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Sensex Jumps 300 Points; Hopes High From Government

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The Sensex extended gains on 27 November' 2012 on optimism the government will be able to clear reforms announced in September, which were aimed at reviving growth and staving off a credit rating downgrade.
 
The gains tracked Asian peers, which rose on new debt targets for Greece and a political agreement on disbursing the next instalment of aid. Sentiment was also helped by ratings agency Moody's maintaining India's rating outlook at stable.
 
The market was eagerly awaiting a media briefing by the Finance Minister P. Chidambaram at 4:15 p.m.
 
He is expected to outline the government's steps to push through its economic reforms, even as opposition lawmakers demand the government roll back its plans to open up the supermarket sector to foreign chains.
 
Moody's said on Tuesday the outlook on its Baa3 rating for India is stable, citing the country's large, diverse economy and strong gross domestic product growth as supportive of the rating.
 
"A light market has risen on factors like Greece, increasing support on reforms and Moody's statement. The finance minister's press conference would be a further positive," said Vivek Mahajan, head of research, Aditya Birla Money.
 
The Sensex was up 1.44 per cent at 18,802. The Nifty was also up 1.36 per cent at 5,712.75.
 
The stock market will be closed on Wednesday for a religious holiday.
 
Bank shares were leading the gains ahead of the November derivatives expiry on Thursday. HDFC Bank Ltd rose 2.6 per cent and ICICI Bank Ltd gained 1.3 per cent, while mortgage lender HDFC was up 2.6 per cent, .
 
Export-driven technology shares such as Infosys rose, tracking the recent weakness in the rupee, which has dropped about 3.5 per cent in November.
 
The rupee could continue to remain under pressure in the near-term due to a widening fiscal gap, with hopes diminishing for dollar inflows as the parliament continues to remain in a deadlock over reforms, which could bring in much-needed foreign investment.
 
Shares in Pantaloon Retail India Ltd gained 6 per cent, while Trent Ltd rose 2.5 per cent, on hopes the government will be able to garner support to clear the opening of the supermarket sector, dealers said.

(Reuters)