1:55 pm Big boost for sugar stocks:
The government will, for the first time, pay sugarcane farmers in part for produce that they sell to money-losing mills, government sources said after a cabinet meeting chaired by Prime Minister Narendra Modi.
Modi’s government would directly pay farmers Rs 45 (USD 0.68) for every tonne of cane produced, leaving mills to bear the rest of nearly 98 percent of the cost, one of the sources said, aimed at wooing politically influential growers and helping sugar companies recovering from a global glut.
The sources did not wish to be identified as the government is soon expected to announce the cabinet decision.
Shares of Indian sugar companies have been rising on hopes of government help and stocks of Shree Renuka Sugars, Simbhaoli Sugars and Bannari Amman Sugars shot up further on Wednesday.
1:45 pm Buzzing: Shares of GMR Infrastructure gained 11 percent intraday after its Kamalanga energy plant received a favourable tariff order from CERC, which will boost the company’s operating profit.
“This is another reaffirmation of government’s and regulator’s resolve to solve problems of Power sector. CERC has passed this tariff order which will go a long way improving profitability and liquidity of the group,” GBS Raju, Business Chairman-Energy said. The company said this long pending order would entitle GMR Group to collect all arrears of power supply from GMR Kamalanga Energy to GRIDCO for power supplied till September 2015. Going forward, the order will help improve company’s EBITDA by Rs 120 crore, it added.
1:40 pm Europe tumbles: European equities opened lower as further security scares after the Paris attacks last Friday weigh on investor confidence.
Tensions are high in Europe amid more security concerns after the Paris terrorist attacks on Friday in which 129 people died. Today morning, police confirmed, according to multiple media reports, that two terrorists were killed in the ongoing raid on Saint-Denis, Paris.
Air France said that two Paris-bound flights that had been diverted following anonymous threats had landed safely.
1:30 pm Market check: The Sensex is down 328.68 points or 1.3 percent at 25535.79. The Nifty is down 90.95 points or 1.2 percent at 7746.60.
About 1086 shares have advanced, 1387 shares declined, and 169 shares are unchanged.
Hindalco is down 4 percent, Infosys falls 3 percent.
Don’t miss: Eros rises 5% after halving price over a month
The market is slipping away as the Sensex is down 117.56 points or 0.4 percent at 25746.91. The Nifty slips 31.55 points or 0.4 percent at 7806. About 1268 shares have advanced, 1172 shares declined, and 176 shares are unchanged.
Hindalco, Infosys, Vedanta, Tata Steel and Dr Reddy’s Labs are major losers while NTPC, Bharti Airtel, GAIL, Tata Motors and Coal India are top gainers.
Oil prices rebounded in Asia today but buying sentiment remains sluggish owing to supply glut woes and a strong dollar. Traders are waiting for the release later in the day of a US Department of Energy report on commercial stockpiles in the world’s top oil consumer which is expected to show an increase and further confirm the oversupply.
Another key focus is the release later today of minutes from last month’s Federal Reserve policy meeting, with dealers looking for hints on whether it will raise interest rates at its gathering next month.
Speculation has mounted in recent weeks that the central bank will pull the trigger following a string of positive US economic figures.