• Indian stock market and companies daily report (September 29, 2015, Tuesday)

    Indian markets are expected to open in red tracking the SGX Nifty and the Asian cues.

    The US markets ended in negative led by weak economic cues out of China which once again raised concerns about the health of the global economy. China's industrial profits declined in August as product prices continued to decrease. Industrial profits fell 8.8 percent in August from a year ago, following a 2.9 percent drop in July. Biotech shares in US were also hit hard due to worries about increased regulatory scrutiny of drug prices.

    The European markets ended negative led by concerns over China which returned to the forefront, after the nation released some disappointing economic data. Worries over China prompted further weakness in commodity prices.

    The Indian markets ended in red yesterday ahead of the Reserve Bank of India policy review today at 1 1 am. The central bank is expected to cut its key repo rate by at least 25 basis points, but investors' focus would be on the tone of the central bank at a time when both the WPI and retail inflation are falling.

    Markets Today

    The trend deciding level for the day is 25,716 / 7,826 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,838 - 26,059 / 7,864 - 7,932 levels. However, if NIFTY trades below 25,716 / 7,826 levels for the first half-an-hour of trade then it may correct towards 25,495 - 25,372 / 7,758 - 7,720 levels.

    Tata Steel to resume iron ore sourcing from its Jharkhand mines

    Tata Steel, the country's oldest steel producer, will be allowed to lift its mined ore from Noamundi in Jharkhand following payment of its first tranche of ' 124 crore to the state government. The company will make the second payment before November 1 5 and the final tranche before December 15.

    Despatch of iron ore from the Noamundi mine to Tata Steel's Jamshedpur plant had been stalled since early July after the state government stopped issuing the required permits that allow transportation of ore. Tata Steel had to make a total payment of Rs 372 crore to the state government, which will now be done in tranches. Jharkhand's move to ask the company to make this payment had come as an extension of an unresolved lease renewal. The Jharkhand government had failed to act on Tata Steel's application for a lease renewal in 2009. The government then allowed the company to extract ore after the expiry of the lease on a "deemed renewal" basis. However, in 2014, the Jharkhand government decreed deemed renewal unlawful and demanded a penalty equivalent of the ore value extracted after lease expiry.

    This led to a shutdown of the Noamundi mines from September 5 to December 31, 2014. During this period, Tata Steel was forced to import iron ore for the first time. Tata Steel resumed operations at the Jharkhand mine on January 1, 2015, after receiving an 'expressed order' from the Jharkhand government. The Noamundi mine with a capacity of 10 million tonnes of iron ore annually, meets about 30 per cent of the total requirement of Tata Steel's 9.7 million tonne plant at Jamshedpur. We currently have a Neutral Rating on the stock.

    SEBI Open to FII Play in Commodity F&O

    The Securities and Exchange Board of India (SEBI), which took charge of regulating the commodities derivatives market yesterday, said it is open to allowing foreign portfolio investors to trade in this segment. The capital market regulator also wants to introduce options trading in commodities.

    At present, there are three national and six regional bourses for commodity futures in the country. Sebi has created a separate Commodity Cell and has set up new departments for regulation of commodities derivatives market.

    The formal merger between the two regulators has aligned India with several other developed two regulators has aligned India with several other developed countries that have a unified regulatory system for both securities and commodities market.

    Economic and Political News

    - GSM Players Call for CDMA Spectrum Pricing Review

    - NITI Aayog okays revamp of Indira Awaas Yojana

    - Confident of maintaining fiscal deficit at 3.9%: Arun Jaitley

    - Ahead of RBI meet, government pitches for investment-driven demand revival

    Corporate News

    - R-Infra arm, UAE firm agree to partner in defence sector

    - Maruti's Agitating Workers Chalk Out Future Plan

    - Nestle India Ends Contract with Sole Third-party maker of Maggi

    - Lanco Infratech shelves asset sale plan for now

    Contributed by Angel Broking
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