Local equity markets, after snapping their two-day rising trend continue to trade lower in late morning session mainly on profit taking profit. However, selling was more restrained to realty and auto sectors. Meanwhile, majority of the Asian markets remained closed, while Jakarta Composite shed 0.42 % and Nikkei 225 surged 1.08% while US index futures were showing mild gains in the screen trade. Back home majority of the sectoral indices were trading in the red. NSE Nifty is trading below their psychological level of 5,500, while the heavyweights like, M&M down 3.25%, ITC down 2%, L&T down 1.95% TCS down 1.92% were putting pressure on the markets. On the other hand, the broader markets were showing some resilience in trade today the BSE Mid-cap and Small-cap indices have marginally advanced to 0.02% and 0.07%, respectively. The market breadth on the BSE continue to remain extremely negative; the gainers marginally outpaced the losers in a ratio of 1290:1271 while 91 scrips remained unchanged.
The BSE Sensex has shed 168.57 points or 0.91% at 18,280.74. The index touched a high and a low of 18,542.20 and 18,277.97, respectively.
The BSE Mid-cap and Small-cap indices marginally advanced to 0.02% and 0.07%, respectively.
Majority of the sectoral indices were in the red on the BSE. FMCG down 1.56%, Realty down 1.40%, Oil & Gas down 1.13%, IT down 1.08% and TECk down 0.96% while Consumer Durables (CD) up 0.17% and Metal up 0.16% were the only gainers on the BSE sectoral space.
The top losers on the Sensex were M&M down 3.25%, ITC down 2%, L&T down 1.95% TCS down 1.92% and DLF down 1.91%.
On the other hand Bajaj Auto up 1.79 up, Tata Steel up 1.71%, Jindal steel up 1.03% Tata Motors up 0.68% and ONGC up 0.44% were the main gainers on the index.
In a major relief to oil refiners, after weeks of dilemma, India has finally charted out a mechanism to pay Iran for crude oil purchases ending doubts about the continuation of vital crude supplies. While, the new mechanism may not prove sustainable in long run, it will give both the sides enough time to find a better route.
As per the agreement, between the two sides, the State Bank of India (SBI) will now make payments to Iran in euros through the Hamburg-based European-Iranian Trade Bank AG, said the government on Thursday. India has been negotiating alternative payment route with Iran since December, when its Central bank stopped Iran-related payments through a south Asian financial clearing house that Washington has alleged to be helping Iran avoid international sanctions.
It was the Iran who first proposed a temporary payment channel through a euro account at EIH Bank. After initial hesitation, the Indian authorities have now agreed to route the payments through this EIH. But routing the payments through this bank may place the SBI, India's largest lender, in an uncomfortable position with Washington, which has placed the bank under US sanctions.
Both India and Iran had shown strong commitment to continue the trade despite US sanctions. India is second largest crude buyer for Iran and similarly Iran is second largest crude seller to India following the Saudi Arabia. In fact, Tehran was even ready to take rupees as payment and pay Indian exports in its currency but this would not be sustainable as the trade between the two countries is heavily weighted in favour of Iran. While India imports nearly $9 billion worth of crude oil from Iran, it exports to the oil rich country rice, tea and machinery etc and are worth around just $2 billion.
Iran had been supplying crude to India on credit for last couple of months. Indian refiners have $2 billion in pending payments for oil bought from Iran, as accepted by the Indian government official too. In this wake the vice president of international affairs at the Iran Chamber of Commerce, Industries and Mines Mehdi Fakheri had said recently that if the payment issue was not resolved, Iranian companies were not in a position to continue supplying oil on credit for too long. However, the new mechanism will now give both the sides enough time to find a sustainable solution to the problem.
The S&P CNX Nifty decreased 52.60 points or 0.95% to 5,474.15. The index touched a high and a low of 5556.30 and 5,466.75, respectively.
The top losers on the Nifty were M&M down 3.31%, L&T down 2.31%, HUL down 2.26%, Cairn down 2.23% and DLF down 2.05% .
While Bajaj Auto up 2.01%, Suzlon up 1.74%, and Reliance Power up 1.72%, Tata Motors up 0.97% and Jindal Steel up 0.92% were the main gainers on the index.
Majority the Asian equity indices remained closed today on account of Lunar New Year Day holiday; Jakarta Composite shed 0.42% while Nikkei 225 surged 1.08%.
Unit-8, 3rd Floor, First Mall, The Mall, Ludhiana-141001, Punjab (INDIA).
| To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0HJwczMwsrA==  |
Posts
0 comments:
Post a Comment
Note: only a member of this blog may post a comment.