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Tuesday, February 18, 2020

Sensex falls ahead of inflation data

Fears of a rise in inflation made funds and retail investors book profits.

Written by Agencies | Mumbai | Published: June 14, 2012 11:08:47 am

Snapping a two-day rising streak,the BSE benchmark index Sensex fell by nearly 36 points in early trade today,as funds and retail investors booked profits at prevailing levels amid fears of a rise in inflation.

In addition,weakening trend on the other Asian bourses also dampened the trading sentiments.

The 30-share index,which had gained 212.50 points in the past two sessions,fell by 35.93 points,or 0.21 per cent,to 16,844.58 with stocks of banking,power and capital goods sectors succumbing to profit-booking.

Similarly,the wide-based National Stock Exchange index Nifty declined by 16.35 points,or 0.31 per cent,to 5,105.10.

Brokers said besides profit-booking by speculators after recent gains,fears of a rise in inflation,to be released later today also triggered selling by participants.

Further,weakening trend on the other Asian markets following overnight losses at the US markets on weak economic data and Europe’s debt woes,too,had its impact,they said.

In the Asian region,Hong Kong’s Hang Seng index fell by 0.66 per cent,while Japan’s Nikkei Index declined by 0.69 per cent in the morning trade today. The US Dow Jones Industrial Average ended 0.62 per cent lower in yesterday’s trade.

Stocks More on Coal India

Company INFO More on Aditya Birla Group

PRE-OPEN: Indian stocks to watch-June 14

GLOBAL MARKETS

* The near-month derivative contract for India’s NSE index at Singapore Exchange fell 0.4 percent,while the MSCI Asia ex-Japan fell 0.6 percent.

* Asian shares eased on Thursday as weak U.S. retail sales raised concerns about sluggish economic growth,while an Italian debt auction later will test market confidence in whether it can avoid becoming the next victim in the euro zone crisis.

* Wall Street ended lower on Wednesday as fears ahead of the weekend elections in Greece finally drove down a market that had been treading water through most of the day.

FACTORS TO WATCH

* India will release WPI inflation data. The wholesale price index,India’s main inflation gauge,is expected to rise 7.60 percent in May versus a year ago,compared with April’s 7.23 percent,the poll of 31 analysts showed.

* India’s cabinet headed by Prime Minister Manmohan Singh will meet around 11.00 IST (0530 GMT). The cabinet is expected to take a decision on increasing urea fertiliser prices,aimed at cutting down the government’s total subsidy burden. (0530 GMT)

* RBI Governor Duvvuri Subbarao,along with deputy governors,will be present in Hyderabad for a committee meeting,which will not be open to the media. (0930 GMT)

* Private lender Axis Bank is holding annual general meeting on Thursday.

INDIAN STOCKS TO WATCH

COMMODITIES/ENERGY

* The Children Investment Fund has warned of legal action against Coal India and its directors,alleging breach of company law,violation of their fiduciary duties and obligations to shareholders,according to a letter sent to S Narsing Rao,chairman of the coal company.

* Coal India has put on hold its initiative to acquire foreign assets and does not intend to start any fresh talks nor does it have any plans of inviting fresh expressions of interest,said people familiar with the situation.

* The Aditya Birla Group is in talks with U.S. thermal coal miner Drummond Company to purchase a significant stake in coal mines in Colombia owned by the privately held company,according to a person with direct knowledge of the developments.

* The Competition Commission of India (CCI) has questioned the coordinated pricing strategy of state-owned oil marketing companies and plans to write to these companies over the matter soon.

* The price of crude oil purchased by Indian refiners has dipped to $95.75 a barrel,the lowest in more than a year,raising hopes of another cut in petrol prices and a substantial fall in oil subsidies.

Concerned by the widening gap between diesel and petrol rates,the government is considering hiking diesel prices by 3 rupees a litre. Petrol prices are expected to be reduced on or before June 16.

* State-run NTPC on Wednesday said it could meet its thermal power generation target of 25,000 Mw by 2017 if it gets fuel supply assurance from Coal India in the next six months.

* The southwest monsoon,which has been lying low for more than a week after making a delayed entry into India,showed some signs of gathering momentum today,with the rains reaching parts of Maharashtra,Tamil Nadu and interior Karnataka.

The rains reached these areas seven to eight days behind its scheduled arrival date.

* The government is likely to announce a significant increase in the minimum support price (MSP) for kharif crops.

FINANCIALS

* For the first time since regulator SEBI allowed public issuance of debt in 2008,funds raised through this route have surpassed equity offerings.

In fiscal 2012,companies raised 356 billion rupees through public issuance of debt,or 33 percent higher than funds raised up through equity offerings during the same period,excluding private placement of debt.

TELECOM

* A decision on sending a tax notice to Vodafone on its acquisition of Indian assets,which has sparked a long dispute between the U.K. company and the Indian government,is likely to be taken after two weeks.

IT

* Wipro is chasing a sizable jump in market share in the next 24 to 36 months. The management is not unduly concerned about demand and cited that there are enough deals in the pipeline.

* Subex announced the launch of new 5.7 percent secured foreign currency convertible bonds of up to $131 million due 2017.

RETAIL

* Hotel Leelaventure ‘s request for corporate debt restructuring for a 4.3 billion rupees loan has been approved,said Indian Overseas Bank chairman and managing director M Narendra,a member of the consortium of lenders.

RETAIL

* Shares of Vijay Mallya-led UB Group companies on Wednesday shot up to 20 per cent amid reports that the group is looking to sell stake in United Spirits.

* The U.S. on Tuesday requested India open up its multi-brand retail sector for foreign investors,an issue the Indian government had deferred for lack of consensus among its coalition partners.

In her remarks at the India-U.S. Strategic Dialogue,U.S. Secretary of State Hillary Clinton emphasised the need for a hospitable bilateral investment environment.

* Japanese conglomerate Suntory,known for its whiskies and beers,bought a 51 percent stake in a subsidiary of Mumbai-based Narang Group to enter India’s non-alcoholic beverage market.

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