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9Th
Aug 2016
I
had mentioned in Monday’s
closing report that Nifty, Sensex uptrend was continuing. The major
indices of the Indian stock markets were range-bound on Tuesday and
closed with small losses over Monday’s close. The trends of the
major indices in the course of Tuesday’s trading are given in the
table below:
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| Major Indices (The Total Investment & Insurance Solutions) |
Profit
booking, along with lower crude oil prices and a weak rupee, dented
the Indian equity markets during the mid-afternoon trade on Tuesday.
Selling pressure was seen in automobiles, fast moving consumer goods
(FMCG) and metal stocks. The BSE market breadth was skewed in favour
of the bears -- with 1,569 declines and 1,185 advances. On the
NSE, there were 542 advances, 912 declines and 58 unchanged.
According to market analysts, consolidation and profit booking in the
absence of any fresh positive development dragged the equity markets
lower. Most IT (information technology) stocks traded down, while
banking and pharma stocks traded with mixed sentiments. Auto and
aviation sector stocks faced selling pressure. Most FMCG stocks
traded down due to profit booking.The Total Investment &
Insurance Solutions
On
Tuesday, Reserve Bank of India (RBI) Governor Raghuram Rajan kept key
policy rates unchanged in his last monetary policy review with little
elbow room on account of the country's retail inflation inching
closer to the upper tolerance level of 6%. Accordingly, the
repurchase (repo) rate or the interest commercial banks pay the
central bank for short-term loans remains unchanged at 6.5%. The cash
reserve ratio (CRR) that scheduled banks have to keep in the form of
liquid funds also remains unaltered at 4% of deposits. In the
previous policy update, too, conducted on June 7, the policy rates
were left unaltered.
The
RBI’s decision to leave the policy interest rates untouched was in
line with the predictable and transparent monetary policy, said
global credit rating agency Moody's Investors Service. The central
bank's decision to leave policy interest rates unchanged on Tuesday
was no surprise to market participants. "In the next few months,
we expect continuity in the RBI's policymaking. In particular, the
government's notification of the inflation target at 4% plus or minus
2% through to 2021 denotes ongoing commitment to keeping
inflation at moderate levels," Marie Diron, senior vice
president, Sovereign Risk Group was quoted as saying in a statement
issued by Moody's. "Meanwhile, the formation of a monetary
policy committee is in line with common practice in many central
banks around the world. We do not expect the RBI's shift to such a
structure to have any significant implications for the conduct of
monetary policy," Diron added. According to Diron, the larger
than average monsoon rainfall will help maintain moderate food price
inflation to keep the headline inflation rate within or close to
target this year. In the medium-term, the inflation will remain
moderate. With greater focus on inflation control rather than GDP
growth, RBI has mildly controlled the bulls in the Indian stock
markets.The Total Investment & Insurance Solutions
Automobile
major Tata Motors Group on Monday reported a rise of 20% in its
global wholesales, including Jaguar Land Rover for July. The company
said that its global wholesales for the month under review stood at
88,159 units. "Global wholesales of all Tata Motors' commercial
vehicles and Tata Daewoo range in July 2016 was flat at 30,363
compared to July 2015," the company said in a statement. "Global
wholesales of all passenger vehicles in July 2016 were at 57,796
nos., higher by 34%, compared to July 2015." On Tuesday, the
company’s shares closed at Rs513.70, down 0.05% on the BSE.
The
base price and the quantum of airwaves on offer make the next round
of spectrum auctions the largest ever. But the high reserve price,
notably for the 700 MHz band, and time still for the expiry of
existing holdings could make the response muted, analysts warn. The
views of six top brokerages and consultancies is that service
providers will cherry-pick the bands they need, putting a question
mark over how much of the 2,354.55 MHz on offer across seven bands
will be sought and what quantum of the $84 billion reserve price be
realised. "Since no spectrum is up for renewal for any of
Bharti, Vodafone India and Idea Cellular, we do not expect aggressive
bidding," said a Goldman Sachs Global Investment Research said
in its report, predicting no major surprises. "The upcoming
auction is crucial for Idea and Vodafone in our view, as they still
have large amount of 3G and 4G gaps and will look to fill those.
Bharti and (Reliance) Jio have very few circles without 3G and 4G,
and will try to bolster their data spectrum holding," it said.
The government has put on block 2,354.55 MHz of airwaves for sale in
seven bands -- 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300
MHz and 2,500 MHz -- with a reserve price of $84 billion -- against
470.75 MHz in the previous round that saw bids worth $17 billion.
Bharti Airtel shares closed at Rs348.85, down 0.87% on the BSE.The
Total Investment & Insurance Solutions
Idea
Cellular standalone net profit for the first quarter of 2016-17
dropped 36.1%, a company statement said on Monday. The company posted
net profit of Rs497.1 crore for the April-June quarter compared to
Rs777.8 crore posted during the corresponding quarter in 2015-16. The
total revenue of the company stood at Rs9,486.6 crore for the quarter
under review compared to Rs8,791.5 crore it posted during the
corresponding period in 2015-16. As on June 30, the company has over
1.8 million active customers in 4G services. Idea shares closed at
Rs97.15, down 5.77% on the BSE, on Tuesday.The Total Investment &
Insurance Solutions
The
top gainers and top losers of the major indices are given in the
table below:The Total Investment & Insurance Solutions
 |
| 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
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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