We had mentioned in Wednesday’s closing report that Nifty, Sensex were trendless. The major indices of the Indian stock markets rallied strongly on Thursday and closed with gains over Wednesday’s close. On the NSE, there were 863 advances, 858 declines and 342 unchanged. The trends of the major indices in the course of Thursday’s trading are given in the table below:
India's key equity indices jumped on Thursday, their fourth straight session of gains, amid expectations the US Federal Reserve would slow its pace of interest rate increases. Doubts about the Fed's future tightening also spurred the domestic currency, with the rupee vaulting 74 paise so far on Thursday's trade. The financials, which led the gains, were up over 1.5% while selling pressure was witnessed in the export-dependent IT (information technology) stocks as the rupee strengthened to Rs69.88 per US dollar from its previous close of 70.62.
The Brent crude oil price also declined to $57.94 a barrel. "In its earlier meetings, the Fed had a hawkish stance, which meant that they could be going in for a rate hike every quarter...but now the Fed seems more flexible, clear from its dovish remarks, which have hurt the dollar," Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS. "This is partly the reason the rupee has gained strength against the US dollar. Also, a constant decline in global crude oil prices has aided the rupee's gains."
Cadila Healthcare reported that Zydus Cadila has received final approval from the USFDA (Food and Drug Administration) to market Lansoprazole delayed release orally disintegrating tablets (US RLD- Prevacid) and tentative approval for Linagliptin tablets (US RLD- Tradjenta). The company’s shares closed at Rs357.15, up 3.88% on the NSE.
TCS (Tata Consultancy Services) has acquired the business of BridgePoint Group, LLC, a U.S. management consulting firm catering to the financial services industry, and specializing in retirement services, through the purchase of select company assets. TCS’ shares closed at Rs1,970.00, down 0.70% on the NSE.
Budget passenger carrier SpiceJet deposited an additional bank guarantee worth Rs20 crore to the state-run Airports Authority of India (AAI). According to an airline official, the additional bank guarantee is over and above the Rs104 crore which the airline has deposited with the AAI. The development comes after reports claimed that the AAI had issued a notice to the airline for non-payment of dues. In a regulatory filing to the BSE, the airline said: "...that it is making its payments as per stipulated timelines and we stand committed to all our contractual obligations." SpiceJet shares closed at Rs80.15, down 1.33% on the BSE.
Budget airline IndiGo said that it will introduce daily non-stop flights between Bhopal-Hyderabad and Jabalpur-Hyderabad from January 2019. "The airline is introducing daily non-stop flights between Bhopal-Hyderabad and Jabalpur-Hyderabad. In Madhya Pradesh, Bhopal and Jabalpur will be the 2nd and 3rd cities IndiGo will be flying to, after Indore," the airline said in a statement. "Additionally, the airline will also operate its 4th daily return flight between Hyderabad-Tirupati. All new services will commence effective January 2019." InterGlobe Aviation shares closed at Rs1,050.25, up 1.29% on the NSE.
In a setback for the Tamil Nadu Government, an NGT-appointed committee that looked into closure of Sterlite Copper plant in Tuticorin said that the order to close down the plant was unjustified and "against the principles of natural justice". Vedanta shares closed at Rs198.50, up 2.88% on the NSE.
Private sector ICICI Bank Ltd will grow its retail loan by 40% in Tamil Nadu, said a senior official. Speaking to reporters here, Anup Bagchi, Executive Director, said the company is expecting to grow retail loan disbursement in Tamil Nadu by over 40% to Rs13,000 crore this fiscal. He said the growth will happen across retail loans like consumer, home, agriculture. This fiscal ICICI Bank plans to grow its disbursement of consumer loans by nearly 50% to Rs5,000 crore. The bank will also increase its home loan disbursement by nearly 40% to Rs3,700 crore. Within the home loans portfolio, the bank is focusing on the affordable housing segment and expanding its presence across tier two and three markets. ICICI Bank shares closed at Rs362.20, up 0.89% on the NSE.
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: