Indian Stock Market opened positive on day after Christmas with Capital Goods, Consumer Durables and Metal counters trading strong. Japanese Yen has hit 20 month low against USD and Euro and stock prices of major Japanese exporters were trading higher. Other Asian markets were trading positive.
According to the recent reports from the stock market, it has been revealed that Sensex has seen a plunged more than 700 points and as ended lower by 4.2%. The US Federal Reserve has issued warning after this development. They have raised concerns over the downside risk this might tend to have on the growth.
Analysts are of the view that there are more fluctuations to be witnessed by the market and any changes should be made to work for the betterment of business. Respite has come to India in the meantime and they are easing off the clutches of inflation a bit.
A ray of hope has been aroused in the trade market due to Greece, and the market was seen flowing in profits with all credit going to Germany which paid 769 million Euros in form of bond coupons. With this it has been considered that it would also be able to pay all its debt and would not let economy to dip in recession.
Indian stocks are at a 15- month- low. On one hand Investors are scared by the global slump, while on the other hand, the 15 –month- low market is attracting them.
During the early hour trading, the shares of Tata Motors fell by 3%. It has been reported that today’s fall was biggest fall throughout the year. It is believed that 6% decline in the global sales of the company for the month of July has led to fall in the shares.
The Bombay Stock Exchange's Sensex was observed to end at 16769.67, down 69.96 points or 0.42% whereas the 30 share index touched intraday low of 16673.52 and high of 17035.49 intraday. Simultaneously, the National Stock Exchange's Nifty closed at 5060.95, down 12 points or 0.24% and the broader index climbed at 5132.20 and low of 5015.40, during the today’s trade.
Reliance Communications Ltd. and Unitech Ltd. dropped in Mumbai trading. This decline was seen after the officials at their groups were charged by federal investigators in an investigation into the sale of mobile-phone licenses.
Unitech closed down about 16 percent. This decline was seen the most in more than four months. Reliance Communications which is owned by billionaire Anil Ambani’s had its sharp decline in three weeks.
Standard Chartered, on Monday, raised $530 million by issuing 36 million Indian Depository Receipts (IDRs) to a group of cornerstone investors at Rs 104 per IDR as compared with a price range of 100-115 rupees.
The Company reported that till Thursday, the issue had seen subscription of only 26% but a string of FIIs, local mutual funds and corporates stepped in a few hours before the closure to save the day for the British bank which will raise over Rs 2,400 crore from the offering.
Indian stock markets were trading with negative bias ahead of public holiday on Tuesday and January series expiry and RBI’s monetary policy declaration later this week.
Passive worldwide markets also dampened the overall reaction.