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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Nifty, Sensex directionless – Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex might head higher. The major indices of the Indian stock markets were range-bound and closed with small gains over Friday’s close. The S&P BSE Sensex closed at 28,634.50, up 0.12%, while the NSE’s Nifty 50 closed at 8,808.40, up 0.33%. The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
Positive global sentiments, along with higher crude oil prices and value buying, buoyed the Indian stock markets during the late-afternoon trade session on Monday. However, upcoming global events such as monetary policy announcements from major economies and profit booking at higher levels, capped gains. The key indices traded on a flat-to-positive note as healthy buying was witnessed in metal, banking and IT stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,494 advances and 1,244 declines. On the NSE, there were 786 advances, 673 declines and 85 unchanged.
 
Initially, the benchmark indices opened on a firm note in sync with their Asian peers. However, investors were seen cautious ahead of the US Fed's FOMC (Federal Open Market Committee) meeting, which is scheduled for September 20-21. A hike in US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India. It is also expected to dent business margins as access to capital from the US will become expensive.
 
India approved an ambitious $1.04-billion project for constructing and upgrading 558 km of roads to link it with Bangladesh, Bhutan and Nepal and ease the movement of passengers and cargo, as part of the larger effort to increase intra-regional trade by 60%. The new project has been given an official nod by India's Department of Economic Affairs with 50% funding from the Asian Development Bank (ADB), officials told IANS, adding that the road project will cover West Bengal and Manipur on the Indian side, as of now. "The mandate is for completing the project within the next two years," a senior official said. "The primary idea behind the Bangladesh-Bhutan-India-Nepal (BBIN) road initiative is to improve ground connectivity in the region," said Leena Nandan, Joint Secretary, Ministry of Road Transport and Highways. "We have taken up five highway stretches in the country, which are very important for such a connectivity to succeed. This project is entirely different and new -- and about to be rolled out," Nandan told IANS. The project -- as per a list accessed by IANS -- includes, among others, an upgrade of the 122-km Siliguri-Mirik-Darjeeling ($15 million) and the widening of the 60-km National Highway-35 (Kolkata-Bangaon) on the border with Bangladesh ($130 million). This is likely to improve the infrastructure sector for investors in the stock markets too.
 
A 21-member business delegation from China arrived in West Bengal on a two-day visit to explore investment and business opportunities in West Bengal, said a minister on Monday. The delegation representing sectors like energy, manufacturing, mining, medical care, real estate and infrastructure consists of 21 entrepreneurs from 13 Chinese companies with an aggregate turnover of $10 billion, said Finance Minister Amit Mitra. In 2015, Chinese Vice President Li Yuanchao had met Chief Minister Mamata Banerjee and promised to send a business delegation, Mitra said. “With a focus on investment, the delegation has come to explore business opportunities in West Bengal," said Mitra, who also holds the Excise, Commerce and Industries portfolio. "They will have discussions with West Bengal Industrial Development Corp (WBIDC) and also visit a manufacturing zone to have first-hand knowledge of investment opportunities in the state," he said. "Another delegation with representatives from Fortune 500 companies will also visit the state in October-November," he added. These developments are good news for investors in well managed West Bengal-based companies.
 
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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