Mumbai: The benchmark indices have surged in early trade and have continued last week's rally further. The Reserve Bank's rate cut move and government's second fiscal stimulus package helped the markets to stay higher.
Positive Asian markets and SGX Nifty suggested the same. Banking, cement, realty, technology and metal stocks are on buyers' radar.
At 0956 hrs IST, the Sensex rose 141 points to 10,099 and the Nifty gained 34 points at 3,081. CNX Midcap went up 50 points at 3,944. About 514 shares have advanced while 61 shares have declined on the NSE.
HCL Technologies, Unitech, Ambuja Cements, ICICI Bank, Cairn, DLF, Tata Motors, ACC, SBI, Reliance Communication, Reliance Infrastructure, SAIL, Tata Steel and Infosys Technologies are gainers. However, Satyam fell two per cent.
There are reports that Satyam investors are urging merger; HCL and Mindtree are in fray. HCL Technologies went up 2.5 per cent.
The Reserve Bank of India has cut the cash reserve ratio by 50 basis points on Friday, and both the repo and reverse repo rates by 100 bps. (100 bps=1 per cent) The CRR now stands at 5 per cent, while the repo rate post the cut stands at 5.5 per cent from 6.5 per cent earlier. The reverse repo rate is now at 4 per cent from 5 per cent earlier.
The government has announced a second fiscal stimulus package amounting to Rs 20,000 crore on Friday.
Asian markets are trading higher. Shanghai, Nikkei and Taiwan went up over 2 per cent. Hang Seng, Straits Times and Kospi gained 1.2-1.5 per cent. Jakarta surged 4.2 per cent.
Crude oil futures reversed early losses and ended up 3.5 per cent at around $46.2/bbl on Friday. It was down nearly 8 per cent at one point of time.
Crude oil gained 23 per cent last week, which was the most since August 1986.
Crude gained last week due to conflict in Gaza increased concern that Middle East supplies would be cut. It is currently trading above USD 47 a barrel.
US markets surged in anticipation of Obama's stimuli package announcement in coming days. General Motors received $4 billion in initial rescue loans from the US Treasury.
The Dow Jones closed above 9,000 for the first time since early November on first trading day of 2009.
Dow Jones ended up 258 points or 2.9 per cent at 9034.7. The Nasdaq was up by 55.2 points or 3.5 per cent at 1632.2 and S&P 500 up 28.5 points or 3.16 per cent at 931.8.
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