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30 June 2017
I had
mentioned in last week’s closing report that Nifty, Sensex might correct. The
major indices of the Indian stock markets were range-bound through the week and
closed with small losses on Friday over last Friday’s close. The trends of the
major indices in the course of the week’s trading are given in the table below: The Total Investment & Insurance
Solutions
 |
| Weekly Indices (The Total
Investment & Insurance Solutions) |
On
Monday, the stock exchanges were closed on account of Eid. The Indian equity
markets traded in the red during the post-afternoon session on Tuesday, as
caution ahead of the Goods and Services Tax (GST) launch and selling pressure
in banking, capital goods and automobile stocks subdued investors' sentiments. The Total Investment & Insurance
Solutions
Equity
benchmarks started off on a positive note. However, gains were ceded on the
back of profit booking and caution over GST implementation, pointed out market
analysts. Except for FMCG (fast moving consumer goods) and consumer
durables, all other sectors traded in the red with oil and gas, auto and metals
bearing most of the brunt. On the NSE, there were 302 advances, 1,179 declines
and 35 unchanged. The Total Investment
& Insurance Solutions
However,
with political stability in India, foreign institutional investors are likely
to bring investments to the Indian stock markets. The true recognition of political
stability came in the hug that President Donald Trump gave Prime Minister Modi
in Washington D.C. The dialogue between the two countries in Washington D.C.
was meaningful. The long term trend for the Indian stock markets is clearly
bullish.
With the
country's biggest indirect tax reform -- Goods and Services Tax (GST) -- just
around the corner and derivatives expiry a day away, the Indian equity markets
were pulled lower on Wednesday. Besides, investors' sentiments were dampened by
negative global cues, weak rupee and selling pressure in consumer durables, oil
and gas, and FMCG (fast moving consumer goods) stocks. On the NSE, there were
721 advances, 696 declines and 59 unchanged. The BSE market breadth was bearish
-- with 1,331 declines and 1,287 advances. The Total Investment & Insurance Solutions
State
run lender Allahabad Bank is looking to achieve a business growth of 12.23% in
the current financial year and is also planning to raise capital up to Rs2,000
crore, a top official said here on Wednesday. "The bank is looking to
achieve a year-on-year business growth of 12.23 per cent and reach a level of
Rs4.05 lakh crore by the end of FY 18 (2017-18). We are looking at a growth of
13.45 per cent and 10.68% in deposits and credit respectively," Allahabad
Bank's MD and CEO Usha Ananthasubramanian said while addressing the
shareholders of the bank at the 15th Annual General Meeting (AGM) here. She
said the bank would primarily focus on building up low cost deposits or CASA
deposits and would continue to discourage reliance on high cost deposits. In
terms of capital adequacy, she said, "...the bank is fairly placed given
the business growth and the environment we are operating. But I would not say
we are very comfortable....we need to raise capital." At a special
business resolution, the bank has sought shareholders' nod in the AGM for
raising equity capital aggregating up to Rs2,000 crore through different modes
like QIP or FPO or Rights issue etc. The shares of the bank closed at Rs66.95,
down marginally on the BSE. The Total
Investment & Insurance Solutions
Lending
major SBI (State Bank of India) said it might have to make a little more
provisioning towards large NPAs (non-performing assets) accounts referred by
the RBI (Reserve Bank of India) for resolution and that this should not
"badly impact" earnings. According to State bank of India Chairman
Arundhati Bhattacharya, "pretty large provisions" have already been
made for these accounts. SBI shares closed at Rs276.40, down 1.07% on the BSE. The Total Investment & Insurance
Solutions
The key
Indian equity indices traded higher on Thursday morning following positive
global cues. According to market observers, positive global cues and healthy
buying in metal, FMCG (fast moving consumer goods) and capital goods stocks
aided the key indices to trade on a higher note. However, the major indices
fell towards the end of trading on account of profit booking, and the gains in
the earlier part of the day were not sustained. On the NSE, there were 952
advances, 452 declines and 61 unchanged. The trend of the market was bullish. The Total Investment & Insurance
Solutions
After
more than a decade-long journey, the biggest indirect tax reform since
Independence -- The Goods and Services Tax (GST) -- was finally set for a
midnight launch on Friday in Parliament's Central Hall in the presence of
President Pranab Mukherjee, Prime Minister Narendra Modi, Vice President Hamid
Ansari, Members of Parliament, state finance ministers and chief ministers.
Acknowledging the role of previous governments in readying the GST, the
government also invited former Prime Ministers Manmohan Singh and H.D. Deve
Gowda, though the Congress still appeared to be undecided over attending the
special midnight function in Parliament.
United
Bank of India was looking at a 12.8% growth in business to clock a figure of
Rs2.20 lakh crore in the current fiscal and the state-run lender is also
planning to raise up to Rs1,000 crore capital this year, an official said on
Thursday. "We are looking at a business of Rs2.20 lakh crore from the
current level of Rs1.95 lakh crore in the current financial year. The bank is
projecting a 10 per cent growth in advances and 8 per cent in deposits in
2017-18," United Bank of India MD and CEO Pawan Bajaj told shareholders
here at the 8th Annual General Meeting of the bank. The lender sought
shareholders' approval to raise up to Rs1,000 crore in tranches through
different modes. The shares of the bank closed at Rs19.00, up 0.75% on the NSE. The Total Investment & Insurance
Solutions
Just
ahead of the launch of the country's biggest indirect tax reform -- Goods and
Services Tax (GST) -- the Indian equity markets traded lower on Friday as
investors booked profits. The key equity indices trimmed some of their morning
losses to trade on a flat-to-negative note during the mid-afternoon session. By
the time the markets closed for trading, the range-bound major indices managed
to close with small gains over Thursday’s close. The global cues from Asian
markets were negative. So, the indices did not make much headway at close of
trading hours and the gains were around 0.20% over Thursday’s close. On the
NSE, there were 862 advances, 781 declines and 306 unchanged.The Total Investment & Insurance
Solutions
