Nifty, Sensex weak. Bank Nifty struggling – Tuesday closing report
Nifty will turn higher, it can stay above 8,300, while Bank Nifty is in a no-man’s land
We had mentioned in Monday’s closing report that if the NSE’s CNX Nifty closes below 8,320 it will turn weaker. On Tuesday, except for the time when it hit its intra- day high, the 50-stock benchmark moved in the red for remaining session. Nifty reached exactly the break point mentioned above and closed marginally above it.
S&P BSE Sensex opened at 27,634 while Nifty opened at 8,377. Both the benchmark indices moved from the high of 27,676 and 8,379 to the low of 27,474 and 8,320, respectively. Sensex closed at 27,531 (down 112 points or 0.41%) while Nifty closed at 8,339 (down 31 points or 0.37%). Today although the Bank Nifty moved in the red for most of the session, during last few minutes, the index gained momentum and closed in the green. It opened at 18,339 and moved in the range of 18,226 and 18,378 and closed at 18,329 (up 4 points or 0.02%). NSE recorded a volume of 65.87 crore shares. India VIX rose 0.80% to close at 17.0675.
Reserve Bank of India (RBI) Governor Dr Raghuram Rajan had said that while the country’s macro-economic parameters have improved, growth was still slow in picking up. Meanwhile, finance Minister Arun Jaitley said India has to bring the tax rate to global level while at the same time remove the exemptions.
The Ministry of Labour & Employment Tuesday announced that the government has decided to constitute an inter-ministerial committee to hold threadbare discussions with representatives of Central Trade Unions on 10-point charter of demands and other issues being raised by them and for recommending measures to address those issues.
Government expects inflation to remain under control as it has adequate stocks to deal with shortage of foodgrain in the eventuality of poor monsoon, Chief Economic Advisor Arvind Subramanian said today.
The RBI has room to further ease its monetary policy, he told reporters.
A slowdown in exports is likely to bring down India's growth rate by 0.4% point in 2015, a report by global brokerage firm HSBC has said.
Retail investors' holding in NSE-listed companies has hit a 6-year high of 21.35% at the end of March 2015, with a valuation of nearly Rs8 lakh crore, from 20.99% on March 2014, according to Prime Database, the holding went up to 21.35% at the end of March 2015.
In other words, the market valuation (in terms of Nifty-50 market cap over the period) is up by 25.79%. At the end of March 2015 the Nifty was up by 26.65% since March 2014 which means retail investors have actually reduced their holdings.
Coming back to stock markets, Dish TV rose 14.21% to close at Rs96.85 on the BSE. The stock hit it 52-week high after it posted superb March 2015 quarter results. It was the top gainer in ‘A’ group on the BSE. It posted a net profit of Rs35.01 crore for the March 2015 quarter as compared to net loss of Rs149.05 crore for March 2014 quarter. Its revenues increased from Rs636.91 crore to Rs754.72 crore for the relevant period.
PMC Fincorp fell 8.13% to close at Rs11.30 on the BSE. It was the top loser in ‘A’ group on the BSE. It hit its new 52-week low today.
BHEL rose 2.88% to close at Rs241 on the BSE, in spite of posting a weak March 2015 quarter. It was the top gainer in the Sensex 30 pack while Vedanta today again was the top loser in the pack. It fell 2.33% to close at Rs195.35.
US stock markets were closed Monday for the Memorial Day Holiday.
Federal Reserve Vice Chairman Stanley Fischer said yesterday that the central bank expects to follow a gradual and relatively slow trajectory of short-term interest-rate increases over the next three to four years to bring borrowing costs back to normal levels.
Most of the Asian indices closed in the green. Shanghai Composite (2.02%) was the top gainer while SET Composite index (0.67%) was the top loser.
There were news that China plans to launch in July a mutual-fund recognition program between Hong Kong and mainland China, which will allow cross-border sales of funds between the two markets.
European indices were trading in the red. US Futures were trading marginally lower.
In Europe, a Greek government spokesperson reportedly said that Greece intends to keep repaying its debt. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the IMF between 5 June and 19 June 2015.