Interest rate sensitive realty and auto stocks will be in focus ahead of RBI monetary policy review. Purchases of both residential and commercial property are largely driven by finance. Purchases of cars, utility vehicles and commercial vehicles are largely driven by finance.
Bank stocks will be in spotlight as the Reserve Bank of India (RBI) will announce the First Bi-monthly Monetary Policy Statement, 2016-17 at 11:00 IST today, 5 April 2016. Market expectations are that the RBI will cut its benchmark lending rate viz. the repo rate by atleast 25 basis points today, 5 April 2016, with the government sticking to its fiscal deficit target for year 2016-17 in the Union Budget 2016-17 on 29 February 2016. The government's announcement of a reduction in interest rates on small savings schemes for Q1 June 2016 and dovish comments from US Federal Reserve Chairwoman Janet Yellen have reinforced market expectations of a rate cut from the RBI. In a speech in New York on 29 March 2016, Yellen stressed a need for a cautious stance on interest-rate increases in the backdrop of global economic slowdown.
Shares of public sector oil marketing companies (PSU OMCs) will be watched after announcing a hike in petrol and diesel prices. Indian Oil Corporation (IOCL) yesterday, 4 April 2016, announced an increase in the price of petrol and diesel with effect from the midnight of 4/5 April 2016. Petrol price was hiked by Rs 2.19 per litre and diesel price was raised by 98 paise a litre at Delhi (including state levies) with corresponding price revision in other states. After the latest revision, petrol in Delhi costs Rs 61.87 per litre and diesel costs Rs 49.31 a litre.
Power Grid Corporation of India (PGCIL) after market hours yesterday, 4 April 2016, announced that its board at its meeting held on 2 April 2016 approved eight proposals involving an outlay of Rs 3322.60 crore.
Adani Enterprises said that its coal mine project in Australia won mining lease. Welcoming the approval, the company said that the granting of a mining lease helps deliver the company certainty with respect to timelines, while moving to the next phase of the project, subject to the resolution of legal challenges by politically-motivated activists. Adani said it will continue to finalise second-tier approvals with the clear aim of commencing construction in calendar year 2017. In the coming months, Adani and its partners will provide additional detail regarding the next steps for the logistics and labour requirements of the project, it said. The announcement was made after trading hours yesterday, 4 April 2016.
Adani Group initiated the Carmichael coal project in 2010 with plans to develop a coal mine and a rail link with Abbot Point port, but the project soon ran into opposition from environmentalists. In February 2016, Adani Group had secured the approval of the Queensland government for the $16.5 billion Carmichael mine project in the state's Galilee Basin, amid protests from environmental activists in Australia.
Fiem Industries said that the company has received a letter of intent worth Rs 23.92 crore for an order from Paschimanchal Vidyut Vitran Nigam, Meerut (UP). The announcement was made before trading hours today, 5 April 2016.
IFCI said it made a partial disinvestment of 1.50 lakh equity shares of National Stock Exchange of India (NSE) at Rs 3,950 each. The announcement was made after trading hours yesterday, 4 April 2016.
New Delhi Television (NDTV) said it received an order from the income tax department (IT department) calling an investment by an investor a "sham transaction" and has raised a tax demand of Rs 47.27 crore for the assessment year 2007-2008. Based on the legal advice received from senior counsel, NDTV believes that the said order is untenable and misconceived. The company said it will challenge the order before the appropriate forum and believes that it has a strong chance of success in such proceedings. The announcement was made after trading hours yesterday, 4 April 2016.
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