Indian stock markets opened marginally higher on Wednesday but very quickly, Sensex & Nifty trade flat taking cues from the regional markets as most of the Asian stock markets inched lower after opening higher following the uncertainty over US-China trade tussle. BSE Sensex started little up at 33,970.35 whereas NSE Nifty began at 10,428.15 on Wednesday. Earlier yesterday, Asian Development Bank said that India’s economic growth is expected to rebound to 7.3% in the present financial year and may further escalate to a level of 7.6% in FY20. Investors are now keenly awaiting the corporate earnings for the quarter and the year ended 31 March 2018.
Indian economy is poised to grow at a rate of 7.3% on the back of increased productivity after the implementation of nation-wide tax-reform GST and investment revival due to banking reform, the Asian Development Bank said. Earlier in the previous fiscal, Indian economy grew at a rate of 6.6% battling the effects of demonetisation in 2016, businesses adjusting to Goods and Services Tax (GST) in 2017, and a subdued agriculture, the Asian Development Bank added.
Shares of Punjab National Bank dropped as much as 1.9% to Rs 103.2 after the credit rating and research agency Fitch Ratings downgraded the Viability Rating of Punjab National Bank (PNB) to ‘bb- ‘from ‘bb’ and has maintained the rating on Rating Watch Negative (RWN).
Shares of ONGC, Sun Pharma, RIL, TCS, Tata Steel, Infosys were the top gainers among the BSE Sensex components on Wednesday while shares of Adani Ports, ICICI Bank, Axis Bank, State Bank of India dipped in the morning deals. Shares of Fortis Healthcare rose 4% to a day’s high of Rs 152.3 after Manipal Health Enterprises raised its offer for Fortis Healthcare Ltd by valuing the hospital business higher at Rs 6,061 crore.
Shares of AU Small Finance Bank dropped 0.6% to Rs 665.65 after the private sector lender announced an increase in interest rates on its savings account deposits to up to 6.75%. Shares of Himachal Futuristic Communications Ltd advanced as much as 4.63% to Rs 28.25 after the telecom equipment manufacturer received an advance purchase order worth Rs 579 crore from state-run firm BSNL for building the 2G network in Assam.
US stocks climbed on Tuesday as investor concerns about rising trade tensions between the United States and China eased after Chinese President Xi Jinping promised to cut import tariffs, Reuters said in a report. The Dow Jones Industrial Average rose 428.9 points or 1.79% to 24,408, the S&P 500 gained 43.71 points or 1.67% to 2,656.87 and the Nasdaq Composite added 143.96 points or 2.07% to 7,094.30.