Nifty and Bank Nifty in a downtrend
We had mentioned in last week’s closing report that NSE’s CNX Nifty may be headed lower, if its closes below 8,750, while Bank Nifty was already in a downtrend. The 50-share benchmark on Monday moved in a range up to 1.35pm, after which it slipped lower and hit a five-day low, including today, and closed near to it.
S&P BSE Sensex opened at 29,317 while Nifty opened at 8,857. After hitting a high at 29,363 and 8,869, respectively, both Sensex and Nifty moved lower to hit a low at 28,913 and 8,736. Sensex closed at 28,975 (down 256 points or 0.88%) while Nifty closed at 8,755 (down 79 points or 0.89%). NSE recorded a volume of 88.21 crore shares. India VIX rose 1.72% to close at 21.6325.
Public Sector Banks (PSB) employee unions had deferred their four-day nation-wide strike beginning 25 February 2015, following wage settlement with the Indian Banks’ Association (IBA). As per the settlement, bank employees would get a 15% wage hike from 1 November 2012. They would also have second and fourth Saturday of every month as weekly off. However, other Saturdays would be a full working day for banks.
Indian stock exchanges have decided to keep the markets open on Saturday, 28 February 2015, when Finance Minister Arun Jaitley would present the second Budget of the Narendra Modi government. The Budget session of Parliament will be held in two phases.
The first phase will be from 23rd February till 20th March and the second phase from 20th April till 8th May. There will be 20 working days during the first phase and 13 in the second phase.
In view of the upcoming budget, there is anticipation that finance minister may present a common man friendly budget by either raising tax slabs or hiking investment limit in savings instruments.
Prime Minister Narendra Modi on Monday reached out to the opposition, saying the Government will listen to their views, and efforts will be made to discuss all issues of national importance.
Anil Ambani-led Reliance group has clarified that no search or raid has been conducted by police authorities at any office of the Group anywhere in India. The work station of only one specific Reliance Power employee was searched, and no incriminating material of any kind was found, Reliance Group said in a press release. The company is not aware of the circumstances leading to the arrest of that employee, and Reliance Power is fully cooperating with the authorities, it said. The group is committed to propriety in all business dealings, and do not support unlawful activities of any nature, the press release said.
Rating agency Standard & Poor's (S&P) on Monday warned that India's weak fiscal and debt indicators, coupled with the low-income levels, "constrain" the sovereign rating.
A fall in global oil prices provides India with the opportunity to strengthen its balance sheet, a deputy governor of the central bank said on Monday. Emphasising the need to use the savings to invest, build reserves and cut subsidies.
Coming back to Indian stock markets, Oberoi Realty (8.63%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. It posted an improved result for December 2014 quarter last week.
HDIL (6.98%) was the top loser in ‘A’ group on the BSE. The stock hit its 52-week high on Friday. M&M (0.99%) was the top gainer in the Sensex 30 pack. Reliance Industries (2.53%) was the top loser in the pack.
On Friday, US indices closed in the green. Among those Asian indices, which were trading Monday, Nikkei 225 (0.73%) was the top gainer while SET Composite index of Thailand (0.60%) was the top loser.
European indices were showing mixed trading while US Futures were trading lower. Euro-area finance ministers on Friday reached an agreement intended to keep aid flowing to Greece for four months in return for a commitment to budget targets, buying time to work out the details of longer-term financing. Greece now has to provide a list of reform measures to euro zone today to secure financing. European finance chiefs will then decide whether the proposals go far enough or trigger another round of emergency negotiations this week.