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

Market may drift lower in early trade

Image
Capital Market
Last Updated : Dec 09 2014 | 9:45 AM IST

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 30 points at the opening bell tracking weakness in Asian bourses and overnight losses in US market.

India's current account deficit (CAD) increased to $10.1 billion (2.1% of GDP) in Q2 of 2014-15 from $7.8 billion (1.7% of GDP) in the preceding quarter and $5.2 billion (1.2% of GDP) in Q2 of 2013-14, latest data released yesterday, 8 December 2014 showed. The increase in CAD was primarily on account of higher trade deficit contributed by both a deceleration in export growth and increase in imports.

The Competition Commission of India (Commission) in its meeting held on 5 December 2014, approved the proposed merger between Sun Pharmaceutical Industries and Ranbaxy Laboratories, subject to the parties inter alia carrying out the divestiture of their products relating to seven relevant markets for formulations. Further, the Commission also directed that the proposed merger shall not take effect before the parties have carried-out the divestiture of the products so specified as per the order of the Commission.

DLF before market hours today, 9 December 2014 said that DLF Home Developers (a wholly subsidiary of the company) has just been made aware of the Order passed on 8 December 2014 by Single Bench of High Court regarding its "Riverside Project" at Chilavanoor, Vyttila, Cochin. This Order comes as a result of a writ filed by a private individual in 2012 when company's applications for CRZ and MoEF clearance were under consideration by concerned authorities, (which approvals were subsequently granted in December 2013 by State Environment Impact Assessment Authority, a body constituted under the aegis of MoEF, Govt. of India), DLF said. The company awaits the full text of the Order so as to get a detailed understanding of the matter after which it will take appropriate remedial measures in consultation with its legal counsel, DLF said.

Tata Motors after market hours yesterday, 8 December 2014 in a clarification with regard to news item titled "Tata Motors bags big order" said that various Government departments including law enforcement agencies have requirement for vehicles. These requirements are made public through department tenders/Government notifications. Based on this, Tata Motors participates in tenders, interactions with department happens and they have various committees through which the products are evaluated for their needs and specifications. For the commercial terms, vehicles are normally purchased through the pre-approved DGS&D rate contract, which is negotiated on a yearly basis. These rates are publicly displayed on the DGS&D website, Tata Motors said.

Tech Mahindra after market hours yesterday, 8 December 2014 said that the further to earlier announcement dated 31 October 2014 whereby the company had informed that High Court of Judicature at Bombay on 31 October 2014, approved the Scheme of Amalgamation and Arrangement of Mahindra Engineering Services (MESL) with Tech Mahindra and their respective shareholders and creditors which, inter alia, envisages amalgamation of MESL and transfer and vesting thereof into the company and other consequential matters, the company has now informed that the said scheme has become effective on 8 December 2014.

More From This Section

With respect to media reports titled "ONGC to start KG-D5 block production by mid 2018", ONGC after market hours yesterday, 8 December 2014, said that the company has initiated the process of developments of fields in the KG D5 block. The estimated reserves of Northern Discovery Area (NDA) of the block are 121 MMT of Oil in Place and 78 BCM of initial gas in place and that of Southern Discovery Area of the block are 80.8 BCM of initial gas in place, ONGC said. Considering the vast area for development, it is planned to develop the block in clusters, ONGC said.

With respect to media reports titled "Rcom signs deal with Ericsson", Reliance Communications after market hours yesterday, 8 December 2014, said that as a routine ongoing business, the company has realigned some of its outsourced activities between existing vendors and signed managed service contract with Ericsson on a pan-India basis.

Shares of power generation firms and that of Coal India (CIL) will be in focus after Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) Piyush Goyal said in a written reply to a question in the Rajya Sabha yesterday, 8 December 2014, that CIL has been impressed upon to enhance production of domestic coal in the country and power utilities have also been advised to enhance import of coal to meet the shortfall in domestic availability of coal. Goyal further stated that during April 2014 to October 2014, there has been a growth of 15.4% in coal-based generation over the corresponding period of last year. Coal supply from CIL sources to power utilities in the country has improved, Goyal said. With a view to monitor coal supplies to power utility sector, an Inter-Ministerial Sub-Group comprising representatives of Ministry of Power, Ministry of Coal and Ministry of Railways has been constituted. This Sub-Group takes various operational decisions for meeting any contingent situations relating to power sector including critical coal stock position, Goyal said.

In reply to another question on the exercise of coal rationalization, Goyal said in a written reply in the Rajya Sabha that the exercise of coal rationalisation is expected to optimize overall materialisation of coal at thermal power plants and one of the benefits will be increased power generation and reduction in power shortages in the country. KPMG has submitted a draft report on coal rationalisation to the government, Goyal said. However, figures of savings in transportation cost are dynamic and subject to acceptance and implementation of the proposal in part or totality by all the participating stakeholders, Goyal said.

Indian Oil Corporation (IOCL) will be in focus after Minister of State (Independent Charge) for Petroleum & Natural Gas Dharmendra Pradhan informed the Lok Sabha in a written reply yesterday, 8 December 2014, that IOCL has planned to set up Liquefied Natural Gas (LNG) import, storage and regasification terminal with a capacity of 5 MMTPA at Kamrajar Port (formerly Ennore Port) in Tamil Nadu. The terminal is planned to be commissioned by end of 2017-18. IOCL presently does not have any proposal to set up a gas pipeline from Paradip to Vishakhapatnam, Pradhan said.

The government plans to introduce the Coal Mines (Special Provisions) Bill, 2014 to replace the Coal Mines (Special Provisions) Ordinance, 2014 in Lok Sabha this week. The government intends to get the Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector passed during the ongoing winter session of parliament. The government is also likely to introduce the constitutional amendment bill for the goods & services tax in the winter session of parliament. The government also plans to bring the MMDR Amendment Bill, 2014 during the the ongoing session of parliament.

The government will unveil industrial production data for October 2014 on Friday, 12 December 2014. Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014.

The government will release annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India for November 2014 on Friday, 12 December 2014. CPI for urban and rural India eased to 5.52% in October 2014, from 6.46% in September 2014.

The government will release the inflation data based on wholesale price index (WPI) for November 2014 on 15 December 2014. WPI eased to 1.77% in October from 2.38% in September 2014.

Indian stocks dropped on first trading day of the week yesterday, 8 December 2014 amid concerns strong US job growth may prompt the US Federal Reserve to speed up interest rate hikes in the world's biggest economy. The S&P BSE Sensex lost 338.70 points or 1.19% to settle at 28,119.40, its lowest closing level since 20 November 2014.

Foreign portfolio investors bought shares worth a massive Rs 4984.60 crore yesterday, 8 December 2014, as per provisional data.

Asian equity markets today, 9 December 2014, joined Wall Street's slump overnight after oil markets resumed their downward spiral. Key indices in Japan, Hong Kong, Taiwan, South Korea, and Indonesia were off 0.32% to 0.91%. Key indices in China and Singapore were up 0.08% to 0.8%.

US stocks slid from records yesterday, 8 December 2014 amid continued selling of energy producers as crude oil sank to a five-year low.

Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday, 8 December 2014 that he's sticking with his long-held view that the US central bank should hold off on raising rates until the middle of next year or later. The momentum I perceive in the economy gives me confidence that the Federal Open Market Committee can consider beginning to normalize interest rates in 2015, Mr. Lockhart reportedly said.

Powered by Capital Market - Live News

Also Read

First Published: Dec 09 2014 | 8:23 AM IST

Next Story