Key indices continued to trade with small losses after hovering in narrow range in negative terrain in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 53.52 points or 0.18% at 29,589.96. The Nifty 50 index was down 14.05 points or 0.15% at 9,189.40. Sentiment was subdued after data showed after market hours yesterday, 12 April 2017 that industrial production contracted in February while consumer inflation edged up in March.
Infosys declined after announcing Q4 results. Most capital goods stocks gained. Cement stocks were mixed.
The BSE Mid-Cap index was up 0.16%. The BSE Small-Cap index was up 0.54%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,499 shares rose and 983 shares fell. A total of 121 shares were unchanged.
Most capital goods stocks gained. BEML (up 0.48%), Bharat Heavy Electricals (Bhel) (up 0.14%), Thermax (up 0.65%), Siemens (up 0.25%) and Havells India (up 0.34%) gained. L&T (down 1.11%) and ABB India (down 0.54%) declined.
Cement stocks were mixed. ACC (up 1%), Shree Cement (up 0.08%), Ambuja Cements (up 0.54%) gained. UltraTech Cement declined 0.19%.
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Grasim Industries dropped 0.56%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Arshiya rose 2.39% after the company said it entered into a binding term sheet with Ascendas Property Fund Trustee Pte (APFT), whereby APFT, in its capacity as Trustee-Manager of Ascendas India Trust, has agreed, subject to satisfactory due diligence, agreement on definitive documentation and obtaining necessary board approvals, to acquire 6 warehouses (totaling 8,32,000 sq.ft.) of Arshiya at its FreeTrade & Warehousing Zone (FTWZ) located at Panvel, near Mumbai.
The intended objective of Arshiya is to achieve an asset light model going forward, while Ascendas will potentially be getting a portfolio of income yielding Free Trade warehouses. The term sheet also envisages the financing of the future development on the available surplus land which has development potential of approx. 4 million sq.ft. within the existing notified area.
The indicative gross consideration envisaged is Rs 534 crore, to be paid in two tranches; Rs 434 crore upon signing of a definitive agreement and the balance Rs 100 crores to be paid over 4 years on achieving certain milestones. The announcement was made after market hours yesterday, 12 April 2017.
Central Bank of India rose 1.97% to Rs 102.75 after the bank's board of directors approved raising of equity capital by issuance and allotment of 5.59 crore equity shares at Rs 104.15 per share aggregating to Rs 583 crore to the government on a preferential basis. The announcement was made after market hours yesterday, 12 April 2017.
Minda Corporation rose 2.62% after the company said it has issued commercial paper of Rs 25 crore on 11 April 2017. This is in line with the management's efforts to bring down the cost of the company. The commercial paper is having maturity date of 10 July 2017. The announcement was made after market hours yesterday, 12 April 2017.
On macroeconomic data front, industrial production declined 1.2% in February 2017 over February 2016, snapping 3.3% growth recorded in January 2017. The manufacturing sector's production dipped 2% in February 2017, mainly contributing to the dip in industrial production.
The inflation based on consumer price index (CPI) increased to 3.81% in March 2017 (new base 2012=100), compared with 3.65% in February 2017. The corresponding provisional inflation rate for rural area was 3.75% and urban area 3.88% in March 2017 as against 3.67% and 3.55% in February 2017. The core CPI inflation rose marginally to 4.79% in March 2017 from 4.75% in February 2017. The CPI and IIP data was announced after market hours yesterday, 12 April 2017.
Overseas, Asian stocks were mixed. China's exports rose 14.8% in the first quarter from a year earlier in yuan terms, extending an 11% increase in the first two months, official data showed. Imports in the January to March period increased 31.1% in yuan terms from a year earlier, compared with a 34.2% rise in the first two months, the General Administration of Customs said in a release.
China's trade balance returned to a surplus in March, helped by renewed strength in exports after a surprise deficit in February. The balance between exports and imports came to a surplus of $23.93 billion in March, compared with a deficit of $9.15 billion in February, the General Administration of Customs said. Exports rose 16.4% in March from a year earlier, following a 1.3% drop in February. Imports continued to expand rapidly, growing 20.3% in March compared with February's 38.1% increase.
US stocks closed modestly lower yesterday, 12 April 2017 led by industrial and materials companies on another day of subdued trading ahead of the long Easter holiday weekend.
Meanwhile, US Secretary of State Rex Tillerson met with the Russian counterpart Sergei Lavrov to discuss the civil war in Syria and nuclear capabilities of North Korea. In recent days, the trading mood has been dented by heightened geopolitical tensions.
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