Key benchmark indices suffered modest losses amid volatile session of trade ahead of the release of key domestic economic data later in the day. The barometer index, the S&P BSE Sensex, fell 144.87 points or 0.49% to settle at 29,643.48. The Nifty 50 index shed 33.55 points or 0.36% to settle at 9,203.45.
Stocks of public sector banks declined. Stocks of private sector banks were mixed. Shares of power generation and power distribution companies edged lower.
IT major Infosys edged higher ahead of its Q4 March 2017 results tomorrow, 13 April 2017. Vedanta and Cairn India advanced after Vedanta and Cairn India announced that the merger of Cairn India with Vedanta pursuant to the scheme of arrangement has become effective.
The market weakened once again in late trade after trimming intraday losses in afternoon trade. It hovered in red till afternoon trade after extending initial losses in morning trade. It traded near the flat line in early trade after a positive opening.
The Sensex fell 144.87 points or 0.49% to settle at 29,643.48, its lowest closing level since 10 April 2017. It fell 238.61 points or 0.8% at the day's low of 29,549.74. It rose 50.47 points or 0.16% at the day's high of 29,838.82.
The Nifty shed 33.55 points or 0.36% to settle at 9,203.45, its lowest closing level since 10 April 2017. It fell 75.20 points or 0.81% at the day's low of 9,161.80. It rose 9.40 points or 0.1% at the day's high of 9,246.40.
The BSE Mid-Cap index declined 0.22%. The decline in this index was lower than the Sensex's fall in percentage terms. The BSE Small-Cap index lost 0.49%, matching Sensex's fall in percentage terms.
The breadth, indicating the health of the market, was weak. On BSE, 1,756 shares fell and 1,144 shares rose. A total of 136 shares were unchanged.
The total turnover on BSE amounted to Rs 4126.97 crore, higher than turnover of Rs 3613.98 crore registered during the previous trading session.
Among the sectoral indices on BSE, the BSE IT index (down 0.52%), the BSE Metal index (down 0.66%) and the BSE Power index (down 0.97%) underperformed the Sensex.
The BSE Healthcare index (up 0.62%), the BSE Telecom index (up 0.4%), the BSE Bankex index (down 0.26%) and the BSE Capital Goods index (down 0.25%) outperformed the Sensex.
Stocks of public sector banks declined. Indian Bank (down 3.9%), Bank of India (down 1.77%), Union Bank of India (down 1.64%), State Bank of India (down 1.23%) and IDBI Bank (down 1.18%) edged lower. Punjab National Bank (up 0.38%) edged higher.
Stocks of private sector banks were mixed. Yes Bank (up 1.11%), IndusInd Bank (up 0.96%) and HDFC Bank (up 0.31%) edged higher. Axis Bank (down 1.55%), ICICI Bank (down 0.76%) and Kotak Mahindra Bank (down 0.63%) edged lower.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 3.09%), NHPC (down 0.31%), NTPC (down 0.31%), Adani Power (down 9.01%), Power Grid Corporation of India (down 0.95%), Reliance Infrastructure (down 2.09%) and Reliance Power (down 2.83%) declined.
Tata Power Company rose 0.06% in volatile trade after the company announced that the Supreme Court on Tuesday, 11 April 2017, conveyed its judgment on the Compensatory Tariff mailer on the Mundra Ultra Mega Power Projects (UMPP). The announcement was made after market hours yesterday, 11 April 2017.
The order verbally conveyed set aside the previous favourable order of Appellate Tribunal for Electricity (APTEL) which had allowed compensatory tariff on account of Forced Majeure conditions at Indonesia. It did not mention about the use of Regulatory Powers of the Central Electricity Regulatory Commission (CERC) in adjudicating compensatory tariff as per previous order.
The final order has got uploaded in the evening and the company is studying the same. The company will continue to pursue all alternatives options at Coastal Gujarat Power (CGPL), including sourcing of competitive coal from other relevant geographies as also use low grade and blended coal options to contain the onslaught of under recovery at Mundra UMPP.
Shares of state-run coal mining major Coal India rose 0.24% to Rs 289.90. The stock had hit high of Rs 291.80 and low of Rs 288 in intraday trade.
Bharti Airtel was up 0.29%. The company said its DTH arm Airtel Digital TV launched Internet TV - India's first hybrid STB, powered by Android TV, which brings the best of online content to the TV screen along with a bouquet of over 500 plus satellite TV channels. The announcement was made during market hours today, 12 April 2017.
Grasim Industries declined 1.38%. Aditya Birla Nuvo fell 0.39%. The shareholders of Grasim, Aditya Birla Nuvo (ABNL) and Aditya Birla Financial Services (ABFSL) at their meetings held on 6 and 10 April 2017, respectively have approved the scheme of amalgamation of ABNL with Grasim followed by the demerger and listing of the financial services business, in line with the NCLT order and the Sebi requirements. The announcement was made after market hours yesterday, 11 April 2017.
