Nifty, Sensex Directionless – Weekly closing report-The Total Investment & Insurance Solutions

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18 January 2019

I had mentioned in last week’s closing report that Nifty, Sensex might be under pressure. The major indices of the Indian stock markets were range-bound during the week and closed with minor gains 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 major indices were range-bound on Monday and closed with small losses over Friday’s close. On the NSE, there were 660 advances, 1,081 declines and 344 unchanged. The Nifty50 on the National Stock Exchange also slumped and was around the 10,700-mark level during the afternoon session. Weakness in the Asian markets and depreciation in the Indian rupee dampened the domestic market sentiments, analysts said. 

The rupee was trading around 70.80 (1.32 p.m.) against the previous close of 70.49 per dollar. Except IT (information technology) and Teck (technology, media and entertainment) stocks, all the sectoral indices declined during the day, led by selling pressure in banking, capital goods and auto stocks.

Private lender Yes Bank has appointed former bureaucrat Brahm Dutt as its non-executive part-time Chairman till July 4, 2020. According to the company, Dutt has been on the Board of Yes Bank since July 2013 as an 'Independent Director', and has contributed to almost all the sub-committees of the Board during this period. He is currently the Chair of the 'Nomination and Remuneration Committee'. The company said the bank now has eight members on its Board which includes Rana Kapoor, T.S. Vijayan, Uttam Prakash Agarwal, Pratima Sheorey, Ajai Kumar, Subhash Kalia and Mukesh Sabharwal.

The market indices rallied on Tuesday and closed with gains over Monday’s close. On the NSE, there were 1,081 advances, 611 declines and 369 unchanged. Markets surged as lower inflation figures gave way to expectations of an ease in the monetary policy by the central bank. The Reserve Bank of India (RBI) is set to meet in February to decide on the policy rate. Lower fuel prices eased India's retail inflation in December to 2.19%, a 18-month low, from the annual rate of 2.33% in November, data showed after the markets closed on Monday. Except for the telecom counters on BSE, all the other sectors gained, led by IT (information technology), energy and oil and gas stocks.

Troubled Jet Airways' scrip shot up by more than 16% amidst reports that a rescue deal has been sealed between the cash-strapped airline and its partner, Etihad Airways. At present, UAE's Etihad Airways has a 24% stake in the beleaguered Jet Airways. 

Broadly negative global cues, especially owing to the political uncertainty in the UK, subdued the Indian equity market on Wednesday. Globally, investors reacted with caution after the incumbent British government lost the Brexit vote triggering a no-confidence motion. However, positive macro-trade data kept the benchmark Sensex and Nifty in the green for most part of the day's session. On the NSE, there were 828 advances, 861 declines and 374 unchanged.

Etihad offered to invest in Jet Airways at 50% discount of Jet’s 15 January closing price. Jet Airways has now gone through three consecutive quarters of over Rs 1,000 crore in losses. Earlier reports suggested the airline's lessors and MRO (maintenance, repair, overhaul) partners are losing patience over non-payment of dues. And its lenders are now wary of a Kingfisher-like situation after Jet Airways defaulted on loan repayments in December. Jet Airways owes over Rs 8,000 crore to SBI-led consortium and its account. As a part of restructuring, Etihad, which holds a 24% stake in the Naresh Goyal-led company, said it would invest in Jet only at a price of Rs150 apiece, which is nearly half of Tuesday's closing price of Rs294.40.  

Amid mixed global markets and the ongoing corporate earning session, Indian equities ended mixed on Thursday. Ahead of the release of quarterly results by index heavyweights, the Nifty ended above 10,900. According to market participants, investors were cautious ahead of the third quarter results by Reliance Industries and Hindustan Unilever, to be announced later in the day. 

Oil and gas and finance scrips led the gains on the Sensex. The index pivotal, banking stocks erased early losses to end flat while the healthcare stocks declined 0.90%. Stock-wise, Axis Bank, HCL, HDFC, TCS and Kotak Mahindra gained in the range of 1% to 2%.

Sun Pharma lost over 5% followed by Yes Bank which declined over 3%. State Bank of India, Bajaj Finance, Hindustan Unilever declined between 1% to 2%. Globally, markets traded on a mixed note amid political uncertainty in the UK over Brexit and the longest-ever partial shutdown of the US government. However, British Prime Minister Theresa May won a confidence vote in the House of Commons on Wednesday, averting any immediate risk of an early general election.

Mixed global cues, weakness in the Indian currency and selling in the healthcare and finance stocks dragged the key equity indices on Friday, with Sensex and Nifty ending flat with a positive bias. BSE Healthcare index tanked 2%, while telecom scrips also witnessed selling pressure, losing over 3%.

Non-banking finance company (NBFC) India Infoline Finance Ltd (IIFL Finance) will shortly open a bond's public issue on January 22 to raise up to Rs2,000 crore for funding business growth and expansion, its parent firm IIFL Holdings said on Friday. 

Telecom major Reliance Jio Infocomm reported a 65% increase in its standalone net profit for the October-December 2018 period. Its standalone net profit stood at Rs831 crore in the third quarter of the financial year 2018-19, against Rs504 crore reported in October-December 2017-18, the company said in a statement. Reliance Jio's operating revenue during the period under review stood at Rs10,383 crore, 50.9% higher than the Rs6,879 crore earned during the corresponding period of the last financial year. Its subscriber base as on December 31, 2018 was 280.01 million.The Total Investment & Insurance Solutions

Major Indices (The Total Investment & Insurance Solutions)