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20
December 2018
I had
mentioned in Wednesday’s closing report that Nifty, Sensex were continuing to
head higher. The major indices of the Indian stock markets were range-bound on
Thursday and closed with minor losses over Wednesday’s close. On the NSE, there
were 829 advances, 883 declines and 350 unchanged. The trends of the major
indices in the course of Thursday’s trading are given in the table below: The Total Investment & Insurance
Solutions
In
line with global markets, BSE Sensex and Nifty50 traded lower on Thursday after
the US Federal Reserve raised its short-term interest rate. Metal and telecom
stocks witnessed selling pressure along with index pivotals finance and banking
stocks. Fed's decision to increase the short-term interest rate and its
indication for a milder path of future increase weakened the dollar which
supported the domestic currency, observed market analysts.
The
Indian rupee gained close to 40 paise after the Fed decision. It traded at
Rs70.09 against the US dollar after closing at 70.40 on Wednesday. Analysts
said the rupee may soon breach the 70 a dollar mark.
With
the failure of conciliation talks, about 10 lakh bankers in private and
government banks will go on strike on December 26 protesting against the merger
of Bank of Baroda, Dena Bank and Vijaya Bank, the All India Bank Employees
Association (AIBEA) said on Thursday.
India's
civil aviation regulator said that it has not found any safety concern with Jet
Airways due to the financial strain being faced by the airline. According to
the Directorate General of Civil Aviation (DGCA) chief B.S. Bhullar, the
regulator has been monitoring the airline for the past 4-5 months. The DGCA
sought the information under its CAR (Civil Aviation Requirement) which relates
to financial surveillance from safety perspective. Bhullar during a press
interaction here said the regulator sought broad-based information from Jet
Airways on its ability to maintain aircraft and schedule. The senior DGCA
official said the information was sought every 15 days. Jet Airways shares
closed at Rs252.35, up 2.66% on the BSE. The
Total Investment & Insurance Solutions
Automobile
major Maruti Suzuki is likely to log a 5% growth in wholesale sales during the
upcoming January-March quarter, said the company's Chairman R.C. Bhargava.
Bhargava, in a media interaction here said that the first quarter of the
calendar year 2019 would reverse the recent subdued trend.
"The
wholesale figures in the first quarter next year will rise again, not to double
digits, but to around 5%. It will reverse the trend which you had in the last
five-six months of low growth," he said. He noted that likely offloading
of stocks in December due to offers and incentives, would result in firm
wholesale demand in the March ending quarter. "Good response" for the
Ertiga also would pump sales, Bhargava told reporters. The Maruti head further
said that the company would launch a new car during the first quarter of 2019,
although he did not reveal any further details on it. The company’s shares
closed at Rs7,808.95, down 1.35% on the BSE. The Total Investment & Insurance Solutions
Indian
IT (information technology) bellwether Tata Consultancy Services (TCS) unveiled
a new private cloud in Canada to help enterprises move into the digital space.
"We are extending our cloud offerings to customers in Canada and
reinforcing the key role we play in their digital transformation," said
TCS global head for cloud infrastructure Satish Chandra Doreswamy in the
statement. TCS shares closed at Rs1,956.35, down 0.55% on the BSE.
US
stocks fell after the Federal Reserve raised its benchmark interest rate for
the fourth time this year. The Dow Jones Industrial Average on Wednesday
plunged 351.98 points, or 1.49%, to 23,323.66. The S&P 500 decreased 39.2
points, or 1.54%, to 2,506.96. The Nasdaq Composite Index was down 147.08
points, or 2.17%, to 6,636.83. All but one of the 30 components of the Dow
closed lower.
All
the 11 primary S&P 500 sectors closed lower, with consumer discretionary
and technology down 2.23% and 1.94%, respectively, leading the laggards. Of the
S&P 500 member stocks, 60% ended up in bear market territory on Wednesday
after the Federal Reserve announced its decision to raise short-term interest
rates by a quarter of a percentage point. "In view of realised and expected
labour market conditions and inflation, the (Federal Open Market) Committee
decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2
per cent," the Fed said in a statement after concluding a two-day policy
meeting. It marked the Fed's fourth rate hike this year and the ninth such move
since late 2015, as the central bank moves forward on the path of monetary
policy normalization.
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: The Total
Investment & Insurance Solutions
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Major Indices (The Total Investment
& Insurance Solutions)
