Nifty, Sensex showing no strength – Thursday closing report
Nifty has to stay above 7,900 for the market to continue to head higher. Bank Nifty is already weak
We had mentioned in Wednesday’s closing report that Nifty, Sensex may put in more gains for which Nifty has to stay above 7,880. The market indices in the Indian stock markets were range-bound during the day and closed with marginal gains. Bank Nifty however, closed with a marginal loss. The market indices were subdued after key economic data showed a slowdown in manufacturing activity for the last month.
The markets made healthy gains within minutes of opening and continued their upward trajectory on the back of Tuesday's monetary easing by the Reserve Bank of India (RBI), overnight rally in the US markets, supportive Asian markets and strengthening rupee value. However, the upward momentum lost its steam as the latest Nikkei India Manufacturing PMI (Purchasing Manufacturers Index) for the last month showed a contraction. The PMI was at a seven-month low of 51.2 in September 2015.
Markets analysts said the less-than-expected PMI data impacted sentiments and erased the gains made during the day's trade, as profit booking was also witnessed.
The rupee continued to gain strength on Thursday. It gained 7 paise and closed at 65.51 against a US dollar around 5.00 p.m. from its previous close of 65.58 against a greenback. It touched a day's low of 65.48 against the US dollar.
The Indian rupee had gained 38 paise on Wednesday to close at a five-week high of 65.58 against the US dollar.
The positive Asian markets have supported sentiments here. Japan's Nikkei index was higher by 1.92%. The Chinese markets -- Hong Kong's Hang Seng index and Shanghai Composite Index -- will remain closed till 7 October 2015 (Wednesday), on account of the Chinese national day.
Sector-wise, healthcare, capital goods and consumer durables witnessed healthy buying support. On the other hand, automobile, banking and information technology (IT) index came under heavy selling pressure.
The S&P BSE healthcare index zoomed by 260.11 points, capital goods index increased by 110.89 points and consumer durables index was higher by 96.29 points.
However, the S&P BSE automobile index receded by 78.81 points, banking index declined by 73.37 points and IT index was lower by 27.25 points.
HCL Technologies announced on Wednesday after market close that its first quarter earnings may be hit on account of client-specific issue, cross currency impact and longer transition deadlines for some of its complex projects in infrastructure management services. In a sharp market reaction the company’s share price fell by more than 12.5% in Thursday’s trading.
Major Sensex gainers during Thursday's trade were: Lupin, up 3.62% at Rs.2,107.05; Sun Pharma, up 2.57% at Rs.890.75; Tata Consultancy Services (TCS), up 2.01% at Rs.2,639.70; Dr.Reddy's Lab, up 1.80% at Rs.4,230.05; and Larsen and Toubro (L&T), up 1.54% at Rs.1,489.30.
The major Sensex losers were: BHEL, down 2.85% at Rs.199.70; Gail, down 2.60% at Rs.294.25; Maruti Suzuki, down 2.33% at Rs.4,579.85; Vedanta, down 1.82% at Rs.83.55; and HDFC, down 1.15% at Rs.1,199.25.
The Indian markets will remain closed on Friday on account of Gandhi Jayanti.
The top gainers and top losers of the major indices in the stock market are given in the table below:
The closing values of the major Asian indices are given in the table below:
Among European indices, DAX was at 9,672.13, up 0.12% and the FTSE 100 was at 6,143.23, up 1.35%.


IDBI Bank: Employees, officers oppose proposed move of privatisation
IDBI has been exploited by the Centre which has resulted in burgeoning bad loans for the Bank, allege employees’ and officers’ unions 
Bank employees and officers are making full preparations to defeat the government’s move to privatise IDBI Bank. "Arun Jaitley, Finance Minister made a statement that IDBI Bank will be modelled on Axis Bank Ltd an outright privatisation of IDBI Bank. We will write to all Members of Parliament (MPs) and all political parties to save this important institution to be hijacked by corporate in India," says S Nagrajan, General Secretary, All India Bank Officers Association (AIBOA). 
"Our organisation has come across the oft repeated message of the Finance Minister of reduction of capital in IDBI Bank and attempting to experiment the model of the erstwhile UTI Bank and now Axis Bank. IDBI has been utilised to experiment all sorts of expressions at different points of time by the owners at the centre it is not on excessive expressions. The result is burgeoning bad loans in the books of the Bank at this point of time," Nagrajan said in a statement.
In 1964, Industrial Development Bank of India (IDBI) was set up as developmental financial institution [DFI] and the capital was fully subscribed by the Government of India. Subsequently, it became a subsidiary of Reserve Bank of India (RBI). Later in April 2005, RBI sanctioned a scheme of amalgamation of IDBI Bank Ltd with IDBI Ltd as a legal entity. The Central government had a stake of 51% in the entity at that time.
Next year, an order of amalgamation of United Western Bank Ltd [UWB] was issued, which became effective from 3 October 2006. In the present structure, there are three entities, IDBI, a subsidiary of RBI, IDBI Bank Ltd and UWB, the old generation private sector bank.
"In these circumstances, the statement from Mr Jaitley is bolt from blue, says Nagrajan, adding, "Instead of expeditious steps to recover the bad loans, the Finance Minister, unmindful of the assurances given in the floor of Parliament in 2003 by his seniors to have the Government stake of not less than 51% in the capital, repeatedly reiterates to push IDBI to AXIS Bank model."
"In the event of non-responsiveness of the Government, AIBOA will roll out plan of actions to halt the moves along with the operating trade unions in IDBI," he added.




1 year ago

If IDBI Bank has been exploited by Centre, as alleged by the Employees' and Officers' Unions, should they not welcome the move to liberate the Bank from the control of Centre?

India's domestic passenger demand up 18 percent, fastest in the world: IATA

Leading international aviation body IATA on Thursday reported that India's domestic passenger demand grew by 18.3 percent in August, 2015.

Though August's demand was weaker in comparison to the 28 percent spike in July, nevertheless, it was the fastest amongst the major aviation markets of the world.

According to the International Air Transport Association (IATA), India's passenger traffic demand grew the fastest amongst the seven major aviation markets of the world -- Australia, Brazil, China, Japan, Russian Federation and the US.

India's traffic demand growth was followed by China at 13.6 percent and the Russian Federation at 10.9 percent.

The country's domestic traffic had spiked by 28 percent in July, 16.3 percent in June, 18.2 percent in May, 20.7 percent in April and 17.9 percent in March 2015. 

India's domestic capacity in the month under review rose by 8.4 percent when compared to August 2014.

As per IATA, India’s domestic demand soared owing to significant increases in service frequencies and improvements in economic growth.

"India’s domestic demand surged 18.3 percent in August compared to a year ago, largely reflecting increases in service frequencies and economic strength," IATA said in its global passenger traffic results for August.

India's growth is also significant contributor for the expansion of Asia-Pacific carriers. The domestic markets in India, China and Japan accounts for 44 percent of the region’s operations.

On global-basis total passenger traffic demand rose 7.1 percent in August 2015, with the strongest growth occurring in India, China and the Russian Federation. 

The global passenger traffic results, showed a 5.9 percent increase in capacity during the month under review, with a load factor of 84.7 percent.

“August results continue the trend of strong demand for air travel, despite some softening in global economic growth, particularly in emerging markets,” said Tony Tyler, director general and chief executive of IATA.

Earlier, data furnished by the civil aviation ministry showed that domestic air passenger traffic increased by 18.66 percent in August, which stood at 67.60 lakh passengers -- up from 56.97 lakh in the corresponding month last year.

The data also showed that low-cost carrier IndiGo achieved the highest market share at 35.8 percent followed by Jet Airways (19.8), Air India (16.2), SpiceJet (12.3), GoAir (8.4) and JetLite (3 percent).

AirAsia India had a market share of 1.9 percent, followed by Vistara at 1.4 percent, Air Costa's at 1.00 percent and Air Pegasus at 0.2 percent.


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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