India Markets Thursday Wrap-Up: India Leads Asian Gainers

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 |  Includes: EPI, IFN, IIF, INDY, INR, PIN, SCIN, TTM
by: Equitymaster

Taking cues from positive sentiments in global markets, the Indian indices managed to hold on to the early gains and ended the session firmly in the positive today. The lower food and fuel inflation numbers also seem to have improved sentiments. While the BSE Sensex closed higher by around 198 points (up 1.1%), the NSE Nifty gained around 61 points (up 1.1%). The BSE Midcap and smallcap indices also recorded gains of 0.9% and 0.8% respectively.

As regards global markets, Asian indices across the board closer higher today with Japan and India leading the pack of gainers. European indices have also opened on a positive note. The rupee was trading at Rs 46.45 to the dollar at the time of writing.

Power stocks ended the day lower today with heavyweights like Tata Power and NTPC losing nearly 1%. However, the government seems to be keen on routing more long term funds to meet the infrastructure targets in the country. And the key beneficiary of the same is set to be the power sector due to the higher planned allocation for the 11th plan period. The Finance Minister Mr Pranab Mukherjee has recently released an official statement in this regard. The same refers to routing insurance and pension funds to the infrastructure sector.

As per a leading business daily, the country's largest auto maker Tata Motors Ltd (NYSE:TTM) is likely to set up a Rs 12 bn factory in Mexico this year in a bid to sell its vehicles in South America. The plant is expected to manufacture 100,000 cars a year to be sold in Mexico, Brazil and Argentina, among other countries. The capacity may later be ramped up to 300,000 cars. After successfully steering its UK subsidiary Jaguar Land Rover out of crisis, Tata Motors is now focusing on creating a local presence in key emerging markets worldwide.

As per the latest report released by Asian Development Bank (ADB), consumer spending in Asia is likely to reach US$ 32 trillion by 2030. It estimated that Asian consumers spent about US$ 4.3 trillion or about a third of OECD consumption expenditure in 2008. However, powered by the emergence of a rising middle class in the fast growing economies of China and India, the consumption demand is expected to shoot up. While this means more opportunities in hand for companies operating in the banking, FMCG, food, consumer durables and telecom space, ability to capture a larger share of the market without sacrificing profits remains the key.