Stock markets cut short 6-day rally, Sensex falls 344 pts amid profit-taking, foreign fund outflows
_vb_18.jpeg)
Mumbai (PTI): Benchmark indices Sensex and Nifty declined on Friday amid profit-taking in FMCG and banking shares following a six-day rally and fresh foreign fund outflows.
Snapping its six-day winning streak, the 30-share BSE Sensex dropped by 344.52 points or 0.41 per cent to settle at 84,211.88. During the day, it fell by 599.25 points or 0.70 per cent to 83,957.15.
The 50-share NSE Nifty declined by 96.25 points or 0.37 per cent to 25,795.15 as 34 of its constituents closed lower and 16 with gains.
Profit-taking emerged after a six-day rally, during which key indices soared by around 3 per cent on strong festive demand and foreign fund inflows. Both Sensex and Nifty hit their 52-week highs on Thursday.
Sentiment was further dampened after Commerce and Industry Minister Piyush Goyal on Friday said India does not do trade agreements in a hurry or with a "gun to our head".
Among Sensex firms, Hindustan Unilever dropped the most by 3.20 per cent. UltraTech Cement, Kotak Mahindra Bank, Adani Ports, Titan, HDFC Bank and Axis Bank were also among the laggards.
However, Bharti Airtel, ICICI Bank, Bharat Electronics and Sun Pharma were among the gainers.
"We are in active dialogue with the EU. We are talking to the US, but we do not do deals in a hurry and we do not do deals with deadlines or with a gun to our head," Goyal said at Berlin Dialogue in Germany. The minister is in Berlin to participate in the dialogue.
"Equity markets ended the week on a subdued note after Commerce Minister Piyush Goyal’s remarks that India will not rush into trade agreements with restrictive conditions dampened hopes of an early India–US trade deal, leading to profit-booking across sectors following a strong rally earlier in the week," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled higher.
Markets in Europe were trading on a mixed note. US markets ended in positive territory on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,165.94 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs), however, were net buyers, purchasing equities worth Rs 3,893.73 crore on a net basis in the previous trade.
"Nifty ended lower by 96 points to close at 25,795, snapping a 6-day run-up. Markets were pressured by US sanctions on Russian oil companies and profit-taking by investors," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
Global oil benchmark Brent crude dipped 0.24 per cent to USD 65.83 a barrel.
Rising for the sixth straight session on Thursday, the Sensex climbed 130.06 points or 0.15 per cent to settle at 84,556.40. The Nifty ended 22.80 points or 0.09 per cent higher at 25,891.40.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Russian military hardware, spare parts for Indian military to be manufactured in India
New Delhi (PTI): Russia agreed to encourage joint manufacturing in India of military hardware and spare parts for maintenance of Russian-origin arms and defence equipment.
Ways to bolster overall bilateral defence cooperation figured prominently during summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday.
It has been a long-standing grievance of armed forces that the supply of critical spares and equipment from Russia takes a long time, affecting the maintenance of military systems procured from that country.
"Both sides agreed to encourage joint manufacturing in India of spare parts, components, aggregates and other products for maintenance of Russian origin arms and defence equipment under Make-in-India programme through transfer of technology," a joint statement said.
ALSO READ: India, Russia explore cooperation on small modular reactors, floating nuclear power plants
It said both sides also agreed to set up joint ventures for meeting the needs of the Indian armed forces as well as subsequent export to mutually friendly third countries.
The joint statement said the India-Russia defence partnership is being reoriented to take up joint co-development and co-production of advanced defence technology and systems.
In their meeting on Thursday, Defence Minister Rajnath Singh and his Russian counterpart Andrey Belousov resolved to expand bilateral defence cooperation.
In the meeting, the Indian side showed keen interest in procurement of additional batches of S-400 missile systems from Moscow to bolster its combat prowess.
In October 2018, India signed a USD 5 billion deal with Russia to buy five units of the S-400 air defence missile systems, notwithstanding a warning by the US that going ahead with the contract may invite US sanctions under the provisions of Countering America's Adversaries Through Sanctions Act (CAATSA).
Three squadrons have already been delivered.
The S-400 systems played a crucial role during Operation Sindoor. India may also look at procuring the S-500 missile systems from Russia.
In the Modi-Putin talks, the two sides also agreed to continue jointly developing systems of bilateral trade settlements through the use of national currencies.
Additionally, the two sides agreed to continue their consultations on enabling the interoperability of the national payment systems, financial messaging systems, as well as central bank digital currency platforms.
Modi and Putin appreciated the ongoing intensification of the joint work on a free trade agreement on goods between India and the Eurasian Economic Union, covering sectors of mutual interest, the joint statement said.
They also directed both sides to intensify efforts in negotiations on a mutually beneficial agreement on the promotion and protection of investment, it said.
India and Russia also welcomed steps to ensure long-term supply of fertilisers to India and discussed the potential establishment of joint ventures in this area.
