THE WEEK AHEAD

Global cues to dictate market trend

Macroeconomic data, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the holiday shortened week ahead. India's stock markets will remain closed on Friday, 25 December 2015, on account of Christmas.

Adani Ports and Special Economic Zone (APSEZ) and Asian Paints will replace Vedanta and Hindalco Industries from the 30-share S&P BSE Sensex with effect from Monday, 21 December 2015.

On the political front, developments in winter session of the parliament will be closely watched. The winter session of the parliament concludes on Wednesday, 23 December 2015. Investors' focus is on whether the Goods and Services Tax (GST) constitutional amendment bill will be passed in the Rajya Sabha. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha.

On the global front, the US Q3 GDP data is scheduled to release on Tuesday, 22 December 2015. US new home sales data for the month of November 2015 is slated to release on Wednesday, 23 December 2015. On the same day, China's CB Leading Economic Index for the month of November 2015 is due. Also, UK Q3 GDP data is due on the same day. US initial jobless claims data for the current month is scheduled to release on Thursday, 24 December 2015.

THE WEEK THAT WAS

Market surges on positive global cues

Indian equity markets registered strong gains in the week ended Friday, 18 December 2015, aided by positive global cues. Much of the gains registered during the week were aided by a rally in global stocks on Thursday, 17 December 2015, as the Federal Reserve policy makers voted unanimously to raise the target range of its fed-funds rate in US, citing improvement in the US economy. The Sensex and 50-unit Nifty 50 index registered gains in four out of five trading sessions in the week ended 18 December 2015.

The Sensex surged 474.79 points or 1.89% to settle at 25,519.22. The gains for the Nifty were higher in percentage terms than those for the Sensex. The Nifty rose 151.50 points or 1.99% to settle at 7,761.95.

Broad market depicted strength. The BSE Mid-Cap index rose 3.24%. The BSE Small-Cap index rose 2.84%. Both these indices outperformed the Sensex.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 445.32 crore from the secondary equity market in four trading sessions from 14 to 17 December 2015.

Trading for the week began on positive note with key benchmark indices registering modest gains on Monday, 14 December 2015, after the latest data showed a sharp surge in industrial production in October 2015. The Sensex rose 105.92 points or 0.42% to settle at 25,150.35 on that day, its highest closing level since 10 December 2015.

A rally in European stocks helped trigger gains for Indian stocks which rose for the second day in a row on Tuesday, 15 December 2015. The Sensex rose 170.09 points or 0.68% to settle at 25,320.44 on that day, its highest closing level since 7 December 2015.

Telecom and oil sector stocks led gains as key benchmark indices edged higher for the third straight trading session on Wednesday, 16 December 2015. The Sensex rose 173.93 points or 0.69% to settle at 25,494.37 on that day, its highest closing level since 7 December 2015.

A rally in global stocks aided fresh upmove on the domestic bourses on Thursday, 17 December 2015, as investors interpreted the US Federal Reserve's move to raise interest rates for the first time in nearly a decade as a sign of confidence in the strength of the world's biggest economy. The Sensex rose 309.41 points or 1.21% to settle at 25,803.78 on that day, its highest closing level since 3 December 2015.
Weakness in global stocks pulled Indian stocks lower on the last trading session of the week on Friday, 18 December 2015. The Sensex lost 284.56 points or 1.1% to settle at 25,519.22 on that day.

Among the 30-share Sensex pack, 25 stocks rose and remaining 5 stocks declined in the week ended Friday, 18 December 2015.

Bharti Airtel (up 3.16%), Coal India (up 2.89%), GAIL (India) (up 0.41%), Hindalco Industries (up 4.71%), ONGC (up 3.59%), Reliance Industries (up 4.17%), Tata Steel (up 5.99%) and Vedanta (up 1.07%) edged higher from the Sensex pack. ITC (down 1.13%) edged lower from the Sensex pack.

Bank stocks were mixed. Axis Bank (down 1.68%) declined.

State Bank of India (SBI) fell 0.19% at Rs 226.65. The bank announced after market hours on Wednesday, 16 December 2015, that a meeting of its Committee of Directors is scheduled on 21 December 2015 for seeking umbrella approval of the shareholders of the bank for a period of one year for raising equity capital in the domestic or overseas markets and also for mopping up additional non-equity capital by way of bonds denominated either in dollars or rupees.

HDFC Bank rose 2.57% at Rs 1,072.80. The bank issued and allotted senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures amounting to Rs 2975 crore on a private placement basis. The bank made the announcement after market hours on Tuesday, 15 December 2015.

ICICI Bank rose 0.3% at Rs 250.10. A total of 20.24 lakh shares of the bank changed hands in two bulk deals on BSE on Thursday, 17 December 2015. A bulk deal of 5.28 lakh shares was executed on the scrip at Rs 252.60 per share at 10:04 IST. Another bulk deal of 15.06 lakh shares was executed on scrip at Rs 252 per share at 10:13 IST.

The Reserve Bank of India (RBI) on Thursday, 17 December 2015, issued final guidelines on computing interest rates on advances of commercial banks based on the marginal cost of funds. According to the new rules, all rupee loans sanctioned and credit limits renewed from 1 April 2016 will be priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which will be the internal benchmark of a bank for such purposes. The MCLR will be a tenor linked internal benchmark. The actual lending rates will be determined by adding the components of spread to the MCLR.

Auto stocks edged higher. Hero MotoCorp (up 4.68%), Bajaj Auto (up 2.62%) and Tata Motors (up 0.06%) edged higher.

Mahindra & Mahindra (M&M) fell 1.42% at Rs 1,244.30. M&M and Tech Mahindra have jointly entered into an agreement with Pincar S.r.l., to purchase a controlling stake in Pininfarina S.p.A., an iconic Italian brand in automotive and industrial design. The announcement was made after market hours on Monday, 14 December 2015. 
Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Paolo Pininfarina continuing as the Chairman of its board. The acquisition will broaden Tech Mahindra's engineering service offering to its customers.

M&M unveiled its much awaited compact sports utility vehicle (SUV) Mahindra KUV100. Mahindra KUV100 will be available in 7 colors, the company said. M&M also unveiled an all new, world-class engine family named mFALCON, marking its entry into the ground up petrol space. The announcement was made during market hours on Friday, 18 December 2015.

