Sensex Finishes Weak Ahead Of Earnings Season

Indian share markets finished in the red ahead of the start of the earnings season, while the sentiment was also hit by geopolitical concerns. At the closing bell, the BSE Sensex stood lower by 145 points, while the NSE Nifty finished down 34 points. Meanwhile, the S&P BSE Mid Cap and the S&P BSE Small Cap finished up by 0.2% and 0.5% respectively. Losses were largely seen in consumer durables stocks, power stocks and metal stocks.

Vedanta share price surged 2.2% in today’s trade after Vedanta concluded the merger of Cairn India with itself. The merged company will have a larger pro forma market cap of US$15.6 billion, and a higher free float of 49.9%.

The shareholders of Cairn India will receive for each equity share held, one equity share of Vedanta of face value Rs 1 each and four 7.5% Redeemable Preference Share in Vedanta with a face value of Rs 10 each. Moreover, Cairn India’s shareholders as on the said record date, who become shareholders of Vedanta will receive an interim dividend of Rs 17.70 per equity share.

Cairn India share price also surged and finished up by 1.7% on the BSE.

Asian stock markets closed mixed on Wednesday, as tensions continue to ratchet up on the Korean Peninsula following a warning from North Korea of a nuclear attack (Subscription Required) on the U.S. The Hang Seng gained 0.93%, while the Nikkei 225 & the Shanghai Composite fell 1.04% and 0.46% respectively. European markets are higher today with shares in France leading the region. The CAC 40 is up 0.44% while Germany’s DAX is up 0.34% and London’s FTSE 100 is up 0.30%.

The rupee was trading at Rs 64.69 against the US$ in the afternoon session. Oil prices were trading at US$ 53.72 at the time of writing.

As per an article in The Livemint, Germany’s biggest union, IG Metall, is opposing a joint venture between Thyssenkrupp AG, the nation’s top steelmaker, and Tata Steel Ltd. According to IG Metall, the project is “high risk” for Thyssenkrupp and the joint venture will lead to job losses and the closing of steel factories in Germany.