Happy New Year. Let’s hope the market continues its habit of clocking gains. The indices have gained ~25% each thanks to a running tap of FII inflows.
In reports just coming in, a deal appears to have been reached to avoid the fiscal cliff. Democratic Senate Majority Leader Harry Reid and House of Representatives Minority Leader Nancy Pelosi have reportedly signed off on the deal which includes a balance of spending cuts and revenue increases.
This should pep up the sentiment in the Indian market too and the indices may choose to race ahead. US stocks had rallied as investors grew optimistic about the deal. The market will also look at numbers coming in from auto companies today.
The Direct Cash Transfer scheme will be rolled out today and over two lakh are expected to be beneficiaries of the same. The fiscal deficit exceeded 80% of the Budget target between April and November. The deficit stood at Rs4.13 lakh crore.