Sensex Falls Over 400 pts, Nifty Breaks 8,000

Sensex, Nifty have fallen more than 1%

(Photo: Reuters)

Shares of Tata Steel today fell over 2 per cent on the bourses after UK unions notified the company of an industrial action on June 22 over the firm’s proposal to revise the British Steel Pension Scheme (BSPS).

The stock slumped 2.37 per cent to an early low of Rs 298.70 on BSE. Similar movement was seen on National Stock Exchange as well where the stock opened at Rs 306.10, then slumped 2.52 per cent to low of Rs 298.30 in early trade.

In a BSE filing on June 10, the firm said: “Tata Steel UK (indirect subsidiary of Tata Steel Ltd) has now been notified by the four unions (Community, GMB, Ucatt and Unite) of their plans to take industrial action in dispute over the company’s proposal to revise the BSPS’ contribution and benefits framework.”

Tata Steel employs more than 17,000 workers at four sites across Wales in Port Talbot, Newport, Flintshire and Carmarthenshire, as well as sites around England including Corby, Hartlepool, Rotherham, Scunthorpe, Teesside and York.

The filing further said: “As per the notice received, the unions in the UK propose a UK-wide ban on overtime working and a ‘work to rule’ commencing June 16, 2015 and additionally strike action at most of the UK operating units on June 22.” However, the unions have indicated that they are open to talks with the Tatas over a meaningful settlement.

Sensex Rebounds 159 pts on Shrinking CAD, Global Cues

10:00 am: The benchmark BSE Sensex regained the 27,000 mark by soaring over 159 points in early trade on increased buying by participants after the current account deficit (CAD) narrowed sharply to USD 1.3 billion, or 0.2 per cent of GDP, in the fourth quarter of FY15 amid positive global cues.

Rising for the second day, the 30-share index recaptured the crucial 27,000 mark by gaining 159.64 points, or 0.59 per cent, to trade at 27,000.14 as all sectoral indices, led by realty, consumer durables, healthcare, capital goods and FMCG, were trading in the positive zone with gains of up to 1.35 per cent.

The gauge had gained 359.25 points in the previous session.

On similar lines, the NSE Nifty spurted 31.80 points, or 0.39 per cent, to 8,156.25.

Brokers said a firming trend at other Asian markets following a strong closing in US markets amid hopes of a Greek debt deal buoyed trading sentiment here.

Besides, covering-up of short positions in select blue-chips by speculators supported the upside, they added.

Among other Asian markets, Hong Kong’s Hang Seng was up 0.83 per cent while Japan’s Nikkei gained 1.44 per cent in early trade today.

The US Dow Jones Industrial Average ended 1.33 per cent higher in yesterday’s trade.