The equity benchmarks Sensex and Nifty 50 advanced for the third straight day with major booster coming from the market cap leader Reliance Industries.
The equity benchmarks Sensex and Nifty 50 advanced for the third straight day with major booster coming from the market cap leader Reliance Industries. The key index of National Stock Exchange gained 13 points to open at 10,160.95 points following the record closing of all the three major Wall Street indices on Tuesday. BSE Sensex too fared in the early trade, added 64 points to open at 32,467.1 points. Shares of Bharti Airtel, Idea nosedived on Tuesday after Telecom Regulatory Authority of India (TRAI) yesterday announced slashing of the interconnection usage charge (IUC) paid by an operator for termination of mobile call on a rival network.
Telecom Regulatory Authority of India reduced IUC to 6 paise a minute from the current 14 paise. Following the announcement the largest telecom company Bharti Airtel Shares tumbled as much as 6.03% to the day’s low of Rs 371 while the arch-rival Reliance Jio’s parent company Reliance Industries rose 4.04% to the all-time high of Rs 872.5 on NSE. The new rate will be applicable from October 1, 2017, and will be completely eliminated from January 1, 2020. The cut in the charge runs contrary to the demands made by established operators, including Bharti Airtel, which wanted the termination rate to be raised and benchmarked against the actual cost. The latest entrant Reliance Jio, on the other hand, had been seeking to waive off the charge, saying it will benefit consumers.
Shares of L&T (up 1.19%), ITC (up 0.82%), Adani Ports (up 0.86%), and Tata Steel (up 0.83%) were the major gainers on BSE After Reliance Industries. The stocks of heavyweight companies such as Reliance Industries, ITC, L&T, and HDFC Bank were the major contributors to the Sensex gains. Collectively these four stocks alone added about 125 points in the index while shares of ICICI Bank, Tata Motors, Bharti Airtel, and Hindustan Unilever shaved off about 48 points, capping the gains.
The three major US stock indexes edged higher on Tuesday, logging closing records, with financial stocks providing the biggest boost a day ahead of the Federal Reserve’s concluding statement from its two-day policy meeting. The US central bank is expected to announce when it will begin paring its bond holdings, and while a September interest rate increase is not expected, investors will closely study Fed Chair Janet Yellen’s views on inflation for clues whether the Fed will raise rates in December. The Dow Jones Industrial Average rose 0.18% to 22,370.8 points, clocking its sixth straight record close. The S&P 500 gained 0.11% to 2,506.65 points, hitting its fifth record closing high in the last six sessions. The Nasdaq Composite added 0.1 % to 6,461.32 points, also squeaking out a record closing high, slightly above its 13 September close.