We had mentioned in Monday’s closing report that Nifty, Sensex were under pressure. The major indices of the Indian stock markets rallied on Tuesday and closed with gains over Monday’s close. On the NSE, there were 1,081 advances, 611 declines and 369 unchanged. The trends of the major indices of the Indian stock markets are given in the table below:
Sensex surged on Tuesday as lower inflation figures gave way to expectations of an ease in the monetary policy by the central bank. The Reserve Bank of India (RBI) is set to meet in February to decide on the policy rate. Lower fuel prices eased India's retail inflation in December to 2.19%, a 18-month low, from the annual rate of 2.33% in November, data showed after the markets closed on Monday. Except for the telecom counters on BSE, all the other sectors gained, led by IT (information technology), energy and oil and gas stocks.
Lower fuel prices further eased India's retail inflation in December to 2.19% from the annual rate of 2.33% in November, even as food prices appreciated somewhat over the previous month although continuing to remain in the negative zone, official data showed on Monday. Meanwhile, Commerce Ministry data earlier on Monday showed that lower fuel and manufactured products prices eased India's annual rate of inflation based on wholesale prices (WPI) to 3.80% in December 2018 from 4.64% in November, official data showed here on Monday. According to the Central Statistics Office, the fall in the Consumer Price Index (CPI), or retail inflation, last month was much sharper as compared to the CPI at 5.21% in December 2017. The Consumer Food Price Index (CFPI) deflation reversed marginally to (-)2.51% in December, from (-)2.61% in the previous month. Product-wise, prices of milk-based products, meat and fish rose during the month under review on a year-on-year (YoY) basis. In contrast, deflation in the cost of eggs, vegetables, pulses and sugar capped the overall food prices.
Troubled Jet Airways' scrip shot up by more than 16% amidst reports that a rescue deal has been sealed between the cash-strapped airline and its partner, Etihad Airways. At present, UAE's Etihad Airways has a 24% stake in the beleaguered Jet Airways. Accordingly, the scrip rose as investors eyed a rescue deal being finalised between Jet and Etihad. It is speculated that the deal will allow Etihad to increase its stake in the airline from the current 24% to 49%. On the flip side, Jet's founder Chairman Naresh Goyal's stake will come down. Currently, the airline faces financial troubles due to high jet fuel prices, a weak rupee and low fares. Jet Airways shares closed Rs292.50, down 0.66% on the NSE.
Transport fuel rates were hiked for the fifth time this month and saw their steepest rise on Sunday, amid global crude oil rates continuing to climb handsomely following the implementation of output cuts by oil producers from January 1. State-run oil marketing companies increased petrol rates by 49-60 paise per litre on Sunday, while diesel prices were raised by 59-75 paise across the four major metros. As per data from Indian Oil Corp, petrol price in the Delhi was increased to Rs69.75 per litre on Sunday, while in Kolkata, Mumbai and Chennai, the fuel cost Rs71.87, Rs 75.39 and Rs72.40 per litre, respectively. Similarly, the price of diesel went up on Sunday in the national capital to Rs63.69 per litre. In Kolkata, Mumbai and Chennai, diesel sold at Rs65.46, Rs66.66 and Rs67.26 a litre, respectively.
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: