Friday 9 December 2016

Opening Bell - Nifty Opens Above 8,200, Sensex On Positive Note

Posted by suhani varma on Friday, December 09, 2016 with No comments

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The S&P BSE Sensex is trading at 26,787, up by 93 points, while NSE Nifty is trading at 8,271 up by 25 points.

It is heartening to note that the selling spree by foreign funds has finally abated. In fact, in December so far, foreign funds have turned net buyers. Thursday’s rally was powered by global cues and expectations that the European Central Bank (ECB) would extend its bond-buying programme. While the ECB said it would continue electronic money printing to shore up the eurozone recovery, it trimmed the size of the stimulus amount it will provide each month. The outlook is a positive start but the Nifty is heading towards strong resistance zone. Profit-taking in select counters could put some pressure on the market. Telecom stocks will be in focus as Airtel and Idea have stepped up their defense against Reliance's Jio by offering free voice tariff plans. Oil, which rose again, will remain in focus as producers will meet in Vienna tomorrow to persuade non-Opec countries to cut production.

Major US indices ended at record highs on Thursday, extending a month-long rally post president-elect Trump took charge. However, thee European Central Bank left interest rates unchanged but made an announcement to reduce its asset purchase plan to 60 bln euros from the existing 80 bln euros. The ECB also extended its quantitative easing program till the end of 2017. The Dow Jones industrial average rose 65.19 points to 19,614.81, the S&P 500 gained 4.84 points to 2,246.19 and the Nasdaq Composite added 23.59 points to 5,417.36. All three indexes set new records, a day after they each posted gains of at least 1%.
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