We had mentioned in Friday’s closing report that the stock market was inching up on global cues. The major indices of the Indian stock markets put up a strong rally on Tuesday and advanced by around 1.71% over Friday’s close. NSE trading volumes were on the higher side, thus justifying the rally. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
Indian equity markets surged during the mid-afternoon trade session on Tuesday following crucial state election results declared on March 11. Besides, investors' sentiments were lifted by a strong rupee, broadly positive global cues and buying witnessed in banking, capital goods and automobile stocks. On the NSE, there were 944 advances, 523 declines and 75 unchanged. On the BSE, there were 1,703 advances, 1,124 declines and 218 unchanged.
Indian equity markets witnessed firm opening, tracking positive state election results for ruling party at the Centre. The benchmark indices witnessed gap up opening on strong buying sentiments, according to market analysts. Bearish USD/INR futures prices also supported the firm sentiments of the markets. Almost all sector stocks traded with firm sentiments tracking over all buying activities in Indian equity markets.
India's annual rate of inflation based on wholesale prices rose to 6.55% in February 2017 from 5.25% in the previous month, official data showed on Tuesday. According to the Wholesale Price Index (WPI) data released by the Commerce and Industry Ministry, the annual inflation rate was (-)0.85% in February 2016. A rise in inflation could divert some fixed income investments into the stock markets and show higher trading volumes over a period of time.
US stocks wavered and ended mixed, as Wall Street mainly awaited a possible interest rate hike from the US Federal Reserve on Wednesday. On Monday, The Dow Jones Industrial Average was down 21.50 points, or 0.10%, to 20,881.48. The S&P 500 rose 0.87 points, or 0.04%, to 2,373.47. The Nasdaq Composite Index gained 14.06 points, or 0.24%, to 5,875.78. Traders generally anticipated the Federal Open Market Committee to raise interest rates at the conclusion of its two-day monetary policy meeting later this week. Market expectations for a March rate hike were around 95.2%, according to the CME Group's FedWatch tool. A rise in interest rates could divert some funds of foreign institutional investors from India to developed countries.
US total nonfarm payroll employment increased by 235,000 in February, well above market consensus of 188,000, the Labour Department announced Friday. The unemployment rate was little changed at 4.7%. After Friday's jobs report, market expectations for a March rate hike sharply increased.
Coal India on Saturday said its wholly-owned subsidiary Central Coalfields Limited (CCL), which had approved a Rs1,001.88 crore buyback proposal, has decided "not to proceed" with the plan. "..the Board of Directors of CCL at its meeting held on March 10, 2017 has, after reviewing the limited reviewed unaudited financials of the company ended December 31, 2016 based on the Revised valuation Report submitted by the merchant banker, decided not to proceed with the proposed buyback," the miner said in a regulatory filing. Last week, the miner's arm had approved buyback of 5,21,000 fully paid equity shares for an aggregate amount not exceeding Rs1,001.88 crore. It had also said the equity shares proposed to be bought back by the miner's subsidiary would represent 5.54% of the existing paid up capital of CCL. In another regulatory filing, CIL which produces 84% of the country's coal, said its board on Saturday approved to tender the shares held by the company in its subsidiaries -- Mahanadi Coalfields Ltd (MCL), Northern Coalfields Ltd (NCL), South Eastern Coalfields Ltd (SECL) -- in their respective buyback offer. Coal India shares closed at Rs295.55, down 0.76% on the BSE.
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: