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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian share markets remain weak 
(Fri, 6 Jul 01:30 pm) 
 
Indian share markets continued to trade in the negative territory in the last two trading hours. Majority of the sectoral indices are trading negative with metal, IT and realty stocks being the biggest losers. Only FMCG and auto are trading positive.

The BSE-Sensex is trading down 43 points and NSE-Nifty is trading down 20 points. However, BSE Mid Cap index and BSE Small Cap index are trading down by 0.4% and 0.1% respectively. The rupee is trading at 55.4 to the US dollar.

Majority of the mining stocks are trading negative with Gujarat NRE Coke and Sesa Goa being the biggest losers. As per a leading financial daily, Coal India Ltd (CIL) has offered to sell 70 million tonne (mt) of pithead stock to end users, provided the latter arrange for transportation of the same. This is over and above the coal supply committed by CIL under the Fuel Supply Agreement (FSA) with power producers. There is no limit on the quantity of coal that can be purchased by the power producers. But if the purchase quantity exceeds 100% of supplies already committed by CIL then a 40% incentive has to be paid by power producers as per FSA guidelines. This move is expected to improve CIL's profits. Reportedly three private players namely Sterlite Industries, Adani Power and China Light and Power have evinced interest in purchasing the pithead coal. In order to improve availability, CIL is aiming to raise monthly offtake of coal by 8 mt or 25%. Coal offtake improved by 11% in June 2012 quarter and for September 2012 quarter, the company has increased the offtake target by over 12% to 40 mt per month. CIL stock is up 0.5%.

Textile stocks are trading mixed with Vardhaman Holdings being the biggest gainer and Arvind Ltd the biggest loser. A leading business daily has reported that Grasim Industries is looking at buying 40% stake in Canada based Terrace Bay Pulp Mill for a sum of about Rs 2.4 bn or US$ 44 m. In addition, the company is expected to spend an additional amount of US$ 250 m or RS 13.8 bn towards upgrading and expanding the plant. The balance 60% stake will remain with existing promoters Thai Rayon Public Co. Ltd. It may be noted that this transaction is subject to court approval in Canada in addition to the other regulatory nods in Canada, Thailand and India. Grasim expects these processes to be complete by the end of July. As per Grasim's management, the acquisition will be a strategic move for the company's viscose staple fibre business. This is because it would integrate the company's business model in such a way that it would span the entire value chain from plantation to pulp to fibre. The stock is up 0.3%.

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Jul 24, 2017 (Close)

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