9:45 am Sale:
Crompton Greaves is going to sell its transmission and distribution business outside India to First Reserve International, a US private equity fund for an enterprise value of euro 115 million. The company says that the sale will enable the company to reduce debt and focus on faster growing Indian businesses. The company continues to actively examine its other international B2B businesses with a view to monetise these businesses to enhance shareholder value. Stock rises 6 percent.
9:30 am Noose tightening: The Supreme Court will hear a plea by a consortium of banks seeking to stop Vijay Mallya from leaving the country. A group of banks led by the State Bank of India moved the apex court on Tuesday seeking to restrain Mallya from leaving India. Attorney General Mukul Rohatgi on Tuesday said the plea has been moved by 17 banks, including State Bank of India, against Mallya whose various firms have taken loan from them. He also said that the dues run into thousands of crores. Meanwhile, Finance Minister Arun Jaitley threw his weight behind the lenders, saying each penny lent must be recovered. “Well, I think it’s not only a legal but a moral obligation that every banking institution in India has to recover the last pie,” Jaitley said.
Oil prices may drop to $25 per barrel: Moody’s
The market has opened sharply lower on Wednesday following weak global cues. Lower oil prices and China’s growth concerns hit global markets. The Sensex fell 183.11 points to 24476.12 and the Nifty declined 51.40 points to 7433.90.
Lupin, Coal India, Maruti, NTPC and ONGC are top gainers while Hindalco, ICICI Bank, Tata Steel, Tata Motors and BHEL are losers in the Sensex.
The Indian rupee opened lower by 10 paise at 67.45 per dollar today versus 67.35 Tuesday.
Pramit Brahmbhatt, Veracity says weak global cues will trigger weakness in domestic equity market as well. He expects USD-INR to trade in a range of Rs 67.20-67.50 for the day.
On the global front, Asian shares stepped back further from two-month highs today as a retreat in oil prices and weak Chinese trade data revived concerns about the health of the global economy. Shanghai crashed 3 percent and Nikkei fell 1.6 percent. Hang Seng declined 0.6 percent.
US stocks ended near the lows of the day on Tuesday. The Dow Jones industrial average fell 0.64 percent, S&P 500 lost 1.12 percent and the Nasdaq Composite dropped 1.26 percent.