10:40 am Interview: C
ontrary to news reports, Coal India has not stopped production at any mine even though production has been cut back in the wake of low offtake, Coal Secretary Anil Swarup today confirmed to CNBC-TV18.
In an exclusive interview, Swarup said the state-run mining monopoly is gradually increasing its production and added that he expects it to grow dispatch by 9-9.5 percent interview in FY16.
He added that weak demand is likely to pick pick up in another three to four months.
“[The central government’s] UDAY scheme will play an important role in reviving demand for ailing power distribution companies,” he said. “Once discoms undergo debt restructuring, their financial position is bound to improve.”
The other positive is the govertment’s promise of investments in infrastructure sector. This will help demand revival in cement and steel sectors, he said.
10:20 am Buzzing: Shares of Minda Industries gained nearly 11 percent intraday on acquisition of automobile lighting business of a company based in Spain.
“Minda Industries announced an acquisition of global lighting business of Spain-based Rinder Group that manufactures automotive lamps – head lamp, tail lamp and small lamp,” says the Delhi-based automobile components manufacturer in its filing.
Enterprise value for total deal is around 20 million euro and this deal will be financed through internal accruals and debts.
“Acquisition includes 100 percent equity holding in Rinder India and Light Systems and Technical Centre, Spain along with 50 percent equity holding in Rinder Riducu, Colombia,” the company says.
Also read – Much of the bounceback rally has played out: Udayan
10:00 am Market Check
The market started consolidation after a rally in past three consecutive sessions. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap rising 0.7 percent and 0.3 percent, respectively.
The Sensex fell 7.74 points to 24599.25 and the Nifty declined 10.05 points to 7465.55.
HDFC Bank, HDFC, Sun Pharma, Adani Ports and Bharti Airtel declined more than 1 percent on profit booking while Tata Motors and ONGC continued their lead today as well, rising 3 percent each. ICICI Bank, Dr Reddy’s Labs, Cipla and Coal India gained 1-2 percent.
HMT shot up 16.5 percent followed by Kaveri Seed, Eros International, Chennai Petroleum and Shipping Corporation with 5-13 percent upside while KPIT Technologies, Cox & Kings, IIFL Holdings, Hathway Cable and MphasiS were down 2-4 percent among midcaps.