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12 July 2016
I had mentioned in Monday’s closing report
that Nifty, Sensex momentum is up, but the market is overbought. The major
indices of the Indian stock markets continued their upward move and closed with
healthy gains over Monday’s close. Trading volumes were also high in the NSE.
The trends of the major indices in the course of Tuesday’s trading are given in
the table below: The Total Investment & Insurance
Solutions
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| Major Indices(The Total Investment & Insurance Solutions) |
Positive global cues, combined with short
covering and healthy monsoon rains, buoyed the Indian equity markets to new
intra-day highs in the last 11 months on Tuesday. Consequently, the key indices
traded on a higher note during the late-afternoon session, as healthy buying
was witnessed in banking, metal and consumer durables stocks. However, the BSE
market breadth was tilted in favour of the bears -- with 1,519 declines and
1,243 advances. Initially on Tuesday, the indices opened on a firm note in sync
with their Asian peers, especially the Japanese markets. Healthy progress of
the monsoon season and expectations of further economic reforms enhanced
investors' risk-taking appetite. However, gains were capped due to profit
booking at higher levels and uncertainties over upcoming macro-economic data
like factory output -- Index of Industrial Production (IIP) -- for May and
inflation figures for June. Market analysts observed that pharma sector stocks
were facing resistance at higher levels due to profit booking. Most auto sector
stocks were trading firm on lower levels of buying. The
Total Investment & Insurance Solutions
Coal India Board approved a buyback of over
10 crore shares at a price of Rs335 per share for an aggregate consideration
not exceeding Rs3,650 crore, the company said on Tuesday. The buyback offer is,
however, subject to approval from shareholders and other regulators and
government authorities. "The Board of Directors of Coal India Limited
(CIL) at its meeting held on Monday has subjected to the approval of the
shareholders of the company by way of special resolution through postal ballot
and subject to approvals of statutory, regulatory or governmental authorities
as may be required under applicable laws, approved the buyback of not exceeding
10,89,55,223 equity shares of the company," the board said in a filing to
Bombay Stock Exchange on Tuesday. According to the company, the offer will not
exceed 25% of the aggregate fully paid-up share capital and free reserves of
the company as per audited accounts for the financial year ended 31 March 2016.
Government holding in the company was at 79.65% as on 31 March 2016. Coal India
shares closed at Rs316.85, down 1.14% on the BSE.
The US dollar climbed against the Japanese
yen on Monday as investors raised expectations for further fiscal stimulus in
Japan after Japanese Prime Minister Shinzo Abe's ruling coalition won the local
elections. On Sunday, Japan's ruling coalition won a landslide victory in upper
house elections. Analysts thought that this makes it likelier that Abe will be
able to push through further monetary easing measures. The greenback added
2.24% against the yen on Monday in late trading, the biggest one-day gains
since April. Moreover, investors were still digesting the newly-released
nonfarm payroll report. Total nonfarm payroll employment increased by 287,000
in June, beating market consensus of a 175,000-gain, and the unemployment rate
rose to 4.9%, the Labour Department reported on Friday. Analysts said the June
nonfarm report mollified concerns of an economic slowdown in the USA, as May's
payroll rose only by 38,000 and notched the fewest monthly job gain in almost
six years. With the US dollar firming up, foreign institutional investors are
likely to show greater interest in emerging markets like India. The
Total Investment & Insurance Solutions
With India needing about a trillion dollars
for infrastructure development, India's Minister of Road Transport, Highways
and Shipping Nitin Gadkari has highlighted investment opportunities in India
for US investors. With Prime Minister Narendra Modi making the country's
infrastructure development the top-most priority of the government, "This
is a golden opportunity to invest in India," he told a roundtable
organised here Monday by the US-India Business Council (USIBC). "We are
committed to improving the country's road, highways, and port connectivity in a
time-bound, result oriented, corruption-free and transparent manner that
includes e-governance and fast-tracking decision-making," Gadkari said.
"The pace of road construction has accelerated to an all-time high of 20 kilometres
per day and next year we plan to increase it to 41 km per day," he said.
Gadkari told Indian media that thanks to recent government decisions there are
no road blocks to investment in transportation sector with 95% of issues facing
investors resolved. "Previous image of investment climate in India is
completely changed." During his meeting Monday with US Secretary of
Transportation Anthony Foxx, he had discussed at length all the problems facing
India in the transportation sector. S&P BSE India Infrastructure Index
closed at 170.18, up 1.06%. The Total Investment & Insurance
Solutions
The two-day strike call given by major unions
in the banking sector have been deferred following an restraint order by the
Delhi High Court, said a top leader of All India Bank Employees' Association
(AIBEA). "In view of the Delhi High Court restraint order, our strike on
12th and 13th July stands deferred," said AIBEA General Secretary CH
Venkatachalam. Bank Nifty closed at 18,667.60, up 1.50%.
The top gainers and top losers of the major
indices are given in the table below:
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| Top Gainer(The Total Investment & Insurance Solutions) |
The closing values of the major Asian indices
are given in the table below: The Total Investment & Insurance
Solutions
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| Asian Ondices(The Total Investment & Insurance Solutions) |
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