Nifty, Sensex moving sideways; Bank Nifty in an uptrend still – Wednesday closing report
Nifty should close above 8,700 to gain momentum
We had mentioned in Tuesday’s closing report that the NSE’s CNX Nifty may record more gains if it manages to close above 8,750. The 50-share index opened below this level and moved lower. It tried reviving which made it reach yesterday’s close. However, the benchmark lost its strength and moved lower. Nifty managed to stay above the previous day’s low.
The S&P BSE Sensex opened at 28,767 while Nifty opened at 8,743. Sensex moved in the range of 28,547 and 28,807 before closing at 28,622 (down 114 points or 0.40%). Nifty moved from the level of 8,664 to 8,747 and closed at 8,686 (down 37 points or 0.43%). Bank Nifty continued closing in the green today. Bank Nifty opened at 19,080 and hit a high of 19,234 from the low of 18,937 and closed at 19,147 (up 89 points or 0.47%). NSE recorded a volume of 92.14 crore shares. India VIX rose 2.55% to close at 15.5125.
Telecom spectrum auction, which started on 4 March 2015 has fetched the Indian government Rs1.07 lakh crore up to 17 March 2015. Majority of service areas are going at a premium over reserve price. There is still spectrum, which is yet to be sold.
Christine Lagarde, Managing Director of the International Monetary Fund (IMF) had said that the Narendra Modi government’s commitment to broadening access to formal finance to all segments of the population through the ambitious Jan Dhan Yojana is impressive and so are the results, which were achieved in just a few months.
Minister of State for Civil Aviation Dr Mahesh Sharma in a written reply in Rajya Sabha stated said that the Government is concerned over financial health of all airlines since fuel constitutes about 40-50% of cost of operation of an airline. Ministry of Finance was requested to include aviation turbine fuel (ATF) under declared goods, Sharma said. State governments have also been requested to reduce VAT on ATF in their respective states, he added.
Improvement in the asset quality of Indian banks and growth in credit offtake is likely to take more time as the problems in mining and infrastructure sectors are yet to be resolved, rating agency S&P said today.
The Business Outlook survey, conducted by financial information provider Markit, showed that companies in India do not seem to be very optimistic about production growth in various sectors over the next year. According to a survey conducted in February, their confidence has grown at the lowest pace in a year.
The Indian government may announce a 10% cut in domestic natural gas price to $5.02 per million British thermal unit (mmbtu) effective 1st April, in line with the global decline in the price of liquefied natural gas.
India's exports grew marginally by 0.88% to $286.58 billion during the April- February period of the current fiscal, government said today.
Market regulator SEBI plans to change the rule that will make it easier for home-grown start-ups to list their shares on local bourses, helping domestic investors to bet on the country's booming online economy. One of the main items that could be scrapped is the need to detail the use of proceeds from the initial public offering of shares, they said.
The government has decided to divest its stake in BHEL next fiscal. Other state-run companies, which are on the block, include NMDC, NALCO and IOC, with 10% stake sale proposal each. This is a step towards raising of Rs41,000 crore stake sale target for 2015-16.
Coming back to Indian stock markets, Suzlon Energy (10.90%) was the top gainer in ‘A’ group on the BSE. PMC Fincorp (9.63%) was again the top loser in ‘A’ group on the BSE today.
Reliance Industries (1.39%) was the top gainer in the Sensex 30 pack. BNP Paribas upgraded it to “buy” from “hold” and made an upward revision in the target price.
NTPC (3.11%) was the top loser in Sensex 30 stock. According to media reports, government is in the process of selling 10% stake in NTPC.
On Tuesday, US indices closed mostly in the red. The Federal Reserve may soon lay the groundwork for its first interest rate hike in nearly a decade, as it continues to weigh whether the US recovery can hold up against collapsing oil prices and a soaring dollar.
US housing finance companies Fannie Mae and Freddie Mac could require more bailouts from US taxpayers as risks are rising due to shrinking reserves, an internal watchdog for the firms' regulator said on Wednesday. These two firms had been bailed out in 2008 financial crisis.
Asian indices showed mixed performance. Shanghai Composite (2.13%) while NZSE 50 (0.99%) was the top loser.
European indices were showing mixed performance while US Futures were trading in the red.