Govt approves disinvestment

Now the path is clear. As it is declared earlier UPA governemt going to disinvest in PSU companies. After the cabinet approval government is going to dissolve 10% of it's stake in PSUs. The decision favoured the market sentimence and bourses witnessed buying interest. From it's weak opening Indian market bounced back strongly following the announcement. Another importtant development was that cabinet sectretery made it clear that the FDI hike in aviation sector would consider soon. There were expectation that UPA government would increase the FDI limit in Insurance and aviation sector to 49%.
These government decisions impacted indian market in a large manner. Gold and crude price hike are the major factors of worry. Global indices also trade in red, which is also a matter of concern for indian traders.