Sensex, Nifty Trade Flat; Infosys Shares Fall Over 2%

BSE Sense and NSE’s Nifty 50 opened lower today as a selloff in global markets continued for a second day after the US Federal Reserve’s outlook on future rate hike path. Asian stocks fell and Japanese equities dropped deeper into a bear market, with regional shares on course to round out the worst week since October.

Oil prices climbed after tumbling 5% in the last session, with OPEC production cuts that start next month seen being deeper than previously expected.

Infosys shares down over 2%
Infosys shares fell as much as 2.1% to Rs 652.50 per share. The company appointed Bharti Airtel’s global CFO Nilanjan Roy as chief financial officer, effective 1 March 2019. He replaces interim CFO Jayesh Sanghrajka, who will resume his responsibilities as deputy CFO.

Sanghrajka had taken temporary charge after M.D. Ranganath abruptly resigned as Infosys CFO in August this year.

Bharti Airtel shares up over 2% on Infratel stake sale
The shares of Bharti Airtel Ltd rose as much as 2.5% to Rs 324.20 per share after the company said its board approved a sale of up to 59.12 crore equity shares, representing 32% stake of Bharti Infratel owned by the company, to its arm Nettle Infrastructure Investments.

PSU bank shares rise on govt’s recapitalisation plan
The shares of public sector banks advanced today after the government on Thursday sought Parliament’s approval for supplementary grants worth ₹41,000 crore to infuse fresh capital into ailing state-run banks in the current fiscal.

The additional capital could help as many as five such state-run banks exit the prompt corrective action (PCA) framework that mandates them to pare lending to companies and cut concentration of loans to certain sectors.
The Nifty PSU Bank Index rose 0.5% led by gains in Central Bank of India, Punjab National Bank and Syndicate Bank.

Why Sensex, Nifty took US Fed rate hike in their stride
Reacting to the US Federal Reserve’s hawkish stance, equities in the US and European markets corrected on Wednesday, followed by the Asian markets, which began Thursday’s trading session in the red.

But as the day progressed, Sensex and Nifty recovered more than its emerging market peers. While China’s Shanghai Composite Index, Hong Kong’s Hang Seng index, South Korea’s Kospi shed 1% or more, India’s Nifty50 closed the day at 10,951.70, down 0.14%

Oil prices rise, gold rates steady

Oil prices climbed on Friday after tumbling 5 percent in the last session, with OPEC production cuts that start next month seen being deeper than previously expected. Benchmark Brent crude futures were up 1.51% at $55.17 per barrel, recovering from losses of $2.89 per barrel the session before. US WTI crude futures rose 1.53%, or 70 cents, to $46.58 per barrel.

Gold prices held firm on Friday, having climbed to a near six-month high in the previous session, as investors shunned risky assets and the dollar lingered near one-month lows. Spot gold was steady at $1,260.16 per ounce, after jumping over 1% in the previous session.

The precious metal hit a high of $1,266.4 on Thursday, a level last touched on June 26. US gold futures declined 0.3% to $1,263.7 per ounce.

Rupee inches lower against dollar
The rupee weakened marginally against the US dollar, tracking selloff in global equity markets amid rising concerns over global economic growth. At 9.12am, the rupee was trading at 70.05 a dollar, down 0.49% from its Thursday’s close of 69.70. The rupee opened at 69.94 and touched a high and a low of 69.70 and 70.06, respectively.

The 10-year gilt yield was trading at 7.27% from its previous close of 7.275%. So far this year, the rupee has declined 8.76%, while foreign investors have sold $4.37 billion and $7.12 billion in the equity and debt markets, respectively.