India : Nifty fails to hit 8400, Sensex ends up 134 pts
Mumbai : The Sensex closed up 133.85 points or 0.5 percent at 27278.76, and the Nifty ended up 42.35 points or 0.5 percent at 8370.70. About 1711 shares have advanced, 1018 shares declined, and 153 shares are unchanged.BHEL, Adani Ports, ICICI Bank, ONGC and Coal India were top gainers while ITC, Dr Reddy’, Bajaj Auto, HUL and TCS were losers in the Sensex.
Shares of Coal India rose over 2 percent intraday as Nomura has a buy rating with a target price of Rs 345 per share. Coal India’s production and offtake in June 2016 was up 10 percent and 6.6 percent on annual basis respectively, sharply rising in past two months.
The robust production growth in June 2016 was led by Mahanadi Coalfields ( up 22 percent) and double-digit growth at Eastern Coalfields (ECL), Central Coalfields (CCL) and Northern Coalfields (NCL).
The brokerage firm states that the pick-up in growth in June 2016 was potentially driven by robust electricity demand seen in past few months implying higher demand for coal, moderated coal stock at power plants and cut in high-grade coal prices, effective from May 30.
Textile-to-retail conglomerate Arvind today said it plans to raise up to Rs 500 crore through issuance of non-convertible debentures (NCDs) on a private placement basis.
In a notice for annual general meeting scheduled to be held on August 4, the company said: “In order to meet the financial needs of the company, the company may make an offer of NCDs or invite subscription to NCDs on private placement basis in one or more tranches… for an aggregate amount not exceeding Rs 500 crore.”
Country’s largest two-wheeler maker Hero MotoCorp (HMCL) has inked a wage settlement pact with its permanent workers at Gurgaon plant, entailing an hike of Rs 12,500 spread over three years.
The three-year agreement will be implemented with retrospective effect starting from August 1, 2015 till July 31, 2018. The earlier wage settlement was effective from August 1, 2012 to July 31, 2015.
According to an industry source, the settlement between the company’s management and workers union has been reached after months of negotiations.
“As per the settlement, the permanent workers of the Gurgaon facility have been given a hike of Rs 12,500 spread over the next three years,” a source said.
While the workers’ union had been demanding a hike of Rs 18,000 spread over three years, the company’s management was able to close it at Rs 12,500, the source added.
Terming India as a “promising” market for renewable energy, Suzlon group Chairman Tulsi Tanti said the sector is “demanding” too, with tariffs going below Rs 5 per unit that can impact economic viability of companies.
The founder of India’s leading wind turbine maker said there is some reluctance from banks to finance projects as there are fears that lower tariffs can lead to payment delays.
“Tariffs have to be at a level so that internal rate of return (IRR) is minimum 14 percent and for that, I think tariff has to be a minimum Rs 5 per unit. There can be issues with the project’s economic viability. They can become economically unviable,” Tanti told reporters here.
His reply came in response to queries on declining tariffs in renewable energy (RE) projects — solar and wind — and their financial viability.
Suzlon has its rotor blades manufacturing facility in Bhuj and maintains sites for some of its clients.
Tata Motors up 4% on strong June US sales, passenger cars data
Upstream companies and oil marketing companies gained as kerosene prices saw a 25 paise hike after 5 years. J Ramaswamy, Director Finance of HPCL expects rightful steps to be taken by the government on the kerosene subsidy front. ONGC surged nearly 5 percent while IOC, BPCL and HPCL gained over a percent.Tthe long-awaited cabinet reshuffle is expected on Tuesday where Uttar Pradesh is likely to be given more representation. Piyush Goyal and Dharmendra Pradhan are expected to be promoted but the top 4 spots are unlikely to be touched.
