Investing.com | Sep 13, 2019 18:32
Today was an interesting day in the Indian markets with several positive news boosting Nifty index by 0.85%. Global factors and domestic factors were strong enough for a Nifty gap-up opening today.
The thaw in US-China trade war boosted the sentiments across the world with US President Donald Trump saying that he preferred a comprehensive trade deal with China. On the domestic front, a better than expected Industrial production growth of 4.3% in July on a year-over-year basis cheered investors. The strong IIP numbers along with continued benign inflation of 3.21% in August makes it almost certain that the RBI will cut interest rates yet again in its meeting on September 30th.
Another positive news that drove the Nifty Energy index up by 2.24% in today’s trade was the possible stake sale of Bharat Petroleum Corp. Ltd. (NS:BPCL) by the government to a global oil company. The government owns about 53% stake in BPCL, and it is looking to sell the controlling stake to raise money to fund welfare and infrastructure projects. The slowing economic growth has meant that the government is finding it difficult to meet its revenue targets, and this stake sale will help it achieve this goal. BPCL stock was jumped by 6.3% while Indian Oil (NS:IOC) was up 4.6% in today’s trade.
However, among the series of good news today, there was bad news of Altico defaulting on the interest payments. Altico is a lender to real estate companies, and the interest payment default shows that the real estate sector’s struggles in India continue. Altico's default suggest that all is still not well with the NBFCs sector despite improving financials. NBFCs stocks struggled in today’s trade, with L&T Finance Holdings Ltd (NS:LTFH) and Edelweiss Financial (NS:EDEL) declining by 2.9% and 2.2% respectively in a favorable market.
Written By: Investing.com
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