Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Sensex & Nifty Open Flat Ahead of Fed Outcome
Wed, 15 Mar 09:30 am

Asian equity markets are lower today following losses in US stocks as traders awaited a decision on interest rates from the US Federal Reserve. The Nikkei 225 is off 0.29%, while the Hang Seng is down 0.07%. The Shanghai Composite is trading up by 0.09%. Stock markets in the US & Europe finished their previous session on a weak note.

Meanwhile, Indian share markets have opened the day on a sluggish note ahead of outcome of the Federal Reserve policy meeting tonight. The BSE Sensex is trading higher by 1 point while the NSE Nifty is trading flat. The BSE Mid Cap index opened flat while BSE Small Cap index both have opened the day up by 0.2%.

Sectoral indices have opened the day on a mixed note with consumer durables stocks and healthcare sector leading the pack of gainers. While information technology and capital goods stocks are witnessing selling pressure. The rupee is trading at 66.18 to the US$.

Automobile stocks are trading mixed with Maharashtra Scooters and Tata Motors being the most active stocks in this space. As per an article in a leading financial daily, in the first major move under N Chandrasekaran's chairmanship, Tata Motors is reducing staff by offering a voluntary retirement scheme (VRS) to significantly prune its middle management.

The company is in the process of bringing down the management layers down to five from the existing 14 to cut costs. The VRS package has been approved by the board and the company says that it's part of a larger endeavour to cut costs and make overall operations more streamlined.

Just Released: Multibagger Stocks Guide
(2017 Edition)

In this report, we reveal four proven strategies to picking multibagger stocks.

Well over a million copies of this report have already been claimed over the years.

Go ahead, grab your copy today. It's Free.

NO-SPAM PLEDGE - We will NEVER rent, sell, or give away your e-mail address to anyone for any reason. You can unsubscribe from The 5 Minute WrapUp with a few clicks. Please read our Privacy Policy & Terms Of Use.

Reportedly, this is part of a human resource restructuring drive that is expected to transform the automaker into a much leaner company with a flat hierarchical structure.

This also comes at a time when Tata Motors has been changing gears to keep up with the ongoing trend in the industry to offer a variety of products while enhancing production synergies. Further, it intends to use modular platforms and cut costs on that front in the future. It is also expanding its horizon by introducing the sub-brand Tamo, and also announcing a likely partnership with the Volkswagen Group.

Tata Motors share price opened the day up by 0.3%.

Moving on to the news from stocks in mining sector. According to a leading financial daily, boards of three subsidiaries of Coal India Limited have slashed valuations of the shares of these companies by at least 75% over the values declared earlier this month.

As per an article in The Economic Times, the earlier valuations did not reflect the true valuation of either the subsidiaries or the parent. Although, the amount of money that Coal India will receive post reduced valuation through proposed share buybacks remains the same at Rs 50.63 billion.

The number of shares to be bought back by the company has been increased to keep the total sum the same. The earlier valuations included factors that are considered for valuing international companies, resulting in higher valuations.

Big Buybacks of the Public-Sector Units

Big Buybacks of the Public-Sector Units

Historically, various plans of government's stake sales had hit a stone wall. In 2015-16, the government had set a record target of raising Rs 695 bn through disinvestment, but only managed Rs 321 bn. To avoid a repeat of last year, it is exploring a new strategy. It is expecting the cash PSUs to use the cash in buybacks.

Meanwhile, the finances of three of the seven coal-producing subsidiaries of Coal India may nosedive this fiscal due to poor production and sales. As per the reports, between April and February this fiscal, Western Coal Fields, which seems to be the worst off, saw its output drop by 5.3% and its offtake decrease by 8.7%.

Bharat Coking Coal Ltd's output rose 2.6%, but coal sales dropped by 3.2%. ECL's output rose 2.3% and despatch, 12.6%. All the three companies were lagging behind their targets by a margin of between 3% and 14% in output and 6% and 19% in offtake.

Poor coal demand has been the primary reason for this. Moreover, the fortunes of CIL and its arms were affected by the close to 50% drop in the e-auction price in the last quarter.

The Poor performance of its subsidiaries and provisioning for higher wages (due to ongoing wage negotiations) dented CIL's third quarter performance. CIL reported a 20% drop in net profit to Rs 28.84 billion in the October-December 2016 quarter.

Coal India share price began the trading day down by 0.2%.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Sensex & Nifty Open Flat Ahead of Fed Outcome". Click here!

  

Views on News

ITI Mid-Cap Fund: Investing in Potential Midcap Companies for Growth (Outside View)

Feb 26, 2021

PersonalFN analyses the features of ITI Mid-Cap Fund and explains the potential this fund has to offer to its investors.

NSE Glitch: Why Did the Market Go Up? (Fast Profits Daily)

Feb 26, 2021

In today's video, I'll discuss why thew stock market went up on Wednesday, 24 February 2021, when the NSE had to shut trading due to a technical glitch.

My Personal Checklist for Your Trading Success (Profit Hunter)

Feb 26, 2021

You my personal trading checklist and you will be well on your way to making it big as a trader.

Make Rs 5,000 Per Day Trading the Market (Fast Profits Daily)

Feb 25, 2021

In this video, I'll show you how to get started on the path to daily trading profits.

Refresh Your Investment Portfolio in 2021 to Align with Your Financial Goals (Outside View)

Feb 25, 2021

Timely review of your investment portfolio is the key, to enable stable returns and work towards your envisioned financial goals during various market phases.

More Views on News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Intraday Trading for a Living (Fast Profits Daily)

Feb 15, 2021

In this video, I'll cover your queries on intraday trading and also share my view on how to decide stop losses and target prices.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021 (Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla (Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Feb 26, 2021 (Close)

MARKET STATS