Stock markets stay flat amid highly volatile session
Mumbai (PTI): Equity benchmark indices Sensex and Nifty started the trade on a weaker note on Thursday but later quoted flat in a highly volatile trade amid mixed global cues.
The 30-share BSE Sensex declined 138.36 points, or 0.16 per cent, to 84,328.15 in the morning trade. The broader NSE Nifty slipped 38.50 points or 0.15 per cent, to 25,837.30.
But, later both the benchmark indices were oscillating between highs and lows.
Among the Sensex firms, Tata Motors' commercial vehicles business, Eternal, Infosys, Tech Mahindra, Mahindra & Mahindra, HCL Technologies, Kotak Mahindra Bank, HDFC Bank, ITC, Tata Consultancy Services, Bharat Electronics Ltd were the laggards.
On the other hand, Asian Paints, Tata Steel, ICICI Bank, Bajaj Finserv, Bharti Airtel, Trent, Larsen & Toubro and State Bank of India were the gainers.
"The market needs more triggers to take it to new record highs. With the outcome of the Bihar polls largely discounted by the market, there are no political triggers that can push the market significantly higher. The reverse might happen if the actual poll results turn out to be different from the exit polls," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.
Vijayakumar noted that the important economic factors that have to be watched for is a possible India-US trade deal removing the penal tariffs and reducing the reciprocal tariffs. The decline in October retail inflation in India to 0.25 per cent indicates the possibility of a rate cut from the MPC in December. But the monetary policy transmission turning weak has become a challenge for the RBI.
"In the near-term the market is likely to consolidate and then respond to triggers when they happen. Positive triggers happening simultaneously can lead to short-covering pushing the market sharply up. But sustained uptrend would be challenging given the FII selling and elevated valuations, he added.
Broader Asian equities were trading on a mixed note. Shanghai's SSE Composite Index and Japan's Nikkei 225 benchmark were trading in a positive zone while Hong Kong's Hang Seng and South Korea's Kospi were quoting in red territory.
The US markets finished higher in overnight deals on Wednesday.
Brent crude, the global oil benchmark, fell 0.13 per cent to USD 62.63 per barrel.
Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,750.03 crore for the third straight session on Wednesday, while domestic institutional investors (DIIs) remained net buyers of stocks worth Rs 5,127.12 crore, according to exchange data.
On Wednesday, the BSE Sensex rallied 595.19 points to settle at 84,466.51. The 50-share NSE Nifty climbed 180.85 points to close at 25,875.80.
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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.
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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.
