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Market may gain on firm Asian stocks

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Key benchmark indices may open higher tracking firmness in Asian stocks. In overseas stock markets, most Asian stocks gained led by Japanese equities as the yen retreated after a seven-day rally amid the start of the US earnings season. US stocks slipped yesterday, 11 April 2016 at the start of a first-quarter earnings season that is expected to paint a bleak picture of corporate profits.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 107.23 crore yesterday, 11 April 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 303.88 crore yesterday, 11 April 2016, as per provisional data.

Among corporate news, BPCL announced that its board of directors at a meeting held yesterday, 11 April 2016, approved the proposal to acquire Petronet India's (PIL) 26% equity stake in Petronet CCK (PCCKL) at a total cost of Rs 78.60 crore. PCCKL a subsidiary company promoted by BPCL and PIL. PCCKL owns and operates a petroleum product pipeline from Kochi to Karur in Tamil Nadu via Coimbatore for transportation of petroleum products. Currently, BPCL has a stake of 73.96% in the equity capital of PCCKL and PIL has a stake of 26% while the balance is held by financial institutions (Fis). Post completion of acquisition, BPCL's holding in PCCKL will go up to 99.96%. The announcement was made after market hours yesterday, 11 April 2016.

Separately, BPCL announced after market hours yesterday, 11 April 2016 that its board of directors approved the proposal to seek shareholders' consent by way of postal ballot for increasing the ceiling of investment by foreign institutional investors in the company by up to 49% from 24% in one or more tranches subject to regulatory authorities approval.

Tata Steel said that Tata Steel UK announced the signing of an agreement to sell its long products Europe business to the family investment office, Greybull Capital. The sale for a nominal consideration, would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package, Tata Steel said. The deal would be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain government approvals and the satisfactory completion of financing arrangements, it said. The sale covers several UK-based assets including the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Wokington, a design consultancy in York, and associated distribution facilities, as well as a mill in northern France, Tata Steel said. The announcement was made after market hours yesterday, 11 April 2016.

Adani Ports and Special Economic Zone (APSEZ) announced that it has raised Rs 500 crore by allotment of 5,000 rated, listed, secured, taxable, redeemable, non-convertible debentures (NCDs) of face value of Rs 10 lakh each on private placement basis. The NCDs will be listed on the wholesale debt market segment of BSE. The announcement was made after market hours yesterday, 11 April 2016.

Mahindra & Mahindra (M&M) announced that credit rating agency CARE has reaffirmed its CARE AAA and CARE A1+ ratings assigned to the long term & short term bank facilities of the company. The announcement was made after market hours yesterday, 11 April 2016.

Bharti Airtel announced that its subsidiary Airtel M Commerce Services (AMSL) has been granted payments bank license from Reserve Bank of India yesterday, 11 April 2016. The announcement was made after market hours yesterday, 11 April 2016.

Among key macro economic announcements, the government is scheduled to unveil industrial production data for February 2016 at 17:30 IST today, 12 April 2016. The Index of Industrial Production (IIP) grew negative 1.5% year-on-year (yoy) in January 2016.

The government is scheduled to unveil the consumer price index (CPI) data (rural, urban and combined) for the month of March 2016 at 17:30 IST today, 12 April 2016. The all-India general CPI inflation dipped to four months low of 5.18% in February 2016 (new base 2012=100), while snapping consistent increase for last six straight months.

A rally on the first trading session of the week took the barometer index, the S&P BSE Sensex, past the psychologically important 25,000 mark yesterday, 11 April 2016. The Sensex surged 348.32 points or 1.41% to settle at 25,022.16.

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First Published: Tue, April 12 2016. 08:40 IST
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