Sensex crosses 59,500, Nifty beyond 17,700
Indian stock markets opened at an all time high. At the opening bell, the Nifty was 99 points at 17,728.50 while the Sensex was 365.79 points at 59,506.95. Nifty Bank is approaching 38,000 on September 17th.
ITC, SBI, Axis Bank, ICICI Bank were among the main winners while Tata Steel, Infosys and HCL Tech were the main losers in the opening session.
ITC rose 2.08% to Rs 235.55, SBI (+1.09%) to Rs 468.70, Axis Bank (+ 0.87%) to 809.50, ICICI Bank (+ 0.78% ) at Rs 732.65, Kotak Bank (+ 0.75%) at Rs 1,920, Bajaj Finance (+ 0.74%) at Rs 7,465.85.
Tata Steel was down (-) 0.44% to Rs 1,430.25, followed by Infosys (-) 0.41% to Rs 1,695.30 and HCL Tech (-) 0.25% to 1 259.50 Rs.
US equities close mixed
U.S. stock indexes ended a checkered day with the Nasdaq Composite managing to post a slight gain, as August retail sales showed an unexpected increase and a measure of activity in the District of Philadelphia Federal Reserve was stronger than expected. Data showed August retail sales rose 0.7%, defying expectations to a 0.7% decline. Excluding autos, sales jumped 1.8 percent, against expectations of a 0.2 percent increase.
The S&P 500 ended slightly lower on Thursday, wiping out losses late in the session after surprisingly strong retail sales data highlighted the strength of the US economic recovery.
The Dow Jones Industrial Average fell 62.22 points, or 0.18%, to 34,752.17, the S&P 500 fell 6.65 points, or 0.15%, to 4,474.05 and the Nasdaq Composite added 20.30 points, or 0.13%, to 15,181.83.
Meanwhile, the Philadelphia Fed’s activity index jumped to 30.7 in September from 19.4 a month earlier. At the same time, data showed that first claims for unemployment benefits increased more than expected in the week ending September 11 (+20,000 to 332,000 vs. 320,000 expected), although continued claims declined. .
US economy collapses in third quarter
The U.S. economic rebound was rocked in the third quarter, in part due to the spread of the Delta coronavirus variant, with economists in a Reuters poll also pushing their expectations back to November for when the Federal Reserve announces an imminent policy change.
The median growth forecast for the third quarter of September 13-16 Reuters poll was cut at a seasonally adjusted annualized rate of 4.4 percent from 7.0 percent just a month ago and well below second-quarter growth of 6.6 percent, with the range showing lows and lower peaks.
Markets dive into the world on Thursday
Markets plunged globally on Thursday as concerns about investment in China and a day of decline on Wall Street outweighed positive economic data in the United States.
International investors who have crammed into China in recent years are now bracing for one of its big downturns as the problems with over-indebted real estate giant China Evergrande come to a head. The developer’s woes have snowballed since May. The dwindling resources against 2,000 billion yuan ($ 305 billion) in liabilities wiped out nearly 80% of stock and bond prices, and an $ 80 million coupon payment is now looming next week.
Rs 30,600 cr approved for NARCTHE
On September 16, the Union Cabinet approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by the National Asset Reconstruction Company Ltd (NARCL). Guarantee receipts represent an undivided right or interest in a financial asset. Typically, asset rebuilding companies or a failed bank buy distressed assets by paying 15% in cash and the balance 85% in collateral receipts.
Mixed Asian stocks
Asia-Pacific stocks were mixed in Friday morning trading as investors reacted to mixed US economic data released overnight.
The Nikkei 225 in Japan climbed 0.38% as the Topix index traded slightly higher. South Korean Kospi lost 0.22%.
Stable oil prices
Oil prices stabilized on Thursday after hitting a multi-week high a day earlier as the threat from Hurricane Nicholas to US Gulf crude production faded.
Brent crude ended the session up 21 cents, or 0.3%, at $ 75.67 a barrel. US West Texas Intermediate (WTI) ended the session unchanged at $ 72.61 per barrel.
Fuel prices unchanged
On Friday, September 17, the price of gasoline and diesel remained unchanged at Rs 101.19 and Rs 88.62 per liter in Delhi, according to Indian Oil Corporation, the country’s largest fuel retailer.
Across the country, gasoline and diesel prices remained static, but their retail prices varied depending on the level of local taxes in a particular state.
In Mumbai, the price of gasoline was stable at Rs 107.26 per liter on Friday while the rate of diesel also remained unchanged at Rs 96.19 per liter.
In Chennai, gasoline is priced at Rs 98.96 per liter and in Kolkata Rs 101.62 per liter. Diesel is also priced at Rs 93.26 and Rs 91.71 per liter in the two cities respectively.
Fuel prices have hovered at record highs due to 41 increases in its retail prices since April of this year.
Rs 30,600 cr approved for NARCL
On September 16, the Union Cabinet approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by the National Asset Reconstruction Company Ltd (NARCL). Collateral receipts represent an undivided right or interest in a financial asset. Typically, asset rebuilding companies or a failed bank buy distressed assets by paying 15% in cash and the balance 85% in collateral receipts.
Addressing a press conference, Finance Minister Nirmala Sitharman said: âWe are also setting up an Indian Debt Resolution Company Ltd to manage Non Performing Assets (NPAs). In this company, public sector banks (PSBs) and state-owned financial institutions will hold 49% of the capital. âShe added that private sector banks would also hold a stake.
Sebi envisions a separate category in the AIF
Market regulator Sebi plans to create a separate category in Alternative Investment Funds (AIFs) in which these entities can purchase distressed loans from banks and NBFCs. Highlighting the growing number of AIFs, Sebi chairman Ajay Tyagi said on Thursday that the last fiscal year saw 90 new AIFs registered with the regulator in different categories, bringing the total number to over 700.
“This would unlock the capital of banks and NBFCs and make it available for new loans. A new sub-category of AIF could be created for this purpose,” he added. Acknowledging the resumption of the launch of ESG programs by mutual funds in India in recent years, Tyagi said the regulator is currently engaging with the industry to disclose some broad ESG metrics regarding these programs.
Domestic passenger air traffic increases 33.8% DOM
Domestic passenger air traffic rose 33.8% month-on-month in August, the Directorate General of Civil Aviation (DGAC) announced on September 16. The total number of passengers in August was 67.01 lakh, compared to 50.07 lakh in July and 31.13 lakh in June. .
Passenger traffic in August 2021 also more than doubled compared to the same month last year, the aviation regulator said. In August of last year, the number of passengers carried by domestic airlines stood at 28.32 lakhs.
Six actions under F&O ban
Six actions – Escorts, Exide Industries, NALCO, SAIL, Sun TV Network and Zee Entertainment Network – are currently banned by F&O.
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Posted on: Friday September 17th, 2021 09:23 IST