We had mentioned in Monday’s closing report that Nifty, Sensex were still range-bound. The major indices of the Indian stock markets were range-bound on Tuesday and closed with small gains over Monday’s close. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
Global cues, along with buying in banking stocks and expectations of positive quarterly results, buoyed the key Indian equity indices during the mid-afternoon trade session on Tuesday. According to market observers, buying was witnessed in banking, oil and gas and metal stocks. On the NSE, there were 936 advances, 743 declines and 295 unchanged.
Hiring activity in the banking and financial services sector witnessed a 21% growth during September this year compared to the same period last year, a report by job portal Naukri.com said. Even as the job market in the country remains "volatile", Naukri Jobspeak Report, a monthly analysis of job listings on the portal, shows the overall job market has seen 3% growth in September, compared to the same period last year. "Job market continues to be volatile. The Jobspeak index for September has shown a three per cent year-on-year growth driven by growth in sectors like banking, financial services, insurance, industrial products and auto and engineering," said Chief Sales Officer of Naukri.com V Suresh in a statement. The "uncertainty" in the job market is likely to continue for a few more months, he added. The S & P BSE Bankex closed at 27,054.95, up 0.62% on the BSE.
Post-demonetisation and implementation of the Goods and Services Tax (GST), the current economic slowdown has "bottomed out" and the recovery of the economy would "critically depend on the initiatives" the government takes from now onwards, according to a report. The report also said the quantum of impact of the structural reforms - demonetisation and GST - was expected but the quantum was not estimated and hence the current slowdown in the economy is painful. "We believe that the slowdown has bottomed out, however, the stage and pace of recovery would critically depend on the initiatives that the government takes from now onwards to boost the growth momentum, especially the private sector investment, without which we will not be able to aim for an ambitious growth rate," said Arun Singh, Lead Economist Dun & Bradstreet (D&B) India. According to D&B Economy Observer, the rebound in industrial production, especially in capital goods is not just driven by festive-led demand and is on a sustainable basis.
Around 1,900 branches of IDBI Banks across the country were shut on Tuesday due to a strike by employees demanding wage revision, said a leader of the All India IDBI Officers Association (AIIDBIOA). The employee unions - officers and staff - are on strike on Tuesday and Wednesday. IDBI shares closed at Rs54.05, up 4.34% on the NSE.
Fast moving electrical goods major Havells India reported a net profit of Rs171 crore for the quarter ended September 30, 2017-18. "GST with high tax rates on electrical products continues to disrupt demand scenario with muted consumer offtake and delayed restocking at channel," said Anil Rai Gupta, Chairman and Managing Director, Havells India. "The GST transition has been well consummated at dealer and vendor platform. We remain cautiously positive on growth in forthcoming period." The company’s shares closed at Rs502.30, down 7.23% on the NSE.
Hindustan Zinc reported a rise of 34% in its net profit for the second quarter (Q2) of 2017-18. According to a BSE filing, its net profit during the quarter under review increased to Rs2,545 crore from Rs1,902 crore reported for the corresponding period of 2016-17. The company's board of directors declared an interim dividend of 100% i.e. Rs2 per share on equity share of Rs2 each with a record date fixed for the interim dividend of October 31, 2017. The company added that as on September 30, 2017, its cash and cash equivalents was Rs19,979 crore invested in high quality debt instruments. The company’s shares closed at Rs315.10, down 1.07% on the NSE.
India’s largest general insurance company New India Assurance will hit the capital markets on November 1 to raise an estimated Rs10,000 crore through an initial public offering, merchant bankers privy to the development said. The company's share sale will close on November 3, it said. The IPO comprises sale of 9.6 crore shares by the government, besides fresh issue of 2.4 crore shares. Thus, a total of 12 crore shares of the non-life insurer would be sold through the share sale offer, constituting around 14.56% of the company's post issue share capital. The exact amount and pricing for the IPO will be announced by the company on Wednesday. New India Assurance is expected to list on the stock exchanges on November 13.
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: