We had mentioned in Friday’s closing report that Nifty, Sensex were trendless. The major indices of the Indian stock markets suffered a strong correction on Monday and the losses were more than 1.20% over Friday’s close. However, market trading volumes were on the lower side on the NSE. The trends of the major indices in the course of Monday’s trading are given in the table below:
Indian equity markets plunged on the back of negative global cues and caution ahead of F&O (futures and options) expiry during the mid-afternoon trade session on Monday. The key indices traded in the red with losses of more than 1% each, as heavy selling pressure was witnessed in stocks of banking, automobile and capital goods. The BSE market breadth was tilted in favour of the bears -- with 1,644 declines and 1,052 advances. On the NSE, there were 542 advances, 1,070 declines and 259 unchanged. Volatility in global crude oil prices and negative Asian markets dragged the Indian equity markets lower at the start of the day's trade, pointed out market analysts. Lower European market accelerated the falls in the key domestic indices. Unwinding of positions ahead of F&O expiry also depressed the equity markets. The CNX Nifty traded lower tracking negative global cues. IT and banking stocks traded down on profit-booking. Auto and oil-gas stocks traded with sideways sentiments.
Indian multinational Tata Steel is set to begin crucial talks with trade union representatives of its British steelworks to settle the deadlock over a 15 billion pound pension scheme for its workers, British media reported on Sunday. According to The Sunday Times, Tata Steel will start talks here with unions on Monday to break the deadlock over a 15 billion pounds sterling pension scheme, which is the major obstacle in its merger with German steel maker Thyssen Krupp. The newspaper said the Indian company "is understood" to have called two days of pension talks to try to secure the merger of its European operations with those of Thyssen Krupp. German engineering conglomerate Thyssen Krupp and Tatas have held talks on combining their continental European steel operations, as global overcapacity weighs on prices and profits. Following this summer's British referendum verdict to exit the European Union, which has raised concerns about the viability of the British steel industry that has already been under prolonged and serious pressure, there were reports in the local media that Tata Steel would likely to put the sale on hold. Tata Steel shares closed at Rs370.40, down 0.40% on the BSE.
"India records its highest ever year-on-year FDI inflows. There has never been a better time to #MakeInIndia," the Department of Industrial Policy and Promotion (DIPP) said in a post on the programme's Twitter handle. "With 2 years of #MakeInIndia comes 2 years of doing business made easier," it said in a separate tweet. The stock markets in India have hardly reacted to this aspect of government policy in the current year. Industry chamber Assocham said earlier this year on the basis of a survey that the Indian economy is expected to improve in short-term but private sector investments would be a matter for concern due to sluggish capacity utilisation and pressure on corporate earnings.
India's foreign exchange reserves went down $369.60 billion as on September 16, the Reserve Bank of India (RBI) announced. According to data released by the RBI, the reserves stood at $369.60 billion as on September 16, as against $371.27 billion as on September 9. On September 16, the foreign currency assets stood at $344.07 billion, gold at $21.64 billion, special drawing rights at $1.49 billion and the reserve position in the International Monetary Fund (IMF) at $2.39 billion. The Indian stock markets have done well in attracting investments from foreign institutional investors, when the foreign exchange reserves have moved down.
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: