Indices in the Indian equity markets went further into the negative territory during the closing hours. Consequently, they closed the day significantly in the red. Thus, while BSE-Sensex edged lower by around 143 points, NSE-Nifty was seen shedding 36 points. BSE Mid Cap and BSE Small Cap also ended lower, witnessing a decline of 0.6% and 0.8% respectively. Nearly three stocks fell for every two stocks that closed the day in the positive.
In the international markets, while Asian indices closed mixed, Europe was trading mostly in the negative at the time of writing. The rupee was placed Rs 54 to the dollar at the time of writing.
With nothing positive on the horizon, indices in the Indian stock markets chose to remain volatile today, which eventually led to them closing in the red. What added to the decline was perhaps the report of the expose by Cobrapost which also kept banking stocks under serious pressure. The next important event to watch out for would be the RBI monetary policy scheduled for next week. However, we doubt it will contain any big market moving announcement in light of the inflation situation not getting any better. Long term investors though can continue looking for fundamentally strong stocks and snap them up if the valuations are enticing enough.
Coal India Limited (CIL) plans to introduce a new appraisal system for its employees. This is expected to be implemented from next financial year (FY13-14). This new appraisal system comes at a critical time. The company is set to miss its production target for the current fiscal. CIL has a production target of 464 m tonnes (MT) for FY13. It is likely to end the fiscal with 452 MT of output. CIL missed its revised production target in the last fiscal as it achieved only 435.8 MT against its revised target of 447 MT. The new appraisal system is hailed to boost production in Coal India, which accounts for over 80% of India's coal production. As per the directives of the Department of Public Enterprises, this was part of a mandate provided to all the public sector companies to introduce and develop a robust and transparent performance management system. The stock closed marginally positive today, up 0.25%.