by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The key Indian equity indices, which touched fresh highs intra-day on Wednesday, slipped into the negative territory during the last hour of trade as investors booked profits ahead of derivatives expiry on Thursday.
According to market observers, a depreciating rupee and rising crude oil prices added to the subdued sentiments.
The barometer 30-scrip Sensitive Index (Sensex), which rose over 100 points during the trade session, fell to close below the 34,000-level — which was crossed for the first time on Tuesday.
On Wednesday, the Sensex closed trade at 33,911.81 points — down 98.80 points or 0.29 per cent from its previous close — after it touched a fresh high of 34,137.97 points on an intra-day basis.
The BSE market breadth turned bearish as 1,554 stocks declined as compared to 1,204 advances.
On the National Stock Exchange (NSE), the wider Nifty50 fell by 40.75 points or 0.39 per cent to close at 10,490.75 points.
The Nifty50 scaled a fresh intra-day high of 10,552.40 points.
“Markets corrected on Wednesday after two sessions of positive closings. Selling emerged in the last one hour of trade after the Nifty was in positive territory for a major part of the day,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“The Sensex, too, closed below the psychological 34,000-mark. Sectorally, the top gainers were the pharma, media and IT indices, while the top losers were the Bank Nifty, PSU banks, realty and auto indices,” he added.
In terms of the broader markets, the S&P BSE mid-cap index closed lower by 0.19 per cent and the small-cap index by 0.33 per cent.
Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 172.32 crore while domestic institutional investors sold stocks worth Rs 206.68 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Domestic indices failed to sustain near all-time highs as depreciating rupee and surge in oil prices influenced investors to book profits and pushed the market to a negative note.”
“Stock-specific news on pharma has influenced investors to focus on the sector which is currently available at low valuation,” he added.
On the currency front, the Indian rupee weakened by seven paise to close at 64.15 against the US dollar from its previous close at 64.08.
Sectorwise, all the sub-indices of the BSE, except the healthcare index, closed in the red. The S&P BSE healthcare index rose by 267.20 points.
On the other hand, the S&P BSE banking index fell by 180.78 points, followed by capital goods index by 137.58 points and oil and gas index by 134.23 points.
Major Sensex gainers on Wednesday were: Sun Pharma, up 6.89 per cent at Rs 577.70; Dr. Reddy’s Lab, up 1.71 per cent at Rs 2,400.55; Mahindra and Mahindra, up 0.77 per cent at Rs 747; Wipro, up 0.69 per cent at Rs 305.35; and Hindustan Unilever, up 0.19 per cent at Rs 1,350.55.
Major Sensex losers were: Bharti Airtel, down 1.62 per cent at Rs 534; ICICI Bank, down 1.53 per cent at Rs 312.65; Larsen and Toubro, down 0.87 per cent at Rs 1,258.60; State Bank of India, down 0.85 per cent at Rs 314.15; and Tata Consultancy Services, down 0.82 per cent at Rs 2,621.05.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : The key Indian equity indices rode the bulls for the third consecutive week and scaled new peaks ahead of the extended Christmas weekend as sentiments were boosted by the Gujarat election results, along with global cues and infusion of funds by domestic institutional investors (DIIs).
In another development, the week ended on a cheery note for the domestic equity markets with BSE’s market capitalisation crossing Rs 150 lakh crore (over $2 trillion) for the first time.
On the last trading day of the week (December 22), the barometer 30-scrip Sensitive Index (Sensex) closed trade at a fresh level of 33,940.30 points. It soared 477.33 points or 1.42 per cent from its previous week’s close at 33,462.97 points.
The Sensex also touched a new intra-day high of 33,964.28 points.
On the same day, the wider Nifty50 of the National Stock Exchange (NSE) crossed the 10,500 mark for the first time on an intra-day basis to scale a new high of 10,501.10 points.
The index closed trade at a fresh high of 10,493 points, soaring 159.75 points or 1.55 per cent from its previous week’s close of 10,333.25 points.
“The week gone by saw the Nifty surging higher. It was the third consecutive week of gains for the Nifty,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Sectorally, the top gainers were realty, metal, auto and infrastructure indices. There were no losers,” he added.
On the currency front, the rupee closed almost flat at 64.05 against the US dollar from its last week’s close at 64.04.
“Indian equity benchmarks rose to record highs with the NSE Nifty50 index rising above 10,500 for the first time and the S&P BSE Sensex to a record high of 33,962 points. India’s stock market achieved a new milestone with BSE’s market capitalisation crossing Rs 150 lakh crore for the first time,” Arpit Jain, AVP at Arihant Capital Markets, told IANS.
“During the week, Gujarat election outcome cheered the market. Other developments included Finance Ministry forming a panel to frame policy on the bitcoin issue. However, FIIs (foreign institutional investors) remained net sellers during the week,” said Jain.
Provisional figures from the stock exchanges showed that FIIs sold scrips worth Rs 2,620.76 crore.
However, DIIs continued to pump in funds in the equities markets and invested funds worth Rs 3,526.21 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors sold equities worth Rs 4783.23 crore, or $746.34 million, from December 18-22.
