We had mentioned in last week’s closing report that Nifty, Sensex might head higher. The major indices of the Indian stock markets were range-bound during the week and closed on Friday with weekly losses over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:
The major indices of the Indian stock markets fell on Monday and closed with losses over Friday’s close. On the NSE, there were 739 advances, 1,026 declines and 335 unchanged. The Sensex reversed early gains to fall over 340 points owing to sharp rise in crude oil prices. The benchmark crude oil, Brent crude futures surged above the $70 per barrel. Market participants also said that markets slid in response to the Bharatiya Janata Party's manifesto. Several welfare schemes were announced, which would have a huge cost and impact the country's fiscal deficit, they said. Besides, analysts said that broadly negative Asian markets and profit booking also impacted investor sentiments.
The major indices were range-bound on Tuesday and closed with gains over Monday’s close. On the NSE, there were 786 advances, 966 declines and 334 unchanged. Oil prices were already on the rise over US sanctions in Iran and Venezuela which has curtailed global crude oil supply. Moreover, the OPEC-led production cut also pushed up the prices. The benchmark, Brent Crude surged over the $71 a barrel mark. At close, the Sensex was up 238.69 points at 38939.22, while Nifty was up 67.50 points at 11,672.
The Punjab National Bank (PNB)'s 13% stake sale in PNB Housing Finance for Rs18.5 billion will strengthen the bank's capital, said Moody's on Monday. The report said that it estimates the sale will increase PNB's Common Equity Tier 1 (CET1) ratio by about 40 basis points from the 6.9% reported in December 2018.
PNB shares closed at Rs94.25, up 1.24% on the NSE.
The stock markets suffered a correction on Wednesday and closed with losses over Tuesday’s close. On the NSE, there were 757 advances, 974 declines and 356 unchanged. Hindalco Industries temporarily shut its operations of its alumina plant in Jharkhand after a spillage incident injured four people. The incident occurred in the red mud (bauxite residue) storage area connected to the alumina plant in Muri. Hindalco Industries shares closed at Rs211.60, down 2.56% on the NSE.
The Reserve Bank of India (RBI) may take more time to examine the Lakshmi Vilas Bank (LVB) and India Bulls Housing Finance Ltd (IHFL) merger deal, an official source said on Wednesday. The board of Lakshmi Vilas Bank have approved a scheme of amalgamation with the IHFL.
On Thursday, the indices were range-bound and closed with gains over Wednesday’s close. On the NSE, there were 778 advances, 938 declines and 373 scrips remain unchanged.
Despite a muted trend in Asian markets, the Indian market opened higher on Thursday as the first phase of the Lok Sabha Polls began with voting in 91 seats. As many as 28 stocks advanced in the Nifty 50 index, while 22 stocks declined.
Indian equities fell on Wednesday after the International Monetary Fund (IMF) revised down the global growth forecast fuelling fears of a global slowdown.
Investors were also cautious ahead of the polls, which began on Thursday morning.
The 30-share BSE Sensex rose 21.66 points to 38,607.01 and the Nifty50 gained 12.40 points at 11,596.70. The market breadth remained in favour of bears as about 1,325 shares declined against 1,153 advancing shares on the BSE. Caution was also seen among investors ahead of the start of earning season and for fresh trade tensions between the US and the EU. On Thursday, Asian indices were showing mostly a negative trend.
In a new twist to the Jet Airways saga, its erstwhile promoter Naresh Goyal is said to be planning to bid for the airline from which he had to step down as chairman last month only. Separately, Mr Goyal has pledged his 26% stake in the carrier for loan from state-run Punjab National Bank (PNB).
Telecom major Bharti Airtel fixed a "record" date to determine the shareholders eligible to apply for equity shares in the proposed rights issue. The "Special Committee of Directors for Fund Raising" of the company decided that it would select the eligible applicants for the rights issue on April 24, 2019. The company plans to raise Rs25,000 crore through the rights issue. Bharti Airtel shares closed at Rs346.80, up 2.00% on the NSE.
At a time when the struggling-to-stay-afloat Jet Airways has created a capacity short fall in the Indian aviation sector, SpiceJet is set to induct 16 Boeing aircraft on lease in the next 10 days. The company said in a BSE filing on Friday, that SpiceJet will induct 16 Boeing 737-800 NG aircraft on dry lease and has applied to the Directorate General of Civil Aviation (DGCA) for a No Objection Certificate (NOC) to import the aircraft.
"Subject to regulatory approvals, the aircraft would begin joining SpiceJet fleet in the next 10 days." "This is the first lot of Boeing 737s that we are inducting in our fleet. The sudden reduction of aviation capacity has created a challenging environment in the sector," Ajay Singh, Chairman and Managing Director, SpiceJet said. The debt-ridden Jet Airways fleet size is down to 14 aircraft from around 120 last year. Jet is in the midst of a severe liquidity crisis that has affected its operations and resulted in the grounding. SpiceJet shares closed at Rs109.90, up 8.54% on the BSE.
The key Indian equity indices opened on a positive note on Friday, with the Sensex gaining around 95 points. Buying in the oil and gas and IT (information technology) stocks helped the indices rise, while a largely negative global market capped gains in the domestic market, analysts said. The major indices closed with gains on Friday with Thursday’s close.
India’s second largest IT (information technology) firm Infosys has reported results better than expectations as net profit came in at Rs4,070 crore, as against an ET Now poll of Rs3,957 crore. The firm has set FY20 growth guidance at 7.5%-9.5% versus CNBC TV18 poll of 8%-10%. The EBIT (Earnings before interest and taxes) margin guidance for FY20 was maintained as compared to the channel’s poll. Earlier, Infosys had raised its full-year revenue outlook to 8.5%-9% in terms from the earlier 6%-8%. Some analysts expect Infosys to guide for a higher growth in FY20. Infosys shares closed at Rs748.00, up 0.71% on the NSE.
Engineering and construction conglomerate Larsen and Toubro (L&T) announced it has bought the 3% stake in its subsidiary -- L&T Shipbuilding Ltd -- previously held by the state-run Tamil Nadu Industrial Development Corporation for Rs32.74 crore. L&T Shipbuilding was incorporated on November 13, 2007, and currently operates a modern shipyard from Kattupalli, Chennai, carrying out shipbuilding and ship related activities, the filing said. The company undertakes manufacture and building of warships, auxiliary vessels and specialised commercial ships, and had a turnover of over Rs730 crore in fiscal 2017-18, it added. Larsen & Toubro shares closed at Rs1,359.75, down 1.32% on the NSE.