The market ended with decent gains on Friday, reversing early losses after media indicated that finance minister Nirmala Sitharaman will hold a press briefing at 5:00 pm today. It boosted hopes that the government could announce measures on economy, which may include clarity on foreign portfolio investors (FPIs) tax issue.
Prime Minister Narendra Modi is currently out of the country till 26 August, hence, no policy interventions is likely before his return, reports suggested. PM Modi has been invited to the G-7 Summit as a guest by French President Emmanuel Macron.
The Nifty opened below 10,700 for the first time since 20 February 2019. It quickly regained that level and advanced further. After facing some stiff resistance, the Nifty breached 10,800 level to hit a fresh intraday high in mid afternoon trade. Despite some profit selling in the final hour, the index managed to close above 10,800 mark.
The 30-share BSE Sensex rose 228.23 points or 0.63% to 36,701.16. The Nifty 50 index rose 88 points or 0.82% to 10,829.35.
Recovery was broad based with gainers outpacing losers. On the BSE, 1322 shares rose and 1128 shares fell. A total of 134 shares were unchanged. The S&P BSE Mid-Cap index rose 0.93%. The S&P BSE Small-Cap index rose 0.55%.
The stock market has been under severe selling pressure ever since finance minister in the union budget proposed a surcharge on higher income-tax groups, which also hit FPIs registered as trusts and association of persons (AOPs).
On Thursday, Chief Economic Adviser (CEA) Krishnamurthy Subramanian virtually ruled out a stimulus package from the government. He said the Indian economy does not need a fiscal stimulus to tackle the ongoing economic slowdown. He added policymakers need to be careful while deciding on any fiscal stimulus as a way to boost economic growth. He emphasised that the government is not expected to intervene every time when some sectors go through sunset phases.
On Wednesday, Sebi relaxed compliance requirements for foreign portfolio investors trying to provide them some relief. The market regulator simplified know your client (KYC) requirements. FPIs would now be classified into two categories instead of three, while the requirements for issuance and subscription of offshore derivative instruments (ODIs) would be rationalised.
Overseas, European markets were trading higher while most Asian indices ended higher on Friday ahead of US Federal Reserve Chair Jerome Powell's address at the Jackson Hole summit. US stocks ended mixed on Thursday as a fall in US jobless claims offset data showing a contraction in US manufacturing activity while investors awaited Powell's speech for clues on the central bank's monetary policy.
In economic data, the number of Americans filing applications for unemployment benefits fell sharply last week, suggesting the labor market was holding firm despite a manufacturing slowdown and concerns the economy is on a path toward recession.
Back home, Vedanta (up 6.55%), ONGC (up 4.66%), Mahindra & Mahindra (up 4.09%), Tata Steel (up 3.43%) and NTPC (up 3.36%) advanced.
IndusInd Bank (down 1.9%), ICICI Bank (down 0.85%), Hindustan Unilever (down 0.69%) and Power Grid Corporation of India (down 0.69%) declined.
Cigarette major ITC fell 1.71% to Rs 236, extending losses for fifth straight session. It has fallen 6.68% in five trading sessions from its close of Rs 252.90 on 16th August.
Yes Bank jumped 5.24% to Rs 59.25 due to bargain hunting after a recent slide. The stock slumped 29.14% in the past four trading sessions to settle at Rs 56.3 yesterday, 22 August 2019, from its close of Rs 79.45 on 16 August 2019.
The recent selling was triggered by a disclosure regarding irregularities and unauthorized transactions at CG Power and Industrial Solution. As on 30 June 2019, Yes Bank held 12.79% stake in CG Power.
State Bank of India rose 1.01%. The state-run lender reportedly slashed interest rates on fixed deposits across various tenure by up to 50 basis points (bps). The bank has slashed retail term deposit rates by 10-50 basis points across tenors while the bulk term deposit rates have been reduced by 30-70 basis points across tenors.
HDFC Bank fell 0.48% to Rs 2163.25 after the bank said it appointed Srinivasan Vaidyanathan as the chief financial officer (CFO), with immediate effect. The incumbent CFO of the bank, Sashidhar Jagdishan, would continue to head the finance function, and shoulder additional responsibilities as in charge of the verticals of legal & secretarial, human resources, corporate communications, infrastructure, administration, corporate social responsibility and 'change agent of the bank'. Vaidyanathan would continue to report to Jagdishan. Vaidyanathan and Jagdishan would be 'key managerial personnel' of the bank pursuant to Companies Act, 2013 and the Regulations. The announcement was made after the market hours yesterday, 22 August 2019.
Shares of 63 Moons Technologies were locked in an upper circuit of 10% at Rs 115.50 after the company won MPID case in Bombay High Court. Bombay High Court ruled that National Spot Exchange was not a financial establishment and hence, the attachment of assets of its promoter (63 Moons Technologies), under the Maharashtra Protection of Interests of Depositors in Financial Establishments Act (MPID) Act was not valid.
Future Retail lost 5.67% to Rs 390. Amazon has agreed to make an equity investment in Future Coupons for acquiring a 49% stake comprising both, voting and non-voting shares. Kishore Biyani on behalf of the existing shareholders forming part of the promoter group and Future Coupons (promoters) said that they have entered into a share subscription agreement and a shareholders' agreement with Amazon.Com NV Investment Holdings LLC (Amazon). The announcement was made after market hours yesterday, 22 August 2019.
IT shares advanced. Oracle Financial Services Software (up 3.21%), Mindtree (up 2.29%), Hexaware Technologies (up 2.13%), Mphasis (up 1.56%), TCS (up 1.47%), HCL Technologies (up 0.61%) and Tech Mahindra (up 0.06%) advanced. Wipro (down 0.26%) and Persistent Systems (down 5.16 %) declined.
Infosys rose 0.75%. The IT major announced a strategic partnership with University of Illinois Urbana-Champaign (UIUC) to develop new technologies and systems in precision medicine. The announcement was made after market hours yesterday, 22 August 2019.
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