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I had mentioned in Tuesday’s closing reply that Nifty,
Sensex might rally. The major indices of the Indian stock markets on Wednesday
made a strong rally and closed 0.81%-0.94% over Tuesday’s close. The trends of
the major indices in the course of Wednesday’s trading are given in the table
below:
Positive global indices, along with a rise in crude oil
prices and a firm rupee, buoyed the Indian equity markets on Wednesday.
Consequently, the key indices closed the day's trade with appreciable gains, as
healthy buying was witnessed in automobile, information technology (IT) and
consumer durables sectors. The BSE market breadth was skewed in favour of the
bulls -- with 1,848 advances and 752 declines.
British shares and the pound continued to regain some of
the ground lost in the wake of the UK voting to exit the European Union (EU).
After rising 2.6% on Tuesday, the FTSE 100 share index was up 1.8% at 6,253.07
in early morning trade on Wednesday. The FTSE 250 index -- which contains more
UK-focused companies -- rose 1.1%. On Tuesday it closed 3.6% higher. The pound
was up 0.4% against the dollar at $1.3398, but it still remained well below
levels reached before the referendum held on June 23. The pound rose as high as
$1.50 on June 23 before the result of the referendum was announced the next
day. On Monday, the pound hit a 31-year low against the dollar. Shares in the
financial sector -- which had been particularly hard-hit in the wake of the
referendum -- continued to recover, with Prudential up 5.9% and Barclays 3.6%
higher.
With the Goods and Services Tax (GST) on top of the
government's agenda, Parliament's monsoon session will be held from July 18 to
August 12, Parliamentary Affairs Minister M. Venkaiah Naidu announced here on
Wednesday. The decision was taken at a meeting of the Cabinet Committee on
Parliamentary Affairs, attended among others by Prime Minister Narendra Modi,
Home Minister Rajnath Singh Finance Minister Arun Jaitley and External Affairs
Minister Sushma Swaraj. At the meeting External Affairs Minister Sushma Swaraj
said if members raise issues concerning the Nuclear Suppliers Group (NSG) and
matters concerning foreign trips of Prime Minister Narendra Modi and others,
she is willing to make a statement, Naidu informed. International news and news
from Parliament are likely to have a strong effect on the major indices next
month.
Finance Minister Arun Jaitley on Wednesday said the 7th
Pay Commission will bring a "historic rise" in the salaries of
government employees and pensioners. “Congratulations to central government
officers, employees and pensioners on a historic rise in their salary and
allowances through the 7th CPC (Central Pay Commission),” Jaitley tweeted after
the panel recommendations were approved by the Union Cabinet on Wednesday. The
decision was taken at a cabinet meeting chaired by Prime Minister Narendra
Modi. The recommendations will impact some 47 lakh employees in the central
government and 52 lakh pensioners. Increased savings from the employees are
likely to bring some more investments into the stock markets, especially
through mutual funds.
State-run Allahabad Bank aims at 10% business growth in
the current fiscal (2016-17) year, a top official of the bank said on
Wednesday. "Business growth target is 10% this fiscal. It grew about 3.4%
in the last fiscal," bank's Chairman and Managing Director Rakesh Sethi
told IANS after the 14th Annual General Meeting. The total business of the bank
stood at Rs358,352 crore as of March 31, 2016 as compared to Rs346,519 crore
the previous year. Going forward, the bank was looking at a growth of 20% in
the retail credit portfolio. Also, a major thrust will be given to loans having
low capital requirement such as housing loans and gold loans, Sethi told
shareholders during the meeting. The retail credit portfolio stood at Rs25,894
crore, up 19.20% against Rs21,723 crore in the previous year. The lender said
it would adopt a three-pronged strategy -- recovery of overdues, achieving
healthy growth in retail advances and mobilising CASA deposits on liability
side with emphasis on savings bank accounts. The shares of the bank closed at
Rs68.35, up 0.22%.
Oil prices gained after slumping for two sessions on
Britain's surprise vote to leave the European Union. The West Texas
Intermediate for August delivery on Tuesday gained $1.52 to settle at $47.85 a
barrel on the New York Mercantile Exchange, while Brent crude for August
delivery added $1.42 to close at $48.58 a barrel on the London ICE Futures
Exchange, Xinhua news agency reported. Oil prices suffered the biggest
two-day loss since February as the Brexit vote spurred market concerns about
the economic stability of the UK and euro zone, triggering massive risk
aversion among investors. Crude prices recovered on Tuesday as European Union
leaders gathered in Brussels for a two-day meeting to discuss Britain's decision
to leave the bloc, raising speculations that policy makers may take measures to
limit the economic fallout.
The top gainers and top losers of the major indices are
given in the table below:
The closing values of the major Asian indices are given
in the table below:
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