On the global front, markets moved higher in the wake of solid US economic growth data and amid investor optimism following the recent passage of a $1.5 trillion tax cut plan in Washington, said D. K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors.
“Back at home, domestic market moved higher mirroring Asian optimism on fresh data that pointed to a steady revival in the US economy,” Aggarwal told IANS.
“Meanwhile, the Minutes of the December 6 policy meeting show that Reserve Bank of India (RBI) MPC minutes has raised concerns over rising global oil prices and inflation in the country,” he added.
The top weekly Sensex gainers were: Hero MotoCorp (up 8.11 per cent at Rs 3,785.95); Tata Motors (DVR) (up 6.07 per cent at Rs 240.40); Maruti Suzuki (up 5.85 per cent at Rs 9,700.25); ONGC (up 5.77 per cent at Rs 193.40); and Larsen and Toubro (up 5.26 per cent at Rs 1,266.65).
The losers were: Kotak Mahindra Bank (down 1.99 per cent at Rs 1,008.50); Yes Bank (down 1.90 per cent at Rs 310.05); Coal India (down 1.86 per cent at Rs 266); Indusind Bank (down 1.85 per cent at Rs 1,648.85); and Dr. Reddys Lab (down 1.64 per cent at Rs 2,333.05).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | World
By Arul Louis,
United Nations : With unprecedented Chinese backing, the Security Council tightened the economic chokehold on North Korea by unanimously voting on Friday to impose the strictest sanctions on North Korea aiming to cut off most fuel supplies and ban major exports following Pyongyang’s latest missile test.
The resolution introduced by the US after intense lobbying won the support of China, which has had a special relationship with North Korea and had in the past opposed or tried to soften sanctions.
The new round of restrictions further tightens the sanctions imposed last month, which had been lightened to gain the support of Moscow and Beijing.
“This resolution ratchets up the pressure on North Korea even further, building on our last resolution, which included the strongest sanctions ever imposed on them,” US Permanent Representative Nikki Haley, who piloted it, told the Council.
Haley acknowledged Beijing’s cooperation saying: “I would like to specifically thank my Chinese colleagues for working with us on the negotiations.”
Beijing’s vote for the tougher sanctions indicates that its direct influence with North Korean dictator Kim Jong-un is waning and that China is recognising the global dangers from North Korea’s nuclear and missile arsenals.
The Charge d’Affaires at the Chinese Mission, Wu Haitao, said there was a risk of the situation spiraling out of control.
The resolution would reduce North Korea’s refined petroleum imports by 90 per cent from the 2017 mid-year level to 500,000 barrels per year, and it authorises the Council to further reduce petroleum imports if it carried out any missile or nuclear tests.
All North Korean exports and most imports are also banned under the resolution. It also requires the expulsion by the end of 2019 of all North Korean expatriate workers who are estimated to earn the government $500 million each year.
Fifteen North Koreans, who are bankers or are involved in weapons developments were put on a sanctions list banning their travel and freezing their assets.
The resolution also requires all nations to seize ships smuggling goods to North Korea.
Wu called for an end to all rhetoric that would escalate tensions and said that “tough posturing” only led to Pyongyang advancing its proliferation activities.
Haley softened her tone this time at the Council without the past threats of violent retaliation that matched Pyongyang’s rhetoric.
The high-level Council meeting on North Korea earlier this month attended by US Secretary of Rex Tillerson and Japanese Foreign Minister Taro Kono paved the way for the latest sanctions because it sent a very clear message that the international community would not accept a nuclearised North Korea, Japan’s Permanent Representative Koro Bessho said at a news conference after the vote.
After the November 28 intercontinental ballistic missile test the campaign for the latest round of sanction began, he said.
(Arul Louis can be reached at arul.l@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Ahead of a long weekend, the key Indian equity indices closed at new highs after recording fresh levels on an intra-day basis riding on broadly positive global cues and healthy buying in IT, auto and capital goods stocks.
On the National Stock Exchange (NSE), the wider Nifty50 index crossed the 10,500 mark for the first time on an intra-day basis.
The NSE Nifty50 edged higher to a new intra-day level of 10,501.10 points, crossing its previous intra-day high of 10,494.45 points scaled on December 20.
On a closing basis, the Nifty50 rose by 52.70 points or 0.50 per cent to a fresh high of 10,493 points, surpassing its previous closing high of 10,463.20 points scaled on Tuesday.
The barometer 30-scrip Sensitive Index (Sensex) touched a fresh high of 33,964.28 points on an intra-day basis, surpassing it’s Wednesday’s (December 20) intra-day high of 33,956.31 points.
On a closing basis, the Sensex scaled a new high of 33,940.30 points — up 184.02 points or 0.55 per cent from its previous close — surpassing its Tuesday’s (December 19) closing high of 33,836.74 points.
The BSE market breadth remained bullish as 1,564 stocks advanced as compared to 1,184 declines.
