Stock markets open at record highs: Sensex tops 56,400, Nifty above 16,800

FPJ Web DeskUpdated: Monday, August 30, 2021, 10:22 AM IST
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Stock markets are closed today | ANI Photo

The stock markets opened on new record highs at the start of the week on Monday (August 30). Sensex was up 328.23 points or 0.58 percent at 56,452.95, racking gains in index majors Reliance Industries, HDFC and Bajaj Finance amid positive cues from global markets.

After touching a lifetime high of 56,527.81 in the opening session, the 30-share index was trading 376.6 or 0.67 per cent higher at 56,501.37. Similarly, the broader NSE Nifty 102.25 points up or 0.61 percent at 16,807.45.

Titan was the top gainer in the Sensex pack, rising over 2 per cent, followed by Bajaj Finance, Tata Steel, M&M, Maruti, L&T, Reliance Industries and HDFC. On the other hand, Tech Mahindra and HCL Tech were the laggards.

In the previous session, the BSE index settled 175.62 points or 0.31 per cent higher at 56,124.72, and Nifty gained 68.30 points or 0.41 per cent to finish at a record 16,705.20

Foreign institutional investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 778.75 crore on Friday, as per provisional exchange data.

Asian shares start week with gains

Asian shares started the week with gains in the early Monday trade with Chinese markets up by 1.1 percent.

The dollar was not far off two-week lows after US Federal Reserve Chairman Jerome Powell struck a more dovish tone than some investors expected in long-awaited speech on Friday.

Japan's Nikkei rose 0.9 percent soon after the bell, and MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.32 percent in early trading before Chinese markets had opened. Australia climbed 0.39 percent and Korea's Kopsi gained 0.54 percent.

The US economic recovery is on track to return to a strong labor market, and the central bank could begin to withdraw its stimulus measures by year-end, Federal Reserve Chair Jerome Powell said Friday. But the Fed leader stressed that there was no hurry to raise the benchmark lending rate in response to temporary inflation pressures.

In his highly anticipated speech to the annual Jackson Hole central banking symposium, Powell said despite the impact of the Delta variant of Covid-19, the economy has continued to recover and show strong job growth.

Fuel prices unchanged

Oil marketing companies (OMC) kept petrol and diesel prices unchanged sixth consecutive day on Monday. In Delhi, petrol continues to be sold for Rs 101.49 per litre and diesel Rs 88.92 a litre.

Across the country as well, fuel prices remained unchanged on Monday, but their retail rates varied depending on the level of local taxes in each state.

Petrol prices in Mumbai, Chennai and Kolkata were at Rs 107.52, Rs 99.20 and Rs 101.82 per litre, respectively. Similarly, diesel prices across the cities remained unchanged at Rs 96.48, Rs 93.52 and Rs 91.98 per litre.

After falling, global crude oil prices had firmed up over the past week to cross $72 a barrel mark. The October contract of crude oil on the Intercontinental Exchange is currently at $72.70 per barrel.

FDI increase two-fold

Foreign direct investment (FDI) into the country rose by more than twofold to $17.57 billion during April-June this fiscal on account of measures such as policy reforms and ease of doing business, an official statement said on Saturday.

Total FDI inflow rose to $22.53 billion during the first three months of 2021-22 as against $11.84 billion in the same period of the last year, it said. Total FDI comprises equity inflows, reinvested earnings and other capital.

"FDI equity inflow grew by 168 per cent in the first three months of 2021-22 ($17.57 billion) compared to the year ago period ($6.56 billion)," it said.

Bank credit up

Bank credit grew by 6.55 percent to Rs 108.89 lakh crore and deposits by 10.58 percent to Rs 155.70 lakh crore in the fortnight ended August 13, 2021, RBI data showed. In the year-ago fortnight ended at August 14, 2020, bank advances had stood at Rs 102.19 lakh crore and deposits at Rs 140.80 lakh crore, according to RBI's Scheduled Banks' Statement of Position in India as of July 30, 2021, released on Friday.

In the previous fortnight ended July 30, 2021, bank credit had risen by 6.11 percent and deposits by 9.8 percent.

Kotak Mahindra AMC banned from launching any new FMP scheme

Kotak Mahindra Asset Management Company (AMC) has been barred from launching any new fixed maturity plan (FMP) scheme for the next six months, as per an order issued by the Securities and Exchange Board of India (SEBI) on August 27.

SEBI also noted that by postponing the payment to its unit holders, Kotak Mahindra mutual fund sort of segregated its units like a side-pocket. This is allowed only if the scheme's offer document explicitly says so, and the fund follows a strictly specified SEBI guideline for side pockets. This, SEBI observed, did not happen here.

Forex declines

The country's foreign exchange reserves declined by $2.47 billion to reach $616.895 billion in the week ended August 20, RBI data showed on Friday.

In the reporting week, the decrease in the reserves was due to a drop in the foreign currency assets (FCAs), a major component of the overall reserves, as per weekly data by the Reserve Bank of India (RBI).

The market capitalisation of BSE-listed companies jumped to an all-time high of Rs 2,43,73,800.36 crore on Friday, driven by an upbeat sentiment in equities. Investors have gained Rs 2,20,292.05 crore in two days of market rally.

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