Stocks
Nifty may struggle to go up – Tuesday closing report
Only a decisive close above 7,880 will signal that the market has come out of its recent trading range
 
We had mentioned in Monday’s closing report that Nifty, Sensex are in an uptrend and that Nifty has to stay above 7,800 for the uptrend to continue. However, in Tuesday’s trading, Nifty fell below the 7,800-level briefly and closed at 7,829. The major indices were weak throughout and closed with marginal losses. 
 
 
Market analysts felt that despite strong macro-economic data, investors remained cautious ahead of the upcoming decision on the US rate hike. Even the better-than-expected inflation and modest factory output data, which had cheered investors with hopes of a rate cut by the Reserve Bank of India, did not support buying in the markets.
 
India's annual inflation rate based on wholesale prices continued in the negative territory in August, falling to (-)4.95% from (-)4.05% in July. Another key macro indicator showed that India's factory output had grown by 4.2% in July against a marginal rise of 0.9% in the like month of last year. 
 
India's consumer price inflation for August eased slightly to 3.66% from 3.69% in July and a staggering 7.03% during the like month of last year. India Inc. expects that a better-than-expected WPI (wholesale price index) and CPI (consumer price index) will drastically improve chances of a rate cut during Reserve Bank of India's monetary policy review slated for September 29.
 
Higher interest rates in the US are expected to lead away the foreign portfolio investors (FPIs) from emerging markets like India. It is also expected to dent business margins as access to capital from the US will become expensive. It is estimated that the foreign funds and investors have sold around $3 billion since August 2015.
 
Sector-wise, only fast moving consumer goods (FMCG) and information technology (IT) index out of the 12 indices managed to stay afloat during the day's trade. 
 
The S&P BSE capital goods index plunged by 337.65 points, automobile index plummeted by 294.32 points, bank index receded by 188.28 points, metal index fell by 173.21 points and consumer durables index was lower by 162.90 points.
 
However, the S&P BSE FMCG index was higher by 60.44 points and IT index inched-up by 3.40 points.
 
Major Sensex gainers during Tuesday's trade were: Hindustan Unilever, up 1.15% at Rs.804.75; Sun Pharma, up 1.11% at Rs.866.70; ITC, up 1.09% at Rs.316.75; NTPC, up 0.68% at Rs.126.40; and Reliance Industries, up 0.52% at Rs.867.55.
 
Major Sensex losers were: Tata Steel, down 5.08% at Rs.229.05; Vedanta, down 4.06% at Rs.96.90; Tata Motors, down 3.69% at Rs.333.95; Hindalco Industries, down 3.05% at Rs.76.30; and Larsen and Toubro (L&T), down 2.92% at Rs.1,556.95.
 
Among the Asian markets, Hong Kong's Hang Seng inched down by 0.49%, and China's Shanghai Composite Index lost 3.55%. However, Japan's Nikkei inched-up by 0.34%.
 
The top gainers and top losers in the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 
 
 
 
 

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Snapdeal's FreeCharge launches digital wallet
Utility payments platform FreeCharge on Tuesday launched a digital wallet in partnership with Mumbai-based private lender Yes Bank.
 
Online e-commerce player Snapdeal had acquired FreeCharge in a deal believed to be worth around Rs.2,800 crore earlier this year and the launch of the new wallet could be seen as a challenge to digital payments player Paytm.
 
"With the launch of the FreeCharge digital wallet service, we are all set to transform the way people make payments. A secure, easy to use and feature-rich service, the wallet is equipped with state of the art technology and a robust partner network, making it a truly game-changing service that will bring value to consumers and our partners in the ecosystem," said FreeCharge co-founder Kunal Shah.
 
Freecharge, which has a volume of over 200 million transactions annually, claims that it is set to become the most used wallet within the next six months based on the ecosystem of 8.2 million daily unique users, 4 million monthly engaged hours, 15 million stored cards and a combined with gross merchandise value (GMV) of over $4 billion.
 
In addition, the company will partner with FINO - a payments bank licensee to build scale and ability to reach even the under-served.
 
"Our aim is to bring in efficiencies in payments using digital commerce to cater to every consumption need that a user may have. Consumer needs are constantly evolving and we feel it is the right time to launch a trusted and feature-rich digital wallet service," said Snapdeal co-founder Kunal Bahl.
 
"At Snapdeal we are building an ecosystem that powers billions of digital commerce transactions. With the launch of the FreeCharge Digital Wallet, we will now play an even more intrinsic role in our customers' lives," he added.

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COMMENTS

webkitendfullscreen

1 year ago

A wallet a day.. God only knows what market they are catering to.. Looks like another expedition to milk some silly investors of their money..

Indian market trends

The Sensex and the Nifty fell 3% and 2%, respectively, during the fortnight ended 9th September. ML Large-cap fell 2%, while ML Mega-cap Index and ML Micro-cap Index declined 3% each. ML Mid-cap Index declined 4%.

 

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