Sturdy Global Cues Leads Market to Open Strong

The markets have opened on a strong note mirroring phenomenal rally in US markets as FOMC cut the Fed funds and discount rates by 75 bps. Asian markets are also supported this rally. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers in morning trade. Market breadth is very positive, NSE advance:decline ratio of 13:1. Midcap and Small cap stocks have seen strong bounce back.

At 9:56 am IST, the Sensex was up 632 points at 15465 and the Nifty up 165 points at 4698. CNX Midcap gained by 241 points at 6,102.

SBI, Bharti Airtel, PNB, Tata Power, SAIL, L&T, RPL and RNRL were the major gainers.

The BSE Realty, Bankex, Power and Capital Goods indices were up nearly 4-6%. Oil & Gas, Metal, IT and Teck indices jumped over 3%.

Asian markets were trading firm. Hong Kong's Hang Seng added 3.61% or 772.85 points at 22,157.46. Japan's Nikkei gained 3.23% or 386.06 points at 12,350.22. Taiwan's Taiwan Weighted rose 2.04% or 164.32 points at 8,222.14. Singapore's Straits Times rose 2.05% or 58.15 points at 2,891.73. South Korea's Seoul Composite advanced 2.51% or 39.92 points at 1,628.67.

Wall Street ran up their biggest one-day gains in more than five years following that interest rate cut. The rally was led by financials. FOMC cut the Fed funds and discount rates by 75 bps; Fed funds rate now at 2.25% and the discount rate now at 2.50%. Dow added 420.41 points, or 3.51%, at 12,392.66. The Standard & Poor's 500 index gained 54.14 points, or 4.24%, at 1,330.74, and the Nasdaq composite index advanced 91.25 points, or 4.19%, to 2,268.26.

Market cues:

• Fed cuts Fed Funds Rate by 75 bps, discount rate by 75 bps
• FIIs net sell $ 156.8 m in equity
• MFs net sell Rs 100.5 cr in equity
• NSE F&O Open Interest down Rs 387 cr at Rs 63,949 cr

F&O cues:

• Futures Open Interest down by Rs 1,208 crore and Options Open Interest up by Rs 821 crore
• Nifty Mar Futures shed 44 lakh shares in Open Interest
• Nifty April Futures add 20 lakh shares in Open Interest
• Nifty Mar at 15-point premium, April at 2-point premium
• Nifty Open Interest Put-Call ratio at 0.83 Vs 0.85
• Nifty Puts add 4.8 lakh shares in Open Interest
• Nifty Calls add 11 lakh shares in Open Interest
• Nifty 4400 Put adds 3.3 lakh shares in Open Interest
• Nifty 4250 Put adds 2.3 lakh shares in Open Interest
• Nifty 4300 Put adds 1.2 lakh shares in Open Interest
• Nifty 4700 Call adds 4.2 lakh shares in Open Interest
• Nifty 4800 Call adds 2.2 lakh shares in Open Interest
• Stock Futures shed 1.3 cr shares in Open Interest
  

Source: http://moneycontrol.com/india/news/local-markets/mkts-open-strong-mirroring-sturdy-global-cues/10/00/330874