Stocks
Nifty, Sensex headed higher subject to dips - Wednesday closing report
Nifty has to close above 7,900 for the upmove to continue
 
We had mentioned in Tuesday’s closing report that Nifty, Sensex may be headed lower for the next few days and that Nifty looks set for a fresh decline unless it closes above 7,900. Nifty went down sharply in the morning but attractive valuations and bargain hunting pushed the Indian stock market indices a little higher by close.
 
 
The Indian stock markets again came under pressure during the initial trade on Wednesday, as weak Asian cues emanating out of a below-expected Chinese PMI (purchasing managers' index) data spooked investors. However, attractive valuations in banking, consumer durables and information technology (IT) sectors helped the markets pare its initial losses. Furthermore, value buying was observed among investors in the stock market. Market observers pointed out that the sharp downward corrections on Tuesday due to weak European cues have cheapened stocks and prompted value buying.
 
All interest-sensitive stocks like banking, automobile and capital goods made substantial gains on hopes of a rate cut by the Reserve Bank of India (RBI) during its upcoming monetary policy review slated for September 29.
 
Sector-wise, banking, consumer durables, healthcare, oil and gas and information technology (IT) stocks supported the market recovery.
 
Notwithstanding the positive trend, power and technology, entertainment and media (TECK) sector came under intense selling pressure. 
 
The S&P BSE banking index rose by 283.82 points, consumer durables index gained by 172.48 points, healthcare index increased by 121.55 points, oil and gas index rose by 86.18 points, and IT index was higher by 40.29 points.
 
The S&P BSE power index fell by 5.59 points and TECK index slipped by 1.67 points.
 
Major Sensex gainers during Wednesday's trade were: Lupin, up 2.83% at Rs.1,921.30; Vedanta, up 2.71% at Rs.94.85; HDFC Bank, up 2.17% at Rs.1,049.95; Mahindra and Mahindra (M&M), up 2.10% at Rs.1,211.75; and ITC, up 1.28% at Rs.316.05.
 
The major Sensex losers were: Tata Motors, down 1.73% at Rs.310.20; Bharti Airtel, down 1.49% at Rs.338.10; BHEL, down 1.24% at Rs.199.15; GAIL, down 0.86% at Rs.287.25; and Bajaj Auto, down 0.79% at Rs.2,240.25.
 
The top gainers and top losers among major indices in the Indian stock market are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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Coal India earmarks Rs.60,000 crore capex for next five years
State-owned miner Coal India on Wednesday said it has earmarked Rs. 60,000 crore as its capital expenditure (capex) over a period of five years which will help it to achieve its target to produce one billion tonnes of coal.
 
However, the miner will need an additional 20,000 acres of land to meet the output target.
 
"We will need approximately 20,000 acres of land, however, it is being recast. The total land required will depend on technology, the process of calculating the dumping area and other factors," company chairman Sutirtha Bhattacharya told media persons here after its annual general meeting.
 
Asked over how much cost would be involved in land acquisition, he said: "We cannot say as it depends on the area. For instance if it is near an urban area, the land price would definitely be higher."
 
"Resource has to be looked optimally because of the cost," he said.
 
In the ongoing fiscal, Coal India has increased its capex by 14.65 percent at Rs.5,990.50 crore over the planned expenditure of the previous year.
 
However, the official said the planned capex may vary based on its future requirements and decisions.
 
"While the machinery cost has been included in the capex of Rs.60,000 crore, it will depend on future requirements. For instance, if we decide not to purchase the machinery and outsource it instead, it will be counted as revenue opex (operating expenditure) and not capex," he said.
 
However, even though the actual capex is spent as planned, the coal behemoth will still fall short of nearly 100 million tonne of coal output.
 
"This will help us produce 908 mt of coal," said Bhattacharya, an 1985 batch Andhra Pradesh cadre IAS officer.
 
Asked over how the firm will go about land acquisition, he said: "We will continue to work up upon land acquisition and sensitise it as well as intereact with the state governments."
 
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

Dr Anantha K Ramdas

1 year ago

How does CMD Bhattacharya plans to finance this mammoth operation? This is a huge step and has to be done by balkanizing the coal mining units to make them totally independent off the Coal India control. They still want to do this by Remote Control?

Let Mahanadhi Coalfields and others be given total freedom to plan their production operation. They know the problems faced, and they have certain solutions that can be thought of to mine more coal in the country.

In the past we have had Narasing Rao making various proposals and what has happened in the last few years? Let the units operate freely - we will find they will employ methods to overcome the difficulties faced by them

Kerala HC orders CBI probe into irregularities at KSCDC
The Kerala High Court on Wednesday directed the Central Bureau of Investigation to conduct a probe into the allegation of corruption in the Kerala State Cashew Development Corporation (KSCDC).
 
The court's direction came on a petition filed by Congress trade union leader K.Manoj and a detailed report that was filed by Additional Chief Secretary (Finance) K.M.Abraham, listing various irregularities in the functioning of the corporation, which is tasked with looking after the welfare of the cashew industry workers besides procuring raw cashew from international markets for supplying to the various cashew factories in the state among other duties.
 
Incidentally the report of Abraham which was submitted by him directly to the high court early this year had irked the state government, as the normal procedure of filing such reports was always through the advocate general.
 
A section of the state Congress leadership is upset over the functioning of Abraham whose report is understood to contain numerous shortcomings in the manner in which the KSCDC was run by its chairman and the managing director, both of whom are close relatives. 
 
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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