Sensex and Nifty are likely to open lower as most of the Asian shares fell in the early trade except Japan after investors turned their attention to global politics. The early indicator of NSE Nifty 50 — SGX Nifty Futures — was trading little changed, down 0.22% at 9,962.5 points on the Singapore Stock Exchange. The domestic stock markets may witness volatility in this week ahead on account of derivatives expiry next week and the recent spike in tensions on the Korean peninsula.
Capital-depleting bad assets are the “core area of concern” and government “stands one” with the banking system in difficult times, Finance Minister Arun Jaitley said, promising expeditious help to strengthen it. “The government certainly stands one with the banking system. Whatever steps that are required to be taken to find a resolution to this problem (of stressed assets), we will expeditiously work with India’s banking system in order to strengthen it,” he said. The Centre is working towards strengthening its ability to support the banks through greater resource mobilisation, Jaitley said. Banking and financial services stocks will be in focus after this announcment.
The government came out with modified duty drawback rates for exporters, evoking sharp reaction from the apparel industry which will witness reduction in tax refunds. The new All Industry Rates of Duty drawback, the refund of duties on imported inputs for export items, will come into effect from October 1. The new refund rates for garments will come down to 2 per cent as compared to the 7.7 per cent drawback available till now, said Apparel Export Promotion Council (AEPC) in a
statement. Apparel stocks will be in watch following the announcement.
As the government scrambles for measures to boost the slowing economy, PTI reported citing a finance ministry official that there is scope for RBI rate cut at the next policy review as retail inflation continues to be low. The statement came ahead of the Reserve Bank’s bi-monthly monetary policy decision which is scheduled to be announced on 4 October.
GlaxoSmithKline Pharmaceuticals: GlaxoSmithKline Pharmaceuticals said its board has approved the sale of around 60 acres land of the company at Thane in Maharashtra to Oberoi Realty for a consideration of Rs 555 crore.
Tata Global Beverages: Tata Global Beverages said its overseas arm has formed a stepdown subsidiary in Russia, Coffee Trade LLC, which will take over part of the existing business as part of its restructuring exercise in the country.
Rural Electrification Corp: State-run Rural Electrification Corp has received shareholders’ approval to raise up to Rs 65,000 crore via bonds over the next one year.
Can Fin Homes: Canara Bank sponsored NBFC Can Fin Homes Ltd today said it will split its equity shares in 1:5 ratio next month to make it affordable for retail investors. The company has fixed October 13 as the record date for the sub-division/stock split of its shares.
Reliance Home Finance: Shares of Reliance Home Finance, the housing finance unit of Reliance Capital, rose by 5 per cent in its debut trade today and commanded a market valuation of Rs 5,291.35 crore. The stock opened the day at Rs 104 on BSE. It later gained 5 per cent to Rs 109.20 – its upper circuit limit.
Indian Rupee on Friday: Showing a smart resilience against heightened global volatility, the rupee clawed back its lost territory to recover from its near-six-month low and ended a marginal 2 paise higher at 64.79 per dollar.
Indian markets on Friday
The benchmark equity indices Sensex and Nifty plunged heavily on Friday on a possibility of North Korea that it may conduct another hydrogen bomb test, this time in the Pacific Ocean. The benchmark Sensex shed 484 points to mark the day’s low of 31,886.09 points which is its biggest fall since 15 November 2016 — demonetisation period. The broader Nifty 50 index also fell, lost as much as 169 points to fell below 10,000 mark to 9,952.8 points. The major drag to the indices came from the heavyweight stocks such as Reliance Industries, L&T and ICICI Bank. The 30-share barometer Sensex ended down 1.38% at 31,922.44 points while the 50-share indicator Nifty settled 1.56% lower at 9,964.4 points.
US markets on Friday
The S&P 500 closed slightly higher on Friday even though Apple was a drag, as worries about Washington’s latest healthcare legislation proposal eased and investors shrugged off concerns about North Korea. The Dow Jones Industrial Average fell 9.64 points, or 0.04 percent, to 22,349.59, the S&P 500 gained 1.62 points, or 0.06 percent, to 2,502.22 and the Nasdaq Composite added 4.23 points, or 0.07 percent, to 6,426.92.