Meanwhile, the Supreme court on Wednesday, 16 December 2015, imposed a ban on registration of new diesel sport utility vehicles and private cars in Delhi with an engine capacity of over 2000cc until 31 March 2016. The court ordered temporary ban on diesel sport utility vehicles and private cars in Delhi to rein in the alarming pollution levels in the capital city

Maruti Suzuki India (MSIL) rose 3.09% at Rs 4,620.25. The company announced after market hours on Thursday, 17 December 2015, that its shareholders have approved a move by the company to let its Japanese parent Suzuki Motor Corporation invest and own an upcoming plant in Gujarat. Maruti said that 89.75% votes cast were in favour of the resolution through physical & electronic mode that took place from 16 November to 15 December 2015. Suzuki Motor Gujarat, a wholly owned subsidiary of Suzuki Motor Corporation will set up a car manufacturing unit in Gujarat. Maruti will buy cars from Suzuki Motor Gujarat.

IT stocks edged higher. TCS rose 1.22% at Rs 2,416.45. The company said in its update regarding its operations in Chennai that recent severe flooding in the city led to major disruptions in its ability to function. This is expected to have a material impact on the company's revenue in the seasonally weak Q3 December 2015, it added. The company made the announcement after market hours on Friday, 11 December 2015. Chennai is one of the company's largest delivery function with over 65,000 employees.

TCS announced during trading hours on Wednesday, 16 December 2015, that it won a multi-year, multi-million deal from Deutsche Lufthansa AG, a leading global aviation group, to provide testing services and help improve the quality of services of existing technology operations.

Infosys rose 3.19% at Rs 1,085.95. The company said during market hours on Monday, 14 December 2015, that it has made an investment of $3 million in WHOOP Inc., an early stage company in the US offering a performance optimization system for elite professional sports teams. Infosys will have a minority holding in WHOOP, not exceeding 20% of its outstanding share capital.

Infosys announced after market hours on Tuesday, 15 December 2015 that Fubon Bank (Hong Kong) Limited, a wholly owned subsidiary of Fubon Financial Holding Co., has decided to adopt Infosys Finacle's newgeneration Finacle Core Banking solution.

Wipro fell 2.08% at Rs 554.40. The company before trading hours on Wednesday, 16 December 2015, provided a business update on its Chennai operations. The recent heavy rainfall and resultant flooding impacted the regular business operations of Wipro's Chennai facilities during the first week of December. For the quarter ending 31 December 2015, the incident is expected to have a material impact on the revenues and will result in higher one-time cost incurred towards deployment of the company's business continuity plan.

Meanwhile, reports suggested that a bill proposing doubling of visa fees on highly skilled foreign workers will come up for vote in the US Congress on Friday, 18 December 2015. US Congress is set to pass a Bill that will effectively double the fees for H1B and L1 visas to $4,000 and $4,500, according to media reports. Investors are concerned that companies in the US relying on highly skilled foreign workers will have to pay more for their visas.

Pharma stocks edged higher. Cipla (up 0.43%), Dr Reddy's Laboratories (up 0.33%) and Lupin (up 2.56%) gained.

Sun Pharmaceutical Industries (Sun Pharma) rose 4.27% at Rs 790.45. The company after market hours on Monday, 14 December 2015, announced selling its Ohio manufacturing unit in US to Nostrum Laboratories Inc (Nostrum). As part of the agreement, Sun Pharma's subsidiary has divested Ohio unit as a going concern along with the employees and related products to Nostrum. The financial impact of this development on Sun Pharma is negligible, the company said in a statement.

HDFC rose 4.28% at Rs 1,224.85. HDFC after market hours on Thursday, 17 December 2015, announced that it has agreed to sell 12.33 crore shares representing 22.902% stake held in HDFC ERGO General Insurance Company (HDFC ERGO), a subsidiary of the company, to ERGO International AG, Düsseldorf at a price of Rs 90.973 per share aggregating Rs 1122 crore. Post completion of the transaction, HDFC and ERGO will hold 50.732% and 48.742% stake in HDFC ERGO, respectively. HDFC ERGO will continue to remain a subsidiary of HDFC.

NTPC rose 2.67% at Rs 136.25. The company announced after market hours on Friday, 11 December 2015, that it has raised Rs 500 crore through private placement of secured non-convertible debentures on 10 December 2015. The debentures carry a coupon rate of 8.19% with a 10 year door to door maturity. NTPC said that the proceeds will be mainly utilized to finance capital expenditure of the company.
Bharat Heavy Electricals (Bhel) rose 0.84% at Rs 166.85. The company announced after market hours on Tuesday, 15 December 2015, that it has added one more coal-based power plant to the grid by successfully commissioning a 500 megawatts (MW) thermal generating unit in West Bengal.

L&T rose 0.28% at Rs 1,288.10. The company announced after market hours on Tuesday, 15 December 2015, that Canada Pension Plan Investment Board (CPPIB) has completed its second tranche investment of Rs 1000 crore into L&T's subsidiary L&T Infrastructure Development Projects (L&T IDPL) by subscribing to compulsorily convertible preference shares of L&T IDPL.

Hindustan Unilever (HUL) rose 4.64% at Rs 859.10. The company announced during trading hours on Thursday, 17 December 2015, that it has signed an agreement with Mosons Group to acquire its flagship Indulekha hair oil brand. The proposed acquisition is in line with HUL's strategic intent to strengthen its leadership position in the personal care segment.

On the macro front, data released by the government after market hours on Friday, 11 November 2015, showed that growth in industrial production surged to 60-month high of 9.8% in October 2015 over a year ago compared with the revised growth of 3.8% in September 2015.

Data released by the government during trading hours on Monday, 14 December 2015, showed that inflation based on the wholesale price index (WPI) remained in negative zone in November 2015. WPI stood at negative 1.99% in November 2015 compared to a reading of negative 3.81% for October 2015.

Data released by the government after trading hours on Monday, 14 December 2015, showed that inflation based on the consumer price index (CPI) spiked to 5.41% in November 2015 from 5% in October 2015. The acceleration in consumer price inflation was driven by an increase in food prices.

Meanwhile, the government has lowered its growth forecast for the year ending 31 March 2016 (FY 2016) to 7-7.5% from 8.1-8.5% estimated in February. The revised forecast is as per the mid-year economic review tabled by the government in parliament on Friday, 18 December 2015. The mid-year economic review reiterated that the government would meet its fiscal deficit target of 3.9% and revenue deficit target of 2.8% for the current fiscal.

Finance Minister Arun Jaitley reportedly said on Wednesday, 16 December 2015, that the proposed Goods and Services Tax (GST) rate would be much less than 18%. Jaitley's comments on the GST rate come after a committee headed by Chief Economic Adviser Arvind Subramanian on possible tax rates under goods and services tax (GST) in its report submitted to the government early this month suggested standard GST rate at 17% to 18%. Typically, the majority of the goods and services will be taxed at the standard rate under the GST regime. The Finance Minister was also quoted as saying that the demand to scrap the 1 percent levy under the GST Bill is fair. The GST constitutional amendment bill has been stuck in the Rajya Sabha where the BJP-led NDA lacks a majority. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The bill has been passed by the Lok Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country.

