Stocks
Nifty, Sensex may rally a bit – Tuesday closing report
We had mentioned in Monday’s closing report that Nifty, Sensex were directionless. The major indices of the Indian stock markets were range-bound on Tuesday and closed with small losses over Monday’s close. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
 
 
 
Indian equity markets were dragged lower on Tuesday by negative global cues and caution ahead of major global financial events. The key indices closed the day's trade in the red, as profit-booking and selling pressure at higher levels capped gains. Selling pressure was witnessed in automobile, capital goods and banking stocks. The BSE market breadth was tilted in favour of the bears -- with 1,513 declines and 1,197 advances. On the NSE, on Tuesday, 548 advances, 922 declines and 85 unchanged.
 
The benchmarks opened down following negative global cues. Besides, investors were cautious ahead of the US Fed's Federal Open Market Committee (FOMC) meet and the Bank of Japan (BoJ) monetary policy review announcements. A rate-hike can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India, and is also expected to dent business margins as access to capital from the US will become expensive. Moreover, profit booking at higher levels led to the key indices capping gains. The CNX Nifty traded lower on profit-booking from traders. Most IT stocks traded down on profit-booking. Banking stocks are traded with mixed sentiments, while auto stocks traded down on profit-booking. 
 
World Bank Group President Jim Yong Kim said, "India's recent growth and development has been one of the most significant achievements of our time. With historic changes unfolding and new opportunities emerging, Junaid Ahmad, who has taken over as the World Bank's new Country Director for India, will bring to this key position strategic leadership along with considerable experience of working in both India and South Asia to support this transformation." These observations are favourable with respect to the Indian economy and the Indian stock markets for a long term bullish trend.
 
The US dollar decreased against other major currencies as investors were awaiting the Federal Reserve meeting due to open later this week. In late New York trading on Monday, the euro rose to $1.1175 from $1.1152 of the previous session, and the British pound increased to $1.3030 from $1.3016. The Australian dollar climbed to $0.7547 from $0.7482. The dollar bought 101.79 Japanese yen, lower than 102.43 yen in the previous session. The dollar dipped to 0.9800 Swiss francs from 0.9811 Swiss francs, and it inched down to 1.3191 Canadian dollars from 1.3215 Canadian dollars. The market kept a close eye on the Fed's two-day monetary policy meeting, which is scheduled to begin on Tuesday, for more information about the pace of further interest rate-hikes. Analysts said the recent over downbeat economic data from the country has boosted bets that the Fed will skip the chance to raise rates in its September review.
 
US stocks traded higher as Wall Street awaited the Federal Reserve's policy meeting. The Dow Jones Industrial Average rose 106.86 points, or 0.59%, to 18,230.66 on Monday. The S&P 500 added 11.23 points, or 0.52%, to 2,150.39. The Nasdaq Composite Index gained 21.42 points, or 0.41%, to 5,265.99. Investors kept a close eye on the Fed's two-day policy meeting, scheduled to begin on Tuesday, for more clues on the timing of a next rate hike. Financial markets have been choppy last week on contrasting remarks on rate hikes by Fed officials. On Friday, US stocks ended lower after wavering in a tight range as investors pondered over the key inflation data.
 
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:
 
 

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8 militants killed as India foils incursion bid in Uri
At least eight militants were killed when Indian soldiers fired on a group of infiltrators trying to cross over from Pakistan at the Line of Control (LoC) under the cover of Pakistani firing in Jammu and Kashmir on Tuesday, two days after a massive terror strike killed 18 soldiers in the garrison town of Uri.
 
"It was a major infiltration bid," an army source told IANS here.
 
The source said that soldiers became apprehensive about a possible infiltration bid after Pakistani troops resorted to unprovoked firing at forward Indian posts on Tuesday afternoon.
 
"It became clear that a cover was being provided to infiltrators from Pakistan. Indian soldiers returned the fire and kept vigil around to monitor any cross border movement. A group of armed infiltrators was immediately spotted," the source said.
 
"There were at least 15 who tried to cross over. Five of them were killed."
 
The operation was on with at least seven militants still engaged in heavy exchange of fire with Indian soldiers.
 
The source said the Pakistani fire from small and automatic arms targeting Indian posts in Lachhipora and Boniyar villages of the border area caused no damage to Indian posts. 
 
Pakistan is often accused of firing at Indian posts to give cover to infiltrators.
 
The firing violates the 2003 ceasefire agreement between India and Pakistan along the international boundary and the LoC -- the de facto border that divides Jammu and Kashmir between the two neighbours.
 
Earlier, the army foiled two such attempts on September 11 and 16 in Jammu and Kashmir's Poonch and Uri sectors respectively. Four terrorists were killed in each of the operations.
 
The latest infiltration bid came as New Delhi and Islamabad are locked in a bitter diplomatic war of words following the Uri terror attack, which India has blamed on militants from Pakistan.
 
Pakistan has denied the allegations even as India claimed to have clinching evidence to support its claims.
 
The Indian Army has claimed to have recovered arms, ammunition and food and medicine packets with Pakistani markings during the combing operations at the military base in Uri.
 
India also claimed that the four attackers gunned down during the two-and-a-half hours of gun fight were foreigners.
 
According to the Indian Army, infiltration attempts from across the border with Pakistan have increased this year in comparison with the past three to four years.
 
In 2016, there have been 18 infiltration bids foiled by the Indian Army.
 
Some 110 militants were killed and 31 of them were gunned down near the LoC.
 
The army said it was a "desperate attempt" by Pakistan to create "disturbance and foment unrest" in India.
 
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.
  

 

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CBI arrests FTIL's Jignesh Shah
The CBI on Tuesday arrested Financial Technologies of India Ltd founder-owner Jignesh Shah and carried out raids at nine locations including his offices and home, an official said here.
 
The action is part of an ongoing investigation and the Central Bureau of Investigation said it has recovered incriminating documents pertaining to shares transfer by private companies, FDRs, and purchase of assets which are being scrutinized.
 
According to media reports, the move came after CBI searches at nine locations, including the premises of Shah, FTIL, MCX, senior SEBI officials --Executive Director Muralidhar Rao, DGM Rajesh Dangeti and AGM Vishakha More-- and a former Executive Director of SEBI, J N Gupta, in connection with the case registered two years ago.

In a regulatory filing, MCX says the CBI search is going on in respect of recognition granted by SEBI to Metropolitan Stock Exchange of India Ltd (formerly known as MCX Stock Exchange Ltd) for starting its stock exchange in trading in currency and other segments in respect of case no. RC 9/E/2014".
 
The CBI action comes barely two months after the Economic Offences Wing of Mumbai attached FTIL's assets worth over Rs7,000 crore on July 24.
 
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.

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