“Markets surged higher on Friday after two sessions of negative closings. Positive Asian markets helped to perk up the sentiments as the Nifty touched the 10,500 mark for the first time ever,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
The broader market indices also touched fresh intra-day highs. On a closing basis, the S&P BSE mid-cap index was up by 0.11 per cent and the small-cap index by 0.58 per cent.
“Market enthusiasm continued on the eve of Christmas with Nifty crossing 10,500 on intra-day basis. Nifty as well as Sensex scaled new highs,” Anita Gandhi, Whole Time Director, Arihant Capital Markets, told IANS.
“Investors were happy with Infosys buyback money credited and sentiment in the stock also improved taking it to 52-week high. Metals and realty sector also did well.”
Gandhi added that optimism was expected to continue due to expectation of net asset value (NAV) based buying till December end.
Shares of IT major Infosys rose by almost 2.2 per cent to Rs 1,044.20 per share during the day’s trade.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Passage of US tax reform bill aimed at reducing the corporate tax rates and strong US Q3 GDP growth of 3.2 per cent led rally in global markets which was extended to domestic market and Nifty hit an all time high of 10,500.”
“The expectation of a good budget and strong H2FY18 earnings is supporting this rally. IT sector was the outperformer today due to big order win by IT major Tata Consultancy Services (TCS). Weak crude prices and strong rupee supported the sentiments,” he added.
On the currency front, the Indian rupee closed flat at 64.05 against the US dollar from its Thursday’s close.
Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 107.87 crore while domestic institutional investors purchased stocks valued at Rs 371.53 crore.
Sector-wise, the S&P BSE capital goods index rose by 176.19 points, IT index by 144.29 points and auto index by 115.40 points.
On the other hand, the BSE S&P consumer durables index declined by 132.18 points, metal index slipped 8.66 points and realty index was a tad lower by 0.01 points.
Major Sensex gainers on Friday were: ONGC, up 2.87 per cent at Rs 193.40; TCS, up 1.76 per cent at Rs 2,639.80; Infosys, up 1.65 per cent at Rs 1,038.40; Bajaj Auto, up 1.24 per cent at Rs 3,326.45; and Wipro, up 1.16 per cent at Rs 301.10.
Major Sensex losers were: Dr. Reddy’s Lab, down 0.80 per cent at Rs 2,333.05; Coal India, down 0.75 per cent at Rs 266; Tata Steel, down 0.68 per cent at Rs 710.60; IndusInd Bank, down 0.64 per cent at Rs 1,648.85; and Hero MotoCorp, down 0.61 per cent at Rs 3,785.95.
The Indian equity markets will remained closed on Monday for Christmas.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
New Delhi : Amid speculation about a Goods and Services Tax (GST) rate cut on white goods, industry stakeholders said a move from 28 per cent to a lower tax slab is essential for the health of the consumer electronics sector that has seen “single-digit or almost flat” growth in the past four quarters.
Stakeholders are optimistic that lower tax will not only give a boost to sales and manufacturing but also lead to an upgradation of consumers’ choice of consumer appliances.
“We have been recommending that GST rates should go down from 28 per cent to 18 per cent, further brought down to may be 12 per cent for energy-efficient products,” said Kamal Nandi, Vice President of the Consumer Electronics and Appliances Manufacturers Association (CEAMA).
Nandi said incentives should be given to people to move into energy-efficient four-star or five-star-rated products category, which in turn will help the government to save energy.
“A move from 28 per cent to a lower tax slab will be a welcome move and we definitely look forward to this as early as possible. The industry desperately needs this correction in the GST slab,” he added.
Overall demand for consumer appliances will go up, which in turn will help the industry, asserted Nandi.
“The industry over the last four quarters is in a single-digit growth or almost flat, except for one month of June where we saw a huge spike in demand on pre-GST sales. Other than that, the industry is not growing,” Nandi told IANS.
The consumer durables market is split into two broad categories of consumer electronics (brown goods) and consumer appliances (white goods). In July, GST was introduced on consumer goods with a tax rate of 28 per cent.
Air conditioners (ACs), refrigerators, washing machines, sewing machines, electric fans and other domestic goods all fall under the white goods category.
According to an India Brand Equity Foundation report, the refrigerators segment makes up 31 per cent of the consumer appliances market, while the Indian ACs market size by volume accounted for sales of 10 million units in 2015.
“Currently the market size of washing machine is around five million units, which is expected to grow 10-12 per cent in FY18,” the report said.
An expert on indirect taxation from the Confederation of Indian Industry (CII), who did not want to be named, told IANS that GST as a whole had allowed seamless input tax credit and overall goods had become cheaper by 3-4 per cent in general. He said if rates come down from 28 per cent, the products would become even more affordable.
Ashish Gupta, Managing Partner, Vijay Sales, said with lower tax rates, consumers’ choice of electronic appliances will upgrade to bigger products.
“Eventually, if it (GST rate) is lowered, it will help in increasing numbers because goods will become more affordable. It will help to boost sales, numbers will definitely go up,” Gupta told IANS.
“Also, we will see more upgrades. For example, if a consumer is going for a 250 litre appliance, he will be able to go for a 300 litre one. So that is another benefit that we will see,” Gupta said.
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
