Nifty will turn bearish again, if it goes below 7,740
We had mentioned in Monday’s closing report that Nifty, Sensex will push higher and that while the uptrend is intact, Nifty may meet with resistance at around 7,880. The Indian equity markets were subdued on Tuesday mainly on account of political turmoil and the major indices closed lower by upto 0.62% over Monday’s close. The trends in the major indices in Tuesday’s trading are given in the table below:
The bellwether indices of the Indian equity markets opened on a flat note in sync with their Asian peers. Nevertheless, both the key indices rose encouraged by the passage of Bankruptcy Code. However, after 2 pm they soon ceded their gains, as profit bookings, parliamentary logjam and upcoming US macro-data subdued sentiments. State-run Canara Bank on Tuesday said it will raise Rs.2,400 crore through bonds to fund business expansion. The fund collected is intended to support asset growth during 2015-16 and also maintain a healthy level of Capital to Risk Weighted Assets Ratio (CRAR). Shares of Canara Bank closed at Rs239.45, down 1.66% on the BSE.
Industrialist Anil Ambani-led Reliance Communications (RCOM) on Tuesday said it has initiated talks with the promoters of Aircel to combine the wireless business of the two companies, with synergies in investments and returns. A pact for 90-day exclusive talks has been initiated with Aircel's majority owner, Malaysia's Maxis Communications, and Sindya Securities and Investments for the potential merger, RCOM said in a statement. "The potential combination will exclude RCOM's towers and optical fibre infrastructure, for which RCOM is proceeding with an asset sale," said the statement. "The discussions are non-binding in nature. Any transaction will be subject to due diligence, definitive documentation and regulatory, shareholders' and other third party approvals. Hence, there is no certainty that any transaction will result." Last month, RCOM entered a major pact to acquire the Indian business of Russia's Sistema, which operates under the 'MTS' brand, in a unique stock-cum-spectrum-fee payment deal. RCOM shares closed at Rs85.70, up 2.39% on the BSE.
Glenmark Pharmaceuticals has received the final nod from the US health regulator for a generic version of anti-bacterial drug Zyvox. "Glenmark Pharmaceuticals Inc, USA, has been granted final approval by the US Food & Drug Administration (USFDA) for the Linezolid tablets, 600 mg," Glenmark Pharmaceuticals said in a statement. The product is the therapeutic equivalent of Zyvox tablets, 600 mg of Pharmacia and Upjohn Company, a subsidiary of Pfizer, it added. According to IMS Health sales data for the 12 months to October 2015, Zyvox tablets, 600 mg, achieved annual sales of around USD 447.6 million, Glenmark said. Zyvox is an anti-bacterial drug marked for adults and children for treatment of infections such as pneumonia, complicated skin and skin structure infections, including diabetic foot infections. With today's approval, the company's current portfolio consists of 104 products authorised for distribution in the US marketplace and 62 abbreviated new drug applications (ANDA) pending approval with USFDA. Glenmark shares closed at Rs938.05, up 1.15% on the BSE.
China's top leadership has announced an overarching strategy to lead the economy's ongoing transition, the media reported on Tuesday. President Xi Jinping said the country's emphasis next year will be on supply-side reform, or a package of supply-side policies to release new demand and boost new productivity, the Global Times reported. He was speaking on Monday at the conclusion of the Central Economic Work Conference, which was held along with the Central Urban Work Conference. Economists said this means that China will no longer seek to fuel economic growth solely by using fiscal and monetary measures to boost capital investment, consumption and exports. Instead, the government will be more focused on devising policies which, from the supply side, are aimed at helping the industries it wants to support. Outdated businesses will also be phased out.
Japan's economy, the third largest in the world, would grow about 1.7% in real terms in fiscal 2016 starting April, according to Tuesday's government forecast. Japan's gross domestic product, in nominal terms, will likely expand around 3.1% in the next fiscal year to around $4.3 trillion, Xinhua cited the forecast, led by recovering consumer spending and capital investment, as reporting on Tuesday. The projected GDP level will surpass the level before the financial crisis triggered by the collapse of investment bank Lehman Brothers Holdings Inc. and will be the highest level in 19 years since fiscal 1997, according to the report. The planned consumption tax hike from 8% to 10% in April 2017 would help the overall growth increase by around 0.3% due to demand increase ahead of the tax hike. The recently compiled extra budget for the improvement of welfare services and farm sector's competitiveness would also boost the country's GDP by about 0.4% in fiscal 2016, according to the projection. However, the government forecast was more optimistic than that of the Bank of Japan, the central bank here, which estimated real GDP growth of 1.4% for the reporting fiscal year. Affected by the declining crude oil prices, the government also said that inflation rate would rise to 1.2% in fiscal 2016, a read short of the two percent target raised by the central bank to fight against Japan's prolonged deflation. The government said that the Japanese economy is expected to grow 1.2% in the current fiscal year, downgraded from a previous estimate of 1.5%. The government also warned that capital outflows from emerging markets would be downside risks after the US Federal Reserve has decided to raise interest rates.
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: