The major Asian stock markets have opened the day on a negative note with markets in Hong Kong (down0.8%) and Japan (down 0.4%) leading the losses. Stock markets in US and Europe have also closed their session on a negative note. Crude oil prices plunged nearly 2.6%, at Rs 3,728 per barrel. Precious metal gold is trading down by 0.7% while silver is trading down by 2% at 37,165 per kilogram levels.
Aluminum sector stocks are trading in the red today. As per a leading financial daily, National Aluminum Company (NALCO) has reported 106% YoY (year on year) growth in its net profit for the year ended March 31, 2015. The captive power plant (CPP) of the company generated 5,131 million units (MU) of power compared to 4,989 MU in 2013-14. The company has also decided to set up a 1 million tonne (MT)alumina refinery at Damanjodi, Koraput at a proposed investment of Rs 55 bn. On a separate note, the board of directors of the company has recommended final dividend of Rs 0.50 per equity share of Rs 5 each. Stock of Nalco has opened the day on negative note.
In a recent development that could pose challenges in the execution of Goods and Services Tax (GST), the States have demanded that the Centre should compensate them fully for the loss of revenue in the first five years of GST replacing their taxes. The Union Government has agreed to compensate states fully in the first three years and partially in fourth and fifth year -75 percent in the fourth year and 50 percent in the fifth year. While the states are worried about revenue loss, the Central Government stand is that compensation will be given in phased manner. These concerns are likely to be communicated to the select committee of the Rajya Sabha which is scrutinizing the GST Bill.