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Power generation stocks decline

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Last Updated : Sep 21 2016 | 12:01 AM IST

Key benchmark indices extended losses in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex was down 127.68 points or 0.45% at 28,506.82. The Nifty 50 index was currently down 46.40 points or 0.53% at 8,762. Weakness in global stocks weighed on sentiment on the domestic bourses.

The Sensex lost 153.97 points or 0.53% at the day's low of 28,480.53 in mid-afternoon trade, its lowest level since 15 September 2016. The barometer index rose 64.31 points or 0.22% at the day's high of 28,698.81 at the onset of trading session. The Nifty lost 49.10 points or 0.55% at the day's low of 8,759.30 in mid-afternoon trade, its lowest level since 16 September 2016. The index rose 8.05 points or 0.09% at the day's high of 8,816.45 at the onset of trading session.

In overseas stock markets, European and Asian stocks edged lower as investors awaited the outcomes of separate policy meetings of the US Federal Reserve and Bank of Japan (BOJ). The BOJ begins a two-day monetary policy meeting today, 20 September 2016. The central bank will conduct a comprehensive review of its stimulus programme after failing to reach its 2% inflation target. Investors are divided on what steps the central bank will take. Some expect that the BOJ will push back additional easing steps, while making its government bond buying more flexible to steepen the yield curve. Others expect the BOJ to launch fresh stimulus through a further push into negative territory and increased asset purchases. The central bank had kept its pledge to increase the monetary base at an annual pace of about 80 trillion yen and left the interest rate unchanged at minus 0.1% at its July 2016 meeting. Policymakers also decided to increase the annual exchange-traded equity funds purchase target to 6 trillion yen from the previous 3.3 trillion yen.

US stocks registered tiny losses yesterday, 19 September 2016, after a choppy session, with telecommunications shares lagging. The US Federal Reserve policy makers begin their two-day policy meeting today, 20 September 2016. The Fed is expected to keep its benchmark interest rate unchanged in the wake of recent downbeat US economic indicators. The Fed left the target range for its federal funds rate unchanged at 0.25% to 0.5% for the fifth time during its July 2016 meeting.

Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,540 shares declined and 1,055 shares rose. A total of 183 shares were unchanged. The BSE Mid-Cap index was currently down 0.23%. The BSE Small-Cap index was currently down 0.37%. The losses for both these indices were lower than the Sensex's decline in percentage terms.

FMCG stocks were mostly lower. Emami (down 2.04%), Godrej Consumer Products (down 1.45%), Bajaj Corp (down 0.69%), Marico (down 0.94%), Tata Global Beverages (down 0.93%), Dabur India (down 0.65%), Colgate-Palmolive (India) (down 0.7%) and Hindustan Unilever (down 0.53%) edged lower. Jyothy Laboratories (up 5.34%), Procter & Gamble Hygiene and Health Care (up 0.76%), Britannia Industries (up 0.19%) and Nestle India (up 0.23%) edged higher.

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Power generation and distribution stocks declined. NHPC (down 2.04%), GMR Infrastructure (down 1.07%), Tata Power Company (down 1.44%), CESC (down 0.71%), NTPC (down 1.32%), Reliance Power (down 0.77%), Torrent Power (down 0.59%), JSW Energy (down 0.31%) and Jaiprakash Power Ventures (down 0.22%) edged lower. Adani Power (up 0.9%) and Power Grid Corporation of India (up 0.31%) edged higher.

Reliance Infrastructure (RInfra) rose 0.74% at Rs 599.60 after the company's board of directors approved to amend the Object Clause of the Memorandum of Association of the company to include new activities relating to setting up any Trust, Funds including Venture Capital Funds, Infrastructure Investment Trust and Real Estate Investment Trust and other Alternative Investment Funds and defence business. The announcement was made after market hours yesterday, 19 September 2016.

Shares of state-run coal mining giant Coal India were up 0.03% at Rs 328.90.

Index heavyweight and software major Infosys was down 1.3% at Rs 1,047.35. The stock hit a high of Rs 1,057.25 and a low of Rs 1,046.50 so far during the day.

Bharat Rasayan surged 10.77% at Rs 1,645 after net profit rose 76.43% to Rs 14.52 crore on 45.87% growth in net sales to Rs 166.25 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 19 September 2016.

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First Published: Sep 20 2016 | 2:17 PM IST

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