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Nifty volatile; Aban Offshore, Adani Ports, RIL most active

12:00

The News International Team

12:55pm Interview

Malay Mukherjee, MD and CEO of  IFCI in an interview to CNBC-TV18 clarified that the government infusing Rs 60 crore in the company would not bring in cash into the company books but in fact government would be buying preference shares from some banks or existing shareholders to increase their stake in IFCI.

The government would now hold 51 percent stake in IFICI, he added.

The Union Cabinet yesterday approved infusion of Rs 60 crore in Industrial Finance Corporation of India (IFCI) Ltd to make it a government company by way of acquisition of preference shares from existing shareholder(s).

Mukherjee also clarified that the company as of now is adequately capitalised and is not looking for any further capital infusion.

Commenting on the 2.5 percent National Stock Exchange (NSE) stake sale, he said the company is currently in negotiations with a foreign fund and expects to close the deal in fourth quarter by January end or February. The company had got 2-3 bids earlier but the price was below their expectations.

12:40pm Stocks in Focus

Heavy electrical equipment companies – ABB and Siemens gained 6 percent and 2 percent, respectively.

Transformer makers – Voltamp Transformers surged 17 percent. Transformers and Rectifiers rallied 10 percent while Indo Tech Transformers,  Bharat Bijlee and Alstom T&D gained 2-8 percent.

12:30pm Market Expert

Sanjay Dutt, director, Quantum Securities does not foresee a Budget-rally and neither does he think there will be new highs for the Indian equity market in 2015 because the macro issues for India still persists.

He thinks 2015 could be a struggle for the market and a year of consolidation contrary to street expectations. However, individual stock opportunities do exist.

According to him, the Modi-rally or the sentiment driven rally is now over and so the market is vulnerable to correction to sub-8000 levels. So, one now needs to focus on fundamentals and structural changes on the ground.

Meanwhile, he is also not upbeat on the upcoming third quarter results and globally too thinks fifty percent of the markets are going through their own set of problems. So with backdrop of this kind of a landscape, the fundamentals for the Indian market may not change rapidly, says Dutt.

12:00pm Market Check

The market continued to move in a tight range today with the Nifty consolidating around 8250 level. Sectorally, metals and energy stocks were under pressure while real estate and IT stocks gained.

The Sensex slipped 43.87 points to 27351.86 and the Nifty declined 14.35 points to 8231.95. About 1243 shares have advanced, 1200 shares declined, and 114 shares are unchanged on the Bombay Stock Exchange.

The rupee dipped to a fresh 2-week low as the dollar gained on Greece concerns and month end dollar demand.

Sectors such as power and housing will benefit as the government approved ordinance to amend the Land Acquisition Act. Goldman Sachs says L&T will gain as execution of PPP projects picked up pace. Religare is positive on logistic players such as Container Corporation.

Tata Steel remained subdued, down 2 percent as reports suggested that the company warned of a hit to its profitability in the third quarter because of the closure of its captive iron-ore mines in Jharkhand and Odisha. The closure of mines forced the company to operate below capacity for more than a month during the quarter.

IDBI Bank gained a percent as the board approved sale of part of entire stake in CARE Ratings. The bank told CNBC-TV18 that the time seems right to monetize its stake in CARE and could receive Rs 600-700 crore for the entire shareholding at current market price.

Edelweiss Financial, Aban Offshore, Biocon, Adani Ports, Reliance Industries, YES Bank and Infosys were most active shares on exchanges.

Fresh anxiety over the turmoil in oil markets and political uncertainty in Greece dragged most Asian indices lower. Nikkei and Hang Seng lost 1-1.6 percent. Brent oil extended losses into a fourth session, as worries over a global supply glut offset concerns about output disruptions in Libya. US crude declined 0.8 percent to USD 53.17 a barrel and Brent crude fell 0.93 percent to USD 57.34 a barrel.

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