The Reserve Bank Friday announced more measures to increase liquidity flows to the non-banking financial companies.
Shares of Raymond Industries fell sharply after reports emerged that Vijaypat Singhania (in pic), the man who built the company, was removed as chairman-emeritus of the Raymond Group. The stock closed at Rs 642 apiece, down 4.7 per cent.
The RBI on Tuesday released guidelines to facilitate payments among different mobile wallets, a move aimed at promoting digital transactions.
As per the road-map laid down in 2017, interoperability of all KYC-compliant Prepaid Payment Instruments (PPIs) was to be enabled in three phases - interoperability of PPIs issued in the form of wallets through Unified Payments Interface (UPI), interoperability between wallets and bank accounts through UPI, and interoperability for PPIs issued in the form of cards through card networks.
Even though India Vix is cooling off for the last few trading days, traders are expecting volatility to continue for the short term. India VIX fell sharply by 8.03 per cent to 17.37. According to analysts, falling volatility is giving comfort to the bulls and a hold below 17 could extend its positive momentum and Nifty’s 10,650 level is seen as stiff resistance levels. The index recently recovered by around 400 points from its support and swing lows in the 10,200-10,138 zone. Now the next medium-term hurdle is seen at the 200-SMA at 10,800, analysts said.
The smart money seems to be moving to dividend yield stocks as the domestic market is getting into a volatile phase. Investors, however, are sceptical of high dividend paying PSU stocks as these companies face the risk of the government draining their cash through buybacks.
Experts said dividend yield stocks is the best defensive strategy for conservative investors as pain in these stocks during downtrend is less as they tend to find support on renewed buying.
Second quarter earning season reporting will be in full steam right from Monday, which may turn market participants’ focus from global cues to individual companies’ earnings and guidance.
However the US market’s strong close on Friday despite around 4 per cent weekly loss will be another factor and how Asian markets opens would decide Indian market’s opening.
During this week index heavy weights announcing their earnings include Infosys and Hero MotoCorp on Wednesday, Reliance Industries on Thursday and HDFC Bank on Saturday.
Bank credit rose by 12.51 per cent to Rs 89.82 lakh crore in the fortnight ended September 28, while the deposits grew by 8.07 per cent to Rs 117.99 lakh crore, according the RBI data.
In the year-ago fortnight, advances stood at Rs 79.83 lakh crore, while the deposits at Rs 109.17 lakh crore. In the fortnight ended September 14, bank credit had risen by 13.46 per cent to Rs 87.98 lakh crore, while the deposits grew by 8.58 per cent to Rs 115.70 lakh crore.
The market's fall by close to 13 per cent since August 29 peak has resulted in all the gains made in 2018 getting wiped out as on Thursday the benchmark index, Sensex, closed at 34,001 and Nifty 50 closed at 10,234.65, the levels last seen in early January.
The acceleration in market fall in October has shocked market participants as it has led to more than Rs 23 lakh crore of shareholders wealth getting eroded and looks there is no respite in near future as the smart pull back on Wednesday gave way to a rude shock on Thursday morning.
*Market opens at 9 am: Sensex crashes 1,000 points, slips below 34,000-mark; a whopping Rs 3 lakh crore washed away in a matter of seconds.
*11 am: Market remains panic-stricken; Sensex at 33, 922.92 pts.
*12 am: The barometer regains 34,000-mark, recovery gains momentum in late afternoon and index trades at 34,249.83.
*3 pm: As investor sentiment takes another hit, the benchmark index almost fell below key 34K mark at 34,027.32.
After delivering a “landmark quarter,” IT bellwether TCS is confident of ending the year with double-digit growth. The country’s largest software exporter posted a 22.6 per cent jump in consolidated net profit at Rs 7,901 crore in September quarter, compared with a net profit of Rs 6,446 crore in the year-ago period. Revenues grew 20.7 per cent at Rs 36,854 crore in the quarter, up from Rs 30,541 crore a year ago. Its earning per share was at Rs 20.66. In constant currency terms, revenues were up 11.50 per cent year-on-year.