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PSU banks extend gain after government cuts H1 borrowing

Bond yields shed over 20 bps on lower govt borrowing in H1
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MARKETS LIVE: Indices trade in range, Nifty above 10,150; Metals rally

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SI Reporter  |  New Delhi 

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Volume Toppers COMPANY PRICE() CHG() CHG(%) VOLUME V-MART RETAIL 1937.00 45.30 2.39 7493691 JP ASSOCIATES 18.65 0.45 2.47 3231841 CENTRAL BANK 74.80 0.65 0.88 2258613 IDBI BANK 74.55 2.45 3.40 2082411 REL. COMM. 23.40 0.05 0.21 2017598 NEWS ALERT Karnataka Polls On May 12, Results On May 15 Kotak Securities on govt's borrowing FY19 program The borrowing announcement will bring much needed cheer to the bond market which has been saddled with negative sentiments. The CMB issuances (Rs1tn budgeted) will likely take care of redemption pressure and any revenue-expenditure mismatches in 1HFY19. Lighter supply (skewed at shorter end) will imply bull flattening of the curve in the near term. The benchmark 10-yr paper will likely trade in 7.20-7.50% range in 1HFY19, after ending FY2018 at ~7.40%. The enhancement of FPI limits in early April could further act as a catalyst. The bond rally will benefit banks as it will lead to lower MTM provisions on AFS investment book. PSU banks will benefit relatively more due to higher duration compared to private banks Top BSE500 gainers COMPANY PRICE() CHG() CHG(%) VOLUME PNB HOUSING 1261.50 72.55 6.10 8013 SOBHA 501.00 27.80 5.87 16436 CORPORATION BANK 31.95 1.75 5.79 113598 JM FINANCIAL 130.75 7.05 5.70 73012 BIRLA CORPN. 729.20 36.95 5.34 3710 India bonds gain sharply on surprise cut in govt borrowing  Indian government bonds rallied with the benchmark 10-year yield falling to its lowest in two months on Tuesday following a surprise cut in the borrowing programme for the fiscal year starting April.   The 10-year bond yield dropped to as much as 7.3565 percent from 7.62 percent, its lowest since January 29, while the rupee was at 64.77 per dollar from 64.87 on Monday. READ MORE Six stocks to buy in an uncertain environment of protectionism and fraud Initially, it was Industrialisation, then Globalisation and now the latest buzz word is PROTECTIONISM. Leaders of most of the major nations are trying to protect the interests of their own economy including the US, China, India, and Australia, by imposing tariffs/duties on imports, restricting human flows etc to support their own manufacturing and services industries. Recent decisions taken by US President Donald Trump to increase Visa charges and impose import duties on steel, aluminum, and other various products from China and other countries are leading to a trade war, which may eventually turn into a currency war. The latest chain of events from the US points to increasing geo-political risk. READ MORE

The domestic indices were flat on Tuesday morning taking cues from their key Asian counterparts.

Among the sectoral indices, the Nifty Metal index was around 1.5% up led by a rise in the shares of MOIL and Jindal Steel & Power.


In the global markets, Asian share markets rose sharply on Tuesday as reports of behind-the-scenes talks between the United States and China rekindled hopes a damaging trade war could be averted, in turn sapping the strength of the dollar and yen.

Japan’s Nikkei climbed 1.7 per cent and China blue chips added 1.2 per cent. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose almost 1 per cent, while South Korea’s KOSPI climbed 0.7 per cent, adding to gains made after the US exempted the country’s steel from import tariffs.

The abrupt mood swing came amid reports Chinese and US officials were busy negotiating to avert an all-out trade war.

White House officials are asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more U.S.-made semiconductors.

Chinese Premier Li Keqiang on Monday had pledged to maintain trade negotiations and ease access to American businesses.

Even a whiff of a compromise was enough to propel Wall Street to its best day in 2-1/2 years and deliver the Dow its third-biggest point gain ever.

On Monday, the Dow jumped 2.84 per cent, while the S&P 500 climbed 2.72 per cent and the Nasdaq 3.26 per cent.

Back home, the investors now will look forward to the fiscal deficit data to be released on Wednesday. Also, the expiry of the current month futures and options contracts are due on Wednesday and positions will be rolled over to next month.

(with inputs from Reuters)

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First Published: Tue, March 27 2018. 11:30 IST

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MARKETS LIVE: Indices trade in range, Nifty above 10,150; Metals rally

Catch all the market action here.

Catch all the market action here. The domestic indices were flat on Tuesday morning taking cues from their key Asian counterparts.

Among the sectoral indices, the Nifty Metal index was around 1.5% up led by a rise in the shares of MOIL and Jindal Steel & Power.

In the global markets, Asian share markets rose sharply on Tuesday as reports of behind-the-scenes talks between the United States and China rekindled hopes a damaging trade war could be averted, in turn sapping the strength of the dollar and yen.

Japan’s Nikkei climbed 1.7 per cent and China blue chips added 1.2 per cent. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose almost 1 per cent, while South Korea’s KOSPI climbed 0.7 per cent, adding to gains made after the US exempted the country’s steel from import tariffs.

The abrupt mood swing came amid reports Chinese and US officials were busy negotiating to avert an all-out trade war.

White House officials are asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more U.S.-made semiconductors.

Chinese Premier Li Keqiang on Monday had pledged to maintain trade negotiations and ease access to American businesses.

Even a whiff of a compromise was enough to propel Wall Street to its best day in 2-1/2 years and deliver the Dow its third-biggest point gain ever.

On Monday, the Dow jumped 2.84 per cent, while the S&P 500 climbed 2.72 per cent and the Nasdaq 3.26 per cent.

Back home, the investors now will look forward to the fiscal deficit data to be released on Wednesday. Also, the expiry of the current month futures and options contracts are due on Wednesday and positions will be rolled over to next month.

(with inputs from Reuters)

 image
Business Standard
177 22

MARKETS LIVE: Indices trade in range, Nifty above 10,150; Metals rally

Catch all the market action here.

The domestic indices were flat on Tuesday morning taking cues from their key Asian counterparts.

Among the sectoral indices, the Nifty Metal index was around 1.5% up led by a rise in the shares of MOIL and Jindal Steel & Power.

In the global markets, Asian share markets rose sharply on Tuesday as reports of behind-the-scenes talks between the United States and China rekindled hopes a damaging trade war could be averted, in turn sapping the strength of the dollar and yen.

Japan’s Nikkei climbed 1.7 per cent and China blue chips added 1.2 per cent. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose almost 1 per cent, while South Korea’s KOSPI climbed 0.7 per cent, adding to gains made after the US exempted the country’s steel from import tariffs.

The abrupt mood swing came amid reports Chinese and US officials were busy negotiating to avert an all-out trade war.

White House officials are asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more U.S.-made semiconductors.

Chinese Premier Li Keqiang on Monday had pledged to maintain trade negotiations and ease access to American businesses.

Even a whiff of a compromise was enough to propel Wall Street to its best day in 2-1/2 years and deliver the Dow its third-biggest point gain ever.

On Monday, the Dow jumped 2.84 per cent, while the S&P 500 climbed 2.72 per cent and the Nasdaq 3.26 per cent.

Back home, the investors now will look forward to the fiscal deficit data to be released on Wednesday. Also, the expiry of the current month futures and options contracts are due on Wednesday and positions will be rolled over to next month.

(with inputs from Reuters)

image
Business Standard
177 22