Nifty, Sensex May Be under Pressure, If US Market Weakens Again – Thursday closing report
We had mentioned in Wednesday’s closing report that Nifty, Sensex might rally if global markets pulled back. The major indices of the Indian stock markets were range-bound on Thursday and closed with gains over Wednesday’s close. On the NSE, there were 913 advances, 795 declines and 353 unchanged. The trends of the major indices in the course of Thursday’s trading are given in the table below:
IT (information technology) stocks gained, while the oil and gas and energy stocks edged higher on the BSE. In the past days, investor sentiments were low on concerns that US President Donald Trump would attempt to fire Federal Reserve Chairman Jerome Powell. Key economic adviser Kevin Hassett's reassurances on Wednesday put this to rest. According to reports, the US president was unhappy post the US central bank hiking the short-term interest rate.
Credit ratings agency ICRA expects the domestic two-wheeler industry's volumes to grow at 8%-10% during FY2019. According to ICRA, the expected growth rate will be supported by growing per capita income, improved farm sentiment following near normal monsoon over last three fiscal, higher MSP and farm loan waiver in select states. "The two-wheeler industry has reported a 11.1% Year over year (YOY) volume growth in April-October 2019.
This is despite some one-off adverse events during the period increase in insurance premium across the country, floods in Kerala in August 2018 and regulatory changes in West Bengal mandating two-wheeler sale to only valid license holders in July 2018," ICRA said in a statement. "While increase in rural income would support motorcycle demand; the demand for scooters is expected to be led by rapid urbanisation, increased affordability and greater penetration through targeted product launches." Hero MotoCop shares closed at Rs3,127.00, down 1.85% on the BSE.
Budget passenger carrier SpiceJet will launch a daily direct service on Kolkata-Lilabari-Kolkata route under the regional air connectivity -- UDAN -- scheme, the airline announced. The un-served market of Lilabari, located in Lakhimpur district of Assam, was awarded to the airline under the phase II of UDAN scheme. In addition, the airline will also start a new direct flight connecting Kolkata with Jabalpur and an additional frequency on Hyderabad-Jabalpur route. "All new flights and frequencies are scheduled to commence from January 15, 2019," the company said in a statement. The airline said that it will deploy its Bombardier Q400s on all these routes. After the addition of the Kolkata-Lilabari-Kolkata flight, SpiceJet will operate 25 flights under the UDAN scheme. SpiceJet shares closed at Rs86.60, down 1.03% on the BSE.
Automobile major Maruti Suzuki India has recalled 5,900 units of light commercial vehicle Super Carry. According to the company, it is "proactively and voluntarily" undertaking the recall campaign. "The company will inspect a possible defect in fuel filter of 5,900 Super Carry vehicles manufactured between April 26, 2018 and August 1, 2018. This also includes vehicles in which fuel filter has been replaced in field during this period," the company said in a statement issued on Wednesday. "Starting December 26, 2018, owners of the suspected vehicles will be contacted by Maruti Suzuki dealers for inspection and replacement of the faulty part free of cost." Recall campaigns are undertaken globally to rectify faults that may be potential safety defects. On Thursday, Maruti Suzuki shares closed at Rs7,505.30, down 0.86% 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: