Amid a mixed trend in index constituents, key indices settled near the flat line. The barometer index, the S&P BSE Sensex closed marginally higher and the 50-unit CNX Nifty closed marginally lower after witnessing intraday volatility. Key indices staged intraday rebound in late trade after remaining weak in mid-afternoon trade. The Sensex rose 5.79 points or 0.02% to settle at 26,442.81, a record closing high. The market breadth indicating the overall health of the market was weak. Shares of power generation and power distribution companies extended Monday's losses triggered by a Supreme Court ruling that all coal mining licenses distributed since 1993 are illegal. Bank stocks declined for the second day in a row. FMCG stocks advanced.
Earlier, key indices had moved into negative zone from positive in early afternoon trade. Before that key indices had moved into green after a weak start.
European shares reversed initial losses. Asian stocks declined in volatile trade amid concerns over geopolitical developments in Ukraine and Iraq. Brent crude oil prices rose for the second day in a row ahead of weekly US oil inventory data from the American Petroleum Institute.
The S&P BSE Sensex rose 5.79 points or 0.02% to settle at 26,442.81, a record closing high. The index rose 44.95 points at the day's high of 26,481.97 in morning trade. The index dropped 122.13 points at the day's low of 26,314.89 in mid-afternoon trade, its lowest level since 21 August 2014.
The CNX Nifty dropped 1.55 points or 0.02% to settle at 7,904.75, its lowest closing level since 21 August 2014. The index hit a high of 7,915.45 in intraday trade. The index hit a low of 7,862.45 in intraday trade, its lowest level since 21 August 2014.
The market breadth indicating the overall health of the market was weak. On BSE, 1,859 shares fell and 1,104 shares rose. A total of 111 shares were unchanged.
More From This Section
The BSE Mid-Cap index shed 22.28 points or 0.24% to settle at 9,258.82. The BSE Small-Cap index fell 82 points or 0.8% to settle at 10,173.38. Both these indices underperformed the Sensex.
Among the sectoral indices, the S&P BSE Healthcare index (up 1.12%), BSE FMCG index (up 0.9%), BSE Metal index (up 0.75%), BSE Consumer Durables index (up 0.33%), BSE IT index (up 0.24%), BSE Teck index (up 0.03%), and BSE Auto index (up 0.03%), outperformed the Sensex.
The BSE Power index (down 1.32%), BSE Capital Goods index (down 0.84%), BSE Oil & Gas index (down 0.7%), BSE Bankex (down 0.24%), and BSE Realty index (down 0.05%), underperformed the Sensex.
Among Sensex shares, 15 shares declined remaining stocks advanced.
Bank stocks declined for the second day in a row. Yes Bank (down 1.66%), Bank of India (down 1.23%), IndusInd Bank (down 0.91%), Federal Bank (down 0.84%), Punjab National Bank (down 1.08%), Bank of Baroda (down 0.54%), ICICI Bank (down 0.28%), State Bank of India (down 0.64%) and HDFC Bank (down 0.11%) edged lower. Axis Bank gained 0.06% at Rs 397.75. Kotak Mahindra Bank rose 1.33% at Rs 1,059.
FMCG stocks advanced. Hindustan Unilever (up 1.4%), Dabur India (up 1.68%), Marico (up 1.43%), Colgate-Palmolive (India) (up 0.61%), Nestle India (up 0.68%), and Godrej Consumer Products (up 3.84%) edged higher.
Shares of power generation and power distribution companies extended Monday's losses triggered by a Supreme Court ruling that all coal mining licenses distributed since 1993 are illegal. GVK Power & Infrastructure (down 3.05%), NTPC (down 0.63%), NHPC (down 1.87%), Adani Power (down 6.44), Reliance Infrastructure (down 0.58%), and Power Grid Corporation of India (down 1.06%) declined.
Tata Power Company dropped 2.77%. The company said during market hours that the recent Supreme Court ruling on coal blocks includes the Tubed and Mandakini coal blocks allotted to the company. The 120 million tonness (MT) Tubed coal block in the Latehar district in Jharkhand was allotted jointly to Tata Power (40% share of coal) and Hindalco Industries (60% share of coal) in August 2007. The annual yield of the coal block was expected to be 6 MTPA. Tata Power's share of coal from Tubed was to be utilized in the end use power plant being developed at Tiruldih in Jharkhand. The 290 MT Mandakini coal block in Angul district in Odisha was allotted jointly to Tata Power, Monnet Ispat and Jindal Fotofilm, each with a third of the share of coal, in January 2008. The annual yield of the coal block was expected to be 7.5 MTPA. Tata Power's share of coal from Mandakini was to be utilized in the end use power plant at Naraj Marthapur or an alternate end use plant in the state of Odisha, which is under final approval of Government of Odisha.
The Supreme Court on Monday, 25 August 2014, deemed all coal block allocations made since 1993 as illegal. The allocations had no objective criteria and no fair and transparent procedure was followed, the Court said, adding they were impermissible. The quashing of these allocations still remains to be decided in further hearings. The court suggested the appointment of a panel of retired apex court judges to help the court in this matter. The case will be heard on 1 September next.
Separately, Tata Power said before market hours that the Supreme Court has on 25 August 2014 stayed the payment of the compensatory tariff by procurers as was allowed as per Appellate Tribunal for Electricity (APTEL)'s interim order. The apex court has further asked APTEL to expedite the case hearings and take a final decision on the subject matter quickly. As the case is already being heard by the APTEL, the company would await a quick resolution of this issue through the required judicial process, Tata Power.
Haryana as a procurer had filed for stay of the interim order of the Appellate Tribunal for Electricity (APTEL) which upheld that compensatory tariff be payable after March 2014 as per order of Central Electricity Regulatory Commission (CERC).
Reliance Power slumped 6.79%. The company said during market hours that the fifth 660 megawatts (MW) unit of the 3,960 MW Sasan Ultra Mega Power Plant (UMPP) has commenced power generation thus making 3,300 MW capacity operational at the project. The last unit is in advanced stages of construction and will be commissioned over the next few months. Reliance Power's generation capacity has increased to 5,185 MW which includes 5,100 MW of thermal capacity and 85 MW of renewable energy based capacity. Coal production has already commenced from the 20 million tonnes Moher and Moher-Amlohri coal mines associated with the power project.
TCS gained 0.49% after the company after market hours on Monday, 25 August 2014, announced a partnership with Cloudera, a leader in enterprise analytic data management powered by Apache Hadoop, certifying TCS' global team of Big Data experts through the Cloudera Certified Professional (CCP) program. TCS' products are also validated through the Cloudera Certified Technology Program (CCTP), which was created to simplify technology buyers' adoption of Apache Hadoop platforms and applications that have been tested, validated and certified to work with a Cloudera enterprise data hub.
Tech Mahindra rose 1.7% after a media report suggested that the company expects its digital unit to contribute more than $500 million to revenue by 2015, as the company moves towards its goal of achieving a $5 billion top line by that time.
Reliance Industries (RIL) fell 0.23%. The stock was volatile. The stock hit high of Rs 997.20 and low of Rs 984.25. The company clarified during market hours with respect to news item captioned "HPCL eyes tie-up with Reliance to expand oil retailing biz", that several business opportunities are pursued from time to time as part of normal business. As and when any material opportunities consummate, the company will make appropriate disclosures, RIL said.
HPCL dropped 1.8%. HPCL in its own clarificaiton issued after market hours on Monday, 25 August 2014, said that at this stage, it is too preliminary to comment on this subject news item.
Mahindra & Mahindra (M&M) lost 0.45%. M&M proposes to appeal against the Competition Commission of India's order before the appropriate forum. The Competition Commission of India (CCI) on Monday, 25 August 2014, levied a total penalty of Rs 2544.64 crore on 14 car makers at the rate of 2% of the average turnover after it found them to be in contravention of the provisions of the Competition Act, 2002. The amount of penalty imposed on M&M is Rs 292.25 crore.
L&T declined 1.33%. The company said during market hours that Bangladesh Power Development Board (BPDB) and L&T have signed a contract to set up a 225 megawatts, gas based power plant in Sikalbaha, Chittagong in Bangladesh. The contract, which was valued at about $200 million, was secured by L&T in May 2014.
Jindal Steel & Power dropped 6.16%, with the stock extending Monday's steep losses triggered by a Supreme Court ruling that all coal mining licenses distributed since 1993 are illegal.
