Stocks
Nifty, Sensex in no man’s land – Wednesday closing report
If Nifty closes below 7,880, a downtrend may start
 
We had mentioned in Tuesday’s closing report that Nifty, Sensex were still on course to head higher and that Nifty has to remain above 7,800 for the uptrend to continue. On Wednesday, the Indian stock markets were bearish on account of negative cues from economic data and the day’s trading closed with small losses of less than 0.5% in the major indices. The trends of the major indices in the course of the day’s trading are given in the table below:
 
 
Negative macro-economic data coupled with a bearish outlook by the Reserve Bank of India (RBI) and an impending US rate hike decision subdued Indian equity markets on Wednesday. Initially, both the bellwether indices of the Indian equity markets opened on a firm note following US markets positive close on Tuesday. However, the gains were capped ahead of the release of key US macro data on employment. Investors were concerned over a slowdown in demand which was indicated by lacklustre eight core industries (ECI) data and purchasing manager’s index (PMI) data.
 
News from abroad on economic data, in particular the US economy was also negative, which added to the cautious outlook of Indian investors. The US manufacturing Index in November contracted to the lowest level since June 2009 when the economy was caught up in the worst financial crisis in decades. The manufacturing index, also known as the purchasing managers index (PMI), fall to 48.6 in November after registering 50.1 in October, Xinhua cited the Institute for Supply Management (ISM) as saying on Tuesday. A reading above 50 indicates the sector is generally expanding, while a reading below that level indicates contraction. The ISM's new-orders index and the production index decreased while the employment index rose. The dismal data shows that a strong US dollar and a weak global economy continue constraining factory activities. Of the 18 manufacturing industries, only five reported growth which included non-metallic mineral products, food and tobacco. A business survey conducted by the institute showed continued concerns about less demand from China and European markets were affecting the US business.
 
Finance Minister Arun Jaitley said on Tuesday that Goods and Services Tax Bill (GST) is the need of the hour and would be a game changer once it gets parliament's nod. "With GST, India's gross domestic product (GDP) will increase by anywhere around 1% to 1.5%. There are lots of benefits of GST which includes the unified tax regime across India and reduction of black money," he said while addressing the BJP parliamentary party meeting. "In the long run the prices would come down, so would the inflation. The growth would kick start, the jobs would increase. There will be increase in exports too. It (GST) will be a game changer," he added. Jaitley emphasized the need to increase production to create employment and get taxes and use them for social security and development. "This will enable maximum governance and will reduce harassment, paper work, corruption and hence passage of GST is the need of the hour," he said. He said that Prime Minister Narendra Modi took the initiative and held discussions with the main opposition party to solve the deadlock over the GST issue.
 
Commercial vehicles major Ashok Leyland Ltd said on Tuesday it closed last month logging 16% volume growth over the corresponding period last year. In a statement issued here, the company said it sold 8,971 units last month as against 7,732 units sold in November 2014. Out of these, 6,297 units were of medium and heavy commercial vehicles and 2,674 units of light commercial vehicles. Ashok Leyland shares closed at Rs92.85, down 0.54% on the BSE.
 
Two and three wheeler maker TVS Motor Company Ltd said on Tuesday it logged sales of over 225,000 units last month. In a statement, the company said it closed last month selling 225,401 units up from 220,046 units sold in November 2014. It also said that the incessant rains for the past three weeks in Chennai have had an adverse effect on company's production during this period. The company suffered sales loss of approximately 15,000 units due to the inclement weather, the statement said. The shares of the company closed at Rs289.20, down 4.87% on the BSE.
 
The top gainers and top losers of the 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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Army, Air Force, Navy deployed in flood hit Chennai
The army, air force and navy were pressed into service on Wednesday for helping residents here, battling floods caused by the heaviest rains in the last 100 years in Tamil Nadu.
 
Four army columns have been deployed in the affected areas and additional columns have been placed on stand by, an official spokesperson said. The navy has sent three relief teams, consisting of around 90 sailors and officers.
 
A navy spokesperson said additional boats were being deployed. Arrangements have been made to shelter around 100 people at (E) shelter. Medical teams have been kept ready.
 
Naval ship INS Airavat has proceeded to Chennai from Visakhapatnam with relief material. The navy is also assessing the flood hit areas through Unmanned Aerial Vehicles (UAVs).
 
The Indian Air Force meanwhile deployed C17 aircraft to carry three teams of National Disaster Response Force (NDRF) to Tirupati. It will be moving 12 teams.
 
Six Chetak helicopters and two Mi 17 helicopters were ready and one Chetak and one Cheetah helicopter were sent to conduct recces of the affected areas.
 
The unprecedented torrential rains, recorded as the heaviest in 100 years, have battered Tamil Nadu's northern districts such as Chennai, Tiruvallur, Kanchipuram and Cuddalore, Chief Minister J. Jayalalithaa said while speaking to Prime Minister Narendra Modi on Tuesday.
 
Jayalalithaa told Modi that the state machinery was geared up to tackle the challenges.
 
The state has deployed Disaster Response Force, fire and rescue service personnel and coastal security group in the affected places.
 
The rains stopped on Wednesday morning, offering some respite to the people. The weather office, however, on Wednesday forecast heavy rains in the next three days.
 
During the last spell of rains, around 180 people lost their lives in four districts of Chennai, Kanchipuram, Cuddalore and Thiruvallur.
 
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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Chennai rains: Airport closed, airlines suspend flights
Budget carrier SpiceJet on Wednesday said it was closely monitoring the situation in Chennai following the ongoing deluge as operations at the city's water-logged airport had been suspended till further orders.
 
"We are closely monitoring the situation in Chennai. All our operations at Chennai Airport have been suspended till further instructions as the airport is water-logged and the tarmac is submerged in one and half feet of water," SpiceJet said in a release.
 
"The whole city is cut off from the airport and SpiceJet officials along with the Airport Authority of India are on their toes providing solace to the passengers with all the available resources," it said.
 
"Refunds have also been offered to cancelled flights and alternatives have been offered where ever possible," G.P. Gupta, chief administrative officer SpiceJet, said in the statement.
 
On Tuesday, low-cost carrier IndiGo said all flights operating out of Chennai had been temporarily cancelled following closure of the airport.
 
"IndiGo assures all passengers will receive 100 percent refund against the flight cancellations made on grounds of weather conditions, and cancellation and change fee will be waived off for affected passengers till further notice," it said.
 
"All employees have been accommodated at safe locations," it added.
 
According to the city administration, Chennai Airport has been shut till Thursday morning and all flights have been cancelled after the runway got flooded, leaving thousands of passengers stranded.
 
The unprecedented rains, the worst in 100 years, have battered Tamil Nadu's northern districts such as Chennai, Tiruvallur, Kanchipuram and Cuddalore.
 
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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