Market is seen opening lower in the early trade, tracking negative leads from Asian market and weak closing in US market on Friday, 11 December 2015. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 57.50 points at the opening bell.
In overseas markets, Asian equities declined today, 14 December 2015, as investors remain focused on the mid-week decision from the US Federal Reserve. US major stock-market indexes tumbled during the previous trading session on Friday, 11 December 2015, as falling prices in crude oil and worries about junk-bond markets rattled Wall Street. Investors worry the sharp fall in the price of oil and other commodities is a sign of weakness in the global economy, especially China, and that will cut into profits at big energy companies and suppliers of raw materials as well as other companies.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 253.73 crore on Friday, 11 December 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 292.88 crore on Friday, 11 December 2015, as per provisional data.
Among corporate news, shares of public sector oil marketing companies (PSU OMCs) and oil exploration firms will be watched after global crude oil prices declined on Friday, 11 December 2015. Lower crude oil prices would result in lesser realizations from crude sales for oil exploration firms. Lower crude oil prices could decrease under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In the global commodities markets, Brent crude oil futures edged lower. Brent for January settlement was down 30 cents at $37.63 a barrel. The contract had fallen $1.80 a barrel or 4.53% to settle at $37.93 a barrel during the previous trading session.
Auto stocks may edge lower after the National Green Tribunal said in an order issued on Friday, 11 December 2015, that new diesel vehicles will not be registered in NCT, Delhi and that there will be no renewal of registration of diesel vehicles that are more than 10 year old in the capital city. The tribunal's order is an interim measure to curb alarming pollution levels in Delhi. It also directed all the public authorities in NCT, Delhi to prepare an action plan for phasing out of diesel vehicles, particularly the trucks, being used by them.
Shares of public sector banks (PSU banks) will be in focus after the Minister of State for Finance Jayant Sinha, in a written reply in Lok Sabha on Friday, 11 December 2015 said that the Bank Board Bureau (BBB) is proposed to start functioning from 1 April 2016. It may be recalled that the government had earlier decided to set up an autonomous Bank Board Bureau (BBB) with a view to improve the performance of PSU banks. The Bureau will search and select heads of PSU banks and help them in developing differentiated strategies and capital raising plans through innovative financial methods and instruments.
Cement stocks will be watched after the Competition Appellate Tribunal (COMPAT) on Friday, 11 December 2015, quashed the penalty of Rs 6316 crore imposed on 11 cement firms by the Competition Commission of India (CCI) on charges of cartelisation and other unfair trade practices. COMPAT also directed the CCI to refund the 10% of the penalty amount the companies had to deposit with the fair trade regulator. The judgement follows appeals filed by the cement firms and the industry body Cement Manufacturers Association.
The companies included ACC, Ambuja Cements, Binani Cements, Century Textiles, India Cements, JK Cements, Lafarge India, Madras Cements, UltraTech Cement and Jaiprakash Associates. The commission had passed the order after an investigation into complaints from the Builders Association of India against alleged price cartelisation among cement firms.
As per the penalty imposed earlier, ACC will be refunded Rs 114.75 crore, Ambuja Cements Rs 116.39 crore and UltraTech Cement will be refunded Rs 117.54 crore.
Meanwhile, the tribunal has directed CCI to hear the case again and pass a fresh order within three months.
TCS said in its update regarding its operations in Chennai that recent severe flooding in the city led to major disruptions in its ability to function. The normal business functioning of company's facilities had to be halted in the city all week since 1 December 2015 due to flooding. This is expected to have a material impact on the company's revenue in the seasonally weak Q3 December 2015, it added. The company made the announcement after market hours on Friday, 11 December 2015. Chennai is one of the company's largest delivery function with over 65,000 employees. The majority of facilities in Chennai opened for normal business functioning on 7 December 2015, but attendance rates were lower than normal as employyes were still recovering from the flood's aftermath.
NTPC announced that it raised Rs 500 crore through private placement of secured non-convertible debentures at a coupon of 8.19% with a 10 year door to door maturity on 10 December 2015. The proceeds will be mainly utilized to finance capital expenditure of the company. The company made the announcement after market hours on Friday, 11 December 2015.
Banking and telecom stocks led losses as key benchmark indices edged lower on Friday, 11 December 2015. The barometer index, the S&P BSE Sensex, lost 207.89 points or 0.82% to settle at 25,044.43. The decline for the 50-unit Nifty 50 index was higher in percentage terms compared with the fall in the Sensex. The Nifty lost 72.85 points or 0.95% to settle at 7,610.45. The Nifty hit a 13-1/2-week closing low. The Sensex hit its lowest level in more than 13 weeks when it fell 321.89 points or 1.27% at the day's low of 24,930.43 in mid-afternoon trade.
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