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August 2017
I had
mentioned in Monday’s closing report that Nifty, Sensex have continued to trend
higher. The major indices of the Indian stock markets closed with gains over
Monday’s close. The trends of the major indices in the course of the day’s
trading are given in the table below:
 |
Major Indices (The Total
Investment & Insurance Solutions)
Indian
equity markets traded on a flat-to-positive note during the late-morning trade
session on Tuesday. According to market analysts, profit bookings capped gains
after the key Indian equity indices -- NSE Nifty and BSE Sensex -- rose on
expectations of a monetary policy easing and broadly positive global cues.
Besides, healthy quarterly results released on Monday had also enhanced
investors risk taking appetite during the initial phase of the day's trade. On
the NSE, there were 498 advances, 871 declines and 65 unchanged.
With
latest macro-economic data showing inflation at a record low and fall in
factory output, the Reserve Bank of India (RBI) is expected to reduce its repo,
or short term lending rate, at its monetary policy review on Wednesday. At its
second bi-monthly monetary policy review of the fiscal on June 7, the RBI
maintained status quo on its short-term rate for lending to commercial banks,
at 6.25%. In doing so, the policy statement said the six-member Monetary Policy
Committee (MPC) was guided by the risks to inflation. Retail inflation in India
during June dropped to a record low of 1.54%, while industrial production data
showed that the growth in factory production fell to 1.7% in May, from 8% in
the same month a year ago. Industry chamber Assocham on Sunday urged the apex bank
to cut interest rates in view of the latest macro data. "Citing inflation
at a five-year low and deceleration in the factory output, the Assocham has
written to RBI Governor Urjit Patel, making out a strong case for at least 25
basis point cut in the policy interest rate when the RBI Monetary Policy
Committee meets on August 2," an Associated Chambers of Commerce and
Industry of India statement said here. "The wholesale price index (WPI)
also eased to 0.9% from 2.17%. The case for rate-cut is additionally
strengthened by easing of food inflation to (minus)2.12% from 0.31%. Good
monsoon forecasts for the current financial year have additionally created a
stance for further reduction in the food inflation," Assocham said. These
developments are likely to extend to a long-term bullish stock market in India. The Total Investment & Insurance Solutions
Automobile
major Tata Motors on Tuesday reported a rise of 7% in its passenger and
commercial vehicle sales, including exports, for July 2017. According to the
company, the total sales of its passenger and commercial vehicle increased to
46,216 units from 43,160 vehicles sold in July 2016. Tata Motors' domestic
sales of Tata commercial and passenger vehicles for July 2017 were higher by
13% at 42,775 units from 37,789 units sold during the corresponding month of
last year. "The overall commercial vehicles sales in July 2017, in the
domestic market were at 27,842 nos., higher by 15% over July 2016, due to
ramp-up of BS4 production, across segments," the company said in a
statement. "The company also passed on the benefits of GST to
consumers by reducing the prices of its vehicles across all commercial vehicle
segments." Tata Motors shares closed at Rs446.90, up 0.54% on the BSE.
Commercial
vehicles major Ashok Leyland Ltd on Tuesday said it closed last month with 14%
growth in its sales volumes. In a statement here, the company said it sold
11,981 units last month -- up from 10,492 units sold in July 2016. However, the
company this fiscal, till last month, sold 40,479 units -- down from 41,657
units sold during the comparable period of last fiscal. Ashok Leyland shares
closed at Rs111.05, up 1.42% on the NSE.
India's
manufacturing sector's output declined last month due to the launch of the
Goods and Services Tax (GST) along with weak demand, a key macro-economic data
showed on Tuesday. The Nikkei India Manufacturing Purchasing Managers' Index
(PMI), which is a composite indicator of manufacturing performance, stood at
47.9 in July from the index reading of 50.9 in June 2017. An index reading of
above 50 indicates an overall increase in economic activity, and below 50 an
overall decrease. As per the figures, the Nikkei India Manufacturing PMI was at
its lowest mark in July since February 2009 and highlighted the first
deterioration in business conditions in 2017 so far. Some of the manufacturing
companies’ shares are likely to be on a bearish trend 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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