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Cement stocks drop

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Last Updated : Nov 20 2017 | 12:47 PM IST

Key benchmark indices continued to hover in a narrow range near the flat line in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex rose 7.50 points or 0.02% at 33,350.30. The Nifty 50 index gained 0.75 points or 0.01% at 10,284.35. Mixed Asian cues failed to provide clear direction to the domestic bourses.

In a lackluster session of trade so far, indices, swung between gains and losses in a narrow range close to the flat line.

The S&P BSE Mid-Cap index rose 0.35%. The S&P BSE Small-Cap index advanced 0.67%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On BSE, 1,552 shares rose and 906 shares declined. A total of 147 shares were unchanged.

Shares of power generation and power distribution companies gained. NTPC (up 0.79%), Torrent Power (up 2.11%), NHPC (up 0.74%), Tata Power Company (up 2.87%), Reliance Infrastructure (up 0.31%) and Reliance Power (up 0.96%) gained. Adani Power (down 0.52%) and Power Grid Corporation of India (down 0.36%) declined.

Shares of psu coal mining major, Coal India rose 1.19%.

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Cement stocks dropped. ACC (down 1.91%), Shree Cement (down 4.21%), Ambuja Cements (down 2.17%), and UltraTech Cement (down 1.73%) declined.

Grasim Industries declined 0.7%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Supreme Court has reportedly banned the use of pet coke and furnace oil on 24 October 2017, in the states of Uttar Pradesh, Haryana, and Rajasthan with effect from 1 November 2017, in order to fight pollution.

As per media reports, if the cement companies resort to the international coal, which is 15% expensive than pet coke, as a replacement to the pet coke, they would require to take a price hike of around Rs 10/bag in order to pass on the burden. Companies have already announced price hikes in the tune of Rs 20-25/bag.

Eris Lifesciences jumped 6.7% after the company said it acquired Strides Shasun's India branded generics business for Rs 500 crore. The announcement was made on Saturday, 18 November 2017.

Strides Shasun and Eris Lifesciences announced entering into definitive agreements for sale of Strides' India branded generics business to Eris Lifesciences for an aggregate cash consideration of Rs 500 crore. The transaction is subject to customary closing conditions and parties intend to close the transaction by 30 November 2017.

Strides' India branded generics business comprise of a portfolio of 130+ brands in the domains of neurology, psychiatry, nutraceuticals, gastro etc. along with the employees forming part of the business. In terms of the agreement, Eris Lifesciences will acquire the marketing and distribution rights of the said portfolio of products in India while Strides will retain the global rights for these products.

Overseas, Asian stocks were mixed after a retreat on Wall Street on Friday, 17 November 2017, amid tax reform uncertainty. Meanwhile, among macroeconomic data from major economies, Japan's export growth held steady in October. Ministry of Finance (MOF) data showed that exports rose 14% year-on-year in October.

US stocks finished the week on a subdued note on Friday, 17 November 2017, as worries over US tax reform and a delay of the promises cut in corporate taxation, weighed on investors' minds. The US House of Representatives passed their version of a tax overhaul bill that would cut corporate taxes last week, but the Senate continued to wrangle over its rival tax bill, with investors uncertain about whether Congress will be able to reach a compromise.

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First Published: Nov 20 2017 | 12:21 PM IST

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