We had mentioned in Monday’s closing report that Nifty, Sensex were continuing to be bullish. The major indices of the Indian stock markets were range-bound on Tuesday and closed with small gains over Monday’s close. On the NSE, there were 829 advances, 896 declines and 341 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
Caution ahead of the outcome of ongoing US-China trade talks and Q3 corporate earning session kept the major indices in a short range on Tuesday. Sensex and Nifty logged marginal gains during the afternoon session. The US-China trade talks assume special significance as analysts say both sides face a resumption of tariffs in March if they don't strike a deal. The two economic giants agreed on a 90-day trade truce in early December. Also, Q3 corporate earning session starting this week kept the investors from taking position. On the domestic front, RBI Governor Shaktikanta Das will meet representatives of Non-Banking Financial Companies (NBFC) on Tuesday pushing the banking stocks 0.82% higher. In contrast, consumer durable and power sectors traded lower but the finance stocks managed to stay in the green.
Most of the central government offices, banks, port trusts and other state government departments wore a deserted look on Tuesday as employees launched a two-day nationwide trade strike, a top organiser said here in Mumbai.
Bandhan Bank on Monday said its board of directors has approved merger of GRUH Finance Limited into the lender. On Tuesday, Bandhan Bank shares closed at Rs479.70, down 3.68% on the NSE. Gruh Finance shares closed at Rs255.50, down16.60% on the NSE.
The Delhi High Court set aside a Central government notification restricting the manufacture, sale and distribution of an anti-inflammatory medicine manufactured by pharma company Wockhardt Ltd. Ace Proxyvon, a medicine manufactured by Wockhardt Ltd was part of the 328 Fixed Dose Combination (FDC) drugs whose manufacture, distribution and sale was banned by the Ministry of Health and Family Welfare in September last year. Ace Proxyvon, which combines the dosage of aceclofenac, paracetamol and rabeprazole, is used to get relief from pain and inflammation associated with rheumatoid arthritis, osteoarthritis and ankylosing spondylitis. The high court observed that the Centre's decision to ban the drug had been taken without application of mind and order was passed without following certain procedures. Wockhardt shares closed at Rs513.70, up 1.42% on the BSE.
US stocks closed higher in volatile trading as investors digested key economic data. The Dow Jones Industrial Average on Monday increased 98.19 points, or 0.42%, to 23,531.35. The S&P 500 was up 17.75 points, or 0.70%, to 2,549.69. The Nasdaq Composite Index increased 84.61 points, or 1.26%, to 6,823.47. On the data front, the US services sector expanded at a slower-than-expected pace in December. The Institute for Supply Management said its non-manufacturing index stood at 57.6 last month, lower than analysts' estimate and the figure in November.
On Friday, Federal Reserve chair Jerome Powell hinted at slower monetary tightening. He said Fed officials were keeping a close eye on the voices of financial market, and that Fed policy was flexible and clung to real-time economic developments. He added that the central bank would not hesitate to adjust its balance sheet reduction plan if it causes problems in the markets. The Fed hiked interest rates for four times last year. Its rate hike pace, considered too rapid by some investors, has rattled the market.
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: