Markets zoom on move to recapitalise banks

Economy is in so much danger that Sensex breaches 33,000-mark for the first time and Nifty hits all-time high of 10,340..

— TheFrustratedIndian (@FrustIndian) October 25, 2017 Besides new intra-day highs, the S&P BSE Sensex which opened at 32,995.28 points, closed at a new high of 33,042.50 points, up 435.16 points or 1.33 per cent from its previous day’s close at 32,607.34 points. The index had slipped to a low of 32,804.60 points during the trade session. Similarly, the NSE Nifty 50 closed at a new high of 10,295.35 points, up 0.86 per cent or 87.65 points.

‘Modi govt has put economy in ICU’

The Congress on Wednesday hit out at Union Finance Minister Arun Jaitley for giving a “factually wrong picture” of India’s economy and said the Modi government has put the “economy in ICU”. “Whatever the Finance Minister said about the economy is not true. It is wrong to say that the country’s economic fundamentals are strong. Jaitley’s claim that India’s economy is the world’s fastest growing is incorrect and factually wrong,” said Congress spokesperson Anand Sharma while briefing mediapersons. The Congress alleged that 33 per cent jobs have been lost in the Micro, Small and Medium Enterprises (MSME) sector, which is 3.7 crore jobs, after last year’s demonetisation. The party also hit out at the government for hasty implementation of GST and causing hardships for the farmers, businessmen, labourers, youth and others. The government has no plan to put the economy back on track, he added. Sharma asked: “Who is responsible for contraction of GDP from 9.2% to 5.7% resulting in a loss of over Rs three lakh crore? Actually the GDP had fallen to 3.7 and 4.1 per cent. “China is growing at 6.9 per cent. The Finance Minister should have used the words before understanding it,” he added.  
“Markets zoomed higher on Wednesday to close at new life highs. The index had opened on a strong note in the morning session on the back of positive sentiments due to various measures taken by the government to spur economy including capitalisation of public sector banks and a massive road building programme,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS. “It corrected a bit early in the morning but later resumed the uptrend closing near the intra day highs. The Sensex settled above the psychologically important 33,000 level for the first time in history.” Even global cues supported the Indian indices as major Asian and European markets ended on a positive note, barring the Nikkei index. However, the day’s trade session belonged to the PSBs. Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS: “Almost all PSBs’ stocks like those of SBI, BoB and PNB rose to touch their new 52-week highs during the intra-day trade.” “The rise in PSB stocks not only lifted the sectoral index but also the benchmark indices — BSE Sensex and NSE Nifty — to touch their all time highs during the intra-day trade.” “SBI was the top percentage gainer in the NSE Nifty, surging as much as 27 per cent to its highest since January 2015. L&T was the third-largest gainer in the index as it rose as much as 6.3 per cent,” Desai said. Market observers pointed out that almost all the major PSBs like SBI, PNB and BoB rose in the band of 20-40 per cent. The S&P BSE bank — BANKEX — zoomed by 1,274.17 points or 4.71 per cent. On bank-specific basis, SBI’s scrip gained Rs 70.20 or 27.58 per cent to Rs 324.70 per equity share. Other gainers include — PNB whose shares rose by Rs 63.80 or 46.20 per cent to Rs 201.90; BoB’s stocks edged higher by Rs 45.05 or 31.47 per cent to Rs 188.20; Bank of India’s scrip was up Rs 47.70 or per cent 33.96 per cent to Rs 188.15 and Canara Bank’s stock was up Rs 120.70 or 38.05 per cent to Rs 437.90. A healthy inflow of foreign funds and a strengthening of the rupee’s position against the US dollar kept the market trajectory northwards throughout the session. In terms of investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) bought scrip worth Rs 3,582.50 crore, whereas domestic institutional investors (DIIs) sold stocks worth Rs 155.71 crore. On the currency front, the rupee strengthened by 16 paise to close at 64.89-90 against the US dollar from its previous close at 65.06. Sector-wise, the S&P BSE capital goods index surged by 581.28 points, followed by the automobile index higher by 156.80 points and the oil and gas index augmented by 76.56 points. On the other hand, the S&P BSE consumer durables index plunged by 239.38 points and the healthcare index receded by 154.64 points. Major Sensex gainers on Wednesday were: ICICI Bank, up 14.69 per cent at Rs 305.60; Axis Bank, up 4.61 per cent at Rs 472.70; Bharti Airtel, up 2.76 per cent at Rs 515.50; Adani Ports, up 2.18 per cent at Rs 414.95; and Tata Motors DVR, up 1.62 per cent at Rs 234.65. Major Sensex losers were: Kotak Mahindra Bank, down 5.43 per cent at Rs 1,009.70; HDFC Bank, down 3.76 per cent at Rs 1,794.50; HDFC, down 2.60 per cent at Rs 1,677.90; Lupin, down 2.22 per cent at Rs 1,003.75; and Sun Pharma, down 2.10 per cent at Rs 523.25. (IANS) // ]]>