On the global front, US Federal Reserve emphasized a gradual path for future interest rate hikes after raising the benchmark rate by 25 basis points to 0.25%-to-0.50% at the conclusion of its two-day monetary policy meeting on Wednesday, 16 December 2015. Citing improvement in the US economy, the Fed policy makers voted unanimously to raise the target range of its fed-funds rate, which had been stuck at zero for seven years.

THE END SESSION ( 18 / 12 / 2015 )

Market corrects on profit booking

Losses for IT, metal sector stocks and index heavyweights Reliance Industries and ITC led losses for Indian stocks, with the barometer index, the S&P BSE Sensex, and the 50-unit Nifty 50 index snapping a 4-day winning streak. The Sensex fell 284.56 points or 1.1% to settle at 25,519.22. The Nifty fell 82.40 points or 1.05% to settle at 7,761.95. Weakness in global stocks weighed on sentiment on the domestic bourses.
On the macro front, the government lowered its growth forecast for the year ending 31 March 2016 (FY 2016) to 7-7.5% from 8.1-8.5% estimated in February. The revised forecast is as per the mid-year economic review tabled by the government in parliament today, 18 December 2015. The mid-year economic review reiterated that the government would meet its fiscal deficit target of 3.9% and revenue deficit target of 2.8% for the current fiscal.

According to mid-year economic review, India's macroeconomic stability has improved considerably, cushioning the economy against possible adverse external shocks. Meanwhile, the real economy is showing signs of recovery. The improvement in growth has been uneven, powered only by private consumption and public investment. The report further states that the nominal GDP growth has been declining sharply and the demand outlook going forward is mixed, which runs the risk of intensifying corporate debt burdens and impeding the investment revival that is so urgently needed.

In overseas stock markets, Asian and European shares fell after losses for US stocks overnight. Japanese stocks edge lower amid high volatility. The Nikkei 225 Average lost 1.9%. The Bank of Japan surprised financial markets by announcing additional measures to its three-year old easing program after the conclusion of two-day monetary policy meeting.

The Sensex fell 284.56 points or 1.10% to settle at 25,519.22, its lowest closing level since 16 December 2015. The index fell 322.27 points or 1.25% at the day's low of 25,481.51. The barometer index fell 14.27 points or 0.06% at the day's high of 25,789.51.

The Nifty 50 index fell 82.40 points or 1.05% to settle at 7,761.95, its lowest closing level since 16 December 2015. The index fell 91 points or 1.16% at the day's low of 7,753.35. The index fell 8.20 points or 0.1% at the day's high of 7,836.15.

The BSE Mid-Cap index rose 0.08%, outperforming the Sensex. The BSE Small-Cap index fell 0.24%. The decline in this index was lower than the Sensex's decline in percentage terms.

The market breadth indicating the overall health of the market was negative. On BSE, 1,401 shares fell and 1,302 shares rose. A total of 203 shares were unchanged.
The total turnover on BSE amounted to Rs 2818 crore, lower than turnover of Rs 3149.45 crore registered during the previous trading session.

Among sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.01%), the S&P BSE Utilities index (up 0.31%), the S&P BSE Power index (up 0.13%), the S&P BSE Realty index (up 0.07%), the S&P BSE Telecom index (up 0.07%), the S&P BSE Industrials index (down 0.27%), the S&P BSE Capital Goods index (down 0.34%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.36%), the S&P BSE FMCG index (down 0.63%), the S&P BSE Auto index (down 0.69%), the S&P BSE Oil & Gas index (down 0.69%), the S&P BSE Healthcare index (down 0.7%), the S&P BSE Finance index (down 0.8%), the S&P BSE Bankex (down 0.88%), the S&P BSE Basic Materials index (down 0.89%), the S&P BSE Metal index (down 0.89%), the S&P BSE Energy index (down 0.92%) and the S&P BSE Teck index (down 1.07%) outperformed the Sensex.

The S&P BSE IT index fell 1.31%, underperforming the Sensex.

Index heavyweight Reliance Industries fell 1.62% at Rs 992.05. The stock hit a high of Rs 1,009 and a low of Rs 990.15 in intraday trade.

Index heavyweight and cigarette major ITC fell 1% at Rs 317.25. The stock hit a high of Rs 323 and a low of Rs 316.70 in intraday trade.

Stocks of public sector banks witnessed a mixed trend and stocks of private sector banks edged lower after the Reserve Bank of India (RBI) issued final guidelines on computing interest rates on advances of commercial banks based on the marginal cost of funds. Among state-run banks, Punjab and Sind Bank (up 2.25%), UCO Bank (up 2.05%), IDBI Bank (up 1.89%), Syndicate Bank (up 1.21%), Allahabad Bank (up 1.01%), Union Bank of India (up 0.91%), Andhra Bank (up 0.71%), Dena Bank (up 0.60%), Bank of Maharashtra (up 0.16%) and Bank of India (up 0.04%), edged higher. Canara Bank (down 0.29%), Corporation Bank (down 0.37%), Punjab National Bank (down 0.53%), United Bank of India (down 0.66%), Bank of Baroda (down 0.69%), Indian Bank (down 0.79%), Vijaya Bank (down 0.88%), Central Bank of India (down 0.93%) and State Bank of India (down 1.88%), edged lower.

Among private sector banks, IndusInd Bank (down 1.51%), ICICI Bank (down 1.17%), Axis Bank (down 0.68%), HDFC Bank (down 0.65%), Federal Bank (down 0.63%), City Union Bank (down 0.33%), Yes Bank (down 0.21%) and Kotak Mahindra Bank (down 0.06%), edged lower.

According to the new rules, all rupee loans sanctioned and credit limits renewed from 1 April 2016 will be priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which will be the internal benchmark of a bank for such purposes. The MCLR will be a tenor linked internal benchmark. The actual lending rates will be determined by adding the components of spread to the MCLR. Banks will review and publish their MCLR of different maturities every month on a pre-announced date.

Further, banks may specify interest reset dates on their floating rate loans. They will have the option to offer loans with reset dates linked either to the date of sanction of the loan/credit limits or to the date of review of MCLR. The periodicity of reset shall be one year or lower. The MCLR prevailing on the day the loan is sanctioned will be applicable till the next reset date, irrespective of the changes in the benchmark during the interim period.

Existing loans and credit limits linked to the base rate may continue till repayment or renewal, as the case may be. Existing borrowers will also have the option to move to the Marginal Cost of Funds based Lending Rate (MCLR) linked loan at mutually acceptable terms. Banks will continue to review and publish the base rate as hitherto, RBI said.

Metal shares declined. Vedanta (down 3.21%), Bhushan Steel (down 2.44%), Hindustan Zinc (down 2.41%), NMDC (down 2.22%), Hindalco Industries (down 1.66%), Hindustan Copper (down 1.34%), Steel Authority of India (down 1.25%), JSW Steel (down 1.12%), Jindal Steel & Power (down 1.09%) and Tata Steel (down 0.47%), edged lower. However, National Aluminium Company rose 0.72%.

Most pharmaceutical shares edged lower. Lupin (down 2.1%), Sun Pharmaceutical Industries (down 1.51%), Dr Reddy's Laboratories (down 1.45%), Cadila Healthcare (down 0.99%), IPCA Laboratories (down 0.27%), Cipla (down 0.15%), GlaxoSmithKline Pharmaceuticals (down 0.15%), Aurobindo Pharma (down 0.14%) and Wockhardt (down 0.09%), edged lower. Piramal Enterprises (up 0.10%), Strides Shasun (up 0.42%), Divi's Laboratories (up 1.65%) and Glenmark Pharmaceuticals (up 2.05%), edged higher.

IT stocks edged lower after reports suggested that a bill proposing doubling of visa fees on highly skilled foreign workers will come up for vote in the US Congress today, 18 December 2015. Infosys (down 1.9%), HCL Technologies (down 1.3%), Tech Mahindra (down 1.24%), TCS (down 0.98%), MindTree (down 0.69%), Wipro (down 0.29%) and Persistent Systems (down 0.11%), edged lower. Oracle Financial Services Software (up 0.04%), Hexaware Technologies (up 0.17%) and MphasiS (up 0.30%), edged higher.

Index heavyweight and IT major Infosys fell 1.90% at Rs 1,085.95. The stock hit a high of Rs 1102.95 and a low of Rs 1080.10 in intraday trade.

US Congress is set to pass a Bill that will effectively double the fees for H1B and L1 visas to $4,000 and $4,500, according to media reports. Investors are concerned that companies in the US relying on highly skilled foreign workers will have to pay more for their visas.

Shares of Bajaj Auto dropped 1.95% at Rs 2,475.10 after a sharp slide in Argentina's currency peso. The peso tumbled more than 25% yesterday, 17 December 2015, after the new government of President Mauricio Macri reportedly said that it would lift currency controls to attract investors and kick-start the economy. Reports suggest that Argentina is a key export market for two-wheeler major Bajaj Auto. The company gets around 20% of its revenue from exports to Latin America, as per reports.
Key indices snapped a 4-day winning streak. The Sensex had risen 759.35 points or 3.03% in the preceding four trading sessions to settle at 25,803.78 yesterday, 17 December 2015, from its close of 25,044.43 on 11 December 2015. The Sensex has declined 626.45 points or 2.4% in this month so far (till 18 December 2015). The Sensex has fallen 1,980.20 points or 7.2% in this calendar year so far (till 18 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 685.68 points or 2.76%. The Sensex is off 4,505.52 points or 15.01% from a record high of 30,024.74 hit on 4 March 2015.

THE END SESSION ( 14 / 12 )

Key indices register modest gains

Trading for the week began on positive note with key benchmark indices registering modest gains after the latest data showed a sharp surge in industrial production in October 2015. The barometer index, the S&P BSE Sensex, rose 105.92 points or 0.42% to settle at 25,150.35. The gains for the 50-unit Nifty 50 index were higher in percentage terms compared with those for the Sensex. The Nifty rose 39.60 points or 0.52% to settle at 7,650.05. The Sensex and the Nifty witnessed intraday volatility. Both these key benchmark indices bounced back after hitting their lowest level in almost 14 weeks in early trade. The Sensex settled above the psychological 25,000 mark. The barometer index alternately moved above and below that mark in intraday trade after opening with a downward gap below the psychologically important level.
Cement stocks rose after the Competition Appellate Tribunal (COMPAT) on Friday, 11 December 2015, quashed the penalty of Rs 6316 crore imposed on 11 cement firms by the Competition Commission of India (CCI) on charges of cartelisation and other unfair trade practices. Steel stocks edged higher after the government reportedly imposed anti-dumping duty on some stainless steel products. Auto stocks witnessed a mixed trend after the National Green Tribunal said in an order issued on Friday, 11 December 2015, that new diesel vehicles will not be registered in NCT, Delhi and that there will be no renewal of registration of diesel vehicles that are more than 10 year old in the capital city.

Index heavyweight and IT major Infosys edged higher after the company said that it has made an investment of $3 million in WHOOP Inc., an early stage company in the US offering a performance optimization system for elite professional sports teams.

The Sensex rose 105.92 points or 0.42% to settle at 25,150.35, its highest closing level since 10 December 2015. The index rose 149.72 points or 0.59% at the day's high of 25,194.15. The index fell 176.70 points or 0.7% at the day's low of 24,867.73.

The Nifty rose 39.60 points or 0.52% to settle at 7,650.05, its highest closing level since 10 December 2015. The index rose 53.50 points or 0.7% at the day's high of 7,663.95. The index fell 59.40 points or 0.78% at the day's low of 7,551.05.

The BSE Mid-Cap index rose 0.66%, outperforming the Sensex. The BSE Small-Cap index rose 0.4%, underperforming the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,490 shares rose and 1,148 shares fell. A total of 217 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Basic Materials index (up 1.59%), BSE Consumer Discretionary Goods & Services (up 0.74%), BSE Healthcare index (up 0.71%), BSE IT index (up 0.83%), BSE Telecom index (up 0.51%), BSE Metal index (up 2.4%) and BSE Teck index (up 0.79%) outperformed the Sensex. The S&P BSE FMCG index (up 0.35%), BSE Auto index (up 0.4%), BSE Bankex index (down 0.01%), BSE Capital Goods index (down 0.15%), BSE Oil & Gas index (down 0.14%), BSE Power index (up 0.35%) and BSE Realty index (down 0.19%) underperformed the Sensex.

Stocks of public sector banks edged higher. Bank of Baroda (up 0.97%), Punjab National Bank (up 1.38%), United Bank of India (up 0.7%), IDBI Bank (up 0.42%), Bank of India (up 0.26%), Corporation Bank (up 0.37%), Indian Overseas Bank (up 0.49%), Central Bank of India (up 0.22%) and Canara Bank (up 0.48%) edged higher. Indian Bank (down 2.44%), Union Bank of India (down 1.09%), State Bank of India (down 0.26%) and Syndicate Bank (down 0.47%) edged lower.

Private sector banks witnessed a mixed trend. Kotak Mahindra Bank (up 0.94%), HDFC Bank (up 0.9%) and Yes Bank (up 0.21%) edged higher. Axis Bank (down 2.02%), IndusInd Bank (down 0.56%) and ICICI Bank (down 0.16%) edged lower.
Steel stocks edged higher after the government reportedly imposed anti-dumping duty on some stainless steel products. Jindal Stainless (up 11.69%), JSW Steel (up 5.52%), Jindal Steel & Power (up 4.78%), Tata Steel (up 1.72%) and Steel Authority of India (Sail) (up 1.44%), edged higher. As per reports, the government on Friday, 11 December 2015, imposed anti-dumping duty of up to 57.39% on import of certain stainless steel products from China, Korea, the US and European Union (EU) for five years to save the domestic industry from cheap shipments.

Shares of aluminium major Hindalco Industries rose 3.01% at Rs 78.60. The stock hit a high of Rs 78.90 and a low of Rs 75.80 in intraday trade.

Shares of state-run coal mining giant Coal India rose 2.62% at Rs 315.70. The stock hit a high of Rs 317.35 and a low of Rs 305.50 in intraday trade.

Cement stocks rose after the Competition Appellate Tribunal (COMPAT) on Friday, 11 December 2015, quashed the penalty of Rs 6316 crore imposed on 11 cement firms by the Competition Commission of India (CCI) on charges of cartelisation and other unfair trade practices. ACC (up 1.92%), Ambuja Cements (up 2.33%) and UltraTech Cement (up 2.24%) edged higher.

Grasim Industries rose 1.21%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

COMPAT also directed the CCI to refund the 10% of the penalty amount the companies had to deposit with the fair trade regulator. The judgement follows appeals filed by the cement firms and the industry body Cement Manufacturers Association. The companies include ACC, Ambuja Cements, Binani Cements, Century Textiles, India Cements, JK Cements, Lafarge India, Madras Cements, UltraTech Cement and Jaiprakash Associates. The commission had passed the order after an investigation into complaints from the Builders Association of India against alleged price cartelisation among cement firms. ACC will be refunded Rs 114.75 crore, Ambuja Cements Rs 116.39 crore and UltraTech Cement will be refunded Rs 117.54 crore.

Meanwhile, the tribunal has directed CCI to hear the case again and pass a fresh order within three months.

Auto stocks were mixed. Tata Motors (down 1.65%), Eicher Motors (down 1.26%) and Ashok Leyland (down 0.41%) edged lower. Mahindra & Mahindra (up 1.96%) and Maruti Suzuki (India) (up 1.97%) edged higher.

The National Green Tribunal said in an order issued on Friday, 11 December 2015, that new diesel vehicles will not be registered in NCT, Delhi and that there will be no renewal of registration of diesel vehicles that are more than 10 year old in the capital city. The tribunal's order is an interim measure to curb alarming pollution levels in Delhi. It also directed all the public authorities in NCT, Delhi to prepare an action plan for phasing out of diesel vehicles, particularly the trucks, being used by them.

Among two-wheeler makers, TVS Motor Company (up 0.49%) and Hero MotoCorp (up 0.66%) edged higher. Bajaj Auto (down 0.16%) edged lower.

Index heavyweight Reliance Industries rose 0.34% at Rs 955.45. The stock hit a high of Rs 962.70 and a low of Rs 946.50 in intraday trade.

Adani Ports and Special Economic Zone rose 5.6% at Rs 254.60. The stock hit a high of Rs 255.60 and a low of Rs 239.65 in intraday trade.

TCS dropped 0.41% at Rs 2,377.45 after the company said in its update regarding its operations in Chennai that recent severe flooding in the city led to major disruptions in its ability to function. The normal business functioning of company's facilities had to be halted in the city all week since 1 December 2015 due to flooding. This is expected to have a material impact on the company's revenue in the seasonally weak Q3 December 2015, it added. The company made the announcement after market hours on Friday, 11 December 2015. Chennai is one of the company's largest delivery function with over 65,000 employees. The majority of facilities in Chennai opened for normal business functioning on 7 December 2015, but attendance rates were lower than normal as employees were still recovering from the flood's aftermath.

Infosys rose 1.63% at Rs 1,069.50 after the company said that it has made an investment of $3 million in WHOOP Inc., an early stage company in the US offering a performance optimization system for elite professional sports teams. The stock hit a high of Rs 1,073.30 and a low of Rs 1,049 so far during the day. Infosys said that the investment in WHOOP Inc. will be completed by 16 December 2015. Infosys will have a minority holding in WHOOP, not exceeding 20% of its outstanding share capital. WHOOP's system includes a device worn by athletes on their wrist that continuously measures key strain and recovery variables, and actionable analytics powered by proprietary algorithms that generate intensity and recovery scores. This enables athletes and coaches to gain visibility into the drivers of high performance, guide training and make optimal game day decisions.

NTPC rose 0.04% after the company announced that it has raised Rs 500 crore through private placement of secured non-convertible debentures on 10 December 2015.. The stock was volatile. The stock hit a high of Rs 133.40 and a low of Rs 131.70 in intraday trade. The debentures carry a coupon rate of 8.19% with a 10 year door to door maturity. NTPC said that the proceeds will be mainly utilized to finance capital expenditure of the company. The announcement was made after market hours on Friday, 11 December 2015.

Tata Power Company (Tata Power) fell 0.4% at Rs 61.65. The stock hit a high of Rs 62.50 and a low of Rs 61.40 in intraday trade. Tata Power announced during trading hours today, 14 December 2015, that the company has identified four geographies viz. Africa, South East Asia, the Middle East and SAARC (India Region) to further expand its presence and strengthen its portfolio globally. Commenting on its international presence, Anil Sardana, CEO & Managing Director, Tata Power said that the company's resources allocation strategy is to invest in these four regions and in specific projects where all the clearances are in place and it is able to mitigate risks to achieve the threshold returns. In addition, Tata Power continues to evaluate various opportunities for providing management and technical advisory services in distribution business including possible partnerships in the shortlisted geographies of interest, he added.

The Sensex has declined 995.32 points or 3.8% in this month so far (till 14 December 2015). The Sensex has fallen 2,349.07 points or 8.54% in this calendar year so far (till 14 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 316.81 points or 1.27%. The Sensex is off 4,874.39 points or 16.23% from a record high of 30,024.74 hit on 4 March 2015.

On the macro front, the latest data showed that India's Index of Industrial Production (IIP) growth surged to 60-months high of 9.8% in October 2015 over a year ago compared with the revised growth of 3.8% in September 2015. An extremely farvourable base effect with IIP declining 2.7% in October 2014 has mainly fuel the IIP growth for October 2015. Also, the festive season shifting to November this year compared with October in last year, aided IIP growth in October 2015 driven by pre-festive season surge in production. The data was announced by the government after market hours on Friday, 11 December 2015.

Data released by the government during trading hours today, 14 December 2015, showed that inflation based on the wholesale price index (WPI) remained in negative zone in November 2015. WPI stood at negative 1.99% in November 2015 compared to a reading of negative 3.81% for October 2015.

In overseas stock markets, European stock markets edged higher in cautious trade as investors look ahead to this week's pivotal US monetary policy meeting. The US Federal Reserve is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting on 15-16 December 2015. With markets having already priced in a 25 basis points rate hike in mid-December, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done. Earlier during the global day, Asian equities edged lower amid sharpening worries about the stability of the junk-bond market and tumbling oil prices. Lower commodity prices have stirred up concerns that oil and gas companies won't be able to pay back all their debt.

US stocks tumbled during the previous trading session on Friday, 11 December 2015, as falling prices in crude oil and worries about junk-bond markets rattled Wall Street. News during the previous day on 10 December 2015 that high-yield mutual fund Third Avenue Focused Credit Fund is blocking investors from withdrawing their money, added to market jitters.

THE WEEK AHEAD

US Federal Reserve's policy decision to dictate trend on bourses

Macroeconomic data, monetary policy decision by the US Federal Reserve, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the coming week.

The market on Monday, 14 December 2015, will react to data on industrial production (IIP) for October 2015, which will be announced by the government after market hours on Friday, 11 December 2015. India's IIP growth moderated to 3.6% in September 2015 over a year ago compared with the revised growth of 6.3% in August 2015. The IIP growth had showed an improvement from 2.6% growth recorded in September 2014.
Among other macro economic data scheduled for release next week, the government will unveil the data on wholesale price index (WPI) for November 2015 on Monday, 14 December 2015. The data is scheduled to be announced at 11:00 IST on that day. WPI stood at negative 3.81% for October 2015 compared with a reading of negative 4.54% for September 2015.

The data on inflation based on the consumer price index (CPI) for November 2015, will be announced by the government after market hours on Monday, 14 December 2015. The CPI inflation accelerated to four-month high of 5% in October 2015, compared with 4.4% reading in September 2015.

The data on payment of third installment of advance taxes by India Inc will be out during the middle of December 2015. The data could provide cues on the expected Q3 December 2015 corporate earnings. Advance taxes are collected in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March.
Shares of public sector oil marketing companies (PSU OMCs) will be in focus as a regular fuel price review is due during the middle of the month. PSU OMCs review fuel prices twice a month based on the trend in international oil market and currency movement. The first review takes place during the middle of the month and the last review at the month-end.

On the political front, developments in winter session of the parliament will be closely watched. The winter session of the parliament began on 26 November 2015 and concludes on 23 December 2015. Investors' focus is on whether the GST constitutional amendment bill will be passed in the Rajya Sabha. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.

On global front, investors will closely watch the decision of US Federal Reserve's two-day monetary policy meeting scheduled on Tuesday, 15 December and Wednesday, 16 December 2015. The Fed meet will be associated with a summary of economic projections and a press conference by the Federal Reserve Chairwoman Janet Yellen. Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets.

Among macro data in US, the National Association of Home Builders will release a housing market index for December on Tuesday, 15 December 2015. The data on housing starts for November 2015, reflecting the commitment of builders to new construction activity for that month; the index of industrial production for November 2015, showing how much factories, mines and utilities produced for that month; and the flash US Purchasing Managers' Manufacturing Index (PMI) for December, showing preliminary results of health of manufacturing activity for that month are due on Wednesday, 16 December 2015. The Markit PMI Services flash data for December 2015, indicating health of services sector is due on Friday, 18 December 2015.

THE WEEK THAT WAS

Sensex, Nifty drop over 2%

Key benchmark indices slumped in the week just gone by in line with slide in global stocks as a recent sharp drop in global crude oil prices heightened fears about receding global growth. Diminishing hopes that the constitutional amendment bill on goods and services tax (GST) will be passed during the ongoing winter session of parliament with main opposition Congress party repeatedly disrupting the parliament also weighed on investor sentiment.

The barometer index, the S&P BSE Sensex, fell below the psychological 25,000 mark in intraday trade on Friday, 11 December 2015, but managed to claw back and settle slightly above that mark. The Sensex and the Nifty dropped in four out of five trading sessions in the week ended 11 December 2015.

The Sensex dropped 593.68 points or 2.31% to settle at 25,044.43. The decline for the Sensex was higher in percentage terms compared with the fall in the 50 unit Nifty 50 index. The Nifty lost 171.45 points or 2.2% to settle at 7,610.45.

The BSE Mid-Cap index shed 3.28%. The BSE Small-Cap index skidded 2.97%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

Trading for the week began on a negative note as losses for index heavyweight ITC and stocks of oil exploration and production (E&P) pulled key benchmark indices lower on Monday, 7 December 2015. The Sensex lost 108 points or 0.42% to settle at 25,530.11.

Weakness in global stocks triggered losses for Indian stocks which fell for a fifth day in a row on Tuesday, 8 December 2015. The Sensex lost 219.78 points or 0.86% to settle at 25,310.33, its lowest closing level since 7 September 2015.

Key benchmark indices extended losses on Wednesday, 9 December 2015, on weak global stocks and on diminishing hopes that the constitutional amendment bill on goods and services tax (GST) will be passed during the ongoing winter session of parliament. The Sensex lost 274.28 points or 1.08% to settle at 25,036.05, its lowest closing level since 7 September 2015.

Index heavyweights Reliance Industries (RIL), HDFC, Infosys and stocks from metal sector led gains as key benchmark indices snapped a six-day losing streak on Thursday, 10 December 2015. The Sensex gained 216.27 points or 0.86% to settle at 25,252.32.

Banking and telecom stocks led losses as key benchmark indices edged lower on the last trading session of the week on Friday, 11 December 2015. The Sensex lost 207.89 points or 0.82% to settle at 25,044.43.

From the 30-share Sensex pack, 23 stocks fell and 7 rose in the week ended 11 December 2015.

Auto stocks fell. Mahindra & Mahindra (M&M) dropped 3.78%.

