The News International Team
12:55pm Govt approves investment in transmission network
The Ministry of Power has approved an investment of Rs 996 crore for augmentation of transmission facilities.
“In order to serve the growing needs of research and development in the Indian power sector including, development of advanced testing facilities, the government has accorded investment approval of Rs 996 crore for capital projects of Central Power Research Institute (CPRI),” an official statement said.
This will also support establishment of new test facilities in existing laboratories of CPRI, located at Bengaluru, Hyderabad, Kolkota, Guwahati, Noida and Nagpur, reports PTI.
12:35pm Market Update
Equity benchmarks fell further in afternoon trade with the Sensex losing 210.74 points to 27214.99 and the Nifty declining 61.40 points to 8238, weighed by metals and banks stocks.
Metals lost shine as Sesa Sterlite, Hindalco Industries and Tata Steel tanked 3-6 percent. Index heavyweights like Reliance Industries, ICICI Bank, L&T declined 1-1.5 percent. ITC plunged more than 3 percent.
The market breadth also turned negative as about 1471 shares declined compared to 1083 shares advanced on the Bombay Stock Exchange.
12:25pm FII View
Investors should brace for lower returns this year after a heady 2014, as the high base effect will temper gains, says Gautam Chhaochharia, Head of Research, UBS Securities.
He expects a few earnings downgrades near term, but sees strong earnings growth as the key trigger during the latter part of the year. He estimates an average earnings growth of 15 percent in FY16.
According to Chhaochharia, economic growth could be gradual even as there are likely to be positive surprises on interest rates and inflation. He says economic growth could even be lower than consensus estimates.
12:00pm Market Check
The market extended losses in noon trade after WPI inflation inched up marginally to 0.11 percent in December. Inflation in November was zero. The rise in inflation was due to increase in food prices. Food inflation was 5.2 percent against 0.63 percent in previous month while manufactured products inflation declined to 1.57 percent from 2.04 percent during the same period.
The Sensex fell 94.26 points to 27331.47 and the Nifty slipped 21.65 points to 8277.75. About 1177 shares have advanced, 1317 shares declined, and 335 shares are unchanged.
Yes Bank’s third quarter (October-December period) profit climbed 30 percent to Rs 540.3 crore, driven by strong net interest income and other income. But the rise in provision limited profits to some extent. Net in the year-ago period was Rs 415.60 crore. The stock gained 1 percent.
ITC remained under pressure today, down 3 percent on news that the government is looking to ban the sale of loose cigarettes.
Tata Teleservices is locked at 20 percent upper circuit as the RBI asked government to allow Tata group to pay NTT Docomo a previously agreed price of Rs 58 for 26 percent stake in parent, Tata Teleservices. This is despite it being much higher than the determined fair value price of Rs 23.34 a share. RBI also recommended that such a stance should be taken for all similar future deals.
Commodity rout dragged Asian markets lower today. Oil continued to trade near 6-year lows and copper too slipped to levels not seen since mid-2009. Gold dipped from 12-week highs as concerns over a supply glut in oil and slowing consumption in China dampened sentiment.