Expectations on GST passage in RS lead to fresh buying
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MUMBAI: Defying weakness in the global stocks, the domestic equity markets snapped their six-day loosing streak amidst fresh buying in index stocks on expectation that the government would be able to pass the much awaited goods and services tax (GST) in the Rajya Sabha during the winter session of Parliament. While speaking at an event in the UAE on Monday, the Union finance minister Arun Jaitley said that the government would make all possible efforts to persuade the opposition parties for the passage of GST Bill in the Winter Session. Market participants also pointed out that traders who had created short positions in the market post the Bihar assembly poll results were forced to square-off some of their short bets following the positive comments from the FM.
The Sensex rose 149.57 points or 0.58 per cent to close the day at 25,760.10 while the Nifty posted its biggest single day percentage gain in a month by climbing 0.57 per cent or 44.35 points to end the trading session at 7,806.60. According to the provisional data released by the stock exchanges, foreign portfolio investors (FPI) remained net sellers of domestic equities worth Rs 1,051.26 crore on Monday.
“The terrorist attract in Paris had impacted global sentiments. A lower than expected GDP growth in Japan and tightening of margin requirements by the Chinese authorities to curb excessive speculation also led to further selling pressure in the Asian markets. Since, the Indian markets were in an oversold territory, positive comments from FM regarding the passage of the GST bill boosted sentiment in our markets,” said Uday Narayan Dubey, vice-president, institutional desk at R.K.Global. The broader markets remained marginally positive with 1,363 stocks traded on the BSE gaining higher.
WPI inflation still remains negative for 12th month:
Inflation based on wholesale price index (WPI) remained in the negative territory for a 12th straight month in October contracting by 3.81 per cent mainly due to easing fuel prices. The WPI inflation had contracted by 4.54 per cent in September. However, food inflation has been firming up due to high prices of pulses and onion. In October, food inflation was at 2.44 per cent against 0.69 per cent in September.
Pulses inflation was at 53 per cent and onion at 85.66 per cent in October. The rate of price rise in case of vegetables was at 2.56 per cent as against minus 19.37 per cent in the same month last year. Wheat inflation came at 4.68 per cent in October against 3.34 per cent in September and 2.09 per cent in August.
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( Source : deccan chronicle )
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