asian pack too closed strong today. The rupee was trading at levels of Rs 63.2 to the dollar at the time of writing.
India's GDP is expected to grow by 5.5% this fiscal as per Finance Ministry's midyear economic review. The review also stated that 7-8% growth is within reach over the coming years; however, fiscal challenges would continue to prevail. The review also projected that declining oil prices will help contain current account deficit at 2% of GDP. Further, the retail CPI inflation is expected to be in the range of 5.1-5.8% over the next five quarters. With inflation being projected to be under control it may perhaps prompt RBI to cut rates in the future.
Public sector banks have closed the day on a weak note. Leading public sector lender IDBI bank is planning to sell its entire 5% stake in NSE that may fetch Rs 10 bn to the bank. At the end of Sep quarter the bank held 23 lakh shares in NSE. The bank has already invited an Expression of Interest (EoI) for the proposed stake sale. Apart from IDBI Bank other notable shareholders of NSE include LIC, SBI, IFCI and IDFC. However, currently only IDBI bank has disclosed its intentions to sell its stake in NSE.