Live Sensex and Nifty coverage: Wait for the impact of GST

Last Updated: Mon, Jun 26, 2017 10:45 hrs

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Sify Editors @ 9:30 AM

Wait for the impact of GST

A volatile week saw the Nifty ending lower for a fourth straight session on Friday to close at 9,574. Mid-cap and small-cap indexes underperformed the benchmarks on the back of negative global cues and pressure in metal and oil & gas stocks.

The MSCI’s decision to add China’s so-called “A” shares to its Emerging Markets Index also dented sentiments.

Crude oil prices dropped to their lowest level since August on expectations that supplies will exceed demand. Since the highs of around $55 a barrel in the beginning of the year, prices have fallen by more than 20 percent despite an OPEC-led agreement to limit oil production among major OPEC and non-OPEC countries.

This shows that market participants are not convinced the efforts will help prop up prices in a meaningful way in the short term as shale supply continues to rise in the U.S.

U.S. index provider MSCI said on Wednesday it would add 222 China-listed large cap stocks to its Emerging Markets Index, tracked by around $1.6 trillion in assets.

This may result in the reduction of India’s weightage in the index by 6.51 bps to 8.85 percent. The outflow from India is expected to be around $2.7 billion after the rejig.

PSU Bank stocks were in action after the RBI identified 12 cases that can be immediately taken up under the Insolvency and Bankruptcy Code (IBC) in an effort to speed up resolution of NPAs.

These account for about 25 percent of the current GNPA that owe 2.5 trillion rupees to the banking system.

The central bank’s move is expected to benefit banks in the longer term where stressed loans are in the range of 8-20 percent, though provisioning for these lenders are expected to shoot up in the short term.

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