Indian benchmark indices opened marginally higher today as investors watch US Federal Reserve’s two-day rate-setting meeting which will begin later tonight, even RBI has started action on the NPA front.
BSE Sensex opened 44.20 points or 0.14% higher at 31,147.69 points, while NSE Nifty, the broader gauge, opened 14.65 points or 0.15% higher at 9,621.55 points. At 9:20 am, BSE Sensex was trading 38.78 points or 0.12% higher at 31,142.27 points while the NSE Nifty was up 5.55 points or 0.06% at 9,612.45 points. DrReddy’s was up 1.67% at Rs 2,672.05, while Reliance Industries was up 1.63% at Rs 1,333.95.
The Reserve Bank of India (RBI) on Tuesday said it had identified 12 of the largest non-performing accounts or assets (NPAs), totalling 25 percent of India’s gross NPAs, which can be immediately taken up under the Insolvency and Bankruptcy Code (IBC). Some of the large stressed accounts that could be a part of the 12 are Essar Steel with Rs 44,000 crore stressed assets, Bhushan Power (Rs 35,000 crore), Bhushan Steel (Rs 35,000 crore), Alok Industries (Rs 24,000 crore) and Electrosteel Steels (Rs 10,000 crore), according to a CNBC-TV18 report.
The US Federal Reserve’s two-day rate-setting meeting ends later on Wednesday and the US Fed is widely expected to raise its benchmark interest rate due to a tightening labour market and may also provide more detail on its plans to shrink the mammoth bond portfolio it amassed to nurse the economic recovery, reported Reuters.
Asian markets were trading higher today. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2 percent, while Japan’s Nikkei put on 0.5 per cent.
The US stocks closed at record closing highs, as technology stocks bounced back and investors positioned for an expected Federal Reserve interest rate hike. The S&P 500 technology sector rose 0.9 percent, recovering from its biggest two-day decline in nearly a year that also weighed on the broader market. Big tech names, such as Microsoft and Facebook, pushed the S&P 500 higher, said a Reuters report. The Dow Jones Industrial Average rose 92.8 points, or 0.44 percent, to 21,328.47, the S&P 500 gained 10.96 points, or 0.45 percent, to 2,440.35 and the Nasdaq Composite added 44.90 points, or 0.73 percent, to 6,220.37.
The Indian Rupee opened flat at 64.34 from its yesterday’s close of 64.33 against the US Dollar. The local currency on Tuesday gained 11 paise against the US currency.
Oil prices settled higher after OPEC detailed supply cuts around the world, but the cartel also said overall production rose in May. Crude prices slipped after industry group the American Petroleum Institute said crude stocks rose by a surprising 2.8 million barrels for the week to June 9, counter to forecasts for a 2.7 million-barrel drawdown. Benchmark Brent crude settled 43 cents higher at $48.72 a barrel while U.S. light crude settled up 38 cents to $46.46 a barrel.