Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Dear Visitor: Equitymaster will be under maintenance from 10:00AM to 11.30AM on Sunday, 25 March 2018. During this period, our websites will be accessible though there is a possibility of some intermittent accessibility issues. Please bear with us. We are taking yet another step to make browsing Equitymaster a much faster experience! Thank you.

India trails losers in Asia
Tue, 9 Aug Closing

The Indian stock markets continued their losing streak on account of weakness in global stock markets. The Indian indices started the day on a negative note. In the mid-session, they even recovered from their day's lows and moved into positive territory. However, the selloff continued towards the close of the session bringing India amongst the least losers in Asia. The BSE-Sensex closed around 132 points lower (down 0.8%) while the NSE-Nifty closed lower by around 46 points (down 0.9%). The BSE Midcap and BSE Small cap were worse off and closed lower by 1.3% and 2.1% respectively. All the sectoral indices closed in the red, with the exception of FMCG and auto companies.

As regards global markets, Asian indices closed deeply in the red today. Hong Kong closed around 5.7% lower, suffering its biggest one-day loss since the credit-crisis in 2008. European indices were also bleeding in opening trade. The rupee was trading at Rs 45.24 to the dollar at the time of writing.

According to a leading business daily, Oil Marketing Companies (OMCs) are likely to cut petrol prices by Rs 1.5/litre around August 15-16. The Oil minister has also stated that there may be a possibility of a price cut in petrol prices if the global crude prices see a sustained cooling down. The decline in crude prices will also help the country to rein in inflation.

The downgrade of the US' AAA rating may not affect India that much. However, the global uncertainty in financial markets is expected to force Indian companies to postpone their foreign fund raising plans. State run- Rural Electrification Corporation (REC) has initiated road-shows for raising US$ 300 m in the next fortnight. However, in light of uncertainties overseas the company will postpone its Swiss franc bond issue. Tata Chemicals has also put its fundraising plans on hold. In light of high interest rates in India, on account of RBI's successive monetary tightening, the company had planned to raise US$ 375 m in overseas debt. Overseas debt may now also get more expensive in the wake of the S&P downgrade.

The microfinance sector's growth prospects faced a huge setback in 2010. This was after Andhra Pradesh (AP), their biggest market for MFIs, approved legislation to regulate the industry. This was following complaints about usurious interest rates, aggressive recovery practices and suicides. Soon after this AP bill was passed bank's refused to fund the sector, fearing bad loans. The beleaguered microfinance sector may be in line for some good news now. IDBI Bank however plans to lend Rs 7 bn more to microfinance companies by the FY12. This is in addition to its current Rs 8 bn exposure to the sector. The bank's management stated that the RBI's guidelines for the sector issued in May have brought about some clarity in the space. In May, the RBI issued certain regulations for the microfinance sector and capped their lending rates at 26%.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "India trails losers in Asia". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 23, 2018 (Close)