Mumbai (TIP)- Benchmark equity indices Sensex and Nifty snapped their seven-day winning streak on Thursday, December 7, due to profit taking by investors after recent sharp gains triggered by negative cues from Asian markets. The 30-share BSE Sensex fell 132.04 points, or 0.19 per cent, to close at 69,521.69. The gauge hit the lowest intra-day level of 69,320.53. Broader index Nifty also declined 36.55 points, or 0.17 per cent, to settle at 20,901.15. Analysts said crude oil prices in international markets failed to boost sentiment amid selling pressure from foreign institutional investors even as traders stayed on the sidelines ahead of RBI’s monetary policy decision. The Reserve Bank of India is expected to maintain the status quo on the interest rate in its bi-monthly monetary policy decision to be announced on Friday. Major laggards among Sensex constituents included Bharti Airtel, Hindustan Unilever, Tata Steel and ITC. Power Grid, UltraTech Cement, NTPC and Titan emerged as winners.
As many as 17 shares of the 30-share Sensex ended the session in red, while 23 Nifty firms closed lower. According to Vinod Nair, Head of Research at Geojit Financial Services, the market took a breather as investors are in a wait-and-watch mode ahead of the monetary policy announcement.
“A better-than-estimated Q2 GDP growth, ease in global oil prices and drop in global bond yield will be the silver lining for the MPC. However, the expectation of a rise in domestic November inflation, drop in Rabi cultivation and increase in foodgrain prices will influence RBI to adopt a cautious approach in the short-term,” he said.
About the movement in Nifty, Rupak De, Senior Technical analyst at LKP Securities, said the index hovered within the bands of 20850-20950 as “sentiment remains somewhat cautious ahead of the RBI policy meet”.
“The near-term trend remains sideways to weak as long as it stays below 21000, a psychologically crucial level. A decisive breakout above 21000 might induce a resumption of the uptrend. Until then, we anticipate weakness over the near term,” De said.
Source: PTI
Tag: ITC
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Stock markets snap seven-day winning run; Sensex falls 132 points
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TATAS, ITC TO BATTLE IT OUT FOR DELHI’S TAJ MANSINGH
MUMBAI/KOLKATA (TIP): The Supreme Court’s order allowing e-auction of Taj Mansingh has paved the way for a fierce takeover battle between the house of Tatas, the country’s largest conglomerate, and ITC, the tobacco-to-hotels group, for the iconic property near India Gate in the capital.
Y C Deveshwar-led ITC will make an aggressive bid for Taj Mansingh when its licensor New Delhi Municipal Corporation (NDMC) opens the bidding process for the five-star hotel in a few weeks. Tatas, too, will make a competitive offer for the long-term lease of the property, which has been a big revenue contributor to its hospitality arm, Indian Hotels Company (IHCL). IHCL has been managing the property since its opening in October 1978. The contract ended in October 2011 and thereafter several extensions were given by NDMC.
The apex court has said that if Tatas lose out in the e-auction, then it would have to vacate the property within six months. If ITC wins the bid for the 292-room hotel, it will be the group’s fourth property in Delhi. IHCL confirmed that it will participate in the e-auction, while ITC declined to comment.
Currently, the Tatas have five hotels in Delhi which includes Taj Mansingh, Taj Palace and three Vivanta properties -Ambassador, Dwarka and Surajkund.
ITC runs ITC Maurya, Sheraton Delhi and Welcomhotel Dwarka.
The five-star category in Delhi, comprising 2,700 rooms, saw an occupancy level of 70% and an average room rate of Rs 10,000 in fiscal 2017. ITC’s proposed move comes on the heels of two top officials of Tata Trusts, along with five other people, filing a public interest litigation in the Bombay high court for its direction to the central government to divest its stake in ITC. Currently, through five insurance companies and Special Undertaking of the Unit Trust of India (SUUTI), the government holds nearly a third of ITC’s equity, worth over Rs 1 lakh crore. The court will take up the case for admission on April 27.
Tata Trusts and its arms, including its main holding company Tata Sons, control 39% of IHCL. Interestingly, construction major Shapoorji Pallonji Group, whose scion Cyrus Mistry is in a legal battle with the Tatas, is building two of ITC’s luxury hotels -ITC Kohinoor in Hyderabad and ITC Narmada in Ahmedabad.
Source: TOI