Stocks
Nifty, Sensex in an uptrend – Tuesday closing report
As long as Nifty stays above 7,670, the market will head higher
 
We had mentioned in Monday’s closing report that Nifty, Sensex has averted the downtrend for now and that Nifty would have to stay above 7,630 for the bullish trend to continue. Optimism in the Indian stock markets continued with the major indices making small gains over Monday’s close. The latest news to attract optimistic investors was the forecast for a favourable monsoon from the Indian Meteorological Department. The trends of the major indices in Tuesday’s trading are given in the table below:
 
 
Ahead of the release of data on factory output and retail inflation, key Indian benchmark indices were trading higher on Tuesday. At the BSE, good buying was observed in auto, industrials and oil and gas sectors, while selling pressure was seen in metal sector; 26 shares were up and four were down -- three of them from the pharmaceuticals sector.
 
The overall optimism is not leading to a bigger rally, as there is caution on corporate earnings in the season for quarterly results. Asian markets showed a somewhat mixed trend with Japanese benchmarks up and those in China trading lower.
The Coal India board approved “giving up of performance incentive for supply of higher grades of coal (G5 and above) in the Model Fuel Supply Agreement for power and non-power with immediate effect and to improve lifting of coal," the company said in regulatory filing to BSE. The miner said this decision was taken due to fall in international coal prices and improved supply by it. There is sluggishness in coal demand in general and higher grade of coal in particular, the company said. CIL shares closed at Rs274.45, down 2.28% on the BSE.
 
Bharti Airtel's recent acquisition of Aircel's 4G airwaves in eight circles for Rs3,500 crore through a spectrum trading deal is credit-positive, rating agency Moody's Investors Service report said here on Tuesday. “Despite the slight increase in leverage, the spectrum acquisition from Aircel is credit positive as it further extends Bharti's 4G footprint across all circles making it a pan India 4G operator,” the report stated. The company has rolled out 4G services in a total of 427 cities across 14 circles already, as it had secured a pan-India data enablement in the 2010, 2014 and 2015 auctions, through a combination of the 900Mhz, 1800Mhz and 2300Mhz bands. Bharti Airtel shares closed at Rs349.55, up 0.34% on the BSE.
 
Aluminium major Nalco said on Monday that it will set up a joint task force with Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) to deliberate on a proposed smelter and gas-based power plant in Chabahar Free Trade Zone. The joint task force will be comprised of senior projects, operations and marketing executives of Nalco, directors of Iran's ministry of industries and senior executives of Iranian Aluminium Company (IRALCO), said Nalco statement.  "The project would help Nalco to use low cost energy available in Iran for conversion of its alumina, presently exported to international markets, to aluminium. The aluminium products from the joint venture company are expected to be highly cost competitive combining the advantages of low cost Nalco alumina and low cost Iranian energy," said Nalco CMD Tapan Kumar Chand, who is in Iran as part of Indian business delegation, led by Petroleum and Natural Gas Minister Dharmendra Pradhan.  Nalco shares closed at Rs39.20, down 1.26% on the BSE. Gail India's shares closed at Rs365.20, up 3.87% on the BSE, following tariff revision and increased revenue forecast. 
 
US stocks reversed early gains to end lower as big US companies are reporting their quarterly results this week. The Dow Jones Industrial Average fell 20.55 points, or 0.12%, to 17,556.41 on Monday. The S&P 500 lost 5.61 points, or 0.27%, to 2,041.99. The Nasdaq Composite Index decreased 17.29 points, or 0.36%, to 4,833.40. US material company Alcoa, seen as an unofficial start to quarterly earnings season, will post results after the market closes. Big bank earnings, starting with JPMorgan Chase & Co on Wednesday, will be watched closely this week. Experts said that market expectations for profit growth are low amid the sluggish world economy, a strong dollar and declining commodity prices. According to Thomson Reuters, the blended earnings of the S&P 500 companies in the first quarter of 2016 are expected to decline 7.7% year-on-year, while the revenue is forecast to decrease 1.3%. Wall Street also kept a close eye on oil recovery. Oil prices extended gains on Monday, with US oil settling above $40 a barrel for the first time since March 22, as crude producer countries are scheduled to meet on Sunday in Doha to discuss the output freeze. Indian investors watching quarterly earnings results from Indian corporates are also showing caution in the Indian stock markets. 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:
 
 

User

Kerala HC bans high decibel firecrackers at night

Firework displays during the day too should not exceed the decibel levels of 125-145

 

Two days after a fire tragedy in a temple killed 110 people, the Kerala High Court on Tuesday ordered a ban on exploding high decibel firecrackers at night.
 
Firework displays during the day too should not exceed the decibel levels of 125-145, a division bench of Justice Thottathil B. Radhakrishnan and Justice Anu Sivaraman said.
 
The court came down heavily on Kerala Police for failing to do its duty on Sunday when a massive blaze and explosion caused by fireworks led to the death of 110 people at a temple in Kollam district.
 
The judges wanted to know if the probe by the Crime Branch into the incident was enough or whether the Central Bureau of Investigation should probe the tragedy.

 

 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 
 

User

India to grow 7.5% in FY16, 7.7 in FY17: Fitch

According to a report by Fitch Ratings, India's GDP growth is expected to gradually accelerate to 7.7% next fiscal and 7.9% in 2017-18

 

Global credit rating agency Fitch Ratings, maintaining its forecast of India's gross domestic product's (GDP) growth at 7.5% for 2015-16, expects the growth at 7.7 percent for next fiscal.
 
According to a report by Fitch Ratings, India's GDP growth is expected to gradually accelerate to 7.7% next fiscal and 7.9% in 2017-18.
 
"Real GDP growth in 4Q15 was primarily driven by private consumption, while the data showed slowing fixed investment growth and December industrial production declined 1.3% yoy (year-on-year)," Fitch Ratings said.
 
According to Fitch Ratings, the gradual recovery in FY17 and FY18 will be supported by higher real disposable income on the assumption that the monsoon would be normal and wage hike for central government employees.
 
"The gradual implementation of the structural reform agenda is expected to contribute to higher growth, even though progress is lacking so far on big ticket reforms such as the Land Acquisition Amendment Bill and the Goods and Services Tax."
 
While Fitch Ratings expects the cut in monetary policy rate by a total of 125 basis points since the start of 2015 to feed GDP growth, it further expects another 25 basis points cut in the rates.
 
Fitch Ratings expects another 25 basis points of monetary policy loosening, facilitated by the government's recent announcement to maintain its fiscal targets for FY17 and FY18.
 
"We expect the Reserve Bank of India to remain keen to avoid a significant deviation from the glide path to its inflation target, as it is still building a track record for its new monetary policy framework," the rating agency said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)