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4
September 2017
I had
mentioned in Friday’s closing report that Nifty, Sensex might continue to rise
haltingly. The major indices of the Indian stock markets suffered a correction
on Monday and closed with losses over Friday’s close. The trends of the major
indices in the course of Monday’s trading are given in the table below: The Total Investment & Insurance
Solutions
 |
Major Indices (The Total
Investment & Insurance Solutions)
Negative
Asian markets on the back of escalating geo-political tensions and heavy
selling pressure in banking and auto stocks dragged key Indian equity indices
-- the NSE Nifty50 and the BSE Sensex -- lower by almost one per cent each
during the mid-afternoon trade session on Monday. On the NSE, there were 445 advances,
925 declines and 41 unchanged.
Indian
equity benchmark indices edged lower in opening deals led by losses in pharma
heavyweights Lupin, Sun Pharma and Dr Reddy's Labs, observed market analysts.
Markets are back in the grip of a bear hug after North Korea's nuclear bomb
test on Sunday fanned the flames of geopolitical tensions. Stocks across Asia
tumbled as investors rushed to safe haven assets.
The
BRICS nations have called for a global economic architecture reflective of the
present landscape giving more representation to the emerging markets and
developing countries. The declaration adopted at the ninth BRICS summit here
emphasised the importance of an open and resilient financial system for
sustainable growth and development. "We resolve to foster a global
economic governance architecture that is more effective and reflective of the
current global economic landscape, increasing the voice and representation of
emerging markets and developing economies," it said. The BRICS
reaffirmed their commitment to conclude the International Monetary Fund's (IMF)
15th General Review of Quotas, including a new quota formula, by the 2019
Spring Meetings and no later than the 2019 annual meetings. "We will
continue to promote the implementation of the World Bank Group Shareholding
Review." The countries agreed to better leverage the benefits of capital
flows and manage the risks stemming from excessive cross-border capital flows
and fluctuation. If the BRICS summit policy decisions favour emerging markets
like the Indian stock markets, foreign institutional investors are likely to
channel greater fund flows to these markets. This would imply a long term bull
market in Indian stock markets.
The
slowdown of credit growth in India is not the fallout of state-run banks
attempting to resolve their massive non-performing assets (NPAs), or bad loans,
problems and pre-dates the recent efforts by banks to clean up their balance
sheets, former RBI Governor Raghuram Rajan has said. "Once again there
were a bunch of critics who claimed that cleaning up the bad loan problem was
what led to the slowing of credit by the public sector banks," Rajan
writes in his forthcoming book "I Do What I Do: On Reforms, Rhetoric and
Resolve" that is due to be released next week. "In a speech in June
2016 in Bengaluru, I made the case for the clean-up once again by asking these
critics to actually look at data, which showed the slowdown started before the
clean-up, probably as banks became aware of the magnitude of the problem,"
he said. Rajan describes how the Reserve Bank of India's (RBI) repeated
attempts to seek a resolution of stressed assets issue met with tepid response
from bankers. "As we found banks reluctant to recognize problems, we
decided not just to end forbearance but also to force them to clean up their
balance sheets. The Asset Quality Review, initiated in 2015, was the first
major exercise of this nature in India," he writes. Subdued inflation and
demand prompted the RBI last month to reduce its key lending rate, for the first
time since October 2016, by 25 basis points to 6%, which, however, failed to
lift business sentiments. The S & P BSE Bankex closed at 27,410.03, down
0.78%
on
the BSE.
A
court here on Monday granted bail to former parliamentarian Naveen Jindal and others
in connection with alleged irregularities pertaining to the Urtan North coal
block in Madhya Pradesh. Special Judge Bharat Parashar granted bail to Jindal
and others asking them to furnish a personal bond of Rs one lakh and surety of
like amount. The Central Bureau of Investigation (CBI) on May 23, filed another
chargesheet against Jindal and five others in connection with the alleged
irregularities pertaining to the coal block. The accused appeared before the
court in pursuance of summons issued against them. The four other individuals
accused are JSPL's advisor Anand Goel, Executive Director of raw materials,
D.N. Abrol, the then Executive Vice Chairman and CEO Vikrant Gujaral, former
Director (Finance) Sushil Maroo. The company, Jindal Steel and Power Ltd
(JSPL), was also chargesheeted. It was represented by an authorised
representative. Jindal Steel Power shares closed at Rs139.70, down 2% on the
BSE.
Power
major NTPC reported a growth of 12.55% in generation for August 2017 over the
corresponding period last year. "The total generation for the month was
22.347 billion units as against 19.855 billion units," the company said in
a statement. "The PLF (plant load factor) increased by 5.58% over the
corresponding period last year. Koldam Hydro Electric Power Project generated
electricity at its peak capacity during this period." According to the
company, in line with the government's thrust on renewable energy its solar
stations generated 455 million units from 870 mw capacity. NTPC shares closed
at Rs167.90, down 0.15% on the BSE.
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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