Key benchmark indices logged modest losses led by slide in index heavyweights Reliance Industries, ICICI Bank and Infosys. The barometer index, the S&P BSE Sensex, lost 105.85 points or 0.31% at 33,618.59. The Nifty 50 index lost 29.30 points or 0.28% at 10,370.25. Domestic stocks edged lower today, 28 November 2017 on profit booking after logging gains in prior eight trading days.
The Sensex gained 45.71 points or 0.14% at the day's high of 33,770.15 in mid-afternoon trade, its highest level since 7 November 2017. The index fell 147.79 points or 0.44% at the day's low of 33,576.65 in mid-afternoon trade. The Nifty gained 10 points or 0.1% at the day's high of 10,409.55 in mid-afternoon trade, its highest level since 7 November 2017. The index fell 44.35 points or 0.43% at the day's low of 10,355.20 in afternoon trade.
Domestic stocks edged lower in early trade on negative Asian stocks. Stocks cut losses in morning trade. Volatility struck bourses in mid-morning trade as the key benchmark indices once again extended losses after staging an intraday recovery in morning trade. Key benchmark indices hovered in negative zone in early afternoon trade. Indices were hovering near flat line in afternoon trade. Stocks extended fall and hit fresh intraday low in mid-afternoon trade. Indices hovered in negative zone in late trade. The Sensex had gained 964 points or 2.94% in eight sessions from its close of 32,760.44 on 15 November 2017.
The S&P BSE Mid-Cap index rose 0.1%. The S&P BSE Small-Cap index rose 0.27%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, once again turned positive from negative in late trade. On the BSE, 1,377 shares rose and 1,339 shares fell. A total of 161 shares were unchanged.
The total turnover on BSE amounted to Rs 4245.83 crore, higher than the turnover of Rs 4087.13 crore registered during the previous trading session.
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Index heavyweight ICICI Bank fell 1.39% to Rs 312.60.
Index heavyweight Reliance Industries lost 0.92% to Rs 942.
Infosys dropped 1.22% to Rs 985.30. Infosys announced a partnership with Hewlett Packard Enterprise (HPE) to offer a joint end-to-end mainframe modernization solution, which will provide global enterprise customers robust hardware and advanced software architecture. The announcement was made after market hours yesterday, 27 November 2017.
Separately, Infosys announced a multi-year partnership with the State of Rhode Island to establish an Infosys Design and Innovation hub. Infosys will also hire 500 American workers in Rhode Island over the next five years. The announcement was made after market hours yesterday, 27 November 2017. Telecom stocks declined. Bharti Airtel (down 1.56%), Tata Teleservices (Maharashtra) (down 2.23%) and Idea Cellular (down 1.14%) fell. MTNL (up 1.88%) rose.
Shares of Bharti Infratel fell 2.54%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Reliance Communications (RCom) lost 4.12%. RCom issued a clarification to the stock exchanges after market hours yesterday, 27 November 2017, with regard to media news titled "China development bank files insolvency case against Reliance communications". RCom said that the company has not been served any notice of the application filed by China Development Bank with NCLT, as reported in the media.
RCom is engaged through the joint lenders forum (JLF) with all its lenders for a successful resolution of the strategic debt restructuring (SDR) process. The China Development Bank has also been actively participating in the JLF. RCom said it is therefore, surprised by the untimely and premature action of the China Development Bank of filing an application at NCLT. RCom added that it continues to remain engaged with all lenders including the China Development Bank and is confident and committed to a full resolution with the support of all the lenders.
Separately, RCom said it has entered into a binding share purchase agreement with Pantel Technologies and Veecon Media & Television for sale of its subsidiary Reliance BIG TV (RBTV), engaged in the business of direct-to-home (DTH) services across India.
Pursuant to this transaction, the buyers will acquire the entire shareholding of RBTV with business on an "as-in, where is" basis, along with existing trade and contingent liabilities. The transaction will help to reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCom. The transaction is in consonance with RCom's stated objective to focus on B2B businesses of the new RCom, the company said in a statement.
Bharat Heavy Electricals rose 2.28% after the company said it bagged Rs 64 crore order for setting up decentralised sewage treatment plants. The announcement was made during trading hours today, 28 November 2017.
Bharat Heavy Electricals (Bhel) has won an order for setting up six decentralised sewage treatment plants (STPs) in Raipur, Chhattisgarh. Valued at over Rs 64 crore, the order for the STPs with a cumulative capacity of 25.40 MLD (million liters per day), has been placed on Bhel by Raipur Development Authority (an Urban Development Authority under the Government of Chhattisgarh). The project for construction of the decentralized STPs shall be based on Sequential Batch Reactor (SBR) technology.
Bhel's scope of work in the contract broadly includes construction, testing and commissioning of six numbers STPs with raw sewage pumping station, treated sewage effluent pumping system, bio filter, HT substations, transformers and control room building for PLC/SCADA based automation system along with operation & maintenance (O&M) for ten years.
Overseas, European markets were trading steady to higher as concerns over political tensions in German subsided and market sentiment improved. Political tensions in Germany eased after Social Democrats' agreed on Friday to hold talks with Chancellor Merkel on renewing their outgoing coalition government. Meanwhile, the Bank of England said that for the first time since 2014 none of the banks assessed in its latest stress tests need to raise extra capital.
Asian stocks finished broadly lower amid uncertainty over the US tax bill. US stocks closed mostly lower yesterday, 27 November 2017 after touching intraday records as an early rally in retail shares largely fizzled. However, the blue-chip Dow bucked the weak trend to eke out a gain.
US President Donald Trump is scheduled to address Senate Republicans today, 28 November 2017 ahead of a potential vote on a tax overhaul. Federal Reserve Chair Janet Yellen testifies before the congressional Joint Economic Committee in Washington, and the confirmation hearing is due for her nominated successor, Jerome Powell.
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