Tata Motors declined 5.49%. Tata Motors said on Friday, 11 December 2015, that its British luxury car unit, Jaguar Land Rover will open a manufacturing facility in Slovakia. The new world-class £1 billion premium manufacturing facility will eventually employ around 2,800 people. As part of Jaguar Land Rover's commitment to deliver more lightweight vehicles, the plant will manufacture a range of all-new aluminium Jaguar Land Rover vehicles. It is anticipated that the first cars will come off the production line from the plant in late 2018. The factory will have an initial capacity of 1.5 lakh vehicles.

Separately Tata Motors on 9 December 2015, reported 8% increase in global wholesales to 90,695 units in November 2015 over November 2014.

Maruti Suzuki India fell 2.31%. According to reports, the company plans to raise prices of its cars by up to Rs 20,000 from 1 January 2016 to offset cost increases and unfavourable foreign exchange rates.

Among two-wheeler makers, Bajaj Auto (down 2.32%) and Hero MotoCorp (down 3.59%) edged lower.

Bank stocks dropped. ICICI Bank (down 4.63%), Axis Bank (down 4.47%), HDFC Bank (down 1.35%) and State Bank of India (down 5.75%) edged lower.

On 10 December 2015, the Reserve Bank of India (RBI) announced a reduction of 100 basis points in the Statutory Liquidity Ratio (SLR) of commercial banks to 20.5% from 21.5% in four equal stages starting from 2 April 2016. The SLR will be reduced to 21.25% from 2 April 2016, 21% from 9 July 2016, 20.75% from 1 October 2016 and 20.5% from 7 January 2017.

Most pharma stocks edged lower. Dr Reddy's Laboratories (down 7.2%), Lupin (down 3.59%), and Cipla (down 0.97%) declined.

Sun Pharmaceutical Industries rose 0.26%. The company announced on 10 December 2015 that it has entered into a tripartite research and option agreement with Israel-based Weizmann Institute of Science and Spain's Health Research Institute of Santiago de Compostela (IDIS) to develop breakthrough products for the treatment of neurological diseases like brain stroke, as well as glioblastoma, a lethal brain cancer.
Among metal stocks, Tata Steel rose 0.29%. Vedanta slumped 9% and was the biggest loser from the Sensex pack. Hindalco Industries lost 3.54%.

Wipro lost 0.67%. The company announced on 9 December 2015, that Wipro Digital, its digital business unit, has opened a new office in London to offer enhanced digital transformation services at close proximity to its UK and European customers.

Infosys rose 0.43%. The company on 10 December 2015 announced that it has won a five-year contract to transform the application landscape of DNB Bank of Norway.
TCS gained 2.45% and was the biggest gainer from the Sensex pack. The company announced the inauguration of phase II of its campus at Kalinga Park in Bhubaneswar. With the addition of 3,000 seats in phase II, the Kalinga Park campus now has operational capacity of 4,000 seats. The announcement was made on 10 December 2015.

Coal India tumbled 8.18% and was the second biggest loser from the Sensex pack.
Cigarette maker ITC declined 4.38% after a committee headed by Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under goods and services tax (GST) recommended a steep 40% tax on tobacco and tobacco products. Luxury cars, aerated beverages and paan masala are the three other product lines in addition to tobacco and tobacco products for which the committee has suggested sin/demerit rate of 40%.

On political front, the latest row in parliament stems from a New Delhi judge's order that Congress president Sonia Gandhi and her son Rahul must appear in court next week, in a case brought by BJP's Subramanian Swamy. The Congress has accused the government of pursuing a political vendetta against the Gandhi family. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The winter session of the parliament began on 26 November 2015 and concludes on 23 December 2015.

THE END SESSION ( 11 / 12 )

Nifty hits 13-1/2-week closing low

Banking and telecom stocks led losses as key benchmark indices edged lower on the last trading session of the week. The barometer index, the S&P BSE Sensex, lost 207.89 points or 0.82% to settle at 25,044.43. The decline for the 50-unit Nifty 50 index was higher in percentage terms compared with the fall in the Sensex. The Nifty lost 72.85 points or 0.95% to settle at 7,610.45. The Nifty hit a 13-1/2-week closing low. The Sensex hit its lowest level in more than 13 weeks when it fell 321.89 points or 1.27% at the day's low of 24,930.43 in mid-afternoon trade.

Bank stocks fell across the board reacting to the Reserve Bank of India Governor Raghuram Rajan's comments on bad loans. Index heavyweight L&T edged lower. Auto stocks declined on media reports that the National Green Tribunal had called for no new diesel vehicles to be registered in Delhi to curb air pollution. Infosys nudged higher after the company won a five-year contract to transform the application landscape of DNB Bank of Norway.

The Sensex lost 207.89 points or 0.82% to settle at 25,044.43, its lowest closing level since 9 December 2015. The index fell 321.89 points or 1.27% at the day's low of 24,930.43. The index rose 63.82 points or 0.25% at the day's high of 25,316.14.
The Nifty fell 72.85 points or 0.95% to settle at 7,610.45, its lowest closing level since 7 September 2015. The index lost 108 points or 1.4% at the day's low of 7,575.30. The index rose 19.75 points or 0.25% at the day's high of 7,703.05.

The BSE Mid-Cap index fell 1.18%. The fall in this index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.81%. The fall in this index was lower than Sensex's decline in percentage terms.

The market breadth indicating the overall health of the market was weak. On BSE, 1,666 shares fell and 992 shares rose. A total of 201 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Realty index (down 2.52%), BSE Bankex (down 2.25%), BSE Auto index (down 1.71%), BSE Finance index (down 1.68%), BSE Capital Goods index (down 1.36%), BSE Consumer Durables index (down 1.46%), BSE Power index (down 1.44%) and BSE Telecom index (down 1.64%) underperformed the Sensex. The S&P BSE Metal index (up 0.23%), BSE IT index (up 0.14%), BSE FMCG index (down 0.01%), BSE Healthcare index (down 0.05%) and BSE Teck index (down 0.18%) outperformed the Sensex.

Index heavyweight L&T lost 1.99% at Rs 1,284.40. The stock hit a high of Rs 1,314 and a low of Rs 1,277.65 in intraday trade.

Another index heavyweight and cigarette major ITC fell 0.12% at Rs 320.90. The stock was volatile. The stock hit a high of Rs 322.50 and a low of Rs 315.30 in intraday trade.

Tata Steel rose 3.41% at Rs 240.90. The stock hit a high of Rs 243.90 and a low of Rs 235.60 in intraday trade.