Strides Arcolab lost 1.93%. The company during trading hours today said that it has received approval from the United State Food & Drug Administration (USFDA) for Buspirone Hydrochloride Tablets USP, 5 mg, 10 mg, 15 mg and 30 mg. According to IMS data, as on 30 September 2013, the US market for generic Buspirone Tablets is approximately $65 million, Strides Arcolab said. The product will be manufactured at the company's oral dosage facility at Bangalore and marketed directly by Strides in the US market, it added.
Buspirone tablets are used for the treatment of anxiety disorders and the short-term relief of the symptoms of anxiety.
Jet Airways (India) lost 3.25%. The company during market hours today, 26 August 2014, in a clarification with regard to news item titled "Jet Airways stock nosedives 5% after ICRA cuts credit rating to lowest" said that ICRA had, as part of the process last year, downgraded Jet Airways to a D rating, but after discussions with the management and going through the facts, reinstated the rating to BB. Jet Airways said that its financial obligation has, when compared to last year, considerably reduced. The recently published ICRA downgrade is based on a historic delay in debt servicing, which occurred and was resolved before 31 March 2014, Jet Airways said. The company said that it can confirm that the company is current on all its loan obligations and interest repayments as of 31 March 2014 and that it continus to be current. Jet Airways stressed that its recently published first quarter results (for FY 2014-15) show a positive trend in performance and that its three-year business plan for recovery is on track.
DCM Shriram lost 2.38% as the stock turned ex-dividend today, 26 August 2014, for interim dividend of Rs 1.80 per share for the year ending 31 March 2015.
Goa Carbon lost 3.27% as the stock turned ex-dividend today, 26 August 2014, for dividend of Rs 1 per share for the year ended 31 March 2014.
KRBL lost 2.85% as the stock turned ex-dividend today, 26 August 2014, for final dividend of Rs 1.20 per share for the year ended 31 March 2014.
The stock market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month August 2014 series to September 2014 series. The near-month August 2014 F&O contracts expire on Thursday, 28 August 2014.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 165.02 crore from the secondary equity market on Monday, 25 August 2014, according to the data from the Securities and Exchange Board of India.
The Supreme Court on Monday, 25 August 2014, deemed all coal block allocations made since 1993 as illegal. The allocations had no objective criteria and no fair and transparent procedure was followed, the Court said, adding they were impermissible. The quashing of these allocations still remains to be decided in further hearings. The court suggested the appointment of a panel of retired apex court judges to help the court in this matter. The case will be heard on 1 September next.
Brent crude prices rose for the second day in a row ahead of weekly US oil inventory data from the American Petroleum Institute. Brent for October settlement was up 18 cents at $102.83 a barrel. The contract rose 36 cents to settle at $102.65 a barrel on Monday, 25 August 2014.
The presidents of Ukraine and Russia will meet in Minsk, Belarus later today, 26 August 2014. Meanwhile, the US and its European allies have condemned escalating violence in Libya after Islamist militias took control of an international airport in Tripoli.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.47, compared with its close of 60.565 on Monday, 25 August 2014.
European shares reversed initial losses in volatile trade today, 26 August 2014. Key benchmark indices in UK and France were up 0.32% to 0.33%. In Germany, DAX index was down 0.12%.
Asian stocks declined in volatile trade today, 26 August 2014. Key benchmark indices in Indonesia, Japan, Singapore, Hong Kong and China fell 0.20% to 0.99%. Key benchmark indices in South Korea and Taiwan rose 0.04% to 0.35%.
Trading in US index futures indicate that Dow could gain 23 points in the opening trade Tuesday, 26 August 2014. US stocks gained on Monday, 25 August 2014, with S&P 500 index closing at a record high and moving above 2,000 mark in intraday trade for the first time, buoyed by deal activity and hints of more stimulus from the European Central Bank.
The pace of new-home sales in US fell to the slowest in four months in July. Purchases unexpectedly declined 2.4% to a 412,000 annualized pace, Commerce Department data showed on Monday, 25 August 2014. June purchases were revised up to a 422,000 rate after a May gain that was also bigger than previously estimated.
Powered by Capital Market - Live News