Contact Your Financial Adviser Money Making MC
22
February 2019
I had
mentioned in last week’s closing report that Nifty, Sensex might try to rally.
The major indices of the Indian stock markets rallied during the week and
closed on Friday with losses 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:
On
Monday, The major indices of the Indian stock markets suffered a correction on
Monday. On the NSE, there were 575 advances, 1,145 declines and 359 unchanged.
Sensex and Nifty declined after opening on a flat note on Monday led by
selling in auto, IT (information technology) and FMCG (fast moving consumer
goods) stocks. On Friday, foreign institutional investors (FIIs) sold shares to
the tune of Rs966.43 crore, while the domestic institutional investors (DIIs)
bought Rs853.25 crore worth of scrips.
In
a setback to Vedanta, the Supreme Court refused to order the re-opening of its
Sterlite Copper Smelting plant located in Tamil Nadu as it set aside the
National Green Tribunal's (NGT) December 15 order on the grounds of
jurisdiction. Setting aside the NGT order on maintainability, a bench of
Justice Rohinton Fali Nariman and Justice Vineet Saran asked Vedanta to
approach the High Court and since the Thoothukudi plant has been locked up for
quite some time, they could urge the High Court Chief Justice for an
expeditious hearing and interim relief.
On
Tuesday, the major indices of the Indian stock markets were range-bound on
Tuesday and closed with losses over Monday’s close. On the NSE, there were 992
advances, 705 declines and 366 unchanged. Sensex advanced a few points, as it
opened higher with key banking and finance sectors gaining. All the sectors on
the NSE traded in green, as well, except for IT (information technology),
Pharma and Media stocks as the Indian rupee slid against the US dollar on
Tuesday. On Monday, foreign institutional investors (FIIs) were net sellers and
the domestic institutional investors (DIIs) were net buyers.
The
government decided to give a push to its strategic disinvestment plan within
the current fiscal year itself by clearing sale of 100% stake in three special
steel producing units of Steel Authority of India Ltd. (SAIL), including Salem
Steel and Alloy Steel Plant. Massive turbulence continued to hit the Indian
airline sector as even the formidable passenger carrier IndiGo now faces
headwinds of pilot shortage leading to a truncated flight schedule and consequently
a dive in its stock price.
The
major indices of the Indian stock markets rallied on Wednesday and closed with
gains over Tuesday’s close. On the NSE, there were 1,117 advances, 674 declines
and 103 unchanged. A slight ease in crude oil prices along with value buying
aided the benchmark Sensex to snap its longest consecutive sessions fall in the
last eight years on Wednesday. Accordingly, the benchmark index closed with
handsome gains of over 400 points while the Nifty50 jumped past the 10,700 mark
after struggling in the past sessions.
The
Supreme Court on Wednesday directed Reliance Communications to pay Rs453 crore
to Ericsson India within four weeks failing which its chairman will have to
undergo a three-month sentence. A bench of Justice Rohinton Fali Nariman and
Justice Vineet Saran directed the court's Registry to give Ericsson Rs118 crore
that were earlier deposited by RCOM. The court said that the entire amount that
RCOM has to pay to Ericsson is Rs550 crore plus the interest that was generated.
The
court also imposed a fine of Rs1 crore each on RCOM, Reliance Telecommunication
and Reliance Infratel that would be deposited with the Supreme Court Legal
Services Committee (SCLSC).
The
major indices of the Indian stock markets rallied on Thursday and closed with
gains over Wednesday’s close. On the NSE, there were 1,218 advances, 568
declines and 94 unchanged. The Finance Ministry had announced capital infusion
of Rs 48,239 crore in the 12 public sector banks on Wednesday, following which
PSU Bank Nifty index surged up to 1.6% in today’s trading session. During
afternoon, Central Bank of India traded over 7% higher while Union Bank and
Punjab National Bank (PNB) surged 4%. Corporation Bank, the biggest recipient
of the infusion, gained close to 20%.
The
Employees' Provident Fund Organisation (EPFO) board recommended an interest
rate of 8.65% for 2018-19, 10 basis points higher over the previous fiscal. In
the financial year 2017-18, the interest rate was 8.55%. This is the first time
since 2015-16 that the interest rate has been raised. The Anil Ambani-led
Reliance Group's financial services flagship company Reliance Capital on
Thursday said it invited its partner Nippon Life Insurance Company to make an
open offer for its 42.88% stake in Reliance Nippon Life Asset Management Ltd
(RNAM). It is said Reliance Capital can realise about Rs 7,000 crore out of
this deal and it would be used to reduce its debt, industry sources said.
The
major indices of the Indian stock markets opened lower on Friday over
Thursday’s close and closed flat. On the NSE, there were 1,168 advances, 559
declines and 337 unchanged. High crude oil prices and fears of a rise in core
inflation subdued the key Indian equity indices on Friday. According to market
observes crude oil at $67 per barrel and caution over a likely rise in core
inflation pointed out in the Reserve Bank of India (RBI)'s latest minutes of
the monetary policy committee meet kept investors away.
Government
think tank Niti Aayog Vice Chairman Rajiv Kumar on Friday said banks are in a
position to pass on interest rate cut benefits to the consumers and the
industry. The Reserve Bank of India (RBI) had on February 7 announced a repo
rate cut of 25 basis points, and so far State Bank of India (SBI) is the only
bank to have followed it with a small rate cut of 5 basis points. "Credit
growth has perked up and will increase further, so banks are in a position to
pass on the benefits of a rate cut," Kumar said at an event. He said the
government had to struggle through NPAs in the banking sector.
Ratings
agency India Ratings and Research (Ind-Ra) has maintained a stable outlook on
the auto sector, anticipating improving sales in the sector during the next
fiscal over expectations of better liquidity in non-bank financial companies.
The 'stable' outlook comes despite subdued sales numbers in the last couple of
months. Society of Indian Automobile Manufacturers (SIAM) data suggested a
slowdown in the sales of passenger vehicles in the domestic market which declined
by 1.87 per cent on a year-on-year basis in January. The comparable figure for
December stood at 0.43 per cent.
The
rating firm sees an improvement in the liquidity situation of non-bank
financial companies, thus it is likely to reflect in the funding availability.
However, the growth rate is likely to be moderate, it added. Apart from
improved finance availability, increased construction activities and industrial
activities will continue to favour CV demand. The agency further said that
credit ratings of most of the large players in its sample are set to be
unaffected in 2019-20 despite capital expenditure plans in view of the ongoing
regulatory changes, development of an electric vehicle platform and continued
new product launches.The Total Investment
& Insurance Solutions
 |
Weekly Indices (The Total
Investment & Insurance Solutions)
No comments:
Post a Comment