Indian share markets open weak

Thu, 6 Dec 09:30 am

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Asian stock markets have opened the day on a mixed note with stock markets in China (down 0.3%) and Singapore (down 0.3%) leading the losses in the region. However, markets in Japan (up 0.8%) and Indonesia (up 0.3%) are trading firm. The Indian share market indices have opened the day on a weak note. Stocks in the oil and gas and IT space are leading the losses. However, consumer durables and auto stocks are trading firm.

The Sensex today is down by around 72 points (0.4%), while the NSE-Nifty is down by around 23 points (0.4%). Mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.4% and 0.5% respectively. The rupee is trading at Rs 54.51 to the US dollar.

Information Technology stocks have opened the week on a negative note with Infosys, Wipro and Tata Consultancy Services (TCS) leading the pack of losers. As per a leading financial daily, Indian IT major, Infosys has decided to transfer its listed securities from NASDAQ to NYSE Euronext. The Bangalore-based IT firm will be replaced on the NASDAQ 100 and other indices by Facebook next week. Infosys will be shifting its listed American depository shares (ADS) to NYSE Euronext in a bid to increase access to the stock for European investors and broaden the trading window available for the global investors. With this move, Infosys will become the eighth Indian company to be listed on the NYSE. The other companies listed on the NYSE (New York Stock Exchange) are Wipro, Tata Communications, Sterlite Industries, Mahanagar Telephone Nigam Ltd (MTNL), Dr Reddy's Laboratories, HDFC Bank and ICICI Bank. Infosys is also seeking to list its ADS on the London and Paris exchanges of NYSE Euronext. It is worth noting that Infosys was the first Indian company to get itself listed on the NASDAQ in 1999. It has been a part of NASDAQ 100 since December 2006. And currently, it is the only Indian company to be listed on the NASDAQ 100 index.

Private Bank stocks have opened the day on a mixed note with Karnataka Bank and Karur Vysya Bank trading in the green. However, South Indian Bank and HDFC Bank are trading weak. As per a leading financial daily, private sector lender ICICI Bank has launched iWish, which is an online recurring deposit product. This product has been targeted primarily at young depositors. The savings accountholders of ICICI Bank can book this variable recurring deposit by logging on to their online banking account. One of the major benefits of this product is the flexibility offered while making periodic payments. For instance, in regular recurring deposits, depositors may be penalised for missing a monthly installment. However, this is not the case with iWish. Depositors will be allowed to make up for the missed payments in subsequent months so that they invest the entire amount committed at the time of booking the recurring deposit. Depositors can choose a minimum duration of 6 months. The minimum amount required to open this account is Rs 500. The interest rates on these deposits vary from 6.5% (for 6 months) to 8.75% (15 months to 5 years). For senior citizens, the interest rates are higher by 50-75 basis points (0.5% - 0.75%).