Key benchmark indices were highly volatile in early trade with a divergent trend witnessed between the indices. The barometer index, the S&P BSE Sensex was currently off 20.77 points or 0.07% at 27,776.24. The market breadth indicating the overall health of the market was strong.
Tata Motors declined after rating agency ICRA downgraded the rating of the second loss facility (SLF). Reliance Industries edged lower amid volatility after the company said it has executed definitive agreements with Shandong Ruyi Science and Technology Group Co., China for a joint venture in textiles. Coal India edged higher.
Foreign portfolio investors sold shares worth a net Rs 221.52 crore yesterday, 9 December 2014, as per provisional data.
Asian markets were mostly lower today, 10 December 2014, tracking an uninspiring finish on Wall Street overnight triggered by global growth concerns, political uncertainty in Greece, a rout in oil prices and a selloff in Chinese shares in the previous session.
At 9:22 IST, the S&P BSE Sensex was down 20.77 points or 0.07% at 27,776.24. The index lost 86.98 points at the day's low of 27,710.03 in early trade. The index gained 26.99 points at the day's high of 27.824 in early trade.
The CNX Nifty was up 6 points or 0.07% at 8,346.70. The index hit a high of 8,350 in intraday trade. The index hit a low of 8,317 in intraday trade.
The BSE Mid-Cap index was up 35.07 points or 0.34% at 10,241.60. The BSE Small-Cap index was up 37.29 points or 0.33% at 11,231.41. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 763 shares gained and 472 shares fell. A total of 36 shares were unchanged.
Tata motors fell 1.34% at Rs 496.35. The company after market hours yesterday, 9 December 2014, said that rating agency ICRA has reaffirmed the rating assigned to PTCs backed by a pool of commercial vehicle loan receivables originated by Tata Motors Finance (TMFL), while it has downgraded the rating of the second loss facility (SLF) under the transaction.
Over the past few quarters, there has been considerable stress on transport operators' cashflow, resulting in worsening delinquency profile of most commercial vehicle (CV) loan portfolios, including that of TMFL, ICRA said. Nevertheless, over the past few months, TMFL's collections/recovery team has been strengthened and various initiatives have been undertaken such as greater thrust on repossessions and constitution of teams focused on certain specific segments of the overall loan portfolio, ICRA said. The impact of these initiatives on the pool's collection performance and delinquency profile will be an important input for further rating actions under this transactions, ICRA said.
Tata Motors Finance is a wholly owned subsidiary of Tata Motors.
Coal India rose 0.73% at Rs 363.70.
Finance Minister Arun Jaitley said in written reply to a question in Rajya Sabha yesterday, 9 December 2014, that the recent fall in share prices of Coal India, ONGC and NHPC is nothing unusual and does not show any diminished appetite for these stocks. Jaitley said that the government has finalized plans to sell a part of its stake in Coal India, ONGC and NHPC under its disinvestment programme for the current fiscal year. As a general phenomenon, other things remaining the same, when the supply of any stock in the market increases, there is a run-down on the stock price. Disinvestment increases the quantity of CPSE stocks in the market. Therefore, the recent fall in share prices of Coal India, ONGC and NHPC is nothing unusual and does not show any diminished appetite for these stocks, Jaitley said.
Coal India after market hours yesterday, 9 December 2014 in a clarification with regard to news item titled "CIL signs pact for 1,000 mw solar power projects" said that a Memorandum of Understanding (MoU) was signed between Coal India (CIL) and Solar Energy Corporation of India (SECI) for setting up of 750 MW solar power plants in a solar park located in Madhya Pradesh (MP). A detailed project report (DPR) will be prepared by Solar Energy Corporation of India (SECI) at a cost of Rs 75 lakh. CIL will bear Rs 50 lakh towards preparation of project report and the balance will be borne by Solar Energy Corporation of India (SECI). Coal India board in its meeting held on 8 November 2014 accorded its approval for engaging Solar Energy Corporation of India (SECI) to prepare detailed project report (DPR) for setting up of 750 MW of solar power plants. CIL board's approval is only for preparation of detailed project report (DPR) for setting up of 750 MW solar ower plants. Only after examination of project report final decision would be taken about setting up of solar power plants, Coal India said.
Reliance Industries (RIL) fell 0.23% at Rs 937.10. The stock hit a high of Rs 938.70 and a low of Rs 932. RIL and Shandong Ruyi Science and Technology Group Co., China (Ruyi) (through its wholly owned subsidiary), have executed definitive agreements for a joint venture in textiles. The announcement was made after market hours yesterday, 9 December 2014.
As per the definitive agreements, RIL will transfer its existing textile business into a newly incorporated company (JV), for which RIL will receive cash consideration. RIL will own a majority 51% in the proposed JV, with the balance 49% owned by Ruyi. The proposed transaction is subject to obtaining requisite approvals. This business operation and activities would get realigned to strengthen the JV. The JV will build on RIL's existing textile business s and wide distribution network in India as well as Ruyi's state-of-the-art technology and its global reach. The JV will benefit from the strength of the 'Vimal' and 'Georgia Gullini' brands and plans to introduce some of the well-known global brands of Ruyi, RIL said.
Nikhil R. Meswani, Executive Director, RIL, said: "Our joint venture with Ruyi Group will help Reliance reposition its textile business on a high growth path. Our partner's deep commitment and global reach in textile business will enable this JV to harness the growth potential of the Indian market and emerge as a global textile player".
RIL after market hours yesterday, 9 December 2014 in a clarification with regard to news item titled "RIL in fray to buy SevenHills Healthcare" said that Reliance foundation was promoted by the company in 2009 to address social development imperatives of India, specially quality, formal and vocational education, affordable high-quality health care, meaningful rural development and urban renewal and protection and promotion of India's priceless heritage of arts and culture. As part of its ongoing endeavours, Reliance Foundation does evaluate several opportunities for partnership or alliance. Reliance Foundation will make appropriate announcements, if any such initiatives are finalised, RIL 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 is also likely to introduce the constitutional amendment bill for the goods & services tax during the ongoing winter session of parliament. The government also plans to bring the MMDR Amendment Bill, 2014 during the ongoing session of parliament.
The government also 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 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.
Asian markets were mostly lower today, 10 December 2014, tracking an uninspiring finish on Wall Street overnight triggered by global growth concerns, political uncertainty in Greece, a rout in oil prices and a selloff in Chinese shares in the previous session. Key indices in Hong Kong, Taiwan, Japan, and South Korea were off 0.3% to 2.01%. Key indices in China, Singapore and Indonesia were up 0.28% to 0.39%.
China's annual consumer inflation eased to a five-year low of 1.4% in November, signalling persistent weakness in the world's second-largest economy and giving policymakers more room to ease policy to support growth. The consumer price index fell 0.2% in November from October, the National Bureau of Statistics said today, 10 December 2014. The market had expected prices to be flat.
US stocks ended mixed yesterday, 9 December 2014, with the Nasdaq Composite rallying after stiff losses, as investor concern about the global economy ebbed.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 16-17 December 2014. The policy meeting will be keenly watched for any hints on the timing of interest rate increases in the world's biggest economy.
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