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Cement, telecom stocks drop

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Capital Market
Last Updated : Jan 24 2018 | 1:50 PM IST

Key benchmark indices regained positive terrain and were trading with small gains after slipping into the red for a brief period in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 85.11 points or 0.24% at 36,225.09. The Nifty 50 index was up 20.30 points or 0.18% at 11,104. Mixed Asian cues failed to provide clear direction for the market.

A rangebound and lackluster session of trade was witnessed on the bourses so far. Indices opened higher and hit fresh record highs in early trade. After some profit booking in morning trade, the market regained positive terrain in mid-morning trade. Indices hovered near the flat line with small gains in early afternoon trade. After slipping into the red, indices once again regained positive terrain in afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was down 0.59%. The BSE Small-Cap index was down 0.83%. Both these indices underperformed the Sensex.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,896 shares fell and 870 shares rose. A total of 126 shares were unchanged.

Cement stocks dropped. ACC (down 2.17%), Ambuja Cements (down 0.82%), and UltraTech Cement (down 1.62%) declined. Shree Cement rose 0.44%.

Grasim Industries lost 1.19%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

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Shares of telecom companies fell after Reliance Jio Infocomm cut tariffs to counter bigger rival Bharti Airtel's revision in data plans. Reliance Communications (down 0.86%), Bharti Airtel (down 4.57%), Tata Teleservices (Maharashtra) (down 0.86%) and Idea Cellular (down 4.88%) declined.

Jio, the telecom arm of Reliance Industries reportedly announced today, 24 January 2018, the revision was a response to Airtel's tariff changes, which would help it maintain its price leadership. Bharti Airtel, India's No.1 mobile carrier, revised its data plans earlier this week.

Shares of Bharti Infratel rose 0.43%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Reliance Industries (RIL) dropped 1.77%. The company announced that Reliance Eagleford Midstream LLC (REM LLC) has ceased to be a subsidiary of the company on account of amalgamation of REM LLC with its holding company namely, Reliance Holding USA Inc, which in turn in a wholly owned subsidiary of RIL. The announcement was made during market hours today, 24 January 2018.

As informed from time to time, REM LLC had in June 2015 divested its entire stake of 49.9% held in EFS Midstream LLC.

United Spirits tumbled 5.7% after net profit fell 8.8% to Rs 134.70 crore on 7.8% decline in net sales to Rs 2263.30 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 23 January 2018.

Overseas, Asian shares were mixed. Japan's Nikkei 225 settled lower by 0.81%. Japan's trade surplus fell sharply in 2017 despite record high exports to China and Asia, while its surplus with the US edged up. Japan's overall balance of trade fell 25% to 2.991 trillion Yen ($27.1 billion). On a monthly basis, exports increased 9.3% in December from a year earlier, for the 13th straight rise. Japan's surplus with the US rose 3.1% to 7.036 trillion Yen, the highest since 2015 and the 12th largest on record.

Most US stocks gained yesterday, 23 January 2018, with market focus shifting from politics to corporate earnings after a government shutdown came to an end on Monday. The Dow Jones Industrial Average slipped 0.1%. The S&P 500 index climbed 0.2% and ended at record high. The Nasdaq Composite Index rose 0.7% and closed at record high.

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First Published: Jan 24 2018 | 1:21 PM IST

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