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8 May
2017
I had
mentioned in Friday’s closing report that Nifty, Sensex might give up some
gains. The major indices in the Indian stock markets were range-bound on Monday
and closed with minor gains over Friday’s close. The trends of the major
indices are given in the table below: The Total Investment & Insurance Solutions
 |
Major Indices (The Total
Investment & Insurance Solutions)
Positive
global cues, a strong rupee and healthy buying in banking, automobile and
consumer durables stocks lifted the Indian equity markets during the
mid-afternoon trade session on Monday. The BSE market breadth was bullish --
with 1,577 advances and 988 declines. The equity benchmark indices started off
the first day of the week on a firm note tracking positive global cues.
Appreciation of Indian rupee against the US dollar also supported the firmness.
Banking stocks resumed the firmness on strong buying support, pointed out
market analysts. Most IT (information technology) sector stocks traded with
firm sentiments, while aviation sector stocks extended previous session's gain
on strong buying support. On the NSE, there were 913 advances, 569 declines and
82 unchanged.
The
country's largest home loan provider State Bank of India (SBI) has announced
reduction in the home loan rates by 25 basis points (bps) from 8.60% to 8.35%
per annum, which will come into effect from Tuesday. "The largest home
loan provider in India has taken a giant leap to give a fillip to the
affordable housing. SBI has announced rate cut by 25 basis points to 8.35% per
annum. With this reduction, SBI's offering is the lowest in the market,"
the public lender said here in a statement on Monday. "The new rate will
be effective from May 9," the statement said. The effective interest rate
for all eligible salaried customers will be 8.35% per annum for loans up to
Rs30 lakh. Over and above, an eligible home loan customer can also avail of an
interest subsidy of Rs2.67 lakh under the Pradhan Mantri Awas Yojana scheme.
The interest rates for customers availing a home loan above Rs30 lakh have also
been reduced, it said. "To supplement the affordable housing push, SBI has
also come out with special offerings for construction finance to the builders
for affordable housing projects. This will give a dual push both for construction
finance and also for home finance for affordable homes," SBI said. SBI
shares closed at Rs298.65, up 0.91% on the BSE. The Total Investment & Insurance Solutions
Tata
Global Beverages on Monday said it proposes to launch a ready-to-drink
tea-based beverage, Tata Tea Fruski on May 10. It added that the product will
cater to the domestic market only. The company’s shares closed at Rs152.75, up
0.46% on the BSE.
Retail
and home financing offers better earning opportunity for banks as earnings for
corporate lenders are expected to be volatile, said investment banking firm
Jefferies. In its latest report on the recent initiative of the central
government and the Reserve Bank of India (RBI) for resolution of non-performing
loans (NPL) Jefferies said: "It seems, the Government will favour legal
workarounds and if required will introduce newer laws to remove road blocks.
While better, such steps are almost always long drawn." "We think
provision costs will remain elevated as haircuts will get baked in, especially
for corporate assets. As a result, earnings for corporate lenders are expected
to be volatile and possibly weak. Pure retail financing and home loan segment
offers the best earnings visibility, in our view." On May 5, the central
government introduced two new sections in the Banking Regulation Act. Bank
Nifty closed at 22,767.35, up 0.72% on the NSE.
Key
macro-economic data points coupled with ongoing fourth quarter results and
global cues are expected to affect the course of Indian equity markets during
the upcoming trade week, analysts said. In the near-term, investors will follow
global markets' sentiment and quarterly results, observed market analysts.
Price movement of the Indian rupee against the US dollar will be another
crucial factor for the equity markets next week. In the coming week, companies
like Hero MotoCorp, Airtel, Asian Paints, ABB India, Infratel, HCL Technologies
and Dr Reddy's Labs are expected to announce their quarterly results. Apart
from earnings' results, investors will be looking forward to the upcoming
macro-economic data points such as the full financial year deficit numbers,
monthly industrial output and inflation figures. Starting from Monday, the
Controller General of Accounts (CGA) will disclose India's fiscal deficit for
the April-March 2016-17 financial year. The deficit figures will be
followed by the release during the week of macro-economic data points -- the
Index of Industrial Production (IIP) and Consumer Price Index (CPI). Besides,
global political and economic indicators like the results of the French presidential
elections and cues on the next US interest rate hike will influence investors'
sentiments, point out market analysts.
The
management of Jammu and Kashmir Bank on Saturday denied media reports about
closure of some of its branches in south Kashmir's Pulwama and Shopian
districts. Reacting to media reports that 40 branches of the J&K Bank and
Ellaquai Dehati Bank had been closed following threats from militants, Sajad
Bazaz, in-charge corporate communications of J&K Bank said: "We deny
such reports. No branch has been closed in any district including Shopian and
Pulwama." Bazaz said that there was a security advisory that "we
should temporarily shift cash transactions from branches operating in some
vulnerable areas. Only cash transactions of such branches are being carried out
at other branches at the moment." Expressing hope, the communication
in-charge said "we are resuming cash transactions at these branches within
the coming seven days". Earlier reports had said these branches had been
temporarily closed after an advisory from the security forces. The bank’s
shares closed at Rs82.65, up 0.61% on the BSE.
German
auto component major Bosch Ltd on Monday resumed operations at its two
manufacturing plants near a polluted lake in Bengaluru after a two-day shut
down on the directive of the state pollution control watchdog. "We have
resumed operations at our Adugodi and Koramangala facilities in the city on
receiving clarification from the Karnataka State Pollution Control Board that
the provisions of its May 5 notice were not applicable to the plants
here," said the company's India arm in a statement. The company on
Saturday temporarily closed its twin plants located in the vicinity of the
910-acre polluted Bellandur lake in the city's south-east suburbs on the
Board's notice against it and other firms in its catchment areas. The Board
issued the notice on the April 19 order of the National Green Tribunal to shut
down all industries in the lake's vicinity for saving and restoring it.
Asserting that it had the highest standards to protect the environment, Bosch
said it was confident of operating the plants within the prescribed norms.
Bosch’s shares closed at 23,300, up 0.15% on the BSE.
The
top gainers and top losers of the major indices in the Indian stock markets 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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