We had mentioned in Tuesday’s closing report that Nifty, Sensex might head higher. The major indices of the Indian stock markets were range-bound on Wednesday and closed with small losses over Tuesday’s close. However, trading volumes were on the higher side on the NSE. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Negative global indices, coupled with profit booking and lower than expected macro-data, dragged the Indian equity markets during the mid-afternoon trade session on Wednesday. Selling pressure was witnessed in banking, IT and oil and gas stocks. On the BSE, there were 1,739 advances, 1,142 declines and 123 unchanged. On the NSE, there were 841 advances, 598 declines and 43 unchanged. Investors were seen reluctant to chase prices after several days of rise, pointed out market analysts. Negative European markets and disappointing Services PMI figure, too, dragged the key indices lower.
Anil Ambani-led Reliance Infrastructure on Wednesday said it is selling its entire transmission assets to Adani Transmission. The deal size was not divulged, but banking sources estimated it at over Rs 2,000 crore. Reliance Infrastructure owns the country's first 100% private sector transmission project -- the Western Region System Strengthening Scheme -- in Maharashtra, Gujarat, Madhya Pradesh and Karnataka. Reliance Infrastructure also owns 74 per cent in Parbati Koldam Transmission located in Himachal Pradesh and Punjab in a joint venture with Power Grid Corp. All three transmission projects have been completed and are revenue-generating, the company said in a statement. "The entire sale proceeds from the transaction will be utilized for debt reduction," the company said, adding that SBI Capital Markets is their financial advisor for the transaction. "The transaction is in line with the strategic plan of monetizing non-core business and focus on growth areas like defence and engineering, procurement and construction business." The cement business has been monetised and that of roads and Mumbai power are in advanced stages. The company’s shares closed at Rs591.05, up 0.22% on the BSE.
The Union Cabinet here on Wednesday approved "mini Ratna" public sector undertaking HLL Lifecare to sub-lease its 330.10 acres of land at Chengalpattu, located in the outskirts of Chennai, to set up a medical devices manufacturing park (Medipark) through a special purpose vehicle. The shareholding of HLL in the project, which is expected, would be above 50%, it added. The Medipark project will be the first manufacturing cluster in the medical technology sector in the country, envisaged to boost the local manufacturing of hi-end products at a significantly lower cost, resulting in affordable healthcare delivery, particular in diagnostic services to a large section of people. "Medipark will be developed in phases, spread over seven years for completion. In the first phase, physical infrastructure will be developed and plots will be leased from third year onwards. Knowledge management centre will be developed in the second phase," it said.
State-run oil marketers again raised transport fuel prices effective from Wednesday on account of hikes in dealer commission, by 10 paise for diesel and 14 paise for petrol, inclusive of local taxes in Delhi, with corresponding increase in other states. "There will be corresponding price revisions on petrol and diesel in other states on account of change in dealer commission," Indian Oil Corp said in a statement. Indian Oil shares closed at Rs615.00, up 0.36% on the BSE.
Implementing the Goods and Services Tax (GST) could produce a short-lived pass-through impact on the inflation trajectory, the Reserve Bank of India (RBI) said on Tuesday. Announcing its first bi-monthly monetary policy review decided by a committee, RBI, in its monetary policy statement, also said an 18 per cent GST rate would not have any material impact on retail inflation. "While the creation of a unified goods and services market in the country would reduce supply chain rigidities, cut down on transportation costs and also bring down costs in general through improvements in productivity, it could also produce a short-lived pass-through to the inflation trajectory," RBI said. The central bank said the impact of implementation of GST on consumer price-indexed inflation would largely depend on the standard rate that would be decided by the GST Council. In the forthcoming year, if both interest rates and inflation remain moderate, stock market investors in India are in for a good time.
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: