Flat start for Sensex, Nifty

India Infoline News Service | Mumbai | January 09, 2017 08:22 IST

Asian markets opened flat to positive as US$ volatility versus Chinese yuan saw currency moves dominate recent market behaviour.

Dalal Street
The indices to open on a flat note. Asian markets opened flat to positive as US$ volatility versus Chinese yuan saw currency moves dominate recent market behaviour. The US$ is witnessing profit booking at every rally while the Chinese yuan had a very strong rally from oversold levels. The Dow Jones also hit 19999.63 as positive jobs report saw the US$ strengthen with equities jumping.

The government is confident that any drop in economic activity due to demonetisation of high value currency notes would have only a transient impact on the economy.

On Friday, the CSO estimated that the Indian economy would grow 7.1% in FY17, down from 7.6% in the year before. Estimates have been reduced for all sectors but agriculture, which is set to reap the benefits of a good monsoon season. Yet, these projections are considered more of an academic exercise as the projections do not capture the impact of demonetisation.

Finance minister Arun Jaitley said demonetisation will create a new “normal” and change the expenditure pattern of India. After paring gains on Friday, benchmark indices may look at trading in a tight zone.

IT stocks, which took a beating on H1-B visa issues will remain in focus as tech heavyweights begin to announce their numbers this week. The IIP numbers, inflation rate and manufacturing production figures are on tap this week besides corporate earnings.

Among other stocks in focus:

Aurobindo Pharma: The company informed bourses that its wholly owned step-down subsidiary, Agile Pharma BV, Netherland has entered into an agreement to acquire 100% shareholdings in Generis Farmaceutica SA, a Portuguese pharmaceutical company engaged in the manufacture and marketing of pharma products in Portugal.

Granules India: The company informed bourses that INFARMED Portugal, had conducted a renewal inspection of the company’s facility located at Gagillapur, Telangana. In this respect, the company on January 6, has received the inspection report from INFARMED with 11 observations. The Gagillapur facility manufactures Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs).

BEML Ltd: The company informed bourses that the Ministry of Defence has communicated 'in-principal' approval of the Cabinet Committee on Economic Affairs (CCEA) of the Government of India, for strategic disinvestment of 26% equity shares in BEML Limited out of Government of India shareholding of 54.03%.

Jaiprakash Power Ventures: The company is seeking holders’ nod for conversion of part of outstanding loan of lenders into shares. Outstanding loan of the company is at around Rs 3,058 crore.

Sobha Ltd: The company during the third quarter ended December 31, 2016 has achieved new sales volume of 613652 square feet valued at Rs 3732 million with an average realisation of Rs 6082 per square feet. The company believes the decrease in sales volume as a short term outcome of the current economic scenario.

Burnpur Cement: The company on Saturday informed bourses that the account of Burnerpur Cement with the lenders has become irregular due to non payment of scheduled payment on account of cash flow mismatch as a result of demonetisation and depressed market. The matter is under discussion with the lenders and the lead bank is positive on suitable restructuring. The other banks are also in the process to follow the decision of consortium meeting.

Pokarna: The company on Friday after market hours announced that Pokarna Engineered Stone, the wholly owned subsidiary, has partnered IKEA India, to serve as its exclusive quartz surfaces supply and installation partner.

8K Miles Software: The company will announce its financial results for the quarter ended December 31, 2016 on Monday.

Bank of India: The bank said it has decided to reduce its interest rates on retail loans, including home and vehicle loans, with effect from Monday.

Crimson Metal Engineering: The board approved financial assistance up to Rs 18 crore from Bank of Ceylon, Chennai.

MIRC Electronics: The company allotted 1,55,18,417 equity shares for Rs 14.66 each to promoter Bennett Coleman & Co. Ltd.


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