Uptrend will stall, if Nifty closes below 8,910 and Bank Nifty below 19,610
We mentioned in Monday’s closing report that the NSE’s CNX Nifty and Bank Nifty would remain in an uptrend but may weaken if they close below 8,860 and 19,500 respectively. Nifty opened Tuesday marginally higher and soon moved lower to hit the day’s low. Until the beginning of the noon session, the 50-share index was moving with no specific direction. At around 12.08pm, the benchmark gained strength and moved higher and closed near the day’s high.
The S&P BSE Sensex opened at 29,500 while Nifty opened at 8,963. Sensex hit a low at 29,365 while Nifty hit a low at 8,926. Sensex reached upto 29,637 and closed at 29,594 (up 135 points or 0.46%) while Nifty reached to the level of 9,008 and closed at 8,996 (up 40 points or 0.44%). Except for the few minutes of trading in the green, Bank Nifty traded in the negative for the entire session. It opened at 20,043 which was also the day’s high. It moved lower to the level of 19,822 and closed 19,961 (down 47 points or 0.23%). NSE recorded a volume of 103.19 crore shares. India VIX fell 2.24% to close at 15.4925.
The index of Eight Core Infrastructure Industries rose at a moderate pace of 1.8% January 2015, compared with 2.4% growth recorded in December 2014, data showed yesterday. Meanwhile, the cumulative growth stood at 4.1% in April-January 2014-15.
A Committee set up by Reserve Bank of India (RBI) has suggested a sub-target of 8% of adjusted net bank credit (ANBC) for small and marginal farmers to be achieved in a phased manner. This is while retaining the target of 18% of ANBC for agriculture credit, and overall target of 40% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE), whichever is higher, for priority sector lending.
Finance Minister Arun Jaitley reportedly said that India's economy needs to reach an annual growth rate of 9% to 10%, and then sustain that activity for many years in order to improve infrastructure and bring down rampant poverty.
BSE has revised its annual listing fees for companies listed on its platform for the next fiscal beginning 1st April. The companies with a listed capital of Rs1,000 crore or more would have to pay Rs8.06 lakh as annual listing fees from 2015-16, as against an Rs8.07 lakh charged in current fiscal. These companies would also have to pay Rs3,469 additional listing fees for every increase of Rs5 crore. This is lower than Rs3,515 currently charged.
Sugar output in India, the world's second largest producer, rose by 14% to 19.4 million tonnes in the first five months of the current marketing year ending September, according to industry data.
The RBI has refused to share its banks' inspection reports on alleged money laundering laws and other violations with Central Economic Intelligence Bureau (CEIB), citing legal hurdles.
Coming back to the stock markets, Tata Elxsi (20%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today.
State-run Coal India (3.89%) was the top loser in ‘A’ group on the BSE also in the Sensex 30 stock. In response to the clarification sought by BSE it stated that its board at its meeting held on 27 February 2015 considered project report on East Rail Corridor Railways Project for construction of Rail Line at Chhattisgarh State and accorded its approval to first year expenditure.
Reliance Industries (4.39%) was the top gainer in the Sensex 30 pack. LIC has raised its stake in RIL to 9.084% from 6.987% through acquisition of additional shares via open market purchases.
On Monday, US indices closed in the green. Outlays for US construction projects declined 1.1% in January to a seasonally adjusted annual rate $971.4 billion, led by public spending, the US Commerce Department said yesterday.
Asian indices showed mixed performance. Straits Times (0.54%) was the top gainer, while Shanghai Composite (2.20%) was the top loser.
The Reserve Bank of Australia today left the official cash rate on hold at 2.25%.
European indices were trading in the red. US Futures too were trading lower.
Data from German Federal Statistical Office (Destatis) today showed retail sales in January rose 5.3%, up from the December's upwardly revised 4.8% rise. Month-on-month, the retail sales printed at 2.9%, higher from the December's upwardly revised 0.6%.