Wednesday, 30 May 2018

Nifty, Sensex Moving in a Narrow Range – Wednesday closing report


I had mentioned in Tuesday’s closing report that Nifty, Sensex were under pressure again. The major indices of the Indian stock markets were range-bound on Wednesday and closed with small losses over Tuesday’s close. On the NSE, there were 743 advances, 983 declines and 324 unchanged. The trends of the major indices in the course of Wednesday’s trading are given in the table below:


Moody's Investors Service report on Wednesday has cut India's GDP growth forecast to 7.3% in 2018, from previous forecast of 7.5% due to higher oil prices and tighter financial conditions. "The Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration. We expect GDP growth of about 7.3% in 2018, down from our previous forecast of 7.5%," the report said. It, however, kept growth expectation for 2019 remains unchanged at 7.5%. 

Budget passenger carrier SpiceJet said that it will launch flight operations from Delhi to Kanpur under the air regional connectivity scheme UDAN from July 3. "Tickets for the RCS seats on this flight will be available at Rs2,313 (all in)," the company said in a statement. "With the introduction of the daily direct flight services on the Delhi-Kanpur-Delhi route, passengers from Kanpur can now conveniently travel to a host of other cities both on SpiceJet's domestic as well as international network via multiple onward connections from Delhi." The airline’s shares closed at Rs125.00, up 2.33% on the BSE.

Fortis Healthcare's (FHL) Board has decided to initiate a fresh round of bidding after the consortium of Hero Enterprise Investment Office-Burman Family Office gave its consent to reopen the bidding process. According to a BSE filing made on Tuesday, the Board in its meeting on Tuesday "has decided to initiate a fresh, time-bound process to optimise the company's and shareholders' short and long term interests".  "Further, based on the suitability of the offers evaluated earlier, the Board has decided to invite 3 of the bidders namely Munjal-Burman Consortium, TPG-Manipal Consortium, and IHH Healthcare Berhad to participate in the process, subject to their confirming adherence to the process... no later than 5 p.m. IST on 31st May 2018," the filing said.  As per the filing, other interested parties will be able to submit their Expression of Interest (EOI) till this time. The company’s shares closed at Rs145.70, up 1.22% on the NSE.

Mahindra and Mahindra reported a rise of more than 70% in its standalone net profit for the fourth quarter of 2017-18. According to the company, its standalone net profit during the quarter under review increased to Rs1,059 crore from Rs622 crore reported for the corresponding period of 2016-17. In terms of the financial year, M&M's net profit rose 19.57% in its standalone net profit to Rs4,356 crore from Rs3,643 crore earned during the previous fiscal. "The Board of Directors has recommended a post bonus dividend of Rs7.50 (150%) per share of face value Rs5 and will be paid to those shareholders whose names stand registered in the books of the company as on the book closure date," the company said in a statement. The company’s shares closed at Rs894.50, up 2.79% on the NSE.

Budget passenger carrier IndiGo said that it has decided to reintroduce fuel surcharge on the back of a sharp uptick in the price of Aviation Turbine Fuel (ATF).  The airline’s shares closed at Rs1,241.00, up 1.88% on the NSE.

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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