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7 December
2016
I had mentioned in Monday’s closing
report that Nifty, Sensex may head higher if Monday’s low holds. The major
indices of the Indian stock markets were range-bound on Wednesday and closed
with losses of 0.50%-0.60% over the previous close. NSE trading volumes were
also on the lower side. The trends of the major indices in the course of
Wednesday’s trading are given in the table below: The Total Investment
& Insurance Solutions
 |
Major Indices (The Total
Investment & Insurance Solutions)
Indian equity markets on Wednesday
fell sharply after the Reserve Bank of India decided to keep the key lending
rates unchanged in its bi-monthly monetary policy. The BSE market breadth was
tilted in favour of the bears -- with 1,522 declines and 1,086 advances. On the
NSE, there were 498 advances, 956 declines and 65 unchanged. In the initial
stages of trading, Indian equity markets surged on the back of increased hopes
of an easing of the monetary policy by the RBI, coupled with broadly positive
global cues and value buying. But the hopes were belied as the day’s trading
progressed.
The Total Investment & Insurance Solutions
The Monetary Policy Committee (MPC)
of the RBI during its second bi-monthly monetary policy review -- the fifth of
the fiscal kept the repurchase rate, or the short-term lending rate it charges
on borrowings by commercial banks, unchanged to 6.25%. The reverse repurchase
rate automatically remained unchanged at 5.75%. The government constituted the
new policy panel with the primary mandate of ensuring retail inflation of 4%,
plus or minus two percentage points. The panel said in a statement that
Wednesday's decision was consistent with an accommodative stance, with the
objective of achieving the inflation target. This was the most important factor
affecting the India stock markets on Wednesday. The Total Investment
& Insurance Solutions
RBI on Wednesday lowered the
country's growth forecast for 2016-17 to 7.1% from 7.6% during its fifth
bi-monthly monetary policy review. "The outlook for GVA (gross value
added) growth for 2016-17 has turned uncertain after the unexpected loss of
momentum by 50 basis points in Q2 and the effects of the withdrawal of SBNs
(specified bank notes) which are still playing out," the Monetary Policy
Committee of the RBI said in its monetary policy statement. The central
bank said that the downside risks in the near term could come through two major
channels -- short-run disruptions in economic activity in cash-intensive
sectors and aggregate demand compression associated with adverse wealth
effects.
Sun Pharmaceuticals shares were
punished in the Indian stock markets, after the drug maker confirmed that its
Halol facility had undergone an inspection by US Food and Drug Administration
(FDA) recently. “The inspection was completed on 01-December-2016. A Form-483
observation letter was issued by the US FDA post the inspection,” Sun Pharma
said on clarification of news report. 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
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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
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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