We had mentioned in Monday’s closing report that Nifty, Sensex were going strong. The major indices of the Indian stock markets were range-bound on Tuesday and closed with minor losses over Monday’s close. On the NSE, there were 766 advances, 949 declines and 349 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
Selling pressure in finance and banking sectors and a slight rise in global crude oil prices dragged the key equity indices lower on Tuesday. According to the analysts, investors were cautious due to the ongoing poll processes in Chhattisgarh, Mizoram, Madhya Pradesh, Telangana and Rajasthan. Counting of votes would take place on December 11. Finance and banking stocks traded over 0.60% lower, while selling pressure was witnessed in telecom, auto and FMCG (fast moving consumer goods) sectors.
In contrast, buying was seen in IT (information technology) and oil and gas stocks. Ahead of the OPEC (Oil and Petroleum Exporting Countries) meeting this week, the crude oil prices surged on Tuesday on expectations of supply cuts by the oil cartel. The benchmark Brent Crude traded higher at $62.32 a barrel. The rupee, after losing 88 paise on Monday, traded flat at Rs70.44 to a US dollar. Domestic markets like stock markets across the world reacted well on Monday to signs of an easing US-China trade tensions as the two countries agreed to halt additional tariffs. But the domestic markets in India had ended on a flat note on Monday due to release of weak macro data.
Jammu and Kashmir Governor Satya Pal Malik on Tuesday categorically assured that no changes are intended in the financial status and independence of the J&K Bank. Malik was responding to apprehensions expressed by a cross-section of the society and the bank's staff. “The Bank is regulated by the Reserve Bank of India (RBI) as an old generation private sector bank, by the Registrar of Companies as it is a Government Company under Companies Act and by SEBI as it is a listed company. It will continue to be regulated by the RBI, SEBI and the Registrar of Companies. No changes are being made here or contemplated. The J&K Bank is registered as a Government Company under the Companies Act. The word PSU has no legal connotation. J&K Bank continues to be a Government owned company. No new changes are being made here. As a Government Company, J&K Bank is a Public Authority under the Right to Information Act (RTI) and hence is automatically subject to the transparency provisions of RTI. Nothing new is being imposed in this regard. Transparency is good for the bank in the long term. However, in view of the concerns expressed, and to give comfort to employees, the government will re-examine the issue of accountability to legislature. J&K Bank shares closed at Rs38.90, up 5.28% on the BSE.
The RBI is expected to keep its key interest rate unchanged at its penultimate monetary policy review of the fiscal on Wednesday at a time when inflation - the central bank's key concern - has softened, as has GDP growth, according to the figures for the second quarter ending in September.
At its previous bi-monthly review in October, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) held its repo, or short term lending rate, unchanged at 6.5% in a context of rising crude oil prices posing an inflationary risk as well as a weakening rupee. Official data earlier showed that the consumer price index (CPI), or retail inflation in October, fell to its lowest in a year at 3.31% owing to lower food inflation, from 3.7% in the previous month.
Besides, from the depths it had plunged, the rupee has since appreciated to a level of just over 70 to the US dollar. Moreover, global crude oil prices have softened sharply from $86 per barrel in October to current levels of around $60 amidst reports that Saudi Arabia and Russia have reached a deal to cut output so as to shore up falling prices.
Meanwhile, official data on November 30 showed the pace of India's GDP growth slowed during the July-September quarter to 7.1%, from 8.2% in the previous one, mainly on the back of a drop in manufacturing, agriculture and mining.
Reliance Communications (RCOM) said its subsidiary Reliance Realty has submitted a corporate guarantee of Rs1,400 crore to the Department of Telecommunications (DoT) as per the Supreme Court's order on November 30. The apex court in its order directed the DoT to approve RCOM's spectrum trading deal within seven days of the order and told RCOM to furnish Rs1,400 crore worth of corporate guarantee. "The spectrum trading transaction will now be completed and proceeds will clear the dues of Ericsson and minority investors of Reliance Infratel Limited (RITL)," RCOM said in a statement. RCOM's asset monetisation would proceed as per plan, it said. The company’s shares closed at Rs17.10, up 2.89% on the BSE.
Shriram EPC has secured two orders worth Rs166.16 crore and Rs59.55 crore from Jharkhand Urban Infrastructure Development Co. Ltd. for augmentation and strengthening of Dhanbad Water Supply Scheme-Phase 1 and Water Supply for Khunti Nagar Panchayat. The company’s shares closed at Rs13.06, up 11.82% on the BSE.
Alembic Pharma's subsidiary company Orit Laboratories LLC has received approval from the US FDA (Food and Drug Administration) for its ANDA for Glycopyrrolate Tablets USP. The drug is indicated for use as adjunctive therapy in the treatment of peptic ulcer. The company’s shares closed at Rs615.00, down 0.11% on the BSE.
YES Bank reported that Yes Asset Management has received final regulatory approval from SEBI (Securities and Exchange Board of India) to commence its Mutual Fund business. It is to launch two mutual fund schemes - 'YES Liquid Fund' and 'YES Ultra Short Term Fund'. Yes Bank shares closed at Rs176.55, down 0.81% on the BSE.
Uflex has been granted US Patent for 20 years covering entire categories of Formable Films that include one or more BOPET layers used in Alu Alu blister packaging. With this, Uflex gets exclusive right of manufacturing & sale of this special BOPET film in US, Europe and India. Uflex shares closed at Rs291.35, up 4.52% on the BSE.
NCC has received two new orders totalling to Rs220.2 crore in the month of November, 2018. The Electrical division of the company secured Rs174.2 crore order and Water division secured order worth Rs46 crore. NCC shares closed at Rs87.00, down 0.34% 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: