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Ending the day on a negative note, the Indian equity markets lost steam as the day progressed. All major sectoral indices, except consumer durables, closed in the red. PSU and power stocks were the biggest losers. While the BSE-Sensex closed lower by 202 points, the NSE-Nifty closed lower by 60 points. S&P BSE Midcap and the S&P BSE Smallcap also closed on a weak note with both the indices down by 0.4% each.
Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.36% and the Nikkei 225 rose 0.17%. The Hang Seng lost 0.60%. European markets are lower today with shares in London off the most. The FTSE 100 is down 0.98% while France's CAC 40 is off 0.57% and Germany's DAX is lower by 0.01%. The rupee was trading weak at 65.15 against the US$ at the time of writing.
Paint stocks languished in red throughout the trading session with Jenson & Nicholson and Kensai Nerolac bearing majority of the brunt. According to a leading financial daily, Asian Paints' wholly owned subsidiary - Asian Paints (International), Mauritius, has transferred its entire holding of 80% held in the subsidiary company to Samoa Paints, Samoa and 75% holding in the subsidiary company - Asian Paints (S.I.), Solomon Islands, to Berger International, Singapore, a wholly owned subsidiary of Asian Paints (International).
The transfer of stake to Berger International is part of Asian Paints' plans to consolidate its investment in the overseas subsidiaries. Earlier in the year, Asian Paints (International) Limited, Mauritius transferred its entire holding of 49% held in the subsidiary company Asian Paints (Middle East) LLC and 100% of holding in the subsidiary company Asian Paints (Tonga) Limited to Berger International Limited in Singapore.
The script of Asian paints finished on an encouraging note (up 0.3%) on the BSE.
The Indian paint industry has been developing at an optimistic speed since past few years. However, the last few quarters has witnessed quite subdued sales growth owing to sluggish demand. In one of our recent editions of '5 Minute Wrap Up', we outline the performance of three paint companies which dominate the three-fourths of the Indian paint market. the improvement in margins after the decline of crude prices.
According to a leading economic daily, Coal India Ltd (CIL) has entered into a joint venture agreement with GAIL and fertilizer majors Rashtriya Chemical Fertilizers (RCF) and Fertilizer Corporation of India (FCIL) to incorporate a firm for setting up and operating new Ammonia Urea Complex along with power plant and associated facilities at Talcher unit of FCIL in Odisha and to market its products.
Reportedly, The Coal Ministry has agreed to allot a coal block to the proposed JV company on formation of the same and finalization of techno-economic feasibility report.
A consortium of RCF, GAIL, CIL and FCIL had agreed to invest Rs 80 billion for the revival of this urea plant with a production capacity of 1.2 million tonnes per annum.
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