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IT stocks, foreign funds outflow drag Indian equities lower

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Mumbai, Aug 7:  The Indian equity markets on Monday traded rangebound and closed on a flat-to-negative note on the back of outflow of foreign funds and heavy selling pressure in IT and Teck (technology, media and entertainment) stocks.

The wider Nifty50 of the National Stock Exchange (NSE) fell by 9 points or 0.09 per cent at close at 10,057.40 points.

The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,377.80 points, closed at 32,273.67 points — down 51.74 points, or 0.16 per cent — from its previous close at 32,325.41 points.

The Sensex touched a high of 32,396.14 points and a low of 32,235.82 points during intra-day trade.

However, the BSE market breadth was bullish with 1,550 advances and 1,055 declines.

In terms of the broader markets, the S&P BSE mid-cap index rose by 1.06 per cent and the small-cap index by 1.15 per cent. The mid-cap index touched a fresh high of 15,631.85 points during the day’s trade.

“Markets ended marginally lower on Monday after a rangebound session. The main indices stayed in a small range of trade,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.

“Major Asian markets have ended on a mixed note. European indices like FTSE 100 and CAC 40 traded higher,” said Jasani.

On the currency front, the rupee weakened by 21-22 paise to close at 63.80 to a US dollar from its previous close at 63.58-59.

In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 199.21 crore, while domestic institutional investors (DIIs) purchased stocks worth Rs 308.15 crore.

“Indian shares edged higher on the first trading day of fresh week, as Tata Steel rose on expectations of strong quarterly results. However, broader gains were capped by profit-taking on concerns over valuations,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

“Both the NSE index and BSE index hit record highs last week, raising concerns that factors such as positive earnings and hopes of an improving economy were already factored into prices. Top gainers on the NSE were Tata Steel, Indian Oil Corporation and State Bank of India (SBI), while on the losing front were Infratel, NTPC and Infyosys,” Desai added.

Sector-wise, the S&P BSE IT index fell by 97.42 points, the Teck index by 48.88 points, and the telecom index was a tad lower by 2.05 points.

On the other hand, the S&P BSE oil and gas index surged by 237.28 points, the metal index by 145.41 points and the consumer durables index by 142.11 points.

Major Sensex gainers on Monday were: Tata Steel, up 4.26 per cent at Rs 600; SBI, up 1.85 per cent at Rs 311.10; Adani Ports, up 1.59 per cent at Rs 413.35; ICICI Bank, up 1.28 per cent at Rs 299.95; and Coal India, up 0.84 per cent at Rs 251.30.

Major Sensex losers were: Infosys, down 1.75 per cent at Rs 968.15; Tata Motors (DVR), down 1.72 per cent at Rs 251.15; NTPC, down 1.64 per cent at Rs 174.35; Dr. Reddy’s Lab, down 1.51 per cent at Rs 2,210.30; and Mahindra and Mahindra, down 1.34 per cent at Rs 1,399.30.

IANS

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Market zooms: Sensex at 36K, Nifty50 at 11K

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Mumbai, Jan 23: Projection of India’s healthy economic growth outlook, along with bullish global cues lifted the key Indian equity indices to their new highs during the early morning trade session on Tuesday.

Accordingly, the S&P BSE Sensex and the NSE Nifty50 breached their previous respective intra-day high levels.

In the process, the barometer Sensex crossed the 36,000-points-mark and the NSE Nifty50 climbed above 11,000 points.

Market analysts pointed-out other factors such as positive Q3 results and buying support in oil and gas, banking, capital goods and consumer durables stocks aided in the key indices’ upward trajectory.

At 9.50 a.m., the 30-scrip S&P BSE Sensex, which had closed at 35,798.01 points on Monday, traded higher at 36,036.51 points, up by 238.50 points or 0.67 per cent.

At the National Stock Exchange (NSE), the broader Nifty50 quoted at 11,039.75 points, up by 73.55 points or 0.67 per cent.

IANS

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Gross NPA may rise to Rs 9.5 lakh crore by March: Study

“Fiscal 2018 marks beginning of third phase of ARCs which promises to change the landscape as new regulations and other changes kick-in.”

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Gross non-performing assets (NPA) in Indian banks are expected to rise to Rs 9.5 lakh crore by March, from Rs 8 lakh crore in March last year, said a ASSOCHAM-Crisil joint study.

Stressed assets in March 2018 are expected to be at Rs 11.5 lakh crore, the report titled “ARCs headed for a structural shift,” said.

“High level of stressed assets in the banking system provides enormous opportunity size for asset reconstruction companies (ARCs) which are an important stakeholder in the NPA resolution process,” ASSOCHAM said in a statement quoting the study.

It, however, said that owing to capital constraints, growth of ARCs is expected to come down significantly.

“While growth is expected to fall to around 12 per cent until June 2019, however the AUM (assets under management) are expected to reach Rs 1 lakh crore, and that is fairly sizeable.”

The study added that with banks expected to make higher provisioning over and above the provisions made for stressed assets, they may sell the assets at lower discounts, thus increasing the capital requirement.

The study also said that effective implementation of the Insolvency and Bankruptcy Code would be a remedy to the challenge of prolonged litigation and it can help improve the recovery rate of stressed assets’ industry further.

Power, metal and construction sectors contribute the bulk of stressed assets. According to an analysis of 50 stressed assets (forming nearly 40 per cent of stressed assets in the system), sectors like metal, construction and power form nearly 30 per cent, 25 per cent and 15 per cent respectively, while other sectors together form the remaining 30 per cent.

The report stated that 2018 would see a structural shift in the stressed assets’ space as increased stringency in banks’ provisioning norms for investments in security receipts (SRs) is likely to result in more cash purchases.

“Fiscal 2018 marks beginning of third phase of ARCs which promises to change the landscape as new regulations and other changes kick-in.”

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Key Indian equity indices open at fresh highs

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Mumbai, Jan 22: Key Indian equity indices opened at fresh highs during the early morning trade session on Monday, with healthy buying observed in oil and gas, energy and consumer durables stocks.

At 9.20 a.m., the wider Nifty50 of the National Stock Exchange (NSE) traded 8.05 points or 0.07 per cent higher at a new high of 10,902.75 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 35,613.97 points, traded at a fresh level of 35,613.73 points — up 102.15 points or 0.29 per cent — from its previous session’s close.

The Sensex has touched a new high of 35,664.01 points during the intra-day trade so far.

The BSE market breadth was bullish as 454 stocks advanced as compared to 238 declines.

On Friday, positive global cues, coupled with upbeat quarterly corporate earnings and healthy buying in banking stocks, propelled the key indices to close at new record highs.

The Nifty50 closed at 10,894.70 points, while the Sensex closed at 35,511.58 points.

IANS

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