After extending gains in afternoon trade, key benchmark indices pared gains in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex, was up 23.06 points or 0.09% at 26,030.36. The Nifty 50 index was currently up 4.50 points or 0.06% at 7,967.15. The Sensex was currently trading above the psychologically important 26,000 mark. The barometer index alternately moved above and below that level earlier during the trading session. A rally took the Sensex past the psychologically important 26,000 mark yesterday, 26 April 2016.
The Sensex rose 85.63 points, or 0.33% at the day's high of 26,092.93 in mid-afternoon trade, its highest level since 4 January 2016. The index fell 122.06 points, or 0.47% at the day's low of 25,885.24 in early trade. The Nifty rose 28.35 points, or 0.36% at the day's high of 7,991 in mid-afternoon trade, its highest level since 6 November 2015. The index fell 22.10 points, or 0.28% at the day's low of 7,940.55 in early trade.
The market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,262 shares fell and 1210 shares rose. A total of 159 shares were unchanged. The BSE Mid-Cap index was currently up 0.08%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.24%, outperforming the Sensex.
In overseas stock markets, European stocks edged higher. Asian stocks declined as traders awaited policy decisions from the Federal Reserve and the Bank of Japan. The Bank of Japan's (BOJ) two-day monetary policy meeting began today, 27 April 2016. Speculation is rife that the Japanese central bank will announce further easing of monetary policy. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.
US stocks closed with mixed results yesterday 26 April 2016, ahead of a barrage of tech earnings and monetary policy statement from the Federal Reserve. The Federal Reserve's two-day policy meeting concludes today, 27 April 2016. As per market expectations, the Fed is likely to hold rates steady this week. The Fed statement could provide clues on the future interest rate increases.
Tata Motors was down 0.05%. The company has approved raising Rs 300 crore from issue of non-convertible debentures on private placement basis. The coupon rate of the debentures is 8.25%. The debentures have a tenure of 1006 days.
Capital goods shares were mixed. Bharat Electronics (up 2.05%), SKF India (up 1.74%), ALSTOM India (up 1.45%), Praj Industries (up 1.29%), BEML (up 1%), Thermax (up 0.99%), Jindal Saw (up 0.79%), Lakshmi Machine Works (up 0.56%), Siemens (up 0.29%) and Punj Lloyd (up 0.22%), edged higher. ABB India (down 0.06%), Bharat Heavy Electricals (down 0.12%), Alstom T&D India (down 0.47%), AIA Engineering (down 0.52%), Reliance Defence and Engineering (down 0.62%), Suzlon Energy (down 0.76%), Havells India (down 0.87%) and Crompton Greaves (down 1%), edged lower.
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Engineering & construction major L&T was down 0.32% to Rs 1,276.90. The stock hit a high of Rs 1,288 and a low of Rs 1,272 so far during the day. The company announced during trading hours today, 27 April 2016, that its construction division has won orders worth Rs 1798 crore across various business segments in this month so far.
Power generation stocks were mixed. Tata Power (down 1.74%), Adani Power (down 1.07%), Reliance Power (down 0.65%), Jaiprakash Power Ventures (down 0.42%) and Reliance Infrastructure (down 0.01%), edged lower. JSW Energy (up 0.15%), NTPC (up 0.28%), CESC (up 0.54%), GMR Infrastructure (up 0.65%) and Torrent Power (up 1%), edged higher.
State-run NHPC lost 6.29% to Rs 21.60 after the Government of India, the principal shareholder, set floor price for divestment of 11.36% stake in the company through the stock exchanges mechanism at discount to the ruling market price. The floor price was set at a discount of 5.63% to the stock's closing price of Rs 23.05 on BSE yesterday, 26 April 2016. The Government of India (GoI) is selling up to 125.76 crore equity shares, constituting 11.36% of the total paid up equity share capital of the company through Offer for Sale (OFS) via the stock exchanges mechanism.
Bidding for the shares in the OFS by non-retail investors takes place in a single trading session today, 27 April 2016. However, those non-retail investors who have placed their bids today, 27 April 2016 and have chosen to carry forward their bids to tomorrow, 28 April 2016, will be allowed to revise their bids tomorrow, 28 April 2016. Bidding by retail investors will take place in a single trading session tomorrow, 28 April 2016. Retail investors will be allocated offer shares at a discount of 5% to the cut off price. GoI currently holds 85.96% stake in NHPC (as per the shareholding pattern as on 31 March 2016).
Separately, NHPC said that the board of directors of the company at its meeting held yesterday, 26 April 2016, considered and approved the proposal for raising of debt up to Rs 900 crore through issuance of U-Series secured redeemable non cumulative non convertible corporate bonds in the nature of debentures on private placement basis.
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