Trading of CNX Nifty futures on the Singapore stock exchange indicates a flat opening on the domestic bourses today, 15 May 2015. Most Asian stocks edged lower today, 15 May 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 73.76 crore yesterday, 14 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 302.57 crore yesterday, 14 May 2015, as per provisional data.
Among corporate news, Tata Steel announced after market hours yesterday, 14 May 2015, that the company expects to recognize a non-cash write-down of the goodwill and assets in the consolidated financial results in Q4 March 2015 of approximately Rs 5000 crore, mainly relating to the Long Products UK business in Tata Steel Europe which will now be fully impaired after substantially completing its year end impairment of goodwill, property, plant and equipment review for the consolidated financial statements for the financial year ended 31 March 2015 (FY 2015) as required under the Indian Accounting Standards. The impairment also includes a write down of investments in overseas raw materials projects in Mozambique, Ivory Coast and Taconite project in Canada because the economic viability of these projects remains uncertain at the current level of commodity prices. Additionally, the company undertook a non cash impairment charge of Rs 1577 crore in Q1 June 2014 towards its investment in the Mozambique Coal Project. The total impairment charge for the FY 2015 would be around Rs 6500 crore in the consolidated financial results. The details of the impairments will be included in the audited financial results on 20th May 2015. The company's liquidity position or financial covenants are unaffected by the above non-cash write down.
The review was undertaken taking into account the external economic environment and macro-economic conditions in each geography of operation, the underlying demand-supply imbalance facing the global steel industry, significant volatility in iron ore and coal prices in the last twelve months and the current view of long term forecast of steel and its raw material prices.
Infosys announced after market hours yesterday, 14 May 2015, that the company has joined the Industrial Internet Consortium (IIC), an open membership group established to improve the integration between the physical and the digital worlds and accelerate the adoption of Internet of Things. The goal of the consortium is to amplify the development and availability of connected, intelligent industrial automation.
Bank stocks will be in focus after Reserve Bank of India (RBI) Governor Raghuram Rajan yesterday, 14 May 2015, said that bad loans at Indian banking sector may not have peaked yet, adding the central bank was working with lenders to recognise and resolve these non-performing assets. Rajan made those comments in reply to a question during a news conference after the central bank's board meeting in Goa.
Among key corporate earnings, JSW Steel, Nestle India and Tata Coffee are scheduled to announce their quarter ended 31 March 2015 earnings on today, 15 May 2015.
GAIL (India) will be watched. With respect to news article titled "GAIL in talks to acquire Dabhol's 5 mtpa regasification terminal", GAIL (India) announced after market hours yesterday, 14 May 2015, that it is not aware of the basis of the news item and that there is no such proposal at GAIL's end.
Meanwhile, Prime Minister Narendra Modi is on a three-day visit to China. On first day of his visit yesterday, 14 May 2015, Narendra Modi was received by the President of China, Xi Jinping, at the Shaanxi Guest House. The two leaders held restricted talks.
The India Meteorological Department (IMD) yesterday, 14 May 2015, said that the southwest monsoon is likely to set over Kerala on 30 May, with a model error of plus/minus 4 days. The onset of southwest monsoon over Kerala signals the arrival of monsoon over the Indian subcontinent and represents beginning of rainy season over the region. The IMD has forecast below normal rains during the June-September southwest monsoon season this year.
Amid a divergent trend among various index constituents, key benchmark indices registered small losses yesterday, 14 May 2015. The S&P BSE Sensex fell 45.04 points or 0.17% to settle at 27,206.06, its lowest closing level since 12 May 2015.
Most Asian stocks edged lower today, 15 May 2015. Key benchmark indices in China, Indonesia, Singapore, Taiwan and South Korea fell by 0.14% to 2%. Key benchmark indices in Hong Kong and Japan rose by 0.31% to 0.55%.
US stocks ended higher yesterday, 14 May 2015 with the S&P 500 index ringing up a new closing high.The rally for stocks came as US economic reports offered no real clarity on when the Federal Reserve may hike rates for the first time since 2006
A report on weekly jobless claims unexpectedly declined, pointing to stability in the employment picture, while a measure of inflation suggested that headline inflation is falling below the central bank's 2% target- the target the Fed is looking for before it feels comfortable lifting rates.
In Europe, in a major speech delivered in Washington, European Central Bank President Mario Draghi reportedly hit back at a popular argument that low interest rates, and quantitative easing in particular, not only hurt savers but also benefit the wealthy disproportionately and fuel inequality. The remarks are notable as the criticism of the ECB's action is similar to that faced by the Federal Reserve and other central banks for similar policies. The ECB's main interest rate is just above zero, and it announced it would start buying bonds in September, reports added.
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