We had mentioned in Thursday’s closing report that Nifty, Sensex were in an uptrend again. The major indices of the Indian stock markets rallied on Thursday and closed with gains over Wednesday’s close. The trends of the major indices are given in the table below:
The key domestic equity indices -- S&P BSE Sensex and NSE Nifty -- on Thursday scaled record highs on the back of positive global cues and hopes of an easing of the monetary policy. Global equities traded higher after US Federal Reserve Chair Janet Yellen, hinted at more gradual tapering programme at her testimony before the US Congress, pointed out market analysts. India's retail inflation hit a record low of 1.54% in June, lowest since 1999, raising hopes of an interest rate cut by RBI (Reserve Bank of India) ahead of monetary policy next month (in August).
Global IT spending is projected to reach $3.5 trillion in 2017 -- a 2.4 per cent increase from 2016, market research firm Gartner said on Thursday. Global spending on devices which include PCs, tablets and mobile phones is projected to grow 3.8% in 2017 to reach $654 billion -- an increase of 1.7% from previous quarter's forecast. The mobile phone growth will be driven by increased average selling prices (ASPs) for premium phones in mature markets due to the 10th anniversary of the iPhone while the tablet market may continue to decline. "Digital business is having a profound effect on the way business is done and how it is supported," said John-David Lovelock, Vice President, Gartner, in a statement. The growth rate is up from the previous quarter's forecast of 1.4 per cent owing to decline of the US dollar against many foreign currencies. According to Gartner, the worldwide enterprise software market is forecast to grow 7.6% in 2017. The S & P BSE Information Technology Index closed at 10,148.28, up 0.23% on the BSE.
Reliance Capital Ltd on Thursday said it has received Rs378 crore from Nippon Life Insurance on the completion of increasing its stake to 49% in Reliance Nippon Life Asset Management Ltd (RNAM). In a statement here, Reliance Capital said it will book capital gains on this final transaction during the third quarter ending September 30, 2017. RNAM is the largest asset manager in India in terms of assets under management (AUM), managing Rs3,58,059 crore as of March 31, across mutual funds, pension funds, managed accounts and offshore funds. Nippon Life Insurance is already a strategic partner in RNAM. Nippon Life Insurance acquired 26% stake in RNAM (formerly known as Reliance Capital Asset Management) in 2012. Thereafter, Nippon Life has increased its stake to 49% in various tranches, reflecting the success of the partnership. Nippon Life Insurance is an over 125 years old insurer and a Global Fortune 500 company that manages over $530 billion in assets - amongst the largest total assets in the world for any life insurer. The company is one of the largest life insurers in the world. Reliance Capital shares closed at Rs663.30, up 0.74% on the BSE.
After lowering the Immediate Payment Service (IMPS) charges, the State Bank of India (SBI) on Thursday reduced charges for National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) transactions upto 75% effective July 15. The reduced charges will be applicable on the transactions done through internet banking and mobile banking services offered by the bank, the bank said in an official statement here on Thursday. State Bank of India shares closed at Rs288.60, up 0.42% on the BSE.
With the retail inflation easing to a record low of 1.54 per cent in June, the government's Chief Economic Adviser Arvind Subramanian on Wednesday said it reflects a paradigm shift in the process to low levels of inflation, which has been missed in the large systematic inflation forecasts made. "This low, heartening number is consistent with our analysis for some time now -- and which will be fully elaborated in the forthcoming Economic Survey -- of a paradigm shift in the inflationary process to low levels of inflation, a shift that I think has been missed by all reflected in the large, one-sided, and systematic inflation forecast errors that have been made," Subramanian told reporters here. As per the Central Statistics Office (CSO) data on Consumer Price Index (CPI), retail inflation was dragged lower to 1.54 per cent in June due to a sharp fall in the prices of food items like pulses, vegetables, and other perishables. The current inflation rate is the lowest since the series began in 2012. With low inflation, interest rates are likely to soften, giving a boost to business and stock markets in India.
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: