Tuesday, 9 December 2014

Sensex, Nifty slip over 1%

The market continues to trade on a gloomy note mainly dragged down by metal shares after Chinese shares tumbled.

In Asia, the Shanghai Composite index has slumped 5.4 per cent at 2,856. The Hang Seng index has dropped 2.4 per cent at 27,839 as of 1434 hrs.

The BSE Sensex has slipped below 28k to hit a low of 27,826. The BSE index is currently down over 316 points at 27,808.

Following which, the NSE Nifty has also tumbled below 8,400-mark to touch a low of 8,348. As of 1420 hrs, the NSE Nifty has dropped almost points at 8,341.

The broader markets have outperformed the CNX Nifty, the Mid-cap, Small-cap and Nifty Junior have slipped over 1.5 per cent each at 12,340, 5,185 and 18,319, respectively.

Among sectoral indices, the CNX Metal index is the top loser - down over 2.5 per cent at 2,691 owing to significant fall in Chinese shares.

The Auto, Realty and FMCG have also tumbled over a per cent each.

All Metal shares are trading in negative zone.

Sesa Sterlite has tanked almost 5 per cent to Rs. 221, and is the loser. Jindal Saw, National Aluminium and Hindalco have cracked over 3.5 per cent each at Rs. 104, Rs. 54.80 and Rs 153, respectively.

The Orissa Minerals, SAIL and Jindal Steel have plunged over 3 per cent each at Rs. 3,063, Rs. 79.60 and Rs. 144, respectively.

Gujarat Mineral has slipped 3 per cent at Rs. 132. Tata Steel has dropped around 3 per cent at Rs. 439. Hindustan Copper has shed over 1.5 per cent at Rs. 97.15.

Bhushan Steel, JSW Steel, MOIL and Coal India are the other significant losers.

Welspun India unveils spinning facility under one roof at Anjar

Welspun India Limited (WIL), part of the Welspun Group unveiled its new spinning facility at Anjar, Gujarat - the largest under one roof in India. This new, world-class facility at Welspun City, a 2,500 acre township set up in the heart of Anjar was inaugurated by Anandiben Patel, Honourable Chief Minister of Gujarat and Santosh Kumar Gangwar, Honourable Minister of State for Textiles (Independent charge), Govt. of India in the presence of Minister of Finance, Planning, E&P Saurabhbhai Patel and other dignitaries. The expansion project reflects the ethos of the Government of Gujarat’s recent ‘Farm-Factory-Fabric-Fashion-Foreign’ Textile Policy, which is aimed at strengthening the entire textile value-chain. 

The new facility will be instrumental in doubling spinning capacity to over 3,00,000 spindles, thereby fulfilling nearly 70% of the internal yarn requirements. Further, it will pave way for improvements in the company’s supply chain with lesser dependency on external sourcing. With this development, the company also envisages more emphasis on better quality and increased profitability which in turn will help consolidate its leadership position in the global home textiles industry. 

Speaking at the inauguration, Anandiben Patel, Honourable Chief Minister of Gujarat, said, “Congratulations to Welspun Group for this major achievement which clearly reflects the strong co-operation and support between the State Government and the company. This expansion comes as a major vote of confidence to Gujarat as it will generate employment opportunities and further propel the state government’s vision of generating robust economic growth in years to come.”
 
Zero defect, zero effect (i.e., creating products without any defects that do not have any adverse impact on the environment) one of Make in India’s core aspects is also being brought to life through this inauguration.
 
“This expansion of our Anjar Plant is a major milestone that represents our long-term commitment to the Indian economy and the government’s ‘Make In India’ vision. Our core competencies of quality and innovation will get further strengthened through increased self-sufficiency, better quality control and an efficient supply chain that will enable us to take the next leap forward. We are very grateful to the State Government of Gujarat for extending their proactive support as we expand our operations,” said Balkrishna Goenka, Chairman, Welspun Group.
 
On this occasion, the Honourable Chief Minister also launched a book celebrating women’s empowerment and women achievers. This book is a compilation of real life stories of women that represent the myriad hues and fabric of Kutch. The book summarizes how Welspun has played a crucial role in their empowerment by providing them a sustainable livelihood, thereby enhancing their social stature both within their own families as well as in society at large. 

She further lauded the company’s work in the area of women’s empowerment and appealed for contribution through CSR in Swachhtaa Abhiyaan and Swachh Bharat – unique cleanliness drives by Smt. Anandiben Patel, Chief Minister of Gujarat and Shri Narendra Modi, Prime Minister of India.

Minda Inds spurts on credit rating upgrade

Minda Industries jumped 3.5 per cent to a high of Rs 614 after rating agency ICRA upgraded its credit rating.

According to a release issued by ICRA to the BSE, ICRA Credit Rating agency has assigned an upward revision in the Credit rating of Minda Industries.

The long-term rating has been upgraded to ICRA A from ICRA A-. The short-term rating has been upgraded to ICRA A1 from ICRA A2+. The outlook on the long term rating is Stable.

The stock, however, has pared most of the gains, and is now up 1.4 per cent at Rs. 601. The counter has seen trades of around 2,100-odd shares as against the two-week daily average volume of around 5,800-odd shares on the BSE.

Meanwhile, the Sensex has extended losses and is now down 84 points at 28,036.

Top corporate news of the day - December 09, 2014

In a big boost to ONGC, the Oil Ministry is reworking the fuel subsidy sharing formula to cut its payout by a quarter through adjustment of statutory oil cess against its share.
 
Competition Commission of India (CCI) has approved the merger of Sun Pharma and Ranbaxy, with riders. The competition watchdog has said in its report had said that it evaluated 49 drugs of both the companies and they will have to sell assets of 7 drugs in order to not have a monopoly. 
 
Mahindra and Mahindra's farm equipment sector is all set to offer an air-conditioned variant for their newly launched Arjun Novo tractor. 
 
Oil minister Dharmendra Pradhan held a meeting with South Korean ambassador Joon-gyu Lee seeking his assistance to sort out a technology-transfer issue that had been holding up progress on GAIL (India)'s plan to charter hire nine Liquefied Natural Gas (LNG) vessels. 
 
BHEL said it has commissioned a hydro power project in African country Rwanda. 
 
The Kerala High Court directed the state government to demolish the parts of DLF's apartment complex near Chilavannoor backwaters in Kochi that have been built in alleged violation of the Coastal Regulation Zone [CRZ] Act. 
 
ICICI Bank has announced a hike in its ATM charges for saving accountholders from January 1 next year.Under the new method, the number of free transactions in a month is fixed at five using own ATMs, while it has been capped at three for other banks' machines. 
 
Networking giant Cisco has partnered IL&FS Technologies to jointly develop digital solutions to tap into the multi-billion dollar opportunity in the smart city space in India. 
 
Shriram Life Insurance Co Ltd said it expects to grow between 15 - 20 % in the current financial year in terms of premium collection. 
 
Coal India has signed an agreement with Solar Energy Corporation of India for setting up of solar power plants of total 1000 MW capacity in different parts of the country. 
 
L&T Infrastructure Finance Company today said it plans to raise up to Rs4.5bn through debentures to fund its business expansion. 

ITC stock slips 1%

Shares of ITC was down 1% at Rs395 on reports that the company is planning to invest Rs 1,000 crore into dairy, juice business

The stock so far during the day has hit a high at Rs. 400 and a low at Rs. 392.  

The company will make the proposed investment in the short term on manufacturing capacity, marketing, brand building and distribution expenses, says report.

Sun Pharma, Ranbaxy gain on CCI approval

Sun Pharma and Ranbaxy Laboratories are trading higher after Competition Commission of India (CCI) approved the acquisition of Ranbaxy by Sun Pharma.

Sun Pharma so far has jumped 3 per cent to touch a high at Rs. 829. Now, the stock is up 1.9 per cent at Rs. 845. The BSE counter has registered trades of around 46,000 shares, against its two-week daily average volume of 195,000 shares.

Ranbaxy Laboratories jumped to high of Rs. 651 and now, the stock is up 3 per cent at Rs. 644.

On the BSE counter, so far, 80,000 shares are traded, when compared with its two-week daily average volume of 122,000 shares.

Meanwhile, the BSE Sensex is up four points at 28,124.

Sensex to open on a weak note

For those hoping for a correction, the last few days have been on expected lines. But investors will be willing to wait longer and hope to catch their favourite counters at much attractive valuations. The sell-off on Monday came amidst weak global cues. The share-sale by a group of Infosys founders added pressure to the stock and the indices. At the same time, India hopes for rating upgrade with Moody's stating that recent steps by govt and RBI, if implemented well, will improve business environment in long term, according to a report.
The outlook is a weak start again. There seems to be no support from global indices either. Market will pay attention to current account deficit (CAD) numbers which  increased to US$10.1bn (2.1% of GDP) in Q2 of 2014-15 from US$7.8bn (1.7% of GDP) in the preceding quarter and US$5.2bn (1.2% of GDP) in Q2 of 2013-14.The increase in CAD was primarily on account of higher trade deficit contributed by both a deceleration in export growth and increase in imports.
US indices fell with Dow losing 0.59%, S&P 500 shedding 0.73% and Nasdaq down 0.84%. Asian indices are also in the red. Japan's Nikkei and Hong Kong's Hang Seng index are down and so is China's Shanghai index.
A report in the Wall Street Journal indicated the Federal Reserve may seriously considering dropping an assurance that short-term interest rates will stay near zero for a "considerable time". World oil have fallen another 4%. OPEC member predicting that crude will remain at $65 for several months sparked off further weakness.
Wipro and Infosys are stepping up their age-old rivalry, this time to out-innovate each other as the two Bengaluru-based software exporters invest in disruptive technologies pegged to artificial intelligence and design thinking to bring greater efficiencies for themselves and their customers, says a report.
Corporate borrowing costs are finally set to dip as the government benchmark bond yields have slipped below the repo rate for five consecutive trading sessions — a signal for future rate cuts — after the Reserve Bank of India presented a dovish monetary policy last week, says a report.
Fitch Ratings says in its latest Global Economic Outlook (GEO) that global growth is uneven, but will strengthen in 2015 and 2016. A buoyant US economy is the main engine of global growth, while the recovery continues to falter in the eurozone, Japan and many large emerging markets. Overall, the global growth outlook has marginally weakened since September's GEO and risks remain skewed to the downside.
Prime Minister Narendra Modi and industrialist Mukesh Ambani are amongst the most searched personalities online this year, according to Yahoo. Prime Minister Narendra 
Modi, who contributed to changing the political landscape in 2014, led High and Mighty ‒ the Political Top 10. Modi’s trusted aides Amit Shah and Arun Jaitley also feature on this list, which includes Congress President Sonia Gandhi and Nationalist Congress Party chief Sharad Pawar. 
Shares of Spicejet Ltd ended 4% lower at Rs15 after the company has clarified that our fleet is currently 37 aircraft, well above the limit of 20. The airline also clarified that DGCA has not asked for all payables to be cleared by Dec 15, it has asked for a payment plan to be shared with them by Dec 15. 
Shares of Thermax was up 4% to Rs 1,109 after the company bagged another order worth Rs. 351 crore in Africa. 
Shares of Jet Airways Ltd surged 8% at Rs393 on reports that company announced cancellation of four flights to and from Brussels, following a strike called by all major trade unions in Belgium.
Shares of Jubilant Foodworks Ltd was up 1% at Rs1408 after report stated that promoter group entity Weston Investment Ltd has reduced its stake in the company by 2.44 per cent by selling 15.97 lakh shares in the open market 
ONGC Ltd is planning to develop 45 drilling wells at a block in Krishna-Godavari basin at an estimated cost of Rs over Rs 16,000 crore, according to reports. Report stated that the company has approached the Ministry of Environment and Forests seeking clearance for preparing terms of References.
Sahara group is reportedly planning to finalise two more realty deals, one in Mumbai and another in Jodhpur, for Rs 1,250 crore, says report. Report stated that the talks are in final stages for sale of another land parcel in Pune.
Reliance Industries has selected 11 banks for US dollar-denominated bond offering, says report.
The Delhi Government has issued an order  banning the services of Uber India in Delhi, saying it is misleading customers after rape incident involving a 25-year-old woman in Delhi , says report.
Bharat Heavy Electricals Limited (BHEL) has commissioned a Hydro Power Project in Rwanda, on turnkey basis. Significantly, the order for setting up the 28 MW Nyaborongo Hydro Electric Project (2x14 MW), was the first order received by BHEL from this East-African country. 
General Motors India reportedly said that it will increase prices of its entire product portfolio by up to Rs 20,000 from next month.
ITC Ltd will invest Rs 1,000 crore for its ambitious foray into dairy and juice businesses which it plans to roll out in the January-March quarter, two people aware of the development said, according to a report.
Cash-strapped SpiceJet has cancelled over 1,800 flights across the  country for the current month, in signs of mounting troubles for the budget airline. Airports Authority of India ( AAI) is considering putting the airline on the cash-and-carry mode soon if it does not furnish a bank guarantee against its dues to the airport operator, which stand at around Rs 200 crore.
China's trade surplus climbed to a record in November after an unexpected decline in imports on lower crude oil and other commodity prices.Overseas shipments rose4.7 % from a year earlier, missing the 8 % median estimate in a Bloomberg News survey. Imports fell 6.7 %, compared with projections of a 3.8 % increase, leaving a trade surplus of $54.47 billion, the customs administration said.