The News International Team
10:00am Adani Ports in News
Gujarat-based Adani Group on Monday said it was all set to expand the Dhamra Port’s capacity to 100 MT per annum in Odisha’s Bhadrak district.
“We are going to start work on expansion of the Dhamra port. Orders have been placed for the purpose. Our vision is to build the Dhamra port on the scale of the Mundra port”, Adani Group chief Gautam Adani told reporters after meeting Chief Minister Naveen Patnaik and Chief Secretary G C Pati here.
The company, which acquired the Dhamra Port from L&T and the Tatas by paying about Rs 5,500 crore, targets to enhance the port’s capacity from 25 MT to 100 MT, reports PTI.
Dhamara Port Company Limited (DPCL) chief executive officer Santosh K Mohapatra said: “DPCL had sought 700 acres of land for the expansion project which was sanctioned by the state government. We will begin work on expanding the port capacity soon.”
09:45am Sesa Sterlite in focus
Shares of Sesa Sterlite, the subsidiary of London-listed Vedanta Resources, gained more than 4 percent on Goa government’s announcement of resuming operations in the mining industry by year-end.
The State government has decided to renew the 27 mining leases after Goa chief minister Manohar Parrikar informed the State Assembly that the government will abide by the High Court order.
The High Court order given by the Goa bench of the Bombay High Court had asked and directed the State to grant mining leases to 27 leaseholders that had made payment of stamp duty and were promised that their mining leases will be given to them. In addition, it has also asked for the rest of the leases to be given within three months.
In the assembly today, Goa chief minister Manohar Parrikar said the leases will be granted to 27 leaseholders like Sesa Sterlite, Fermento and Salgaoncars amongst others by September 20 and the rest of the leases will be given by October 15.
09:30am FII View
Jyotivardhan Jaipuria, Bank of America Merrill Lynch says the brokerage continues to believe that near-term markets would be driven by reform newsflow rather than earnings growth. “We, however, expect a strong rebound in earnings from second half of CY15,” he adds.
“Our view has been that a bulk of downgrades is behind us but we were expecting FY15 earnings to be downgraded at around 12-13 percent. Given the Jaguar Land Rover (JLR) surprise, we think Sensex EPS growth may now aggregate 15 percent for the year, marginally lower than our current bottoms up number of 18.5 percent,” says Jaipuria.
09:15am Equity benchmarks opened half a percent higher on Tuesday with the Nifty rising above 7900 level supported by positive global cues, and capital goods, oil & gas, banks and metals stocks.
The Sensex rose 124.85 points to 26515.81 and the Nifty climbed 35.95 points to 7910.20. About 817 shares have advanced, 177 shares declined, and 19 shares are unchanged.
Sesa Sterlite topped the buying list, up 3.64 percent followed by Larsen and Toubro, BHEL, Coal India, ONGC, BPCL and Tata Power with 1-2 percent. However, TCS, Cipla, GAIL, HDFC, Wipro, DLF and Grasim Industries slipped marginally.
After four days of holiday, the Indian rupee opened on flat note at 60.77 per dollar on Tuesday against last Thursday’s closing value of 60.76 a dollar.
The dollar has risen against a basket of major currencies on reduced concerns over Russia and Ukraine and positive US housing data. Data shows US home builder sentiment rising in August to its highest since January as labor market conditions improved.
Ashutosh Raina, Head-Forex Trading at HDFC Bank said, “The risk sentiment appears to have improved on the hopes of progress in the Ukraine crisis. The USD/INR appears to have touched the near-term lows and sentiment appears to have turned positive on the back of improving global scenario. Expect the pair to trade in 60-61 range with appreciating bias.”
He further added, “The 10-year bonds appear to be settling in 8.50-8.80 percent range after the recent RBI action and some reduction in government borrowing.”
Global markets, meanwhile, rallied on de-escalation of geopolitical risk. The S&P 500 is now within one percent of an all-time high. European markets too saw over 1 percent gains. Asian markets gained strength with the Nikkei, Kospi and Taiwan rising around a percent.