The annual growth rate reached a record low and inflation seemed to be dictating the market. In order to cope with the situation, the government had to introduce some measures that created much stir in the political as well as financial sectors of the Indian economy. The government has taken a decision to allow 51 percent Foreign Direct Investment in the retail sector. This decision has been regarded as a part of the economic reforms and since the time of announcing the decision the Indian economy has started to get back on track.
The Sensex in the Bombay Stock Exchange rose by 0.08 percent in the trades on Thursday morning. The rise was led by Tata Motors, Infosys and Reliance Industries who exhibited a gain of 1,7 percent, 0.6 percent and and 0.45 percent respectively. HCL Technologies Ltd grew by nearly 5 percent and hit Rs.707.45, the highest in almost a year. The BSE Midcap Index rose by 0.10 percent and the BSE Smallcap Index rose by 0.22 percent. Nearly all the major sectoral in indices exhibited a gain. The BSE Auto Index rose by 0.6 percent, the BSE IT Index advanced 0.7 percent, The BSE Realty Index was up by 0.3 percent and the BSE Oil & Gas Index moved 0.26 percent higher.
Analysts and binary traders are optimistic about the situation. Many think that there is still a long way to go before any sturdy growth is observed in the Indian economy, the behavior of the Sensex may point to some positive signs in the economy. They are reluctant to arrive at any firm conclusion right now but are inclined to keep a close watch on the behavior of the market for the next few months. However, many analysts hold the opinion that 2013 may be a good year for the Indian stock markets.
The crisis in the global economy is far from over. Amidst such conditions it is not known how long the Indian economy will be able to hold strong. The financial budget for the year 2013-2014 is going to be announced shortly and binary traders are now keeping their eyes on the budget to get an idea of the government plans for future.