While the downside in Nifty may be restricted, it will be bullish only if closes above 7,850
We had mentioned in Monday’s closing report that Nifty, Sensex may put in a short rally and that Nifty may not be out of the woods yet but may bounce back till 7,850. The Indian stock markets continued with their bearish trends and the major indices lost around 0.85% in Tuesday’s trading. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
The prevailing logjam in parliament coupled with prospects of a US rate hike and the decline in oil and gas stocks subdued Indian equity markets. Initially, both the bellwether indices of the Indian equity markets opened on a negative note following their Asian peers. Besides, prospects of a US rate hike prompted selling among foreign investors and continued weakness in rupee's value depressed them. In addition, oil and gas, energy and power companies stocks fell after a dip in global crude oil prices.
Markets observers said that the investors' sentiments were subdued due to the logjam in parliament which has dimmed the prospects of the Goods and Services Tax (GST) bill getting passed during the winter session.
The catastrophic loss of property and lives due to the floods in Tamil Nadu could cost insurance companies around Rs1,500 crore though exact estimates will be known only later. “We have received around 800 claims and the initial estimate of the loss is around Rs.500 crore," a senior official of United India Insurance Co. Ltd. told IANS. The official said the flood loss for the general insurance industry could be around Rs1,500 crore. But if one takes into account the uninsured moveable and immovable properties, then the amount would be several times more. The heaviest rains in a century battered the districts of Chennai, Kanchipuram, Cuddalore and Thiruvallur over the past month, leaving around 325 people dead and causing widespread destruction.
US-headquartered IT company Cognizant, with major operations in Chennai, on Tuesday announced Rs260-crore ($40 million) aid for flood relief measures here and assistance as loans, grants to its employees and business partners. It announced a contribution of Rs65 crore ($10 million) towards flood relief steps and another Rs195 crore ($30 million) as assistance (loans, grants and healthcare assistance). Cognizant is one of Chennai's largest employers with more than 60,000 employees and 11 facilities.
Global software major Infosys announced on Monday it is creating 250 new jobs over the next three years in Ireland to develop new technologies and support innovation in financial institutions. The expansion will create 95 jobs at its first dedicated product-centric research and development (R&D) centre outside India and open a second Irish facility to house up to 155 techies for providing client servicing, Infosys said in a statement.
Bringing relief to scores of Indians aggrieved by bounced cheques, a bill permitting the filing of cases at the place where a cheque is presented for clearance and not the place of issue was approved by parliament with the Rajya Sabha giving its nod on Monday. Minister of State for Finance Jayant Sinha moved the Negotiable Instruments (Amendment) Bill, 2015, which was passed by the Lok Sabha in the monsoon session, in the upper house to seek to replace an ordinance that was re-promulgated earlier. The amendment seeks to overturn a Supreme Court ruling which said cases have to be initiated where the cheque-issuing branch was located, and provides that cases of cheque bouncing can now be filed only in a court that has jurisdiction over the bank branch of the payee. Over 1.8 million cheque bounce cases are pending in various courts, Sinha told the house.
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: