Everest Kanto share price hit a new 52-week high of Rs 15.45 on Wednesday after the Supreme Court ruling on diesel vehicles. (Express Photo)

Everest Kanto share price hit a new 52-week high of Rs 15.45 on Wednesday after the Supreme Court ruling that only CNG-run taxis will be allowed to ply in Delhi and NCR. The company is engaged in the business of manufacturing industrial and CNG cylinders.

At 12.36 pm, the scrip was trading 15.50 per cent up at Rs 15.20. It opened at Rs 13.25 and had touched a high and low of Rs 15.45 and Rs 13.11, respectively, in trade so far. The share of the company surged as much as 17 per cent intraday on Wednesday. Sensex was up 0.98 per cent at 25,567.89.

In the past one year, the share price of Everest Kanto Cylinder climebed 24.62 per cent to Rs 13.16 on December 15. The benchmark index BSE Sensex fell 7.32 per cent during the same period.

For the quarter ended September 2015, the company posted a consolidated net loss of Rs 33.81 crore, down 34.06 per cent, against Rs 25.22 crore in the corresponding quarter a year ago.

The promoters holding in the company stood at 64.07 per cent while institutions and others held 0.27 per cent and 35.66 per cent respectively.

Indian stock markets have been behaving with caution ever since the speculation started trickling in on the Fed rate hike. (Photo: PTI)

All eyes are on the US Federal Reserve meeting that began on Tuesday with expectations rife that the central bank may go for a 25 basis points rate hike in a decade on Wednesday.

The Fed has kept its benchmark short-term rate near zero since setting it there in 2008 to help save the financial system in the depths of the financial crisis. The US Fed is ready to begin lifting rates toward normal levels with the job market all but fully healthy.

Indian stock markets have been behaving with caution ever since the speculation started trickling in on the Fed rate hike. According to the Bank of America-Merrill Lynch, “The BSE Sensex has been struggling in view of the uncertainties surrounding Grexit-II and the first Fed hike as valuations are on the higher side. We expect the Fed to raise rates by 25 basis points on December 16. In response, the RBI should sell foreign exchange to contain rupee volatility, if any.”

The benchmark index BSE Sensex fell 3.43 per cent since the outcome of the US Fed on September 17 where it maintained status quo but kept a space open for a gradual hike in interest rates.

Anticipating the US Federal Reserve may go for a rate hike, Reserve Bank of India (RBI) governor Raghuram Rajan last week had said that the central bank was ‘prepared’ for any change in global financial flows and market volatility.

“We don’t have any independent estimate, but looking at the market, there is a 70-75 per cent probability of the Fed raising rates. I think the Fed has prepared us carefully. So, it is likely that at this point they will go ahead, at least that is our betting,” Rajan said.

On asking about how the stock market will react if US Fed goes for a rate hike, an independent market expert Ambareesh Baliga said, “Stock markets could infact move up after an initial knee jerk reaction.”

However, Moody’s Investors Service cautioned investors and said the likely interest rate hike by the US Federal Reserve this week could pose risks to some emerging markets. Downside risks will remain for some emerging markets depending on the degree of exposure to rising US interest rates. The report did not specify rate hike impact on India.

G Chokkalingam, founder and managing director, Equinomics Research said, “Rate hike will certainly be considered as positive for domestic equity markets as the same would reduce fear on global defaltion. The industrial economy has also bottomed out which is reflected in terms of better IIP and robust fuel consumption and also indirect tax revenues. Hence, one can hope for market recovery post Fed rate hike.”

Earlier, between 2004 and 2006, the US Fed raised interest rates 17 times from — 1 per cent to in June 2004 to 5.25 in June 2006. This coincided with a period of high growth in Indian economy alongwith relatively low interest rate regime.

The rate hike by US Fed that time resulted in a sharp outflow from Indian debt markets. Foreign Institutional investors (FIIs) pulled out significantly from the Indian debt market and their cumulative holding went down from $1.77 billion in December 2004 to $550 million by June 2006. On the contrary, Indian equities, chasing high growth in the economy, witnessed a strong inflow — FII pumped in a record Rs 1,22,687 crore between 2004 and 2006. But this was the time when asset classes were doing well and there were few uncertainties.

Nikhil Kamath, director, trading & risk, Zerodha said, “a marginal 25 bps rate hike in overnight Federal funds is quite imminent and in all likelihood the decision to do so could be taken in the ongoing review meet. Markets across asset classes – equities in emerging markets, international currencies, and LIBOR markets have factored in this hike to a large extent. Hence given a rate hike, I do not foresee a big sell off in the Indian markets.”

At 1.20 pm: Sensex was up 190.82 points at 25,511. Nifty was up 59.80 points at 7,760.70. (Photo: Reuters)

2.05 pm: Meanwhile, Marico informed that the company has fixed Record Date as December 24, 2015 to ascertain the members entitled to receive Bonus Equity Shares. The share price of Marico was trading 0.79 per cent up at Rs 436.20.

1.49 pm: After hitting an upper circuit on Tuesday, Lux Industries shares extended gains and were trading 6.78 per cent up at Rs 3,830.10. Nifty 50 index was up 42 points at 7,743. Sensex was up 151 points 25,471.98.

1.44 pm: Sensex and Nifty pared some more gains. The benchmark index was trading 123 points up at 25,443. Nifty50 was up 37.15 points at 7,738.

1.39 pm: Sensex was up 171 points at 25,491. Nifty was up 47.20 points at 7748.10. Shares related to automobile companies were trading mixed on the bourses after the Supreme Court banned registration of luxury diesel cars until March 31, 2016.

1.20 pm: Foreign portfolio investors (FPIs) bought shares worth a net Rs 48.67 crore on Tuesday as per provisional data released by the stock exchanges. Sensex was up 190.82 points at 25,511. Nifty was up 59.80 points at 7,760.70.

12.59 pm: Share price of NTPC jumped over 2 per cent after the Ministry of Environment and Forests gave ‘green signal’ to a power project being set up by state-owned NTPC in Telangana while it has deferred another project of the PSU in Andhra Pradesh. Sensex was up 206 points at 25,527.

12.28 pm: Alkem Laboratories shares are expected to list on exchanges on or before December 29, according to a source familiar with the listing. The healthcare major raised Rs 1,350 crore in its initial public offering after pricing shares at Rs 1,050 each. Sensex was up 241.56 points at 25,562. Nifty was up 72.30 points at 7,773.20.

12.18 pm: The Supreme Court banned on registration of diesel cars above 2000 cc in Delhi for 3 months – Jan 2016 to Mar 2016. According to Mihir Jhaveri, director, institutional research, Religare Capital Markets, the impact for Mahindra & Mahindra is minor as Delhi only forms around 2 per cent of its passenger vehicle sales. The decision may impact consumer sentiment for buying a diesel vehicle and whether this ban could percolate to other regions. M&M share price was down 4.19 per cent at Rs 1,235.10.

12.09 pm: Everest Kanto Cylinder shares surged over 15 per cent after court orders Delhi taxis to replace diesel with CNG. The company manufactures CNG cylinders. The scrip was trading 16.34 per cent at Rs 15.31. Sensex was up 214 points at 25,534.

11.52 am: In a bid to check generation of domestic black money, the government will soon issue a notification making quoting of PAN mandatory for all cash transactions beyond Rs 2 lakh, Finance Minister Arun Jaitley said on Tuesday. According to JM Financial, This move to have a temporary adverse impact on the organised jewellery trade where the size of transactions tend to be on the higher side. Share price of Shree Ganesh Jewellery and Rajesh Exports were trading 7.69 per cent and 1 per cent up at Rs 10.50 and Rs 688.40. On the other hand, Titan Company shares were trading 2 per cent down at Rs 356.50 apiece.

“This move would adversely affect investor sentiments on jewellery stocks like Titan, but at the same time, a section of the Street could be relieved that the revised limit is not as low as originally proposed,” said JM Financial.

11.35 am: In a bid to expand its fast-growing cattle-feed business, Hatsun Agro Product is planning to acquire feed mill in Tamil Nadu. The company’s board will meet on December 23 to consider a proposal to acquire a feed mill. Hatsun Agro Product shares were trading 0.98 per cent up at Rs 409. Sensex was up 186 points at 25,506.

11.20 am: Share price of gas distributing companies GAIL, Indraprastha Gas (IGL), Petronet LNG and Gujarat Gas rose in the morning trade on Wednesday as these companies are seen as key beneficiaries from government and judiciary’s focus on pollution. GAIL, IGL and Petronet LNG were trading 4.27 per cent, 3.43 per cent and 1.97 per cent up at Rs 354, Rs 484.60 and Rs 243.80, respectively. Gujarat Gas was trading 5.94 per ent up at Rs 602. According to market experts, focus to control pollution in Delhi will benefit IGL.

10.39 am: In the 50-share index, Cairn India, Tech Mahindra, BPCL, ONGC and BHEL were up between 1.05 per cent and 2.55 per cent. On the other hand, M&M, Tata Motors, Bosch, Bank of Baroda and Wipro were down between 0.28 per cent and 3.89 per cent. Nifty 50 index was up 56.75 points at 7,757. Sensex was up 200.97 points at 25521.41.

10.01 am: Sensex was up 175.61 points at 25,496. Nifty50 index was up 57.70 points at 7,758.60. For the second time in row, PSU oil marketing companies (OMCs) have slashed price of petrol and diesel by 50 paise per litre and 46 paise per litre respectively. The net impact of the crude oil prices and rupee depreciation have warranted a reduction of at least Rs 2 per litre but the reduction is much lower than an anticipated decrease as oil companies left cushion for the government to mop up gains accruing from global oil prices dipping to multi-year lows and also the government may like to raise excise duty on the two fuels to mop up its revenues as it has done five times in last one year.

9.54 am: Mahindra and Mahindra shares were down over 5 per cent at Rs 1219.85 in early trade as the Supreme Court is expected to decide on Wednesday whether to ban registering diesel SUVs and luxury cars with an engine capacity of over 2000 CC in Delhi to curb air pollution. Investors believe the impact on M&M will be significant as most of its models do not have a non-diesel variant. The BSE Auto index was down 0.32 per cent at 18,068.61. 

9.52 am: Brokers said pick-up in buying by participants, in step with a firming trend at other Asian bourses and overnight gains in the US and European markets ahead of the outcome of a Federal Reserve meeting which is likely to see a long-awaited interest rate rise, influenced sentiments.

9.42 am: The rupee rose by 4 paise at 66.88 against the US dollar in early trade today at the Interbank Foreign Exchange on continued selling of the American currency by exporters and banks.

9.17 am: After Tata Consultancy Services, another IT major Wipro on Wednesday informed the bourses that the recent floods and rains in Chennai will have a material impact on its third-quarter earnings. The share price of Wipro was down 0.35 per cent in the early trade. Sensex was up 112.39 points at 25,432.

9.15 am: The BSE Sensex and NSE Nifty opened in green on Wednesday tracking firm global cues. Indian markets will also keep an eye on the US Federal Reserve meet that began on Tuesday, where the central bank is expected to announce a 25 basis points rate hike. Sensex opened 82.03 points up at 25402.47, while Nifty 50 index opened 24.35 points up at 7,725.25.

Asian stocks gained on Wednesday, with sentiment lifting as Wall Street rose before a likely hike in the US interest rates, while the dollar held to large gains made as Treasury yields picked up.

At 8.33 am (IST), Hang Seng, Nikkei and Shanghai were up 2.25 per cent, 2.13 per cent and 0.44 per cent, respectively.

Back home, the BSE Sensex and NSE Nifty on Tuesday extended gains for the second day on account of short coverings and value buying in front line blue chip stocks. Sensex closed 170.09 points up at 25,320, while Nifty50 index settled 50.85 points up at 7,700.90.

In the 50-share index, Bosch, HUL, Lupin, ONGC and Reliance Industries gained between 2.15 per cent and 3.10 per cent on Tuesday. On the other hand, Tech Mahindra, Punjab National Bank, Wipro and ICICI Bank slid between 1.30 per cent and 4.15 per cent.

Sugar stocks will remain in focus on Wednesday. A bill seeking to raise the sugar cess ceiling from Rs 25 to Rs 200 per quintal was passed by the Lok Sabha on Tuesday, with the government saying it will help cane-growers who are in crisis as it can facilitate rehabilitation and modernisation of sugar factories.

State-owned power equipment maker Bhel has commissioned a 500 mw thermal power plant in West Bengal.

(With agency inputs)

Mahindra Holidays & Resorts India said Sweden-based Visionsbolaget AB has become its subsidiary through a group firm. (Thinkstock)

The BSE Sensex and NSE Nifty are expected to open in positive terrain on Wednesday following firm global cues.

Back home, the BSE Sensex and NSE Nifty on Tuesday extended gains for the second day on account of short coverings and value buying in front line blue chip stocks. Sensex closed 170.09 points up at 25,320, while Nifty50 index settled 50.85 points up at 7,700.90.

Below are the stocks that are likely to be in focus today

Sugar stocks: A bill seeking to raise the sugar cess ceiling from Rs 25 to Rs 200 per quintal was passed by the Lok Sabha on Tuesday, with the government saying it will help cane-growers who are in crisis as it can facilitate rehabilitation and modernisation of sugar factories. The Sugar Cess (Amendment) Bill 2015 was passed by a voice vote in the House.

Visa Steel: Stocks of the company will be in focus as the strategic debt restructuring (SDR) plan for Visa Steel has run into rough weather with one of the non-consortium lenders, Housing and Urban Development Corporation (Hudco), throwing a spanner in the works.

Mahindra Holidays & Resorts: Mahindra Holidays & Resorts India said Sweden-based Visionsbolaget AB has become its subsidiary through a group firm. Holiday Club Sweden AB, a step-down subsidiary of Mahindra Holidays & Resorts, has subscribed 51 per cent stake in Visionsbolaget.

Thomas Cook: Travel firm Thomas Cook (India) said that it has received approval from competition watchdog CCI for its acquisition of rival Kuoni Travel. The Competition Commission of India (CCI) has passed an order  approving the proposed deal, Thomas Cook India said in a statement.

BHEL: State-owned power equipment maker Bhel has commissioned a 500 mw thermal power plant in West Bengal. “Bhel has added one more coal-based power plant to the grid by successfully commissioning a 500 MW thermal generating unit in West Bengal,” the company said in a statement . The 500 MW unit 3 was commissioned at the upcoming Sagardighi Thermal Power Extension Project of West Bengal Power Development Corporation (WBPDCL), located at Sagardighi in Murshidabad district.

Larsen & Toubro (L&T): Engineering major Larsen & Toubro (L&T)  said Canada Pension Plan Investment Board (CPPIB) has invested Rs 1,000 crore in its infrastructure arm L&T IDPL.  This is the second tranche of investment made by CPPIB’s in L&T Infrastructure Development Projects Ltd. In June last year, CPPIB had committed to invest Rs 2000 crore in L&T IDPL. “CPPIB  completed its second tranche investment of Rs 1,000 crore,” L&T said in a regulatory filing.

LIC Housing Finance: LIC Housing Finance Ltd (LIC HFL) will acquire 19.3 per cent shares of LIC Nomura Mutual Fund Asset Management Company for Rs 27 crore. Besides, it will also buy a stake of similar percentage in LIC Nomura Fund Trustee Company Pvt for about Rs 1.5 lakh. Both the decisions were taken at the company’s Board of Directors meeting held .

Maruti Suzuki: Voting by minority shareholders of Maruti Suzuki India to let its Japanese parent Suzuki invest and own the upcoming plant in Gujarat ended . The voting through postal ballot took place from November 16 to December 15 while the results will be announced on December 17.

Nestle India: The Supreme Court  sought the Centre’s response to a plea of Nestle India Ltd against an order for testing of 16 more samples of Maggi noodles in connection with the government’s Rs 640 crore suit against the company for alleged unfair trade practices.

Indian Oil Corp, BPCL, HPCL: Stocks of these oil marketing companies will be in focus as they cut petrol price by 50 paise and diesel by 46 paise a litre, much lower than an anticipated decrease as oil companies left cushion for the government to mop up gains accruing from global oil prices dipping to multi-year lows.

Strides Shasun: Drug firm Strides Shasun  said it is evaluating claims made by US-based Mylan, to which it sold Agila Specialties for $1.75 billion in 2013, over compliance with USFDA manufacturing norms.

Sharon Bio-Medicine Ltd: Sharon Bio-Medicine has received establishment inspection report form the US health regulator after the inspection of its Dehradun facility.

Alstom T & D India: Alstom T & D India Ltd  announced the commencement of regular operations at its facilities in Pallavaram and Padappai, which were closed because of heavy rains in Chennai.

Vedanta, Adani: Companies from Vedanta, Adani and Essel groups are in fray for a Rs 1,500-crore transmission project in Odisha. “For Common Transmission System for Phase-II Generation Projects in Odisha and Immediate Evacuation System for OPGC Project in Odisha, Sterlite Grid, Adani and Essel have submitted financial bids ,” a source said. Sterlite Grid is a Vedanta group firm. The deadline for submission of financial bids for the project ended.

Tcs issued a profit warning for the December quarter, due to operational disruptions from Chennai floods in the first week of the month. This will likely pronounce the seasonal weakness already expected due to year end furloughs and lower number of working days in the quarter. In addition, most other Indian IT services companies also have a presence in Chennai and could also see a volume impact due to operations there, hence impact revenue and margin during the quarter. On Friday evening, TCS issued a profit warning for the Dec-15 quarter due to the flooding from sustained rainfall in Chennai which led to major disruptions in its ability to function. Chennai is one of the largest delivery locations for the company, employing over 65K of the 336K employees for the company globally. While mission critical activities are likely to have seen lesser disruption, work shifted to other delivery locations, and normal business functioning in the city had to be halted due to extreme weather conditions and subsequent flooding. Mission critical activities are likely to have been shifted to other locations under business continuity plans, but the nature of contracts could potentially trigger any penalty clauses that might be built in. Our channel checks with industry participants have indicated a higher proportion of risk in delivering large-scale IT contracts being shifted from clients to vendors. Dec-15 quarter’s weak seasonality is likely to see an incremental negative impact due to the Chennai floods. Longer term sector risks on growth, margins, pricing and cannibalisation from digital services remain.