Bank stocks fell across the board reacting to the Reserve Bank of India Governor Raghuram Rajan's comments on bad loans. Among public sector banks, Punjab National Bank (down 5.02%), Indian Bank (down 4.02%), IDBI Bank (down 2.94%), Bank of Baroda (down 2.51%), Union Bank of India (down 2.4%), State Bank of India (down 2.09%), Canara Bank (down 1.89%), Oriental Bank of Commerce (down 1.44%), Bank of India (down 1.41%) and Corporation Bank (down 0.12%) declined.

Among private sector banks, Yes Bank (down 3.71%), ICICI Bank (down 3.6%), Axis Bank (down 2.22%), Kotak Mahindra Bank (down 1.68%), IndusInd Bank (down 1.56%) and HDFC Bank (down 1.39%) edged lower.

Rajan reportedly said today, 11 December 2015, that RBI was monitoring how Indian banks were using the provisions - including that of strategic debt restructuring (SDR) - given to them to tackle the issue of bad loans. Banks are facing criticism over their use of SDR, which helps banks swap unpaid debt for majority control in troubled companies. Investors are worried that accounts under SDR may attract early provisioning, reports added.

Meanwhile, the Reserve Bank of India (RBI) yesterday, 10 December 2015, announced a reduction of 100 basis points in the Statutory Liquidity Ratio (SLR) of commercial banks to 20.5% from 21.5% in four equal stages starting from 2 April 2016. The SLR will be reduced to 21.25% from 2 April 2016, 21% from 9 July 2016, 20.75% from 1 October 2016 and 20.5% from 7 January 2017.

Auto stocks declined on media reports that the National Green Tribunal had called for no new diesel vehicles to be registered in Delhi to curb air pollution. Ashok Leyland (down 2.98%), Eicher Motors (down 2.93%) and Mahindra & Mahindra (down 1.92%) edged lower.

Tata Motors dropped 2.92%. The stock was volatile. The stock hit a high of Rs 392.80 and a low of Rs 375.30 in intraday trade. Tata Motors said during market hours today, 11 December 2015, that its British luxury car unit, Jaguar Land Rover will open a manufacturing facility in Slovakia. Earlier, an agreement was signed between the company and the Government of the Slovak Republic to build a new plant in the city of Nitra, western Slovakia. The new world-class £1 billion premium manufacturing facility will eventually employ around 2,800 people. As part of Jaguar Land Rover's commitment to deliver more lightweight vehicles, the plant will manufacture a range of all-new aluminium Jaguar Land Rover vehicles. It is anticipated that the first cars will come off the production line from the plant in late 2018. The factory will have an initial capacity of 1.5 lakh vehicles. Jaguar Land Rover has selected Slovakia as the location for its next manufacturing site following robust analysis of a number of locations around the world including other European countries, United States and Mexico.

Maruti Suzuki India fell 0.34% at Rs 4,481.40. The stock was volatile. The stock hit a high of Rs 4,530 and a low of Rs 4,415 in intraday trade. According to reports, the company plans to raise prices of its cars by up to Rs 20,000 from 1 January 2016 to offset cost increases and unfavourable foreign exchange rates.

Among two-wheeler makers, Bajaj Auto (down 1.21%), TVS Motor Company (down 1.62%) and Hero MotoCorp (down 0.88%) edged lower.

Telecom stocks declined. Mahanagar Telephone Nigam (down 4.72%), Tata Teleservices (Maharashtra) (down 4.13%), Reliance Communications (down 2.87%), Idea Cellular (down 2.12%) and Bharti Airtel (down 1.02%) edged lower.

Infosys rose 0.57% at Rs 1,052.35 after the company announced that it has won a five-year contract to transform the application landscape of DNB Bank of Norway. The announcement was made after market hours yesterday, 10 December 2015.

TCS rose rose 0.27% at Rs 2,387.25 after the company announced the inauguration of phase II of its campus at Kalinga Park in Bhubaneswar. With the addition of 3,000 seats in phase II, the Kalinga Park campus now has operational capacity of 4,000 seats. The announcement was made after market hours yesterday, 10 December 2015.

Tata Power Company (Tata Power) dropped 1.12% at Rs 61.90. The stock was volatile. The stock hit a high of Rs 63.20 and a low of Rs 61 in intraday trade. Tata Power announced that its joint venture (JV) of 120 megawatts (MW) Itezhi Tezhi Hydro Power Project in Zambia has received Clean Development Mechanism (CDM) approval from United Nations Framework Convention on Climate Change (UNFCCC). Itezhi Tezhi Power Corporation (ITPC) is a JV with Zambian parastatal utility ZESCO Limited (ZESCO). ITPC is a special purpose vehicle (SPV) which has been set to build and operate a 120 MW hydro power plant in Itezhi Tezhi district on Kafue River in Zambia. ITPC is the first project in Zambia to get the CDM approval from UNFCCC. The proposed project activity involves installation of Greenfield 120 MW hydro power plant in the Central Province of Zambia and will be connected to Southern African Power Pool (SAPP) grid system.

Separately, Tata Power announced after market hours yesterday, 10 December 2015 that Tata Power Solar, India's largest integrated solar player, has successfully commissioned a 12 megawatts (MW) solar rooftop project for RSSB Educational & Environmental Society (RSSB–EES) in Amritsar, Punjab. This project is the largest solar rooftop plant in the world set up in a single phase. The plant will produce more than 150 lakh units of power annually and offset over 19,000 tonnes of carbon emissions every year.

Siemens fell 0.34% at Rs 1,144.60. The stock hit a high of Rs 1,170 and a low of Rs 1,139.05 in intraday trade. Siemens announced after market hours yesterday, 10 December 2015, that it has won an order worth about Rs 102 crore to supply a 400 kV gas insulated switchgear (GIS) substation to West Bengal State Electricity Transmission Company (WBSETCL). The scope of the order includes engineering, supply, installation and commissioning of the GIS Substation. The 400 kV GIS solution is being manufactured at Siemens' manufacturing plant at Aurangabad.
The Sensex has declined 1,101.24 points or 4.21% in this month so far (till 11 December 2015). The Sensex has fallen 2,454.99 points or 8.92% in this calendar year so far (till 11 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 210.89 points or 0.84%. The Sensex is off 4,980.31 points or 16.58% from a record high of 30,024.74 hit on 4 March 2015.

In overseas stock markets, European stocks edged lower as falling crude oil prices heightened fears about receding global growth. Chinese stocks led decline in Asian markets after news reports said that Guo Guangchang, the Chairman of China's biggest non-state-owned conglomerate Fosun Group, went missing since yesterday, 10 December 2015. US stocks edged higher yesterday, 10 December 2015, as beaten down energy stocks witnessed bargain hunting.