On Monday, positive global cues and a finish to political imbroglio led to buying in blue chips stocks which were offered at attractive valuations. The Reserve Bank of India during market hours on Mon unveiled new banking licenses, that would allow the corporates to set upward banks, which also fueled optimism among investors.
Foreign Institutional Investors turned net buyers of Indian equities for the very first time after nine consecutive sessions of selling. FIIs bought shares worth Rs 366 crore in equities based on the provisional data available from the Bombay Stock Exchange.
Going forward, analysts said markets with take cues in the first quarter GDP data expected around noon today. Economists expect growth to slide below 8% as the Reserve Bank of India has hiked rates 11 times since March this past year.
Overnight, Wall Street indices posted gains buoyed by upbeat personal-spending data as well as relief over Hurricane Irene not causing much damage. The Dow Jones Commercial Average, the Nasdaq Composite and the S&P 500 were up between two. 3-3. 3% each.
Asian markets were also trading higher on Tuesday early morning as improved global sentiment encouraged buying. Hong Kong’s Hang Seng Index additional 2. 3%, China’s Shanghai Composite rose 1. 4% and Japan’s Nikkei Share Average advanced 1. 5%. Automakers and technology shares were leading the increases in Asia.