Indian benchmark indices started the week on a positive note, hitting fresh record highs of 16,931. Traders took encouragement as foreign direct investment (FDI) into the country rises. Asian
shares perked up and the dollar fell to a two-week low, today after the
US Federal Reserve chairman’s speech.
Benchmark indices gained over 1% and closed at fresh record highs amid positive global cues. At close, the Sensex was up 1.36% at 56,889 and the Nifty was up 1.35% at 16,931.
The Nifty Bank Index ended 2.02% at 36,347. Amongst the top gainers were Axis Bank at Rs 784 adding 4.21% followed by RBL Bank at Rs 169 (4.02%), Bandhan Bank at Rs 285 (3.55%), SBI at Rs 422 (2.49%), ICICI Bank at Rs 713 (1.99%), PNB at Rs 36 (1.66%). All major indices ended in the green.
Nifty Financial Services ended higher at 17,843 adding over 1.85%. Amongst the biggest gainers were Chola Invest. at Rs 548 adding 4.46% followed by Indiabulls Hsg at Rs 227 (3.61%), Bajaj Finance at Rs 7,165 (2.86%), Power Finance at Rs 129 (2.77%), Bajaj Finserv at Rs 16,560 (2.25%).
Buzzing stocks
Axis Bank share price gained over 2% as the private lender began issuing debt securities under a Rs 35,000-crore debt raise plan.
The bank said on August 30 it started issuing securities under the debt-raise plan announced earlier this year. The private sector lender’s board had in April approved a capital-raise proposal of up to Rs 35,000 crore by issuing various debt instruments in Indian or foreign currency in domestic/overseas markets in one or more tranches.
Other key takeaways
Q1FY22 GDP prints likely to be released on August 31
India’s April-June quarter (Q1) GDP numbers are likely to show a significant surge owing to the lower base of last year’s first quarter and a rebound in consumer spending post the second wave of COVID-19.
Experts believe that even though May had seen a slowdown due to the lockdowns, there was a sharp recovery in June and that the economic impact of the second wave has been much more muted than the first wave . According to a Reuters poll, the country’s Q1FY22 GDP growth might have touched a new record.
SBI research report Ecowrap suggests that the country’s Q1FY22 GDP is expected to grow at around 18.5 per cent. However, it is lower than the Reserve Bank of India’s GDP growth projection of 21.4 per cent for the June quarter.
Bank of India extends term of P R Rajaqopal as executive director
The company has extended the term of office P R Rajagopal, Execurive Director of Bank for a period of two years beyond his currently notified term which expires on 28.02.2022, or until further orders, whichever is earlier. Bank of India shares rose 0.97% to Rs 68.00.
FPIs net buyers invest Rs 986 cr in equities in August
Foreign portfolio investors (FPIs) pumped in a net of just Rs 986 crore in Indian equities during August, as cautiousness continued to persist among overseas investors.
According to data from depositories, FPIs bought equities worth Rs 986 crore and invested Rs 13,494 crore in the debt segment during August 2-27. This translated into a total net investment of Rs 14,480 crore.
Gold prices continue to shine
Gold prices rose from a low of USD 1,785.20 on Friday and continued their upward trend on Monday, reaching a high of USD 1826.3 in the early morning session. Gold prices are expected to rise due to a drop in the dollar index and Fed Chair Powell’s dovish tone.
Gold prices are likely to continue solid when trading above the 20-day EMA’s important support level of USD 1797.56, but they may confront significant resistance between USD 1834- USD 1850.
Dollar hit a fresh two-week low
In overnight trade on Wall Street, US stocks surged as US Treasury yields fell on Friday after Federal Reserve Chair Jerome Powell indicated the US central bank could begin scaling back its bond buying programme by year-end but did not give a firm timeline. The Dow Jones Industrial Average rose 0.69%, the S&P500 index gained 0.88% and the Nasdaq Composite added 1.23%.
Held back by the message from the US Federal Reserve chief that there is no hurry to dial back massive stimulus, the dollar hit a fresh two-week low at 92.595 before steadying around 92.66, still a touch lower on Monday.