Indian Indices End Volatile Day In The Red; IT Stocks Buck Trend

After opening the day in green, share markets in India witnessed volatile trading activity throughout the day and ended the day flat. Sectoral indices ended the day mixed, with stocks in the telecom sector leading the gains, while stocks in the consumer durables sector lost the most.

At the closing bell, the BSE Sensex stood lower by 155 points (down 0.4%) and the NSE Nifty closed down by 62 points (down 0.5%). The BSE Mid Cap index ended the day down 2.6%, while the BSE Small Cap index ended the day down by 2%.

Asian stock markets finished in green. As of the most recent closing prices, the Hang Seng was up by 1% and the Shanghai Composite was up by 1.1%. The Nikkei 225 was flat. Meanwhile, European markets too were trading on a negative note. The FTSE 100 was down by 0.3%, The DAX, was down by 0.8% while the CAC 40 was down by 1.1%.

The rupee was trading at Rs 71.52 against the US$ in the afternoon session. Oil prices were trading at US$ 79.5 at the time of writing.

In news from stocks in the aviation sector. According to a leading financial daily, the government is set out come out with a relief package for airlines as the industry is suffering from a double whammy of a falling rupee and rising fuel costs.

As part of the plan, the government seeks to reduce the airlines’ costs. In addition, the government also assured the debt-ridden national carrier – Air India of Rs 21 billion in the form of guaranteed borrowing from the government.

In April, the government had invited bids for a 76% stake in Air India, along with a 100% stake in subsidiary Air India Express, and 50% in Air India SATS Airport Services. However, it did not receive any bids since investors were wary of potential government interference as it would retain a 24% stake.

The government eventually dropped the plan to privatize the national carrier.

Indian Aviation Spreading its Wings