IT major Infosys gained 0.17% ahead of its Q4 March 2017 results tomorrow, 13 April 2017.
Wipro declined 1.76%. The company said it has completed the acquisition of Brazilian IT service provider InfoSERVER. The impact of the buyout will reflect in the financials of the company from the Q1 June 2017, it added.
In January this year, Wipro signed an agreement to acquire InfoSERVER, an IT service provider focused on the Brazilian market for $8.7 million. The announcement was made after market hours yesterday, 11 April 2017.
Index heavyweight Reliance Industries (RIL) declined 1.45%. RIL's subsidiary, Reliance Jio Infocomm (Jio) announced that the Jio Summer Surprise has been fully withdrawn, following the advice of Telecom Regulatory authority of India (TRAI).
Jio further announced new all unlimited plans with special benefits, exclusively for its Jio Prime members and aimed at encouraging Jio subscribers to live the Digital Life without restrictions - Jio Dhan Dhana Dhan!
The plans start with the most affordable Rs 309 all unlimited plan, which provides unlimited SMS, calling and data (1GB per day at 4G speed) for 3 months on first recharge. The company also announced the Rs 509 all unlimited plan for daily high data users offering unlimited SMS, calling and data (2GB per day at 4G speed) for 3 months on first recharge. The announcement was made after market hours yesterday, 11 April 2017.
Vedanta rose 2.18% and Cairn India advanced 1.68% after Vedanta and Cairn India announced after market hours yesterday, 11 April 2017, that the merger of Cairn India with Vedanta pursuant to the scheme of arrangement has become effective. Thursday, 27 April 2017 has been fixed as the record date for determining the list of the shareholders of Cairn India to whom the equity and preference shares of Vedanta will be allotted as per terms of the scheme.
Shareholders of Cairn India will receive, for each equity share held, one equity share in Vedanta of face value Rs 1 each and four 7.5% redeemable preference share (RPS) in Vedanta with a face value of Rs 10 each.
Cairn India shareholders as on said record date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs 17.70 per equity share as approved by the board of Vedanta on 30 March 2017.
No shares will be issued to Vedanta or any of its subsidiaries for their shareholding in Cairn India. Vedanta will arrange for a third-party facility enabling a cash exit for RPS holders at par within 30 days from issuance.
This merger consolidates Vedanta's position as one of the world's largest diversified natural resources companies, with world-class, low-cost assets in metals & mining and oil & gas. The merged company will have a larger pro forma market capitalisation of $15.60 billion, and higher free float of 49.9%.
On the macroeconomic data front, the index of industrial production (IIP) data for February 2017, will be released after market hours today, 12 April 12 2017. India's industrial production improved 2.7% in January 2017 over January 2016, snapping 0.1% decline recorded in December 2016.
The government will also announce monthly inflation data based on consumer price index (CPI) for March 2017 later in the day today, 12 April 12 2017. The all-India general CPI inflation increased to 3.65% in February 2017 (new base 2012=100), compared with 3.17% in January 2017.
Overseas, European stocks gained after the Economy Ministry said, German economy, Europe's largest, picked up speed at the beginning of this year, lifted by a robust industrial sector and rising employment that is supporting private consumption. In the final three months of 2016, the economy grew by 0.4%.
Asian stocks were mixed as a drumbeat of alarming geopolitical news compelled investors to move money out of risky assets.
North Korea warned yesterday, 11 April 2017, of a nuclear attack on the United States at any sign of aggression, as a US Navy strike group steamed toward the western Pacific - a force President Donald Trump described as an armada.
At the same time, US Secretary of State Rex Tillerson was in Moscow to denounce Russian support for Syria's Bashar al-Assad, raising the stakes in the Middle East. Political uncertainty in France also weighed on sentiment as hard-left candidate Jean-Luc Melenchon surged in the polls ahead of the May Presidential election.
On data front in Asia, China's consumer inflation rebounded slightly in March after slipping to a more than two-year low in the previous month, official data showed. China's consumer price index increased 0.9% in March from a year earlier, compared with a 0.8% gain in February, the National Bureau of Statistics said.
China's producer price inflation cooled for the first time in seven months in March. China's producer price index (PPI) rose 7.6% in March from a year earlier, still elevated but in line with expectations and easing from 7.8% in February.
Japanese core machinery orders rose in February, the government said, a sign that companies are investing more for growth despite continuing global political and economic uncertainty. Core machinery orders, a leading indicator of business investment, increased 1.5% from the previous month, following a drop of 3.2% in January, the Cabinet Office said.
US stocks finished slightly lower yesterday, 11 April 2017, as rising geopolitical tensions lured investors out of risky assets like stocks and into the perceived safety of treasuries, gold and the Japanese yen.
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