We had mentioned in Wednesday’s closing report that Nifty, Sensex were turning weak. The major indices of the Indian stock markets rallied on Thursday and closed 0.50%-0.60% lower than Wednesday’s close. The trends of the major indices in the course of Thursday’s trading are given in the table below:
Broadly positive global indices and value buying, lifted the Indian equities markets on Thursday. The key domestic indices closed with gains of more than half a per cent each, as buying was witnessed in healthcare, automobile, and metal stocks. The BSE market breadth was in favour of the bulls -- with 1,807 advances and 992 declines. On the NSE, there were 1,154 advances, 480 declines and 86 unchanged.
With the Union Cabinet granting approval to the merger into the State Bank of India (SBI) of its five associate banks, the public lender on Thursday said the combined entity would have lower management costs resulting in savings on operating costs. "Once merger is complete, we will be in a position to save costs of these associate banks, because the structure of the five head offices will fold into one corporate office of the SBI. The zonal offices will also get integrated into our operations," SBI Managing Director DK Khara told BTVi in an interview. "Lesser management costs of these offices will get reflected in saving operating costs of banks. CASA (Current Account, Savings Account) will go up. Lots of cost efficiency and capital efficiency will come into play. It will save costs for banks, which will save resource cost and prove advantageous," Khara said. He said that though there are no plans to shut down branches, rationalisation of branches would take place -- meaning dedicated branches for small and medium entreprise (SME) lending, servicing high net worth individuals (HNIs), among others. "It will create much more value for customers," he added. The merged entity with the one-fourth of the market share would have a balance sheet of about Rs40 lakh crore, 23,000 physical branches and 22,000 ATMs, Khara said. Post-merger, a shareholder will get 28 shares of SBI for every 10 shares of State Bank of Bikaner and Jaipur (SBBJ). The legal entity of the associate banks will cease to exist from the effective date of merger. State Bank of India shares closed at Rs270.40, up 0.65% on the BSE.
Automobile major Maruti Suzuki India on Wednesday launched its multi-purpose vehicle (MPV) Ertiga Limited Edition priced between Rs7.85 lakh and Rs8.10 lakh (ex-showroom, New Delhi). "The all-new features of Ertiga Limited Edition highlight the company's focus on building a customer connect through product differentiation while creating delight," RS Kalsi, Executive Director Marketing and Sales, Maruti Suzuki India, was quoted as saying in a statement. The company has sold over three lakh Ertiga MPV since its launch in 2012. Maruti Suzuki India shares closed at Rs6,027.05, up 2.84% on the BSE.
Continuing with the revival in exports for the fifth month in a row, Indian merchandise shipments overseas at $22.12 billion in January 2017 registered an uptick of 4.32% over the $21.20 billion exported in January 2015, official data showed on Wednesday. Imports during the month in consideration at $31.96 billion also marked an increase of 10.70% over the $28.87 billion worth of imports in January last year. Consequently, the trade deficit in January was higher at $9.84 billion, as compared to the deficit of $7.67 billion during same month of 2016. "The growth in exports is positive for USA (2.63%), EU (5.47%) and Japan (13.43%), but China has exhibited negative growth of (-1.51%) for November 2016 over the corresponding period of previous year as per latest WTO statistics," a Commerce Ministry release here said. Cumulatively for the April-January period, exports rose marginally by 1.09% in dollar terms at $220.9 billion, as against exports of $218.5 billion over the same period last year. "Non-petroleum exports in January 2017 were valued at $19.42 billion against $19.11 billion in January 2016, an increase of 1.6%," a statement here said. Cumulative imports for April-January were worth more than $307.3 billion, which was a 5.81 per cent fall from the over $326.3 billion worth imports recorded for the same period of the previous fiscal. With global oil prices climbing back to nearly $55 a barrel, India's oil imports during January were valued at $8.14 billion, which was a massive 61.07% jump over oil imports valued at $5.05 billion in the corresponding month of 2016. Non-oil imports in January were static, increasing by 0.01% to $23.82 billion, from $23.81 billion in the same month of last year. The merchandise trade deficit cumulatively for April-January, however, declined by 19.82% to $86.39 billion, as against $107.7 billion in the same period of 2015-16. As per Reserve Bank of India data on Wednesday, services exports during December 2016 were valued at $13.80 billion, while imports stood at 8.29 billion, resulting in a positive trade balance of $5.5 billion. Export oriented companies are likely to maintain their bullish trend on the stock exchange.
Tata Steel workers in the UK on Wednesday voted robustly in favour of accepting steel producer's proposal on pensions, jobs, investment and production. As many as 72.1% of the members who turned out for votes from Community and 75.6% from Unite and 74% of the third union, GMB, voted for the rescue plan. "This result provides a mandate from our members to move forward in our discussions with Tata and find a sustainable solution for the British Steel Pension Scheme (BSPS)," said Roy Rickhuss, General Secretary of Community. "Steel workers have taken a tough decision and have shown they are determined to safeguard jobs and secure the long-term future of steelmaking. Nobody wanted to be in this situation, but as we have always said, it is vital that we now work together to protect the benefits already accrued and prevent the BSPS from free-falling into the PPF," he added. Tata Steel shares closed at Rs469.80, up 2.11% on the BSE.
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: