We had mentioned in Tuesday’s closing report that Nifty, Sensex might drift higher. The major indices of the Indian stock markets were moving sideways on Wednesday and they closed with small gains over Tuesday’s close. Intra-day variations were miniscule. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Key Indian equity market indices were trading in the green during the afternoon session on Wednesday. Good buying was observed in capital goods, telecom and power sectors, while selling pressure was seen in IT sector. With interest rates likely to remain at the same level until the next review, the major indices have not found the fresh impetus to turn the stock market bullish. A good monsoon and rising rural purchasing power may be the only favourable factor for the next few months.
Assuring continuity in reforms and predictable tax policies, but with a firm hand against evasion, Prime Minister Narendra Modi invited USA Inc to invest in his country to forge a win-win partnership between American innovation and Indian human resource. Speaking at a gala hosted by the US-India Business Council in USA, he also called upon rich nations to open up their economies to goods and services from emerging countries like India as they seek to make world-class merchandise not just for themselves but also for the entire globe. "India is the future human resource powerhouse of the world with a young hard-working population. In my vision, a partnership between American capital and innovation, and Indian human resource and entrepreneurship can be very powerful," Modi said. "I am convinced we can strengthen both our economies through such a partnership," said the prime minister to a packed audience that included the top brass of companies like PepsiCo, Master Card, Warburg Pincus, Lockheeed Martin, Boeing, Westinghouse, Intelsat, Emerson and 8Minute Energy.
Members of the US-India Business Council have already invested $28 billion in India since September 2014 and another $45 billion is in the pipeline, Council Chairman John Chambers told Prime Minister Narendra Modi. "In September 2014, USIBC members indicated an investment figure of $41 billion that was likely to be invested over a 2-3 year period. Today I'm happy to announce that in less than two years, about 20% of USIBC members have already invested $28 billion," Chambers said. "In next 2-3 years, we will see this pace accelerating -- again with 20 percent of our members indicating that USIBC members are on track to invest an additional $45 billion, which is a conservative estimate," he added. Chambers met Prime Minister Modi just after his roundtable with USIBC members, which included the top brass of companies like PepsiCo, Master Card, Warburg Pincus, Lockheeed Martin, Boeing, Westinghouse, Intelsat, Emerson and 8Minute Energy. The prime minister also presented the USIBC Global Leadership Awards to Dilip Shangvhi of Sun Pharmaceuticals and Jeff Bezos of Amazon.
US stocks closed mixed as Wall Street continued to assess US Federal Reserve Chair Janet Yellen's speech on the country's economy. The Dow Jones Industrial Average rose 17.95 points, or 0.10%, to 17,938.28 on Tuesday. The S&P 500 added 2.72 points, or 0.13%, to 2,112.13. The Nasdaq Composite Index fell 6.96 points, or 0.14%, to 4,961.75. Yellen said on Monday that gradual interest rate hikes remain appropriate, but avoided providing precise timing for the central bank's next move. "The positive economic forces have outweighed the negative, and despite the challenges that the economy continues to face, I continue to expect further progress toward our employment and inflation objectives," Yellen said in a speech at the World Affairs Council of Philadelphia. Investors expected that a sharp decline in hiring situation may push back the central bank's decision to raise interest rates in June.
The southwest monsoon has finally set in over Kerala and Lakshadweep, the India Meteorological Department (IMD) announced on Wednesday. K Santhosh, director at the IMD office, said "good rains" were expected in the coming days across Kerala. This is good news for the stock markets and there could be an overall cheering effect on the major indices, as the monsoon progresses.
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: