Mumbai, February 06: The Bombay Stock Exchange extended their losses for the sixth successive session with the benchmark Sensex falling by another 561 points to close at a one-month low of 34,195.94. Along with Sensex, NIFTY recorded a loss of over 292 points at the open. This loss comes in the wake of US markets suffering a setback, with Dow Jones losing 1252 points at its opening on February 06.
After opening at 33,753.78, the BSE Sensex continued its slide to hit a low of 33,482.81 as selling gathered momentum in tandem with weak global leads. However, value-buying emerged at several counters during the late trading session. The benchmark finally ended at 34,195.94, down 561.22 points, or 1.61%.
These crashes in the market can be attributed to the crashes in US markets. The Dow suffered its worst point decline in history February 05. It amounted to 4.6% – the biggest decline since August 2011, during the European debt crisis.
However, there were many stocks that braved the situations and recorded as high as 13% rise in the day. SpiceJet rose 13%, followed by Intellect Design Arena – 9% – Polaris Consulting gained 7.3%, while Crompton Greeves went up 7% among the constituents in the S&P BSE 500 index.
The Indian stock market faced a sense of volatility on Friday, June 30, ahead of the midnight launch of the GST tax regime in the country. During the early hours of the day, the Sensex fell 150 points, but closed at a slightly higher benchmark. BSE rose by 64 points at 0.21%, while on the other the Nifty rose 16.80 points to close at 0.18%.
This unstable economic condition is the harbinger of a new tax regime that will apply to 1.3 billion people in a $2 trillion economy. As reported by the Financial Express, Siddharth Sedani, head of equity advisory at Anand Rathi, said that “there is some kind of profit-booking and sideways consolidation in the market, so so most sectors are volatile.”
The Auto industry is facing difficult times with the Nifty Auto Index indicating a 0.9% fall. In fact, stocks of Indigo Airline’s parent company InterGlobe Communications fell by 5.5% when the company mentioned its interest to invest in Air India.
Other sectors like FMCG, consumer durables, healthcare and power performed well in indexes when the market closed at 3:30 pm on June 30, 2017.
Mumbai: Although the Reserve Bank of India has kept the key policy repo rate same, it has cautioned about inflationary risks that might crop up due to rainfall shortage in food prices. RBI also announced measures to increase investments in order to improve the economic situation by lowering the statutory liquidity ratio (SLR) by 0.50 per cent point to 22 per cent to free money for lending by banks, effective from 9th August. It has also lowered the ceiling on debt that must be held-to-maturity (HTM) by half a per cent point to 24 per cent.
The main concern for India is still food price inflation, even though the government has adopted measures to curb hoarding of food articles and putting limits on the exports of potatoes, onions and two staples in Indian cooking. “With some continuing uncertainty about the path of the monsoon, it would be premature to conclude that future food inflation, and its spill-over to broader inflation, can be discounted,” explained the RBI’s monetary policy review.
On the other hand, the BSE sensex and Nifty traded flat as RBI kept the repo rate unchanged. The top gainer was Sun Pharma on nifty trading with 2.11 points while ICICI bank was the top loser in the bank nifty trade, trading at 0.96 losses.
So, the 10 year bond benchmark of India fell, sending the yield up 4 bps to 8.77 per cent, as cuts in both SLR and HTM are likely to pressure bond prices due to new supply.
Mumbai: The National Stock Exchange hit a record high of 7809.20 with the Sensex racing close to it’s lifetime high. This after a series of Q1 earnings beat street expectations coupled with heavy buying by overseas investors. Foreign Institutional Investors bought Indian equities worth close to Rs. 412 crore on Tuesday, which contributed to the total income of nearly Rs. 3,700 crore flushed into the Indian economy over the last one week.
TCS, Infosys, Hindalco, SBI and ICICI Bank are the top gainers on the Sensex, whereas NTPC, Tata Power, Tata Steel, Sun Pharma and Coal India are the top losers.
Experts expect the markets to see some consolidation at this level. Large-cap stocks have outperformed in the first quarter, whereas mid-caps have disappointed.
The Sensex closed at 26,147.33 up 0.47% and Nifty at 7795.75 up by 0.36%.