The upmove on Nifty may continue if it manages to close above 5,455
The Indian indices on Monday opened in the positive for the second consecutive trading session and remained in the positive for most of the session and closed marginally higher than Friday’s close. The fall in US home sales eased speculation the Federal Reserve will reduce economic stimulus next month.
The Sensex opened at 18,603 and the Nifty opened at 5,499. Both the benchmarks made their respective intra-day high and low before ending in the positive for the third consecutive trading session. The Sensex moved in the range of 18,489 and 18,728 while the Nifty moved in the range of 5,454 and 5,529. The Sensex closed at 18,558 (up 39 points or 0.21%) while the Nifty closed at 5,477 (up 5 points or 0.09%). The National Stock Exchange (NSE) recorded a lower volume of 63.37 crore shares.
Among other indices, Media (1.57%); MNC (1.49%); Realty (1.48%); Pharma (1.12%) and Infra (1.04%) were among the top gainers while Bank Nifty (1.02%); Finance (0.88%); PSE (0.23%); Service (0.19%) and Energy (0.04%) were the top losers today.
Of the 50 stocks on the Nifty, 30 ended in the in the green. The top gainers were Sesa Goa (9.93%); BHEL (6.03%); Jaiprakash Associates (4.87%); Ranbaxy (4.38%) and Ambuja Cements (3.38%). The major losers were IDFC (8.77%); Axis Bank (5.15%); ONGC (3.63%); Gail (3.22%) and ICICI Bank (2.47%).
Apart from the slump in the US home sales, the statement given by financial services secretary Rajiv Takru after the meeting between finance minister P Chidambaram, finance ministry officials, bankers and foreign institutional investors in Mumbai on Saturday, brought further support for the ongoing positive move.
Takru said, "All measures to attract fund flows are under consideration. I think you should see something coming up shortly, say within a week or in the next 10 days." Also economic affairs secretary Arvind Mayaram present at the meeting, later said tapering of quantitative easing programme by the US will have little impact as it will be compensated by strong capital inflows from the FDI side and by issuance of overseas bonds by public sector entities. He said, of the $11-12 billion of inflows expected, $4 billion would be through quasi-sovereign bonds. The partially convertible rupee reached Rs64.20/21 per dollar today.
Montek Singh Ahluwalia, deputy chairman of the Planning Commission has suggested a cut in wasteful government expenditure as a strong and necessary measure to control the fiscal deficit but defended financial burden of the Food Security. "It's unpleasant, it's tough, but if people understand that you are trying to manage an economy, after all there are a lot of people who say there is a huge amount of waste in government expenditure, it is not going to be that difficult to cut it," Ahluwalia told in a television interview. Planning Commission was in the eye of the storm last year for its lavish renovation of toilets.
Global credit rating agency Fitch ratings today said it was getting more challenging for India to meet its fiscal deficit target in the current fiscal year ending March 2014 with revenues slowing. Fitch had last week said that the pressure on Indian currencies and asset prices is not a trigger for rating action at this point. Fitch has a stable outlook on the 'BBB-' sovereign credit ratings for India.
The research and analysis wing of Moody’s, the global rating agency, today said that the Indian economy will grow at 4.5% in the first quarter (April-June) of 2013-14. Moody's Analytics said that the gross domestic product (GDP) data is expected to show further deceleration in this quarter, "highlighting the challenges faced by new central bank governor Raghuram Rajan." The GDP numbers will be released on Friday. Earlier, Finance Minister P Chidambaram had also said that the first quarter GDP growth would remain more or less flat.
Most of the Asian indices closed in the positive. Jakarta Composite fell the most, 1.18% while Shanghai Composite was the top gainer, 1.90%.
Sales of new single-family homes in the United States fell sharply in July to their lowest level in nine months, casting a shadow over the country's housing recovery. Sales dropped 13.4% to an annual rate of 394,000 units, the Commerce Department said on Friday. The report could weaken the case for the U.S. Federal Reserve to reduce its support for the economy by trimming monthly bond purchases later this year.
At the time of writing, the European indices were trading lower. The durable-goods data from the US was lower than expected but the US Futures shrugged off the negative data and went into positive territory.
National Bulk Handling Corp said its exposure in NSEL is less than 3% of its total warehousing stock
National Bulk Handling Corp Ltd (NBHC) on Monday said that the company and National Spot Exchange Ltd (NSEL) are totally different entities and it does not handle NSEL warehouses except for stocks at five warehouses which recently (June/July 2013) have been taken over.
In a release, NBHC said, the stock belonging to NSEL comprises less than 3% of the total stock handled by the warehousing and commodity management company.
As of 19 August 2013, the stocks in warehouses managed by NBHC across locations in 19 states is worth about Rs6,500 crore. As of July end, NBHC had over 1,500 storage or warehouses and commodity management facilities under its management through various commercial formats, the release said.
The UPA government hopes to pass key Bills relating to food security, economic reforms and land acquisition in the current session
The union government on Monday decided to extend the monsoon session of Parliament till 6th September to make up for time lost due to disruptions. The government hopes to pass key Bills relating to food security, economic reforms and land acquisition.
Government took the decision as virtually no business was transacted in the Lok Sabha till 24th August due to disruptions and adjournments caused by protests by TDP and Congress members from Andhra Pradesh against the announcement on the formation of Telangana.
The Cabinet Committee on Parliamentary Affairs took the decision to extend the session till 6th September at a meeting held in Parliament House today.
Three Bills were passed by the Lok Sabha last Saturday and the key Food Security Bill was taken up today.
The government is hopeful of getting Parliament’s nod for the Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011, the Land Acquisition Bill and other legislations.
The United Progressive Alliance (UPA) dispensation is still hopeful of convincing the main Opposition Bharatiya Janata Party (BJP) on the Insurance Bill. On the government’s agenda is also the Judicial Appointments Commission Bill, and two Bills on Civil Aviation.
The Rajya Sabha has functioned normally on most days and transacted business. Several pending Bills were passed in the Upper House in this session.
The monsoon session, which began on 5th August, was scheduled to end on 31st August.