The unmatched rally in Indian stock markets seemed to have paused from last one week. Over the last 7 trading sessions, the key equity indices have dropped 2.5-3% with most of the blue-chip stocks rebounding from the 52-week highs. The very recent macroeconomic events which were expected to trigger domestic markets GDP growth, Foreign Trade Policy, fiscal deficit, and RBI monetary policy committee meeting which is all set to conclude today.
Earlier last week, India’s GDP growth sharply rebound to 6.3% in fiscal second quarter July-September from a three-year low in the first quarter, as businesses sprung into economic activity ahead of a condensed festive season and accelerated production to build inventory after the implementation of GST. India’s GDP growth in the second quarter (Jul-Sep) accelerated to 6.3% from 5.7% in Apr-Jun and 6.1% in Jan-Mar, Central Statistics Office data showed.
Yesterday, the much-awaited Foreign Trade Policy midterm review was unveiled on Tuesday, which highlighted the Goods and Services Tax (GST) as a game changer, even as DGFT Alok V Chaturvedi said that the focus is going to be on ease of trading. Aiming to nearly double India’s exports of goods and services to $900 billion by 2020, the government had announced several incentives in the five-year Foreign Trade Policy for exporters and units in the Special Economic Zones in April 2015.
Amid the series of economic reforms weighing on stock markets, we take a look at 9 penny stocks under Rs 5 which gained up to 5% today. Shares of SRS Ltd rose 5% to Rs 2.31; Stellar Capital Services jumped 4.92% to Rs 3.84; Ushdev International gained 4.91% to Rs 2.78; Chromatic India advanced 7.42% to Rs 2.46; Silver Oak Commercial gained 4.76% to Rs 2.64; KBS India rose 4.76% to Rs 3.3; Nu Tek India zoomed 4.63% to Rs 2.26; Euro Multivision surged 4.43% to Rs 2.12 while Lee & Nee Softwares (Exports) gained 3.9% to Rs 3.2.
Meanwhile, Sensex and Nifty opened lower on Wednesday ahead of the outcome Reserve Bank of India’s bi-monthly policy meeting due later today. BSE Sensex lost 101.24 points to mark the day’s low of 32,701.2 while NSE Nifty dropped 41.95 points to hit the day’s low at 10,076.3. The Indian rupee slipped 6 paise to 64.44 against the dollar at the interbank forex market ahead of the announcement of RBI’s monetary policy. The upmove in the shares of Reliance Industries trimmed the losses of key indices while on the other hand, HDFC Bank, ITC, HDFC, SBI, ICICI Bank dragged. The resolution Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel will be made public on December 6. The central bank had reduced the benchmark lending rate by 0.25% points to 6% in August, bringing it to a 6-year low, however, kept it unchanged in October.