Market opens higher on positive global cues

Key benchmark indices were trading higher in early trade, tracking positive leads from Asian markets and overnight rally on the Wall Street. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 255.05 points or 0.97% at 26,491.92. The Nifty 50 index was up 78.85 points or 0.97% at 8,180.90.

The market breadth, indicating the overall health of the market, was strong. On BSE, 911 shares rose and 155 shares fell. A total of 24 shares were unchanged. The BSE Mid-Cap index was currently up 0.78%. The BSE Small-Cap index was currently up 0.83%. Both these indices underperformed the Sensex.

Overseas, except China's Shanghai Composite, all other Asian stocks were trading higher today, 8 December 2016, after Wall Street strode to new records and bonds rallied on wagers the European Central Bank (ECB) would extend its asset buying campaign at a policy meeting later in the session.

US stocks closed higher yesterday, 7 December 2016, with the Dow industrials and S&P 500 notching new records. Investors are bracing for the ECB's policy-setting meeting today, 8 December 2016.

Tata Steel was up 2.33%. Tata Steel UK yesterday, 7 December 2016, reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business. The company will next week start consultation with its employees on a proposal to close the British Steel pension scheme to future accrual. Employees would be offered a competitive defined contribution scheme. The proposal on pensions and other changes in the employment terms are part of the ongoing transformation plan that the business is undertaking. As part of agreement all parties will work towards making Tata Steel UK a sustainable business.

The company and trade unions have also agreed on the principle that subject to the structural de-risking and de-linking of the British Steel Pension Scheme fund from the business, Tata Steel UK will continue the existing blast furnace configuration in Port Talbot until 2021. Further, based on achieving the necessary financial performance and cash flows as per the transformation plan of the UK business, the company will continue to invest across the UK sites to enhance the competitive position of Tata Steel UK in the European steel industry. The company has also offered an employment pact until 2021 which supports employees through future changes by investing in their skills to support further plant upgrades, automation and other digital initiatives.

Tata Steel is the UK's largest steel manufacturer. It supplies almost 50% of UK carmakers' steel requirements, including body panels and chassis, and a range of advanced steels for the UK construction industry which help to reduce buildings' energy use.

Separately, Tata Steel also announced that its subsidiary, TM International Logistics (TMILL) has divested entire stake in its wholly owned step down subsidiary TM Harbour Services (TMHSPL) to Adani Ports and Special Economic Zone (APSEZ) for a total consideration of Rs 106 crore in an all cash deal. TKM Global GmbH, Germany and International Shipping and Logistics FZE, Dubai, subsidiaries of TMILL, hold 74.18% and 25.82% equity shares in TMHSPL respectively. TMHSPL with an annual turnover of about Rs 29 crore is engaged in the business of providing Tug Services at Dhamra Port and owns 3 tug boats.

Indusind Bank was up 1.49%. The bank announced that its board pf directors passed issuance of senior unsecured redeemable non-convertible long term bonds in the nature of debentures of face value of Rs 10 lakh each aggregating Rs 1500 crore on private placement basis. The announcement was made after market hours yesterday, 7 December 2016.

Tata Power Company was up 1.14%. The company announced that post Central Electricity Regulatory Commission's (CERC) order dated 21 February 2014 wherein CERC granted compensatory tariff to Coastal Gujarat Power (CGPL), the procurers had approached Appellate Tribunal for Electricity (APTEL) against the same.

APTEL, while setting aside the order of CERC, ruled that the promulgation of Indonesian regulation is a Force Majeure Event and remanded the matter to CERC to assess the impact of Force Majeure Event on Mundra UMPP of CGPL and give such relief as may be admissible under the PPA.

CERC, in its order dated 6 December 2016 has given a mechanism for assessing the relief under Force Majeure. The arrears for the past period shall be paid in six equal monthly instalments by the procurers in proportion to their share in the contracted capacity, from the date the CERC order is permitted to be implemented by the Supreme Court.

CGPL shall accordingly work out the relief for the past as well as the future period based on the mechanism specified by the CERC and shall bill the same on a monthly basis, which shall be trued up annually.

Further, adjustments for mining profits corresponding to the quantity of coal supplied to Mundra UMPP from the mines in which Tata Power has a stake shall be carried out at the time of annual reconciliation as the principles specified in the order. The order is being studied and the exact benefit would be worked out after detailed reading of the order. The announcement was made after market hours yesterday, 7 December 2016.

GMR Infrastructure was up 1.96%. The company reported net loss of Rs 700.34 crore in Q2 September 2016 compared with net loss of Rs 7.41 crore in Q2 September 2015. Total income rose 13.19% to Rs 331.22 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 7 December 2016.

Crompton Greaves was down 6.23%. The company reported consolidated net loss of Rs 10.41 crore in Q2 September 2016 compared with net profit of Rs 10.58 crore in Q2 September 2015. Total income rose 6.78% to Rs 1545.19 crore in Q2 September 2016 over Q2 September 2015. The announcement was made after market hours yesterday, 7 December 2016.

Powered by Capital Market - Live News