Key indices turned positive in mid-afternoon trade, erasing sharp intraday losses suffered in early trade. At 14:27 IST, the barometer index, the S&P BSE Sensex, was up 20.10 points or 0.06% at 36,290.17. The Nifty 50 index was up 4.30 points or 0.04% at 10,892.65. Capital goods stocks gained.
Global stocks followed Wall Street lower Tuesday, as markets around the world retreated in the face of slowing economic growth and rising political uncertainty while investors looked to the US Federal Reserve monetary policy decision due on Wednesday.
The S&P BSE Mid-Cap index was up 0.03%. The S&P BSE Small-Cap index was up 0.34%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1269 shares rose and 1181 shares fell. A total of 159 shares were unchanged.
Coal India rose 0.44% to Rs 252.50. A meeting of board of directors of the company will be held on 20 December 2018 to consider payment of interim dividend, if any, for the year 2018-19. The company has fixed 31 December 2018 as the record date, for the purpose of payment of interim dividend. The announcement was made during market hours today, 18 December 2018.
M&M rose 1.31%. The company has signed a Share Subscription Agreement with Sampo Rosenlew Oy, Finland, an associate of the company ('Sampo') and has agreed to subscribe to 822 equity shares and 192 Compulsorily Convertible Preference Shares. Pursuant to this, the voting rights of the company in Sampo would increase from 35% to upto 49.04%. The announcement was made after market hours yesterday, 17 December 2018.
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 2.81%), BEML (up 1.48%), Bharat Electronics (up 0.12%), L&T (up 1.07%), Siemens (up 0.51%) and Thermax (up 0.5%) rose. ABB India (down 3.16%) fell.
Shares of the IL&FS group companies gained after IL&FS initiated steps for monetisation of its domestic roads vertical. IL&FS Transportation Network hit an upper circuit limit of 5% at Rs 11.55. IL&FS Engineering and Construction Company hit an upper circuit limit of 5% at Rs 14.13. IL&FS Investment Managers hit an upper circuit limit of 10% at Rs 7.02.
The board of Infrastructure Leasing & Financial Services (IL&FS) appointed by the NCLT vide its order dated 1 October 2018 ("the IL&FS board"), submitted to the MCA, a report on the progress and the way forward dated 30 October 2018 and the second report on progress and way forward dated 3 December 2018 ("reports"), which in turn was submitted to the NCLT. As stated in the said reports, it is the objective of the IL&FS board to achieve, by one or more plan(s), the resolution of the IL&FS Group including IL&FS Transportation Networks Limited ("ITNL") through certain measures, including asset divestments.
On the political front, Kamal Nath, chief minister of Madhya Pradesh, on Monday reportedly waived the outstanding short term crop loans of farmers up to Rs 2 lakh as on 31 March 2018, taken from nationalised and the cooperative banks. The decision will benefit as many as 3.4 million farmers and will cost the exchequer between Rs 35,000 to Rs 38,000 crore, according to media reports.
Further, Chhattisgarh chief minister Bhupesh Bhagel, who too took charge on Monday, reportedly announced that his government will waive farm loans worth Rs 6,100 crore of around 1.66 million farmers. He also announced that the government will increase the minimum support price for paddy from Rs 1,700 per quintal to Rs 2,500 a quintal, reports added.
Overseas, European shares traded lower on Tuesday with investors growing increasingly concerned over the political impasse over Brexit in the United Kingdom, where parliament continues to debate procedural issues surrounding Prime Minister Theresa May's EU exit deal and isn't likely to formally vote on it until early next year.
Asian stocks were trading lower on Tuesday, tracking losses on Wall Street as traders braced for an interest rate hike by Federal Reserve. US equity indexes slid to their lowest close in 14 months on Monday as investors weighed the impact of the Fed on growth in a market already anxious over trade, geopolitical tensions and a possible government shutdown.
The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The Federal Open Market Committee is expected to raise its short-term interest rate by a modest quarter-point to a range of 2.25% to 2.5%. Investors are closely watching the Federal Reserve monetary policy guidance for 2019. The central bank forecasts three more rate hikes in 2019, but softer global growth could cause a shift in its hawkish stance. The Bank of Japan's monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also due on Thursday.
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