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21
May 2018
The major indices of the Indian stock markets suffered a correction on Monday and closed with losses over Friday’s close. On the NSE, there were 367 advances, 1,384 declines and 308 unchanged. The trends of the major indices in the course of Monday’s trading are given in the table below:
The key Indian equity indices traded in the red zone on Monday due to weak global factors, including rising crude oil prices. According to market analysts, selling pressure was witnessed in the consumer durables, auto and healthcare stocks.
Formation of a non-BJP government in Karnataka, along with weakness in global indices and rising crude oil prices, pulled the key Indian equity indices to close in the negative territory for the fifth consecutive session on Monday.
Moody's Investors Service has downgraded the local and foreign currency deposit rating of multi-crore fraud hit Punjab National Bank (PNB) to Ba1/NP from Baa3/P-3, a statement said here on Monday. At the same time, Moody's has downgraded the bank's baseline credit assessment (BCA) and Adjusted BCA to b1 from ba3. PNB shares closed at Rs77.90, up 4.91% on the NSE.
Even though oil is now considered less of an independent driver of business cycles than before, the State Bank of India (SBI) on Monday said the recent surge in crude oil prices is likely to impact the country's imports and stretch the ongoing fiscal's current account deficit (CAD) to 2.5% of GDP. Spiralling petrol prices touched fresh record levels in Delhi and Mumbai on Monday, at Rs76.57 and Rs84.40 per litre respectively.
Bangladesh has planned to issue floating rate bonds, the first of its kind in the country. This indicates the general increase in awareness among investors in the Indian sub-continent and could bring in greater investment inflows to India and its neighbours from foreign institutional investors.
The prospects of a non-BJP government in Karnataka, along with persistently high global crude oil prices are expected to further weaken the Indian rupee, say experts. "Developments in Karnataka is not going to have any lasting adverse impact on the rupee bit come Monday, but there is a risk of a knee-jerk sell-off in the INR against the USD," Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS. "Rupee continues to weaken against the US dollar as outflows continue across the emerging markets. However, high oil prices and political risk premium in a pre-election year is ensuring that the rupee remains as an underperformer in the EM basket. "Add to the high oil prices, and we have the risk of the INR heading towards 69 levels against the USD. For the next week, we can see a range of 67.60-68.50 on spot," added Banerjee. Last week, the Indian rupee weakened by 68 paise to close at 68.01 against the US dollar from its previous close of 67.33 per greenback. Lately, geo-political tensions in the Middle East and supply side constraints have led to a surge in global crude oil prices. The net result of this could, over a period of time, affect foreign institutional investors’ investment inflows to India.
New York stock exchange listed electrical solutions provider nVent Electric on Saturday announced the launch of its India operations as an independent, publicly traded company. An nVent statement said the company portfolio of electrical enclosures, electric heat tracing solutions, complete heat management systems, and electrical and fastening solutions "that connect and protect critical systems across the globe where the cost of failure is high." The company is not yet listed in the Indian stock exchanges.
State-run lender Bank of India (BOI) is expecting its business to grow 8%-10% in the current fiscal, an official said here on Saturday. The lender recovered Rs9,000 crore in the March quarter on account of its disbursement against standby letters of credit (SBLC) issued by other banks. "With the positive expectation on GDP (gross domestic product) growth and resolving of NCLT cases, we are expecting 8%-10% business growth this year," the lender's Managing Director and Chief Executive Officer Dinabandhu Mohapatra told reporters here. Under the prompt turnaround plan, the public sector bank would resort to a host of measures including claiming back the entire amounts disbursed against standby letters of credit (SBLC) issued by other banks. "We have already recovered Rs9,000 crore from that in the March quarter and around Rs500 crore is still outstanding. We are hopeful to recover this outstanding in this month," he said responding to query that how much the lender had recovered on account SBLC. Mohapatra said the banking industry would be benefitted as more resolutions coming through corporate insolvency resolution process. Bank of India shares closed at Rs97.40, up 4.23% on the NSE.
The US has put on hold its plan to impose sweeping tariffs on Chinese products as it presses forward with negotiations to reduce its trade deficit with Beijing, a top priority of President Donald Trump. US Treasury Secretary Steven Mnuchin said on Sunday that the two countries had made progress as they concluded three days of trade negotiations in Washington late last week. The planned tariffs on $150 billion worth of Chinese goods were off the table while the talks proceeded, he was cited as saying by the New York Times. "We are putting the trade war on hold," Mnuchin said in a "Fox News Sunday" television interview. He said they had agreed on a "framework" under which China would increase its purchases of US goods while putting in place "structural" changes to protect US technology and to make it easier for American companies to compete in China. While Trump administration officials said last week that China had agreed to increase its purchases of American products by $200 billion by 2020, Chinese officials had pushed back on that claim and the joint statement the two sides released lacked any such dollar figure. With improvements in the trade-war situation in US-China relations, the global indices might look up later in the week.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below:
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Major Indices (The Total Investment & Insurance Solutions)
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