We had mentioned in Friday’s closing report that Nifty, Sensex were in consolidation mode. The major indices of the Indian stock markets were range-bound on Monday and closed with small gains over Friday’s close. The trends of the major indices in the course of Monday’s trading are given in the table below:
With the onset of quarterly results and Parliament's monsoon session, the Indian equity markets traded with gains during the mid-afternoon session on Monday. On the NSE, there were 799 advances, 863 declines and 312 unchanged. On the BSE there were 1,299 advances, 1,378 declines and 178 unchanged.
Indian markets opened at record high. Both the Nifty and the Sensex opened 'gap-up' and hit levels of 9,920 and 32,131 respectively (intra-day). The Nifty50, which opened with a gap, hit a fresh record high of 9,920 on Monday but pared gains as investors preferred to book some profits at higher levels. Sensex firmed up 74 points aided by fresh buying by participants and availability of more foreign capital. BSE mid-cap and small-cap were trading in the green while healthcare and FMCG (fast moving consumer goods) were trading in the red.
Upcoming quarterly results and Parliament's monsoon session, as also the direction of foreign funds flow will set the course for the equity indices in the coming week, market observers opine. With markets already at dizzying heights, potential triggers like news on monsoon's progress and global trends like monetary policy review by major international central banks could unleash "volatility", analysts feared. The markets will focus on earnings this week though the expectations remain muted for the last quarter. Markets are trying to analyse the earnings impact due to GST disruption, pointed out market analysts. The worry on rising PE (price-earning) ratio of benchmark indices is being overwhelmed by larger domestic fund flows and a buoyant global economy. Companies like Reliance Industries, Ultratech Cement, ACC, Wipro, Bajaj Auto, Kotak Mahindra Bank, Jubilant FoodWorks and Ashok Leyland are expected to announce their quarterly results in the course of the week.
Industry body Assocham on Sunday said the Banking Regulation (Amendment) Ordinance has empowered the Reserve Bank of India (RBI) to take up "bad loans worth about Rs8 lakh crore" for resolution by March 2019. According to an Assocham study, the move has the potential to bring down the non-performing asset (NPA) levels and "significantly improve" the financial health of banks. "Somewhat bitter medicine came in the form of the Ordinance promulgated by the President in May," Assocham's Secretary General D.S. Rawat said. "The government gave wide-ranging legislative powers to the RBI to issue directions to lenders to initiate insolvency proceedings for the recovery of bad loans that have reached unacceptably high levels." In case of a default, the recent Ordinance has authorises RBI to direct lenders for initiating insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016. Bank Nifty closed at 24,015.05, up 0.32%.
Mahindra & Mahindra on Saturday said the Life Insurance Corporation of India (LIC) has brought down its stake to less than 10% in the company by divesting around two per cent of its holding in the firm. After the stake sale, the life insurer now has 9.958 per cent stake in the company, it said in a regulatory filing. The insurance firm has sold more than 1.24 crore shares through market sale, the company added. Mahindra & Mahindra shares closed at Rs1,383.30, up 0.44% on the BSE.
A plethora of events, such as hopes of a rate cut by the Reserve Bank of India (RBI), fresh inflows of foreign funds and the onset of the quarterly earnings season, had pushed the Indian equity markets to a record high during the week ended Friday.
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: