Monday, August 6, 2012

Surging Money Market: Ray of Hope for India

Thanks to improved US jobs data sparking a global risk rally. Thanks to anticipation for government measures by the recently-appointed finance minister to clarify tax laws and of helping the mutual fund sector, which proved to be a welcome relief. Markets have surged by over one percent in today’s (6th August) trade, which is the peak close since July 11. While sensex ended at 17,412.96 points, up 1.25 percent, nifty ended at 5,282.55 points up 1.28 percent.

It was RIL. that exhibited the highest rise on the 50-share nifty index. The conglomerate soared to a four-and-a-half month high with volumes in the counter exceeding the 50-day average. At Rs 786, price of shares of RelianceIndustries Ltd NSE closed 5.9 per cent higher. No wonder, in terms of market capitalization, Reliance has emerged as India's most valued company, thus regaining the pole position. And there are genuine reasons for this sharp rise. A key meeting between Reliance Industries and officials of the oil ministry is supposedly to take place tomorrow (7th August). Investment plans for KG-D6 block including commercial viability of three new significant gas discoveries in this block are likely to be discussed. The worst hit Reliance Industries shares for the last 18 months did cast a shadow over Indian equity markets. Good times are sure to come and it is already being exhibited!

Finance Minister P. Chidambaram is all geared up to unveil a plan to rein in the country's fiscal deficit. Such measures will boost market sentiments to the favor of investors.Read complete purview on what the Finmin has in store for India at

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