rupeedesk.in
After the National Stock Exchange's 50-share Nifty closed above its key resistance of 5800 points yesterday, the bias for domestic equities has turned positive in the coming sessions. Movement of the rupee and cues from overseas markets will also be driving factors for the market. Yesterday, the rupee ended at 59.3850 a dollar, recovering from a record low of 60.7500 a dollar touched on Wednesday. Rupee strengthening after a major weakness is going to be a positive trigger.Gas price hike is a major reform forward and this should bring in confidence to foreign investors and for FDI (foreign direct investment), since the market closed nearly 3% up yesterday, dip would be an opportunity to buy. Among sectors, automobile and cement stocks are likely to be in limelight, as the companies' monthly sales numbers for June are due next week. Stocks of media companies may also be in focus as the Ministry of Information and Broadcasting is scheduled to hold consultations with various stakeholders from the media industry, including newspapers, broadcasters and carriers, to take their views on an increase in the limit for foreign direct investment in the sector.Currently, the limit for foreign direct investment in print, television, and frequency modulation radio is 26%. The limit in broadcast carriage services is 74%. Stocks of Hindustan Copper are likely to be in focus as a source that the government is likely to fix a base price for 4% stake sale in the company on Tuesday. Divestment in the company will happen through offer for sale on Wednesday.
After the National Stock Exchange's 50-share Nifty closed above its key resistance of 5800 points yesterday, the bias for domestic equities has turned positive in the coming sessions. Movement of the rupee and cues from overseas markets will also be driving factors for the market. Yesterday, the rupee ended at 59.3850 a dollar, recovering from a record low of 60.7500 a dollar touched on Wednesday. Rupee strengthening after a major weakness is going to be a positive trigger.Gas price hike is a major reform forward and this should bring in confidence to foreign investors and for FDI (foreign direct investment), since the market closed nearly 3% up yesterday, dip would be an opportunity to buy. Among sectors, automobile and cement stocks are likely to be in limelight, as the companies' monthly sales numbers for June are due next week. Stocks of media companies may also be in focus as the Ministry of Information and Broadcasting is scheduled to hold consultations with various stakeholders from the media industry, including newspapers, broadcasters and carriers, to take their views on an increase in the limit for foreign direct investment in the sector.Currently, the limit for foreign direct investment in print, television, and frequency modulation radio is 26%. The limit in broadcast carriage services is 74%. Stocks of Hindustan Copper are likely to be in focus as a source that the government is likely to fix a base price for 4% stake sale in the company on Tuesday. Divestment in the company will happen through offer for sale on Wednesday.
