Indian markets are likely to open higher tracking a positive closing of most of the US indices which recovered from triggered by fears that hostilities in the Korean Peninsula could escalate. The early indicator of NSE Nifty — SGX Nifty Futures was trading little changed, up 0.35% at 9,910 points on the Singapore Stock Exchange.
These stocks will be in focus today after the major announcements and actions:
Shares of automakers such as Tata Motors, Maruti Suzuki, Mahindra & Mahindra will be in watch on Wednesday as in the Cabinet meeting which is scheduled for today is likely to consider issuing an ordinance to increase the cess on mid-size, large cars and SUVs to 25 per cent from 15 per cent under the new GST regime. Prices of most SUVs were cut between Rs 1.1 lakh and Rs 3 lakh following the implementation of GST, which subsumed over a dozen central and state levies like excise duty, service tax, and VAT from July 1. With the increase in cess, the cuts will be reversed. “The ordinance is listed for consideration of the cabinet tomorrow,” PTI reported.
Shares of NTPC fell by nearly 3 per cent yesterday after the government said it would sell 5 per cent stake in the country’s largest power producer at Rs 168, which was at a discount of over 3 per cent to yesterday’s closing price. The stock slipped 2.8 per cent to settle at Rs 168.50 on BSE. During the day, it dived 4.23 per cent to Rs 166. The scrip was the worst performer among the 30-share index components.
To meet the rising demand for petrochemicals, especially plastics and polymers, largest public sector company Indian Oil Corporation will invest Rs 32,000 crore to ramp up its output by fiscal 2021. This investment is part of the overall Rs 1.8 trillion capex planned for the next five to seven years, PTI reported citing IOC chairman Sanjiv Singh. The petrochemical business contributes a quarter of the most profitable PSU’s profit, which rose to the highest at Rs 19,106 crore in fiscal 2017.
Country’s largest steel maker SAIL yesterday said it has entered into a long-term tariff contract with railways involving 15 zones for loading and unloading terminals. Different commodities applicable to the contract include iron and steel, pig iron, slag, limestone, dolomite and manganese ore with a benchmark gross freight revenue (BGFR) of Rs 3,417.74 crore and with a corresponding tonnage of 19.3 million tonnes (MT) effective from September.
The second list of loan defaulters: Shares of companies including Videocon Industries, Jaiprakash Associates, Visa Steel and SEL Manufacturing tanked today on news reports of being on the Reserve Bank of India’s second list of loan defaulters on whom insolvency proceedings could be initiated failing the resolution of their outstanding debt by mid-December. CNBC TV18 reported citing unidentified sources that the respective banks may take these companies to the National Company Law Tribunal (NCLT) for bankruptcy proceedings by mid-December if the loan was not recovered. The list prepared by the RBIhas names of over 20 companies.
Shares of Videocon Industries fell 4.5% to Rs 18.1; Jaiprakash Associates dipped 9.57% to Rs 21.25; Visa Steel Ltd dropped 12.28% to Rs 17.5; while, SEL Manufacturing plunged 14% to Rs 2.52 on BSE today. These are four of the over 20 companies which included in the list, according to the CNBC TV18 report. Other names include IVRCL, Castex, Ruchi Soya, Unity Infra, Uttam Galva, Monnet Power, Orchid Chemicals, Shakti Bhog, Nagarjuna Oil, Jai Balaji Industries, Soma Enterprise, Soma Coast Energy, Asian Colour Coated, Essar Projects, Transstroy India, Ushdev International and Jayaswal Neco.
ACC, Bank of Baroda, Tata Power and Tata Motors DVR shares fell up to 3% on Tuesday as these stocks will be removed from the broader Indian benchmark index Nifty 50 with effect from 29 September. In a recent reshuffling, India Index Services and Products Ltd (IISL) which is an arm of the National Stock Exchange (NSE) announced this yesterday as part of its periodic review. These four firms would be replaced by Bajaj Finance, Hindustan Petroleum Corporation Ltd, and UPL Ltd.
Markets will remain open tomorrow, leading exchanges BSE and NSE said today. Markets regulator Sebi and exchanges are taking stock of the situation continuously and would decide accordingly amid heavy rains and strong winds disrupting normal life in the financial capital. Officials at both BSE and NSE said several of their employees were still at office as they could not go home because of heavy rains, PTI reported. Arrangements have been made for them to stay back, including at office or nearby hotels, so that they can resume their duties tomorrow, they added.
Market Capitalisation check: Investor wealth yesterday got eroded by Rs 1.38 lakh crore amid heavy sell-off in the stock market, with the Sensex recording its worst single-day performance over a month. The Sensex hurtled straight down to 31,388.39 — a one-week low — plunging over 362 points, registering its first loss after a four-day winning streak. Following weakness in stocks, the total market capitalisation of BSE-listed companies slumped by Rs 1,38,726.77 crore to Rs 1,29,77,705 crore. The escalation in tensions following the firing of a missile by North Korea over Japan made investors jittery.
Indian markets on Tuesday:
Indian stock markets closed extremely lower after weak opening on Tuesday with the Nifty 50 losing over 100 points to end below 9,800 level. The benchmark Sensex too lost 390 points in the intraday trade today to the day’s low of 31,360.81 points. The sell-off in the shares of heavyweight companies such as HDFC, Reliance Industries, HDFC Bank further contributed the down surge of the index. Yesterday 47 out of 51 scrips of NSE Nifty ended in red and all eleven sectoral indices too settled down with losses up to 1.23%. The benchmark Sensex slipped 1.14% at 31,388.39 points while the broader Nifty declined 1.18% to 9,796.05 points.
Indian Rupee on Tuesday:
Snapping its two-session rise, the rupee yesterday declined by 11 paise to close at 64.02 against the US dollar amid renewed global tensions in the wake of North Korea firing a misile that passed over Japan. The rupee sentiment was also hit by performance of domestic bourses, where both the Sensex and the Nifty saw a sharp fall in line with a general weakness across the globe. The rupee today resumed lower at 63.95 per dollar at the interbank foreign exchange (forex) market against previous day’s closing level of Rs 63.91 a dollar.
US markets on Tuesday:
Major US stock indexes ended higher on Tuesday after recovering from steep early losses triggered by fears that hostilities in the Korean Peninsula could escalate. The S&P 500 fell as much as 0.66 percent after U.S. President Donald Trump warned that all options are on the table for the United States to respond after North Korea fired a ballistic missile over a Japanese island in a new show of force. The Dow Jones Industrial Average rose 56.97 points, or 0.26 percent, to 21,865.37, the S&P 500 gained 2.06 points, or 0.08 percent, to 2,446.3 and the Nasdaq Composite added 18.87 points, or 0.3 percent, to 6,301.89.