We had mentioned in Friday’s closing report that Nifty, Sensex might head higher. The major indices of the Indian stock markets were range-bound and closed with small gains over Friday’s close. The S&P BSE Sensex closed at 28,634.50, up 0.12%, while the NSE’s Nifty 50 closed at 8,808.40, up 0.33%. The trends of the major indices in the course of Monday’s trading are given in the table below:
Positive global sentiments, along with higher crude oil prices and value buying, buoyed the Indian stock markets during the late-afternoon trade session on Monday. However, upcoming global events such as monetary policy announcements from major economies and profit booking at higher levels, capped gains. The key indices traded on a flat-to-positive note as healthy buying was witnessed in metal, banking and IT stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,494 advances and 1,244 declines. On the NSE, there were 786 advances, 673 declines and 85 unchanged.
Initially, the benchmark indices opened on a firm note in sync with their Asian peers. However, investors were seen cautious ahead of the US Fed's FOMC (Federal Open Market Committee) meeting, which is scheduled for September 20-21. A hike in US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India. It is also expected to dent business margins as access to capital from the US will become expensive.
India approved an ambitious $1.04-billion project for constructing and upgrading 558 km of roads to link it with Bangladesh, Bhutan and Nepal and ease the movement of passengers and cargo, as part of the larger effort to increase intra-regional trade by 60%. The new project has been given an official nod by India's Department of Economic Affairs with 50% funding from the Asian Development Bank (ADB), officials told IANS, adding that the road project will cover West Bengal and Manipur on the Indian side, as of now. "The mandate is for completing the project within the next two years," a senior official said. "The primary idea behind the Bangladesh-Bhutan-India-Nepal (BBIN) road initiative is to improve ground connectivity in the region," said Leena Nandan, Joint Secretary, Ministry of Road Transport and Highways. "We have taken up five highway stretches in the country, which are very important for such a connectivity to succeed. This project is entirely different and new -- and about to be rolled out," Nandan told IANS. The project -- as per a list accessed by IANS -- includes, among others, an upgrade of the 122-km Siliguri-Mirik-Darjeeling ($15 million) and the widening of the 60-km National Highway-35 (Kolkata-Bangaon) on the border with Bangladesh ($130 million). This is likely to improve the infrastructure sector for investors in the stock markets too.
A 21-member business delegation from China arrived in West Bengal on a two-day visit to explore investment and business opportunities in West Bengal, said a minister on Monday. The delegation representing sectors like energy, manufacturing, mining, medical care, real estate and infrastructure consists of 21 entrepreneurs from 13 Chinese companies with an aggregate turnover of $10 billion, said Finance Minister Amit Mitra. In 2015, Chinese Vice President Li Yuanchao had met Chief Minister Mamata Banerjee and promised to send a business delegation, Mitra said. “With a focus on investment, the delegation has come to explore business opportunities in West Bengal," said Mitra, who also holds the Excise, Commerce and Industries portfolio. "They will have discussions with West Bengal Industrial Development Corp (WBIDC) and also visit a manufacturing zone to have first-hand knowledge of investment opportunities in the state," he said. "Another delegation with representatives from Fortune 500 companies will also visit the state in October-November," he added. These developments are good news for investors in well managed West Bengal-based companies.
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: