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14 September 2016
I had mentioned in Monday’s closing report that
Nifty, Sensex might fall further. The major indices of the Indian stock markets
were range-bound on Wednesday and closed with very small gains over Monday’s
close. The trends of the major indices in the course of Wednesday’s trading are
given in the table below: The Total
Investment & Insurance Solutions
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| Major Indices (The Total Investment & Insurance Solutions) |
The Indian
equities market traded flat during the mid-afternoon trade session on
Wednesday. Negative global cues, coupled with slide in factory output data for
July and profit booking dented investors' sentiments. However, the BSE market
breadth was tilted in favour of the bulls -- with 1,764 advances and 947
declines and 198 unchanged. On the NSE, on Monday, there were 1006 advances,
458 declines and 57 unchanged. The
Total Investment & Insurance Solutions
On Monday,
both the key Indian indices were dragged lower by increased possibility of a US
rate hike, coupled with profit-booking and outflow of foreign funds. The Indian
equity markets were closed on Tuesday on account of Eid-ul-Zuha. The Total Investment & Insurance
Solutions
IT
(information technology) stocks faced resistance at higher levels due to profit
booking, while banking, auto and pharma stocks held early gains due to buying
support at lower levels. Oil-gas stocks traded with mixed sentiments. Aviation
stocks traded with mixed sentiments on profit booking, and power sector stocks
witnessed buying support from lower levels. FMCG (fast moving consumer goods)
stocks traded with mixed sentiments on short covering at lower levels.
India's
annual rate of inflation based on wholesale prices moved up to 3.74% in August,
from 3.55% in the month before, as per official data released on Wednesday.
Nonetheless, the annual rate of inflation for some commodities remained rather
high: Potatoes (66.72%), pulses (34.55%) and fruits (13.91%). But onion prices
were down 64.19% in August this year, against the like month of the previous
year. Data released by the Commerce and Industry Ministry further showed that
the annual inflation for manufactured products and fuels remained modest at
2.42% and 1.62%, respectively. Earlier, data on the consumer price index
released on Monday by the Central Statistics Office (CSO) had showed that the
annual retail inflation had eased by 100 basis points to 5.05% in August. With
inflation easing, there is reduced pressure on aggregate demand and corporate
earnings.
Credit
rating agency Moody's Investors Service on Wednesday said the State Bank of
India's (SBI) issuance of additional tier 1 (AT1), Basel III compliance
securities would set the pricing benchmark for other issuers. Moody's said the
SBI's issue price would also provide Indian banks with an alternative funding
option. "We expect more Indian banks will look to raise capital via this
route to overcome some of the limitations of the domestic bond market,"
Alka Anbarasu, Vice President and senior analyst was quoted as saying in a
statement. "In particular, most Basel III securities issued by the banks
domestically have been privately placed, thereby offering limited liquidity for
investors," she added. On Wednesday Moody's assigned a B1 (hyb) rating to
the perpetual non-cumulative capital securities issued by SBI, Dubai
International Financial Centre (DIFC) branch. The terms and conditions of the
capital securities incorporate Basel III-compliant non-viability language in
accordance with Reserve Bank of India (RBI) guidelines, and will qualify as AT1
capital securities. The securities are issued under SBI's $10 billion Medium
Term Note (MTN) programme, via the bank's DIFC branch. According to Moody's the
other recent measures like capital infusion by the Indian government and issue
of securities will boost SBI's loss absorbing capacity and help in managing its
bad loans. The bond market is likely to see more growth in the country with
reduced bullish trends in the equity markets.
The board of
Reliance Capital, part of the Anil Ambani-led group, on Tuesday approved a
proposal to independently list its home finance business on the stock
exchanges. The independent listing of Reliance Home Finance is expected to
unlock substantial value for existing shareholders of Reliance Capital, the
company said in a statement. "The listing of Reliance Home Finance will
also lead to increased management focus and accelerated growth in the home
finance business," it added. "To address the needs of this sector,
Reliance Home Finance has charted an aggressive growth plan in this space, and
aims to increase its book size to over Rs50,000 crore in the next few
years," said Anmol A Ambani, Director, Reliance Capital. According to the
proposal, 49% stake in Reliance Home Finance will be allotted to all
shareholders of Reliance Capital, in the ratio of one share free of cost in
Reliance Home Finance for every one share held in Reliance Capital. Reliance
Capital shares closed at Rs578.85, up 8.69% on the BSE.
US median
household income saw the first annual increase in 2015 since the Great
Recession, said the US Census Bureau on Tuesday. The median household income
reached $56,516 in 2015, 5.2% higher than the level in 2014. "This is the
first annual increase in median household income since 2007, the year before
the most recent recession," it said in a statement. The data was 2.4 per
cent lower than the peak level of the median household income of $57,909 in
1999, the bureau said. The data shows the remarkable progress that American
families have made as the recovery continues to strengthen, said Jason Furman,
chairman of the Council of Economic Advisers under the White House. The bureau
also said the US poverty rate in 2015 fell to 13.5%, 1.2 percentage point lower
from 2014 and the people in poverty reduced to 43.1 million, 3.5 million lower
than 2014. This is one more indicator that US equity markets are likely to be
in a bullish trend in the current season. The Total Investment & Insurance Solutions
State-run
telecom company Mahanagar Telephone Nigam Ltd's (MTNL) net loss was slightly
lower for the April-June quarter at Rs718.02 crore, a regulatory filing said
here on Tuesday. The company posted a net loss of Rs734.24 crore during the
corresponding quarter in 2015-16. The total income of the company for the
April-June quarter was at Rs744.72 crore, which is slightly less than Rs780.12
crore clocked during the same period a year ago. MTNL shares closed at Rs20.65,
down 2.82% on the BSE.
The top
gainers and top losers of the major indices are given in the table below:The Total Investment & Insurance
Solutions
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| Top Gainer (The Total Investment & Insurance Solutions) |
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