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Market slips in dull trading session

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Capital Market
Last Updated : Aug 19 2016 | 4:13 PM IST

Key benchmark indices declined in lackluster trading session. The barometer index, the S&P BSE Sensex, fell 40.66 points or 0.14% at 28,082.78, as per the provisional closing data. The losses for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty fell 6.80 points or 0.08% to 8,666.45, as per the provisional closing data. The market sentiment was weak as European stocks drifted lower.

The Sensex lost 97.32 points, or 0.35% at the day's low of 28,026.12 in afternoon trade, its lowest level since 17 August 2016. The index rose 88.86 points, or 0.32% at the day's high of 28,212.30 at the onset of trading session. The Nifty fell 26.15 points, or 0.3% at the day's low of 8,647.10 in afternoon trade, its lowest level since 17 August 2016. The index rose 23.35 points, or 0.27% at the day's high of 8,696.60 at the onset of trading session, its highest level since 9 August 2016.

In overseas stock markets, European stocks edged lower amid uncertainty over the trajectory of US monetary policy. Asian stocks witnessed a mixed trend after some Federal Reserve officials reiterated the case for raising US interest rates in coming months. US stocks eked out gains yesterday, 18 August 2016, following upbeat earnings and forecast from Wal-Mart and as higher oil lifted energy shares.

The market breadth indicating the overall health of the market was positive. On BSE, 1,471 shares rose and 1,238 shares fell. A total of 181 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.52%. The BSE Small-Cap index provisionally rose 0.45%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 3184 crore.

Coal India extended losses registered during the previous trading session triggered by reports that the government proposes to divest 5-10% stake in the company in Q4 March 2017. The stock fell 1.27% at Rs 334.50. The stock had declined 2.59% to settle at Rs 338.80 yesterday, 18 August 2016. GoI currently holds 79.65% in Coal India (as on 30 June 2016).

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Most metal shares edged higher. Hindustan Copper (up 8.24%), Steel Authority of India (up 3.22%), Bhushan Steel (up 3.09%), Jindal Steel & Power (up 2.57%), NMDC (up 2.11%), Tata Steel (up 1.20%), National Aluminium Company (up 0.53%), JSW Steel (up 0.45%) and Hindustan Zinc (up 0.37%), edged higher.

Hindalco Industries rose 2.76% to Rs 158.50. The stock hit a high of Rs 159.25 in intraday trade, which is a 52-week high for the counter.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.05% at $2.1665 per pound on the COMEX.

Vedanta (up 3.59%) and Cairn India (up 4.15%) edged higher after Vedanta's Chief Executive Officer (CEO) Tom Albanese was quoted as saying that the company received a constructive feedback from minority shareholders of Cairn India to the revised merger deal of Cairn India with Vedanta. The Jurisdictional High Courts have convened the shareholder meetings for Vedanta and Cairn India on 8 September 2016 and 12 September 2016 respectively for shareholders' approval for the merger.

As per the revised terms of the merger deal announced on 22 July 2016, the public shareholders of Cairn India will receive one equity share of Vedanta for each share held in the company. Additionally, the public shareholders of Cairn India will get four 7.5% redeemable preference shares (RPS) of Vedanta of the face value of Rs 10 each with tenure of 18 months for each share held in Cairn India.

Indian Hotels Company (IHCL) (up 2.46%) and TajGVK Hotels & Resorts (up 20%), edged higher on reports that IHCL is in talks to merge TajGVK Hotels & Resorts with itself. However, IHCL during market hours today, 19 August 2016, said in a clarification to the stock exchanges that the news item is an absolutely unfounded one. There are no plans for merger of TajGVK Hotels & Resorts with IHCL, the company said. TajGVK Hotels & Resorts is a joint venture between IHCL and Hyderabad-based GVK Group. IHCL held 25.52% stake in TajGVK Hotels & Resorts as on 30 June 2016.

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First Published: Aug 19 2016 | 3:30 PM IST

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