Markets nosedive after surgical strikes at LoC
Ø Indian benchmark indices reversed early gains to end sharply lower after the Indian Army said it had conducted surgical strikes last night along the LoC in Pakistan, killing several terrorists and causing significant casualties to their hideouts. The sell-off was also fueled by expiry of the near-month derivative contracts.
Ø Global risk appetite was firm as sentiment remained upbeat across Asia and Europe, after OPEC countries agreed to modest oil output cuts in the first such deal since 2008. A final decision on the OPEC agreement would be taken at the next formal meeting, set to be held in Vienna on November 30.
Global Macro
Ø United States economy expanded an annualized 1.4% in the second quarter of 2016, more than 1.1% reported in the second estimate and much better than 0.8% reported in the first three months of 2016.
Ø Consumer prices in Germany are expected to increase by 0.7% on the year in September 2016, following a 0.4% growth in the previous month and beating market expectations of a 0.6% gain.
Corporate Buzz
Ø Tata Steel to add 3 million tonne steel output to its existing 13 million tonne steel capacity across two facilities at Jamshedpur and Kalinganagar through brownfield expansion over the next few years.
Ø Aban Offshore decided to strengthen its balance sheet as the overall market weakened. Debts of USD 22mn were cleared-off and a loan of USD 65mn was extended for two years, which strengthened the company's cash flows.
Ø Yes bank to raise funds by issuing senior unsecured listed rated redeemable long-term bonds in the form of debentures amounting to INR 10bn, with a green shoe option for an additional amount up to INR 15bn on a private placement basis.
Ø Lupin received the US health regulator's approval to market its memantine hydrochloride extended-release capsules, used for treating Alzheimer's disease.
Ø Welspun group proposed to set up a long steel products manufacturing unit at Dhamra off the coast of north Odisha. Welspun has committed an investment of INR 1.6bn on the facility which would have a capacity to produce 0.27 million tonne of finished products like TMT rebars and steel billets every year.
Ø The State Pollution Control Board (SPCB) slapped a showcause notice on Vedanta Ltd's Lanigarh unit for unauthorised sale of hazardous waste.
Ø Ujjivan Financial Services decided to significantly reduce interest rate by 75 bps with effect from October 1, 2016. The new interest rates for all Microfinance Loans have been lowered by 0.75%.
Ø Cipla decided to reduce its ballooning employee cost by freezing increments of 300-400 of its top managers as part of the company's operational revamp.
Outlook
Ø Benchmark indices are likely to open on a cautious note amidst geopolitical risks.
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