Don’t miss the latest developments in business and finance.

Key barometers sharply pare losses

Image
Capital Market
Last Updated : Feb 04 2019 | 2:50 PM IST

Key equity benchmarks sharply pared losses and were trading near flat line in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 7.94 points or 0.02% at 36,461.49. The Nifty 50 index was down 14.50 points or 0.13% at 10,879.15.

Key indices opened lower amid mixed global cues and hovered in narrow band in morning trade. Key indices traded near day's low in mid-morning trade. Key indices trimmed losses in early afternoon trade. Benchmarks hit fresh intraday low in afternoon trade.

Broader market witnessed selling pressure. Among secondary barometers, the BSE Mid-Cap index was down 0.94%. The BSE Small-Cap index was down 1.20%.

The market breadth, indicating the overall health of the market, was weak. On BSE, 640 shares rose and 1821 shares fell. A total of 165 shares were unchanged.

Shares of Xelpmoc Design and Tech were trading at Rs 58.80 at 13:57 IST on BSE, a discount of 10.91% over the initial public offer price of Rs 66. The stock debuted at Rs 56, a discount of 15.15% to the initial public offer (IPO) price. So far the stock hit a high of Rs 58.80 and low of Rs 56. On BSE, so far 1405 shares were traded on the counter.

The IPO of Xelpmoc Design and Tech received bids for 66.40 lakh shares, as against 20.40 lakh shares on offer, National Stock Exchange of India (NSE) data showed. The issue was subscribed 3.25 times. The issue opened for subscription on 23 January 2019 and closed on 25 January 2019. The price band for the issue was fixed at Rs 62 to Rs 66 per share. The qualified institutional buyers (QIBs) category was subscribed 1.24 times. The non institutional investors category was subscribed 7.69 times. The retail individual investors (RIIs) category was subscribed 2.64 times.

More From This Section

Coal India was down 1.05%. Coal India, after market hours on Friday, 1 February 2019, announced the provisional production and offtake figures of the company and its subsidiaries in January 2019. Production increased 0.9% to 57.20 million tonne in January 2019 over January 2018. Offtake fell 2.3% to 52.44 million tonne in January 2019 over January 2018.

L&T was down 1.20%. Water & Effluent Treatment Business of L&T Construction has secured projects from the Rural Water Supply and Sanitation Department, Government of Odisha. The Engineering, Procurement and Construction orders have been secured for the execution of Individual rural water supply projects in the Keonjhar and Mayurbhanj districts of Odisha. The aggregate scope of work includes design, engineering, supply and erection of 5,828 Km of transmission and distribution pipelines, construction of 3 Intake structures of aggregate capacity of 82 MLD, 3 water treatment plants of aggregate capacity of 78 MLD, pumping stations and water storage structures.

The project involves automation including measurement of input and output water quantity and quality at each level through suitable SCADA and other instrumentation works. This will cater drinking water for 919 villages in Keonjhar and Mayurbhanj districts of Odisha. The business has also secured add-on orders from some of its existing projects. The announcement was made during trading hours today, 4 February 2019.

Vedanta was down 1.11%. The company clarified before trading hours today, 4 February 2019, that Volcan Investments (Volcan) and Vedanta Resources, the parent companies of Vedanta, holding more than 50%, have played a significant role in shaping and building Vedanta businesses in a visionary and entrepreneurial manner. Volcan owns a 21% stake (voting interest) in Anglo American Plc (AA Plc). AA Plc is a globally diversified mining business that comprises of De Beers (largest diamond producer), copper, platinum and other precious metals, iron ore, coal and nickel.

Cairn India Holdings (CIHL), an overseas subsidiary of the company, was offered the opportunity by Volcan to invest some of its surplus cash resources in a structured investment representing the economic interest in upside potential of ~24.71 million shares (~1.8% of outstanding shares) of AA Plc. The structure provides significantly higher returns compared to other overseas cash management investments that would typically return around 2%. After careful consideration of the risk adjusted returns of this opportunity relative to other available investments, it elected to invest a portion (which is less than 5% of Group's cash and cash equivalent of around US$5.0bn) of its available cash resources, as part of its cash management activity. The ownership of the underlying shares, and the associated voting interest, remains with Volcan.

The investment now has full capital and downside protection to ensure that the interests of Vedanta Limited shareholders' are protected. The investment was made on an arm's length basis in December 2018, after meeting all governance requirements. The economic interest was valued by an independent valuer and approved by the boards of CIHL and Vedanta Ltd. This was voluntarily and transparently disclosed in the December quarter results. We remain committed at all times to act in the interest of all shareholders and look forward to continued engagement with them.

On the economic front, the total gross GST revenue collected in the month of January 2019 stood at Rs 1,02,503 crore, of which CGST is Rs 17,763 crore, SGST is Rs 24,826 crore, IGST is Rs 51,225 crore (including Rs 24,065 crore collected on imports) and Cess is Rs 8,690 crore (including Rs 902 crore collected on imports). In FY 2018-2019, it is for the third time that GST revenue collection has crossed one lakh crore. The total number of GSTR 3B Returns filed for the month of December up to 31 January 2019 is 73.3 lakh.

The government has settled Rs 18,344 crore to CGST and Rs 14,677 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of December, 2018 is Rs 36,107 crore for CGST and Rs 39,503 crore for the SGST.

The collection in January 2019 is a significant increase from the collection of Rs 94,725 crore in December 2018, which was a decline from Rs 97,637 crore in November and Rs 1,00,710 crore in October. January 2019 collections are 14% above the January 2018 collections of Rs 89,825 crore. This jump has been achieved despite various tax reductions having come into force that provided major relief to the consumers. The gross GST collections over the last three-month period has been 14% higher than the corresponding period last year, Ministry of Finance said in a statement on 2 February 2019.

Overseas, European stocks were slightly lower on Monday, as market participants monitored another flurry of corporate earnings results.

Asian markets were mixed on Monday. China's financial markets are closed all week for the Lunar New Year holiday.

US stocks managed to close mostly higher Friday after an unexpectedly strong January jobs report. The US economy created 304,000 new jobs in January. At the same time, job growth for December was reduce by 90,000, somewhat blunting the impact of the headline number.

Among other data in the US, the ISM manufacturing index's final reading for January came in at 56.6%, above the initial reading of 54.1%. The IHS Markit final US manufacturing purchasing managers index reading came in at 54.9 in January, up from 53.8 in December.

The University of Michigan raised its reading of consumer sentiment for January from an initial print of 90.7 to 91.2. That compares to a 98.3 reading for December and was the worst final reading since Donald Trump was elected president.

Construction spending rose in November, up 0.8% from October to a seasonally adjusted annual rate of $1.2 trillion, the Commerce Department said Friday morning in a release that was delayed due to the government shutdown.

Powered by Capital Market - Live News

Also Read

First Published: Feb 04 2019 | 2:19 PM IST

Next Story