Stocks
Nifty, Sensex continue to be deeply oversold – Wednesday closing report
However, the first sign of a short-term Nifty rally will be on a close above 7,400
 
We had mentioned in Tuesday’s closing report that Nifty, Sensex may be at the start of a rally if the Nifty closes above 7,460. However, there was a sharp correction in the major indices of the Indian stock markets starting with a gap-down opening. The falling stock prices reflect investor worries over slumping crude prices and volatility in China’s markets that continue to trigger concerns about the health of the global economy. The trends of the major indices during the day’s trading are given in the table below:
 
 
Huge declines in Asian markets, coupled with a slump in global crude oil prices and a weak rupee depressed the Indian equity markets. The selling frenzy led both the bellwether indices of the Indian equity markets to trade at levels which were last seen during May-June 2014. The selling pressure was accelerated by absence of any fresh positive trigger and below expected third quarter (Q3) results.  Furthermore, investors were seen cautious regarding the sliding value of rupee which touched a low of 68.05 to a US dollar -- its weakest level since September 2013 during the intra-day trade. The rupee previously closed at 67.64-65 to a greenback.
 
The weakness in the rupee value indicates the massive foreign funds outflow from the Indian equity and debt markets. The foreign institutional investors (FIIs) were net sellers in the equity markets on Tuesday. They divested Rs.857.70 crore. Besides, long-liquidation positions and disappointing macro-data points for December which eroded investors' hopes for an interest rate cut during the upcoming monetary policy review of the apex bank dented sentiments. The S&P BSE market breadth favoured the bears -- with 2,091 declines and only 384 advances.
 
Reliance Communications on Wednesday said it has paid Rs5,383.84 crore to the government as fee toward spectrum sharing and trading in 16 circles for the 800-850 MHz band, two days after it announced a pact on this with Jio for nine service areas. This also follows a statement by the company a week ago that while it heard from the Department of Telecommunications (DoT) regarding its plans for sharing and trading in scarce airwaves in the 800-850 MHz space, it was awaiting the response in four other circles. The company statement said it has already been granted a stay by the Kolkata High Court not to furnish any bank guarantee towards one-time spectrum charge, as had been demanded earlier by the government. Sources said Reliance Communications wanted to pursue spectrum trading in nine circles with Jio and sharing it with Jio in 17 circles. The Reliance Communication share closed at Rs68.50 down 6.55% on the BSE.
 
Tokyo stocks tumbled on Wednesday as the ongoing downtrend in oil prices coupled with concerns for the outlook of the global economy contributed to a dire market mood. The 225-issue Nikkei Stock Average lost 367.04 points, or 2.15%, from Tuesday to 16,681.33, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 28. 30 points, or 2.04%, at 1,362.11, reports Xinhua.
 
Chinese stocks opened lower on Wednesday, with the benchmark Shanghai Composite Index down 0.49%, at 2,993.01 points, Xinhua news agency reported. The Shanghai Composite closed at 2,976.69, down 1.03%.
 
Bank of England (BoE) Governor Mark Carney has ruled out an interest rate hike for the time being contending that "now is not yet the time to raise interest rates" in the wake of gloomy global economy and modest British economic growth since summer. "Not enough cumulative progress had been made to warrant tightening monetary policy," Xinhua cited Carney as saying at Queen Mary University of London on Tuesday. He said this as an assessment for last summer when he suggested that a decision as to when to start raising bank rate would likely come into sharper relief around the turn of the year. The governor said the outlook for monetary policy depends on three things -- the Monetary Policy Committee's objectives, its strategy, and the British economic prospects. "Our objective is clear: to return inflation to the target in a way that avoids undue volatility in output and employment," he added. British inflation rate as measured by the Consumer Prices Index (CPI) rose to an 11-month high of 0.2 percent in December, from November's 0.1 percent, the Office for National Statistics (ONS) released on Tuesday. Latest minutes from BoE's MPC, which voted 8-1 to keep rates at their current historic low of 0.5%, showed that members expect inflation to remain far below its two percent target for some time yet.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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Cabinet approves land swap between Mumbai airport, civic body
New Delhi : The central government on Wednesday approved a land swap agreement between Mumbai International Airport (MIAL) and Municipal Corporation of Greater Mumbai (MCGM).
 
The decision was taken by the union cabinet which met here under the chairmanship of the Prime Minister Narendra Modi.
 
MIAL manages and operates the Chatrapati Shivaji International Airport (CSIA) at Mumbai.
 
"The Union Cabinet has given its approval for swapping of Airports Authority of India's (AAI) land, out of land demised to MIAL at CSIA, measuring 2,960.90 sqm. with equivalent land of MCGM for relocation of Cemetery," the cabinet said in a statement. 
 
According to the cabinet, swapping of the land with MCGM will enable MIAL to complete the development work of the Chatrapati Shivaji International Airport, Mumbai. 
 
"Shifting of the cemetery to new location will result in its operationalisation," the statement elaborated.
 
"Since both the AAI land and the private land proposed to be swapped are of the same size and are adjacent to each other as also the circle rate of the land is same, there is no financial implication on the government."
 
The statement added that the cost on account of mutation of the alternate land after the swap will be borne by MIAL. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Cabinet gives nod to new power tariff policy
New Delhi : The union cabinet on Wednesday approved a new power tariff policy designed to promote clean energy, better regulation of distribution companies (discoms), and ease of the process of doing business in the sector.
 
"For the first time, a holistic view of the power sector has been taken and comprehensive amendments have been made in the tariff policy 2006," Power Minister Piyush Goyal told reporters.
 
"The amendments are also aimed at achieving the objectives of Uday (Ujwal Discom Assurance Yojana) with a focus on 4 Es... electricity for all, efficiency to ensure affordable tariffs, environment, and ease of doing business to attract investments to the sector and ensure financial viability," he said.
 
The new policy also proposes to strengthen the regulatory mechanism so that discoms become more efficient in serving their consumers.
 
Highlighting India's international obligations towards reversing climate change under the COP 21 declarations, Goyal said the new tariff policy seeks to boost renewable energy generation.
 
"In order to promote renewable energy and energy security, 8 percent of electricity consumption excluding hydro power, shall be from solar energy by March 2022, as part of the revised Renewable Purchase Obligation (RPO)," the minister said.
 
"We have also introduced a Renewable Generation Obligation, whereby new thermal plants have to have a renewable component to their generation," he added.
 
Goyal said the new tariff policy had special provisions to promote the philosophy of "waste-to-wealth".
 
"To release clean drinking water for cities and reduce pollution of rivers, thermal plants within a 50 km of radius of sewage treatment facilities will use treated sewage water," Goyal said, adding that Nagpur municipality, in his home state of Maharashtra, is already implementing such a project.
 
The new policy will also allow distribution companies to buy any quantum of power produced from waste.
 
For the promotion of hydro projects, Goyal said these will be allowed to charge tariffs on a cost-plus basis through long term power purchase agreements (PPAs), and will be exempt from competitive bidding till August 15, 2022.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Siva Kumar Dattu

1 year ago

first it should be affordable

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