Nifty, Sensex are still on course to head higher – Tuesday closing
report 21St June 2016
Contact Your Financial
Adviser MONEY MAKING MC
I had mentioned in
Monday’s closing report that Nifty, Sensex were headed higher. The major
indices of the Indian stock markets were range-bound on Tuesday and closed with
small losses over Monday’s close. The trends of the major indices in the course
of Tuesday’s trading are given in the table below:
With two more days to go
for the crucial referendum on Britain's continuance in the European Union,
speculation over its exit (Brexit) is making the global economy nervous and the
unfolding situation is being closely watched, a top World Bank official has said.
“It’s clear that the discussion around Brexit is one of several factors that is
contributing to uncertainty in the global economy,” Ayhan Kose, director of the
World Bank Group’s Development Prospects Group, told IANS in an e-mail
interview. Kose, however, did not comment on queries over Brexit's possible
impact on India. He said the event was being closely watched by the World Bank,
though it does not want to speculate on the outcome. The referendum is slated
for June 23. The United Kingdom represents more than 15% of European Union’s
GDP (gross domestic product), 25% of its financial services activity, and 30%
of its stock market capitalisation. The European Union, in turn, is a key
export market and source of foreign direct investment for many emerging market
and developing economies. Financial market volatility around a decision to
leave the European Union could lead to heightened global risk aversion,
hampering already weak capital flows to emerging market and developing
economies, a report said.
With increasing concern
over foreign institutional investors continuing to invest in emerging markets,
US President Barack Obama said on Monday that investing in the US is the
"best business decision" possible because this is a country of "making
and tinkering, and entrepreneurship and risk-taking, and of innovation and
invention". "Investing in the United States is the best business
decision you can make," he told more than 2,000 business owners and
executives meeting at the Washington Hilton for the SelectUSA Investment
Summit. Obama noted that the US is responsible for one-quarter of global
investment in research and development, and that no other country receives more
direct foreign investment. Energy costs are among the lowest, and "no
country has as many top universities, and no country invests more in research
and development than we do," Obama said. He acknowledged, however, that
advances in technology and the process of globalisation are legitimate concerns
for some workers.
In anticipation of stable
interest rates in the Indian economy, interest rates for various small savings
schemes have been kept unchanged for the July-October quarter of current
fiscal, the government announced on Monday. A finance ministry statement here
said that the interest rate on one-year deposits for the July-October quarter
of 2016-17 has been kept unchanged at 7.1%. Similarly, the interest rates on
two-year, three-year and five-year time deposits have been retained at 7.2%,
7.4% and 7.9% respectively. Besides, the interest rates on Public Provident
Fund (PPF), the Kisan Vikas Patra scheme and the Sukanya Samriddhi Account
Scheme were kept at 8.1%, 7.8% and 8.6% respectively, the statement added. The
government had announced in February that small savings rates will be set
quarterly to align them with the market rate of government securities.
Selling pressure was
there among bank stocks in Tuesday’s trading. Axis Bank closed at Rs517.45,
down 1.37%; Bank of Baroda closed at Rs149.95, down 1.28%; and IndusInd Bank
closed at Rs1,090.90, down 1.07% on the BSE. Other losers among banks were
Federal Bank (-0.88%), State Bank of India (-0.88%), Kotak Bank (-0.81%), HDFC
Bank (-0.59%), Yes Bank (-0.43%) and ICICI Bank (-0.02%) on the BSE.
The top gainers and top
losers of the major indices are given in the table below:
