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Sensex, Nifty continue to tumble; DLF rises 9%, ONGC gains


The News International Team

1:45 pm Interview: The company will be opening a new plant in Chennai having capacity of 40,000 metric tonnes (mt) annually and would need capex of around Rs 150 crore, said Ravi Chawla, MD, Gulf Oil Lubricants India in an interview to CNBC-TV18.

The plant is likely to come on stream in early part of 2017.

The company is also looking at upping its capacity at the Silvassa facility from 75000 mt to go up to 90000 mt for which Rs 40 has already been put in, said Chawla.

The capex funding would be partly internal and partly external sources.

1:30 pm Exclusive: DIPP gave clarification of foreign direct investment (FDI) norms on construction. The clarifications came on two counts; one on exit clause related norms and second on minimum capitalisation.

On minimum capitalisation, Department of Industrial Policy and Promotion (DIPP) has said that no new foreign direct investment (FDI) will be allowed if the minimum cap of USD 5 million is not achieved within six months. After the minimum capitalisation norms are achieved then FDI can be brought in for a period of 10 years or to the period upto which the project is completed. It also said that minimum capitalisation would be project specific and not company specific.

On exit clause there are several clarifications – Foreign Investment Promotion Board (FIPB) nod would be needed for exit of foreign partner if the project is on-going. However, if the project is complete then it can be on an automatic basis.

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The market continues to slide in afternoon trade. The Sensex is down 273.61 points or 0.9 percent at 28656.80 and the Nifty is down 80.25 points or 0.9 percent at 8695.75. About 940 shares have advanced, 1655 shares declined, and 182 shares are unchanged.

Sun Pharma, Axis Bank, Wipro, BHEL and Bajaj Auto are among losers in the Sensex. Gainers include ONGC, Coal India, NTPC and HDFC.

Securities Appellate Tribunal (SAT) has quashed Securities and Exchange Board of India’s (SEBI) order against DLF’s three-year ban from capital markets, stating that the market is not justified in condemning the real estate developer in conducting its business. Shares of DLF soared 9 percent after the tribunal’s order.

Meanwhile, demand for gold picked up across Asia this week as bullion prices dropped to their lowest level in three months after the longest losing streak in more than 40 years, but caution still prevailed, traders said.

Gold, trading at about USD 1,158 an ounce, touched USD 1,147.10 on Wednesday, the lowest since December 1. The metal fell for nine straight sessions to Thursday, the longest losing streak since 1973.

The lower prices attracted bargain-hunters across Asia, the top consuming region, although wariness over the price outlook kept a lid on purchases.

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