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You are here : IndiaNotes >> Market Action >> Fundamental

Indian equity benchmarks trade on a lackluster note in a narrow range

Jainam Research | 30 Jan, 2017  | Follow Author | Add to my Favourites 
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Post session - Quick Review


Indian equity benchmarks traded on a lackluster note in a narrow range throughout the day and closed in red. The equity benchmarks BSE Sensex and NSE Nifty snapped its four day winning streak ahead of government’s Budget session, which will start tomorrow with the Economic Survey of India and Annual Budget presentation for financial year 2017-18 by the Finance Minister Arun Jaitley on Wednesday. The markets made a cautious start and traded slightly in red in early deals as investors got spooked from Donald Trump’s protectionist stance. Trump on Friday signed an executive order that suspends the arrival of refugees for at least 120 days and bars visas for travelers from seven Muslim majority countries including Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for the next three months. India’s software lobby group, Nasscom, has asked IT majors in America such as Apple, Google, Microsoft and IBM to lobby with Trump, to explain that more jobs would be generated by US companies if they outsource to India. The potential visa curbs come a time when the traditional IT services sector is under pressure from automation and the shift in spending on newer areas such as digital and cloud. Sentiments remained subdued with Former Finance Minister P Chidambaram’s statement that cash crunch in the wake of demonetization is still continuing in many places in the country even though it has eased to an extent in the metros. Besides, global credit rating agency, CRISIL in its latest report said that the fiscal deficit target of 3 percent for 2017-18 will be hard to hold as the debt dynamics of the country show stickiness. Further the agency stated that to help economy, there is a need to move to a range which will provide some flexibility to the government. However, losses remained capped as some support came with the tax department assuaging investors concern ahead of implementation of GAAR from April 1. The Central Board of Direct Taxes in clarifications on GAAR, has said that the adequate procedural safeguards are in place to ensure that General Anti-Avoidance Rules (GAAR), which seeks to prevent companies from routing transactions through other countries to avoid taxes, are invoked in a uniform, fair and rational manner.

 

Telecom companies Bharti Airtel, Idea Cellular, Reliance Communications and MTNL closed on firm note reacting to merger of Vodafone and Idea. London-based Vodafone Group Plc has confirmed that it is in discussions with Aditya Birla Group for an all-share merger of Vodafone India with Idea Cellular.

 

The broader indices ended mixed; the BSE Mid cap index was up by 0.34%, while Small cap index was down by 0.38%. (Provisional)


The sole gaining sectoral index on the BSE was TECK up by 0.78%, while Auto down by 0.91%, Consumer Durables down by 0.76%, Bankex down by 0.65%, PSU down by 0.57% and Power down by 0.46% were the losing indices on BSE. (Provisional)


On the flip side, Tata Motors down by 2.07%, Tata Steel down by 1.52%, ONGC down by 1.42%, SBI down by 1.37% and Hero MotoCorp down by 1.11% were the top losers. (Provisional)


Meanwhile, the global credit rating agency, CRISIL in its latest report has said that the fiscal deficit target of 3 per cent for 2017-18 will be hard to hold as the debt dynamics of the country show stickiness. Further the agency stated that to help economy, there is a need to move to a range which will provide some flexibility to the government.

 

The CNX Nifty ended at 8633.70, down by 7.55 points or 0.09% after trading in a range of 8617.75 and 8662.60. There were 18 stocks advancing against 33 stocks declining on the index. (Provisional)



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About Jainam Research

Jainam Research was incorporated in 2003 with the vision to be the most preferred organization providing all financial services across the country. The foundation is on "Value" Systems - "Value" addition to Corporate, Retails and HNI Individuals through superior Wealth Creation Practices.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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