Market may see a flat opening, tracking mixed cues from the Asian market. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 6.50 points at the opening bell.
In overseas markets, Asian stocks were mixed today, 11 March 2016, as investors brushed off a bigger than expected stimulus package from the European Central Bank (ECB). The reaction in Asia was largely muted on rising doubts that the ECB has enough policy tools to bolster growth and inflation in the eurozone. US market finished almost flat in frenetic trading yesterday, 10 March 2016, as investors dismissed new easing measures from the ECB. Earlier in the session, US stocks had been firmly higher, tracking a rally in Europe, fueled by stimulus measures from the ECB.
The ECB cut the bank's key lending rate to zero from 0.05% and pushed the rate on its deposit facility to minus 0.4% from minus 0.3%. It also announced it would expand the size of its monthly bond purchases to 80 billion euros ($86.86 billion) from its current level of 60 billion euros beginning in April 2016 and expand the scope of those purchases to include investment-grade, euro-denominated, nonbank corporate bonds.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 1063.11 crore yesterday, 10 March 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 598.03 crore yesterday, 10 March 2016, as per provisional data.
Among corporate news, shares of Jindal Steel & Power (JSPL) will be in focus. In the backdrop of various media reports about the company's weak financials, JSPL in a press release issued after market hours yesterday, 10 March 2016, said that the company's investment in enhancing steel capacities in Angul and power capacity in Jindal Power (JPL) Tamnar have been completed/commissioned and are in stable level of operation. With these additional capacities and better outlook for steel demand/fair sales price realisation and better outlook for power demand/realization, JSPL said it will be in a better position to generate higher cash flows as compared to last four quarters. The company's efforts in bringing cash through divestment of assets and strategic collaborations through joint ventures (JVs) will add to its cash flows, and also result in reduction in bank borrowings, JSPL said. The company added that it has an excellent track record of meeting all its financial commitments and recent reduction in credit rating, in its opinion, merely presents rating downgrade on technical grounds. JSPL said it had met all its financial commitments till November-December 2015. In discussion with banks, the company has launched 5/25 scheme, and also exploring various options with all lenders to reschedule payments considering likely short/medium term cashflow mis-matches, JSPL said. When these are completed, there will not be any overdue situation, the company added.
Considering better cash flow outlook from better demand/realization for steel/power, rescheduled financial commitments through 5/25 scheme and others and cash flow from disinvestments/JVs, JSPL will be in much stronger position to meet all its liabilities and emerge as financially strong and sustainable company in 2016-17, the company said in a statement.
Crompton Greaves after market hours yesterday, 10 March 2016, announced that its consortium with Cofely Fabricom, lemants has secured a new contract for the EnBW Hohe See offshore wind farm in the North Sea. The consortium will design, supply and install the complete offshore substation for the German utility EnBW, Crompton Greaves said in a statement.
Losses for capital goods sector stocks and index heavyweights Reliance Industries and Infosys led the decline for the two key benchmark indices yesterday, 10 March 2016. The barometer index, the S&P BSE Sensex lost 170.62 points or 0.69% to settle at 24,623.34. The 50-unit Nifty 50 index lost 45.65 points or 0.61% to settle at 7,486.15. The Sensex hit one-week closing low.
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