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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Sensex Ends the Day on a Flattish Note
Wed, 16 Nov Closing

After opening the day firm, Indian share market lost its early gains and closed the day on a flat note.

At the closing bell, the BSE Sensex stood lower by 5 points, while the NSE Nifty finished marginally higher by 3 points.

However, the S&P BSE Mid Cap & the S&P BSE Small Cap index finished higher by 0.6% and 0.1% respectively.

Stocks from pharma sector witnessed maximum selling pressure during the day.

As per an article in Livemint, LafargeHolcim has raised its holding in its two flagship local companies, ACC Ltd and Ambuja Cements Ltd. LafargeHolcim bought a 4.2% additional stake in ACC for Rs 12.1 billion and around 2% in Ambuja Cements for Rs 9.4 billion.

These share purchases further increase the Group's interest in its two strong companies which constitute a solid platform from which to capture future growth. LafargeHolcim said India is one of its key markets with very solid long-term fundamentals and a clear potential for further improvement in business performance.

This comes four months after LafargeHolcim struck a deal to divest assets previously under Lafarge India. LafargeHolcim had agreed to sell Lafarge India Pvt Ltd to Nirma Ltd for US$ 1.4 billion (Rs 94 billion) including debt, in a deal to complete the India leg of the global merger of Lafarge and Holcim.

ACC and Ambuja have a combined cement capacity of more than 60 million tonnes and a distribution network that extends across the country.

Recently, the Rajya Sabha approved the amended Mines and Minerals Development and Regulation (MMDR) Bill, 2016. Rahul Shah, Co-head of Research explains how the amended law will be a big positive for cement companies (subscription required). Here's an excerpt from the article:

  • "Amended law will surely be a big positive for mining, cement, and metal companies. It will enable quicker and smoother transfer of assets among resource-based firms. It will greatly help distressed metal and cement producers sell their production units to companies with stronger balance sheets. And it will be a relief to banks with large exposure to such companies"

In another news update, spot electricity rates continue to remain high in the Southern part of India as compared to other geographies. The spot rate of electricity in South on the Indian Energy Exchange (IEX) stood at Rs 2.75 per unit as compared to Rs 2.49 in the north and Rs 2.4 in the eastern and western parts. The prices in the southern region remain high mainly on the back of congestion in the transmission corridor. Having said that, the spot prices have reduced significantly as compared to a few years back.

Another important point to note here is that the off take from renewable projects is reducing on the back of lower spot prices of electricity. The spot price at the power exchange market is hovering somewhere around Rs 2.41/ KWH.

Whereas, tariffs in some of the agreements that these DISCOMS have signed with renewable developers are as high as Rs 7/KWH. Burdened with a huge pile of losses, the DISCOMs are increasingly shifting to purchase cheaper power from the power exchanges. This puts into jeopardy the massive renewable projects that are scheduled to come up going forward.

Owing to this, stranded capacities could build up in-turn hampering the return ratios. Reportedly, solar power offtake is already seeing curtailment in the state of Rajasthan and Tamil Nadu.

Recently, we had written an article stating the major flaw in the US$ 100 billion solar sector.

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Jul 24, 2017 (Close)

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