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24
May 2017
I had
mentioned in Tuesday’s closing report that Nifty, Sensex were in a minor
downtrend. The major indices of the Indian stock markets were range-bound on
Wednesday and closed with minor losses over Tuesday’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
 |
| Major Indices (The Total Investment & Insurance Solutions) |
The
Indian equity markets traded on a flat-to-negative note during the
mid-afternoon trade session on Wednesday on the back of mixed global cues,
skirmishes on the Indo-Pak border. Heavy selling pressure was seen in metal,
healthcare and capital goods stocks. Besides, a flat rupee, coupled with
caution ahead of derivatives expiry, capped gains. On the NSE, on Wednesday,
there were 277 advances, 1,231 declines and 52 unchanged. On the BSE, on
Wednesday, there were 685 advances, 2,037 declines and 147 unchanged. Overall,
the market was bearish but there was resistance to a sell-off and falling
indices. Oil-gas and aviation sector stocks were firm. Banking stocks traded
with mixed sentiments on short covering, observed market analysts. The Total Investment & Insurance Solutions
China
has received a downgrade on its credit rating, on worries about the future
state of its economy from credit rating agency Moody's. Moody's brought down
China's long-term local currency and foreign currency issuer ratings by one
notch to A1 from Aa3. It also changed its outlook to stable from negative.
Moody's said China's economy-wide debt levels were expected to increase further
in the years ahead, with reforms only likely to slow the growth rate, a CNBC
report added. The credit rating agency estimated the Chinese government debt
burden to rise toward 40% of its GDP by 2018. With slowing GDP growth, the
Chinese stock markets are likely to be less bullish in the medium term.
Software
major Infosys Ltd has joined the Enterprise Ethereum Alliance for using
Blockchain database across verticals, said the IT firm on Wednesday. "The
alliance connects Fortune 500 enterprises, start-ups, academics and technology
vendors with Ethereum, a decentralised platform that runs smart
contracts," said the city-based company in a statement. Applications on
the Ethereum platform run as programmed without downtime, censorship, fraud or
third party interference. "The alliance will enable us to adopt Blockchain
in enterprises across industries, including insurance, pharma, retail, energy, utilities
and services sectors," said the company. As a distributed database,
Blockchain maintains records in the form of blocks, which are secured from
tampering and revision. Each block contains a timestamp and a link to a
previous block.
The
India-Pakistan dispute over Kashmir is a matter of concern, and the
China-Pakistan Economic Corridor may create further tension between the two
countries and ignite political instability in the South Asia region, a UN
report has said. The report released by the UN's Economic and Social Commission
for Asia and the Pacific (Escap) on Tuesday said instability in Afghanistan
could limit the potential benefits of transit corridors to population centres
near Kabul or Kandahar, Dawn online reported. This is one more input to analysts
who have been closely watching the deteriorating India-Pakistan relations and
its impact on the Indian stock markets. A bad relationship could imply a sharp
correction in the major indices in the Indian stock markets. The Total Investment & Insurance Solutions
Reliance
Infrastructure (RInfra) on Wednesday said that RInfra InvIT has received the
final approval from securities market regulator SEBI to float its Rs2,500 crore
plus Initial Public Offering (IPO). Sources told IANS that the proposed IPO is
expected to be launched in two weeks' time. "RInfra InvIT has received the
final observation letter from SEBI for its proposed IPO of units representing
an undivided beneficial interest in the Trust. The proposed issue size is
Rs25,000 million with an option to retain over subscription up to 25% of the
issue size," the company said in a statement. Reliance Infrastructure’s
shares closed at Rs493.55, down 6.46% on the BSE. The Total Investment & Insurance Solutions
The
central government's ambitious crop insurance scheme for farmers -- Pradhan
Mantri Fasal Bima Yojana -- has put pressure on states even though it succeeded
in expanding the farm insurance coverage 50% in a year since its launch. A
senior Agriculture Ministry official said some of the states have complained
they have ended up paying up to half of their budgetary allocations for
agriculture sector for premiums to insurance companies, creating a pressure on
the coffers and existing infrastructure. Under PMFBY, launched in January 2016,
farmers have to pay just 2% of the sum insured for Kharif crops, 1.5% for Rabi
crops and 5% for horticulture and commercial crops, while the central and state
government pay the remaining amount equally. "Last year, about 20%
of farmers in the country had opted for crop insurance. However, PMFBY has led
to the coverage to increase to 30%. The Centre paid Rs13,500 this year. As
states have to share 50% of government share, they had to divert major share of
agriculture funds to pay premium for PMFBY," said the official, requesting
anonymity. Also, India stood eighth till last year in terms of volume of crop
insurance. However, the country jumped to third position after PMFBY. These
measures could again increase aggregate demand in the Indian economy from the
greater purchasing power of farmers, and the Indian stock markets could be
selectively bullish in the medium term. The
Total Investment & Insurance Solutions
The
top gainers and top losers of the major indices are given in the table below:
 |
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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