The major indices of the Indian stock markets were range-bound on Tuesday and closed with minor gains over Monday’s close. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
Positive global cues and buying in automobile, capital goods and IT (information technology) stocks pushed the Indian equity markets to fresh highs during the mid-afternoon trade session on Tuesday. Equity benchmarks extended Monday's gain and is trading positive due to global market. Sugar stocks made gains on the back of government's decision to increase import duty in sugar, pointed out market analysts. State Bank of India shares gained more than 1% intraday after the central board of directors approved dilution of bank's stake in its life insurance subsidiary.
Lending major IndusInd Bank on Tuesday reported a rise of 26% in its net profit for the first quarter (Q1) of 2017-18. According to the lending major, its net profit during the quarter under review rose to Rs836.55 crore from Rs661.38 crore reported for the corresponding period of last fiscal. "The quarter saw the momentum of the economy gradually picking up as the process of remonetisation moved towards completion," Romesh Sobti, MD and CEO, IndusInd Bank was quoted as saying in a statement. "With consumption activity slowly picking up, there is a sustained rise in credit uptake. Against the challenging environment, the bank has shown consistent performance, riding on the positive sentiment in the economy." Beside, IndusInd Bank reported that its net interest income (NII) for Q1 augmented by 31% to Rs1,774.06 crore from Rs1,356.42 crore in the corresponding quarter of the previous year. The bank’s shares closed at Rs1,559.25, down 0.04% on the BSE.
At a time when layoffs in the IT industry are dominating headlines, US-based IT solutions company Advanced Technology Consulting Service (ATCS) has announced it is expanding its operations in India by recruiting new staff and setting up its first Innovation Lab (I-Lab) in Jaipur. Apart from Jaipur, ATCS has also opened a new office in Bengaluru. "The I-Lab not only serves as a functional space for approaching ideas and concepts in an alternative setting but also embeds a spirit in our team that ATCS is expected to think differently, creating solutions beyond one's peripheral views," said Jason Castellani, partner at ATCS, in a statement on Tuesday. New Jersey-based ATCS also has offices in China, Germany and Canada. It provides strategic guidance to and implements software solutions for several Fortune 500 companies. "As an agile, innovative company, we give immense importance to solution creation for our customers. Now we have developed a space for our staff, which can stimulate creative thinking among them," said Manish Krishnan, Global CEO, ATCS. According to the company, the I-Lab would soon put Jaipur at par with IT hubs of the country and serve as a functional space for approaching ideas and concepts in an alternative setting. "For our customers, innovation is a big drive. Having such a lab in our India office helps us in delivering more inventive ideas to our clients," Krishnan added. S & P BSE Information Technology Index closed at 10,163.74, up 0.91% on the BSE.
Explaining the objective of the proposed merger between the financial services majors Shriram Group and IDFC Group, Shriram Group Chairman Ajay Piramal on Monday said both the organisations have lot of complementarities. Two groups had already announced that the boards of Shriram Group and IDFC entered into an exclusivity arrangement for 90 days to jointly explore the possibility of merger. "If you look at it, both the organisations have lot of complementarities in what they are doing. Shriram Group is strongly present in retail segment while IDFC is strong as far as the wholesale is concerned. Both the groups want to deliver to the customer something which was not done before," Piramal told BTVi in an interview. He said the Group is serving millions of customers who till now had not been any banking experience while the products and the services which IDFC brings in to that will be unique. Asked on the rationale for keeping Shriram Transport out of the proposed merger, IDFC Bank's MD and CEO Rajiv Lall told BTVi: "The relative sizes of the Shriram Transport and the bank are such that combining the two at once would have created difficult challenges, both regulatory and financial point of view." According to Lall, Shriram Transport will operate as an independent NBFC. IDFC shares closed at Rs56.00, down 0.88% on the BSE and Shriram Transport Finance shares closed at Rs1,014.30, down 3.80% on the BSE.
US stocks closed mixed as investors got ready for the latest earning season. The Dow Jones Industrial Average on Monday lost 5.82 points, or 0.03%, to 21,408.52. The S&P 500 gained 2.25 points, or 0.09%, to 2,427.43. The Nasdaq Composite Index increased 23.31 points, or 0.38%, to 6,176.39. Performance of large banks will come into the spotlight later this week as JPMorgan Chase, Citigroup and Wells Fargo are set to report their earnings. Meanwhile, Wall Street is also waiting for earning reports from large-cap technology companies. There are no major economic data due Monday. Major inflationary and retail sales data will due out by the end of this week. In addition, Federal Reserve Chair Janet Yellen will give her semi-annual monetary policy testimony before the House Financial Services Committee on Wednesday and Thursday. Last Friday, US stocks rallied as Wall Street cheered over the country's much-better-than-expected jobs report for June.
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: