A divergent trend was witnessed between the two key benchmark indices in early afternoon trade with the barometer index, the S&P BSE Sensex trading with minuscule losses and the 50-unit Nifty 50 index trading with small gains. At 12:16 IST, the Sensex was down 1.81 points or 0.01% at 25,621.54. The Nifty was currently up 2.40 points or 0.03% at 7,793.70. The Nifty hit its lowest level in more than two weeks when it fell 28.05 points or 0.36% at the day's low of 7,763.25 in early afternoon trade. The index rose 39.90 points or 0.51% at the day's high of 7,831.20 at the onset of the trading session. The Sensex hit two-week low when it fell 109.60 points or 0.42% at the day's low of 25,513.75 in early afternoon trade. The barometer index rose 143.41 points or 0.55% at the day's high of 25,766.76 at the onset of the trading session.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,748 shares rose and 842 shares declined. A total of 117 shares were unchanged. The BSE Mid-Cap index was currently up 0.26%. The BSE Small-Cap index was currently up 0.5%. Both these indices outperformed the Sensex.
In overseas markets, Chinese stocks edged lower in choppy trade. In mainland China, the Shanghai Composite index was currently off 1.77%. In Hong Kong, the Hang Seng index was currently off 0.65%. Chinese stocks dropped 7% yesterday, 4 January 2016, triggering a halt to trading and leading to a global selloff. US stocks closed sharply lower yesterday, 4 January 2016, weighed by renewed concerns of global economic slowdown and increased tensions in the Middle East.
Cement stocks were mixed. ACC (up 0.34%) and Ambuja Cements (up 0.32%) edged higher. UltraTech Cement (down 1.02%) and Shree Cement (down 1.07%) edged lower.
Grasim Industries (Grasim) was off 0.76% at Rs 3,630. The stock hit a high of Rs 3,689.70 and a low of Rs 3,630 so far during the day. The company announced after market hours yesterday, 4 January 2016, that Aditya Birla Chemicals (India) (ABCIL) has been merged with company from the appointed date of 1 April 2015 with all the requisite approvals for the scheme of amalgamation in place. Shares of ABCIL were down 1.17% at Rs 229. With the merger becoming effective, Grasim's standalone EBITDA (earnings before interest, taxation, depreciation and amortization) for the six months ended 30 September 2015 stands increased from Rs 728 crore (pre-merger) to about Rs 883 crore (post-merger). Grasim will issue 14.62 lakh equity shares to the eligible shareholders of ABCIL in the ratio of one equity share of Rs 10 each of Grasim for every sixteen shares of Rs 10 each of ABCIL. This merger has resulted in the geographical diversification of the Chlor-Alkali business of Grasim, the company said. It also enables the business to capitalize growth opportunities backed by Grasim's inherent strengths, the company added.
IT stocks edged lower. TCS (down 0.99%), Infosys (down 0.82%) and HCL Technologies (down 0.59%) declined. Tech Mahindra (up 0.71%) and Oracle Financial Services Software (up 0.32%) edged higher.
Wipro was off 0.44% at Rs 555.50. The stock hit a high of Rs 564 and a low of Rs 554.50 so far during the day. The company after market hours yesterday, 4 January 2016, announced that it has appointed TK Kurien as the Executive Vice Chairman and Abidali Z Neemuchwala as the Chief Executive Officer and member of the board of the company. Both these appointments are effective 1 February 2016. Kurien will continue to report to Azim Premji and will remain a member of the board until 31 March 2017.
IFCI surged 6.97% at Rs 29.15 after the company announced that the board of directors of the company at its meeting held yesterday, 4 January 2016, approved the partial disinvestment of equity shareholding of the company in Stock Holding Corporation of India (SHCIL). IFCI's board of directors also approved the disinvestment of entire stake of the company in Assets Care and Reconstruction Enterprise (ACRE). The announcement was made after market hours yesterday, 4 January 2016.
Siti Cable Network surged 8.29% at Rs 39.85 after the Reserve Bank of India (RBI) allowed foreign investors to buy up to 49% stake in the company. RBI yesterday, 4 January 2016 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 49% of the paid-up capital of Siti Cable Network under the Portfolio Investment Scheme (PIS). The RBI has stated that the company has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges, the RBI said. As on 30 September 2015, FIIs held 13.88% stake in Siti Cable Network.
Gravita India surged 11.38% at Rs 34.25 after the company said it has ventured into the business of plastic recycling. Gravita India announced that it has commenced commercial production of pet recycling by setting up a manufacturing unit through its step-down subsidiary Gravita Nicaragua S.A. situated in Nicaragua. The present annual production capacity of the plant is 3,600 metric tonne per annum. The management of the company is of the view that entering into pet recycling business will enhance the recycling DNA of the group. The announcement was made after market hours yesterday, 4 January 2016.
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