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21
November 2016
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Major Indices (The Total
Investment & Insurance Solutions)
I had
mentioned in the previous week’s closing report that Nifty and Sensex may
continue to remain under pressure. The Indian equity markets plunged to their
lowest levels in the last six months on Monday with the benchmark Sensex
receding below the 26,000-point mark and the NSE Nifty crashing below the 8,000
level. The Total Investment &
Insurance Solutions
Last week on Friday, the indices
started declining from the open, made a small upward move around 1.20pm but
after they again lost the strength. It closed 2%-3% over Thursday’s
close.
The major indices of the Indian stock
markets ended flat on Wednesday. The
Total Investment & Insurance Solutions
Market observers pointed out that
heightened chances of a US rate hike and fears over domestic economic
contraction due to the government's demonetisation move spooked investors.
Besides, political bickering over
the demonetisation move, depreciation in rupee, continuous outflow of foreign
funds and impasse between the central and state governments on the contours of
the Goods and Services Tax (GST) framework depressed the buying sentiments.
The 30-share BSE Sensex was down
386.41 points or 1.48% at 25763.83 and the 50-share NSE Nifty fell 137.70
points or 1.71% to 7936.40. The BSE Midcap index shed 2.65% and Smallcap tanked
3% as six shares declined for every share rising on the exchange. Bank Nifty
plunged 600 points as Bank of Baroda, PNB, Federal Bank, Canara Bank, Yes Bank,
SBI and IndusInd Bank were down 5-8%. Tata Group stocks like Tata Steel and
Tata Motors fell nearly 4%. Sensex struggled below 26000; PSU Bank tanked 5%,
BoB lost 8% .Bears kept complete control over Dalal Street in afternoon as
equity benchmarks as well as broader markets were down between 1% and 2% despite
mixed global cues. The Total Investment
& Insurance Solutions
The Sensex touched a high of 26,270.28
points and a low of 25,717.93 points during the intra-day trade. The BSE market
breadth was skewed in favour of the bears with 2,223 declines and 408 advances. The Total Investment & Insurance
Solutions
The global and domestic investors were
jittery on the prospects of a US rate hike which can potentially lead foreign
portfolio investors (FPI) and funds away from emerging markets such as India. The Total Investment & Insurance
Solutions
It will also dent the business margins
of corporate sector, as access to capital from the US will become more
expensive. The Total Investment &
Insurance Solutions
In terms of investments, provisional
data with exchanges showed that the FIIs sold stocks worth Rs1,310.82 crore,
whereas the domestic institutional investors (DIIs) purchased scrips worth
Rs1,211.01 crore. The Total Investment
& Insurance Solutions
Sector-wise, all 19 sub-indices of
the BSE ended in the red.
European markets opened higher as
dollar strength took a breather and oil prices jumped. Basic resources were
outperforming their peers, rising more than 1%.
Gold crawled higher in Asian trade
on Monday, snapping a 3-session losing streak, helped by physical buying after
the metal slid to a 5.5 month low on Friday. Bullion has also been pressured by
talk of an interest rate hike in December by the Federal Reserve.
Bringing some relief for banks and
non-banking finance companies (NBFCs) from demonetisation, the Reserve Bank has
relaxed certain asset classification and provisioning norms in certain cases.
Consequent on withdrawal of Rs500 and Rs1,000 notes small borrowers may need
some more time to repay their loan dues. Taking these representations into
consideration, RBI has decided to allow banks 60 more days for recognition of
loans as standard in certain cases. The revised norm is applicable for loans
payable between November 1 and December 31. Small borrowers who have been
unable to pay back loans will be given additional two months to pay back dues
to banks. This is for loans sanctioned by banks to NBFCs, HFCs and PACs.
The extension is applicable to running working capital accounts with
sanctioned limit of under Rs1 crore and also, on term loans of under Rs1 crore
including agriculture and housing loans.
The top gainers and top losers of
the major indices are given 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 Indices (The Total Investment & Insurance Solutions) |
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