Sensex in red, Coal India falls 3% on CCI fine

Indian markets opened in red this morning on subdued global cues.

US markets ended weak. The Dow Jones fell 52.4 points or 0.33%, to 15,973.13, the S&P 500 lost 5.75 points or 0.32 percent, to 1,802.62 and the Nasdaq Composite dropped 8.261 points or 0.2 percent, to 4,060.49ahead of the Fed meet next week. European equities too trended lower and Asian markets slipped in early trade following a negative lead from wall street.

While BSE Sensex opened0.40 percent lower at 21169, Nifty opened 0.43 percent lower at 6308.

Coal India was the biggest Sensex loser, down 3 percent after the competition regulator imposed a fine of Rs 1777 crore on the state-run miner for abusing its dominant position and imposing unfair conditions in fuel supply agreements with customers.

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The Competition Commission of India (CCI) on Tuesday issued a “cease and desist order” to the state miner and directed it to modify clauses in its fuel supply contracts related to sampling and testing, transportation charges, and compensation on supply of stones.

BhartiAirtel and Reliance Jio Infocomm Limited announced a comprehensive telecom infrastructure sharing arrangement under which they will share infrastructure created by both parties. While Bharti Airtel was up 0.90%, Bharti Infratel shot up 4 percent.The deal will give the telecom unit, Reliance Jio, pan-India access to Bharti’s nationwide infrastructure while giving Bharti access to the optic fibre capacity created by Jio in future.According to UBSSecuritiesthe deal will make theenvironmentvery tough for new entrants.

Meanwhile, the setback faced by the Congress Party in State elections could potentially raise the political pressure on the Government’s near-term fiscal goals, according to Fitch Ratings. Fitch said the State election results might be read as increasing the risk of policy slippage.

The next trigger for the market would be the Reserve Bank of India’s policy review on Dec. 18.

Globally, Federal Reserve’s policy meeting next week will give an idea on whether it will continue pumping money into the economy at its current rate of $85 billion a month. Many Fed officials don’t see a big deal in a taper program that begins in December versus January.