Sensex, Nifty Snap Two-Week Losing Streak
Closing Bell: Sensex, Nifty Snap Two-Week Losing Streak; FM Press Briefing At 4PM
Indian equity benchmarks ended higher in anticipation of another set of measures from the government to support slowing economy. Finance Minister Nirmala Sitharaman is scheduled to address a press briefing at 4 p.m. today.
The S&P BSE Sensex rose 0.71 percent to close at 37,332.79 and the NSE Nifty 50 gained 0.68 percent to 11,023.25. The broader markets represented by the NSE Nifty 500 Index rose 0.80 percent.
"Trade disputes, currency movements and foreign flows could be the prime driver for the markets in the coming weeks," said Sanjeev Zarbade, vice president (PCG Research) at Kotak Securities. "For good returns, investors who can withstand the near term volatility should consider buying small or midcaps with a 2-3 year timeframe."
The market breadth was tilted in favour of buyers. About 1,022 stocks advanced and 737 shares declined on National Stock Exchange.
All 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 2.02 percent gain.
City Union Bank Jumps Nearly 6%
Shares of the Tamil-Nadu based bank rose 5.8 percent intraday to Rs 204 apiece.
The stock traded at 18 times its estimated earnings per share for the coming year and trades 11 percent below the Bloomberg consensus target price.
Block Deal Alert: Mahindra CIE Automotive
Around 15.8 lakh shares changed hands in a block deal on National Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.
The stock pared losses and traded 0.6 percent lower at Rs 152 each. The stock declined 40 percent in the past 12 months compared to a 4 percent fall on Sensex.
PSU Bank Merger Plan Announcement Today, Says Official
Indian government to announce ‘mega’ plan to merge state-owned banks, reported Bloomberg quoting a government official. Also, Finance Minister Nirmala Sitharaman will address a press briefing at 4 p.m. today, the report added.
The Nifty PSU Bank Index cut losses and traded 0.31 percent lower at 1:55pm.
BloombergQuint Exclusive | No Fireworks For Automakers In August?
Sales of cars and two-wheelers showed no signs of revival in August as heavy rains and liquidity constraint kept buyers away ahead of the festival season, according to a BloombergQuint survey of 10 large dealerships across India.
The automakers are scheduled to announce their August monthly sales data on Sunday.
Will government’s recent measures help automakers to make a comeback? Read more here.
PSU Banks Decline After Report Of Government Mulling Mergers
Shares of the state-owned banks declined as Indian government may soon announce a merger plan, according to a Business Standard report quoting unnamed sources.
The finance ministry called a meeting of chief executives of 10 banks on Friday—Union Bank of India, Canara Bank, Punjab National Bank, United Bank, Oriental Bank of Commerce, United Bank, Allahabad Bank, Corporation Bank, Syndicate Bank and Andhra Bank.
Punjab National Bank, Union Bank of India and Canara Bank might be banks which will be subsuming other public-sector banks, the report said.