Indian stock market continued with their downward trend during the closing stages of the day and as a consequence, gave up almost all their gains and closed the day nearly flat. Thus, while BSE-Sensex edged lower by around 15 points, NSE-Nifty closed at virtually the same levels as yesterday. Similar trend was witnessed across BSE Mid Cap and BSE Small Cap indices as even they closed the day on a flat note. Oil and gas heavyweights were one of the few silver linings of the day. Advance to decline ratio on the Sensex was pretty even as one stock gained for every one that failed.
While most Asian stocks closed the day in the red, similar trend is being witnessed across European indices as well. The rupee was seen trading at Rs 49.2 to the dollar at the time of writing.
Although the markets started the day on a weak note, it continued to gather momentum as time went by and was seen perched comfortably in the positive by the time noon arrived. However, hesitation on the part of investors, presumably on the back of clouds of uncertainty still looming large over Europe led the indices to fall back into the negative territory and close the day virtually flat.
As per reports, denim major Arvind Ltd has divested its minority stake of 40% in VF Arvind Brands to VF Mauritius for a consideration of Rs 2.6 bn. The JV, which was formed in 2006 and engaged in marketing the well known Lee and Wrangler brands, had terms whereby VF Mauritius had the right to acquire shares from its partner at the end of 5 years. Thus, with the period coming to an end, the foreign partner has chosen to buy out Arvind Ltd. The latter is one of India's leading composite manufacturers of textiles and is also among the largest denim manufacturers in the world. Arvind Ltd closed lower by around 1% on the bourses today.
Gas transmission major GAIL also closed in the red today. The weakness was despite a positive development surrounding the company in the form of the company targeting to acquire more shale gas assets in the US in the next six months. It has chosen to open an office in the US town of Houston and consolidate its presence in shale gas in US. It should be noted that in the next 5 years, it has agreed to buy a 20% stake in one of Carrizo Oil & Gas Inc's shale gas assets for a total investment of US$ 300 m. Furthermore, it is likely to use the expertise that it acquires in the US for shale gas exploration in India.