Slightly lower opening on the anvil

Key benchmark indices may open slightly lower tracking mostly lower cues from the Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 16.50 points at the opening bell.

Overseas, most Asian stocks dropped. China's economy will grow at around 6.5% year-on-year in 2017, according to a forecast from government think tank China Academy of Social Sciences (CASS) published today, 19 December 2016. CASS sees quarterly on-year growth of 6.5% in the first and second quarters, and 6.4% in the third and fourth quarters. China's economy has grown at 6.7% for the first three quarters of 2016.

 

US stocks closed lower on Friday, 16 December 2016, with the Dow Jones Industrial Average swinging to a loss, following reports that a Chinese warship seized an underwater US Navy drone in international waters off the coast of the Philippines. Wall Street stocks have surged since the presidential election in November. The gains have been attributed to expectations that Donald Trump's policy proposals, such as increased infrastructure spending, tax cuts and deregulation, will spur economic growth.

In the latest economic data, housing starts tumbled 18.7% in November, while the number is volatile, it pointed to a housing market recovery that remains choppy.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 90.36 crore on Friday, 16 December 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 30.48 crore on Friday, 16 December 2016, as per provisional data.

Among corporate news, Axis Bank announced that the bank has reviewed and decided to reduce the marginal cost of funds based lending rates (MCLR) of the bank by 10 basis points in the overnight tenor and by 15 basis points across all other tenors. This will be effective from 17 December 2016. The announcement was made after market hours on Friday, 16 December 2016.

Mahindra & Mahindra (M&M) announced that Mahindra Intertrade (MIL), a wholly owned subsidiary of Mahindra Vehicle Manufacturers (MVML) which in turn is a wholly owned subsidiary of the company, has on 16 December 2016, incorporated a joint venture company named Mahindra MSTC Recycling (Mahindra MSTC). MSTC Ltd., a Government of India enterprise being the Joint Venturer. Mahindra MSTC has become a 'subsidiary' of MIL and in turn of MVML and of the company with effect from 16 December 2016. The announcement was made on Saturday, 17 December 2016.

NTPC and National Aluminium Company (Nalco) will be in spotlight. Nalco and NTPC have entered into an memorandum of understanding (MoU), for developing power projects and other business collaborations in India. The announcement was made after market hours on Friday, 16 December 2016.

Under the MoU, the companies will float a joint venture namely NTPC-Nalco Power Company(NNPC) to set up power plants. The first such power plant is planned at Gajamara, Odisha with a capacity of 2,400 megawatts (MW) (3X800 MW), at an estimated investment of Rs 14000 crore. The proposed super critical power plant with state-of-the-art technology will supply uninterrupted power to Nalco's smelter at Angul. The process for acquisition of 1,600 acres of land in Gajamara has already commenced.

Meanwhile, key benchmark indices registered small losses on Friday, 16 December 2016, tracking lacklustre trading on the European and Asian bourses. The Sensex lost 29.51 points or 0.11% to settle at 26,489.56, on that day.

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