Key benchmark indices were trading with moderate losses in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was down 90.91 points or 0.33% at 27,217.69. The Nifty 50 index was down 21.55 points or 0.26% at 8,413.55. Indices dropped today, 20 January 2017, amid mixed Asian cues as caution prevailed ahead of US President-elect Donald Trump's inauguration.
The BSE Mid-Cap index was down 0.21%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 0.09%, outperforming the Sensex. The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,261 shares fell and 1,125 shares rose. A total of 161 shares were unchanged.
After witnessing a lower opening, key indices languished in the negative terrain so far during the session.
Most metal & mining stocks declined in weak market. Jindal Steel & Power (down 0.25%), Vedanta (down 0.84%), Tata Steel (down 0.9%), NMDC (down 1.5%), Steel Authority of India (down 1.01%), JSW Steel (down 0.75%), Hindustan Zinc (down 0.27%) edged lower. Bhushan Steel (up 6.69%), Hindalco Industries (up 0.11%), and National Aluminium Company (up 0.07%) gained.
The steel ministry has reportedly sought reduction in import duty on both coking coal and nickel -- vital components of steel making -- a move that may revive the sector, in the upcoming Budget 2017-18.
Shares of power generation and power distribution companies also edged lower. Torrent Power (down 0.15%), NHPC (down 0.36%), Tata Power Company (down 0.25%), NTPC (down 0.92%), Adani Power (down 1.16%), Power Grid Corporation of India (down 1.46%), and Reliance Infrastructure (down 0.83%) declined. Reliance Power rose 0.11%.
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Shares of state run coal mining major Coal India dropped 0.1% to Rs 198.15. The stock hit high of Rs 201 and low of Rs 196.65 in intraday trade.
Meanwhile, there are expectations of announcement of sops for the power sector in the upcoming Budget 2017-18. The upcoming Budget may reportedly extend the 80 IA tax holiday, provide further impetus to renewable energy, particularly hydro projects, offer clarity on the applicability of GST, lower the cess on coal and possibly reduce corporate tax rates.
Ruchi Soya Industries jumped 14.76% on media report the company will enter into a marketing deal with Baba Ramdev promoted Patanjali Ayurved. According to the report, Baba Ramdev's Patanjali will start branding and marketing the edible oil produced by Ruchi Soya across its 13 facilities, which will ensure guaranteed sales to Ruchi Soya as well as cut its distribution and marketing costs.
This arrangement comes as a massive relief to one of the country's largest edible oil manufacturers with brands like Ruchi Gold and Mahakosh. Ruchi Soya owes almost Rs 10000 crore to banks, is contesting winding up proceedings initiated by IDFC Bank in Bombay Hight Court, and is yet to secure all 22 lenders approval to enter a joint venture with Adani Wilmar, the report suggested.
Greaves Cotton rose 1.37% to Rs 133 after 5.83 lakh shares changed hands on the counter in two bulk deals on BSE. A bulk deal of 2.83 lakh shares was executed on the scrip at Rs 133 per share at 10:15 IST on BSE. Another bulk deal of 3 lakh shares was executed on the scrip at Rs 132.70 per share at 10:18 IST on BSE.
Motherson Sumi Systems rose 3.13% after the company announced that its board approved a proposal to make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in PKC Group (PKC) having its headquartered in Helsinki, Finland and currently listed on the Nasdaq Helsinki stock exchange. The acquisition will be made through a wholly owned subsidiary of the company, to be setup for the purpose.
The board has also approved for signing of combination agreement between the company and PKC for the proposed transaction. Accordingly, combination agreement has been executed by the company.
PKC shareholders are being offered a cash consideration of 23.55 euros for each share/options in PKC representing an aggregate equity purchase price of approximately 571 million euros in an open tender offer. The transaction is expected to be completed by end of March 2017. The announcement was made during trading hours today, 20 January 2017.
Overseas, Asian stocks were mixed as caution prevailed in financial markets ahead of US President-elect Donald Trump's inauguration later today, 20 January 2017.
China's Shanghai Composite index rose 0.73%. China's economy grew by a faster-than-expected 6.8% in the fourth quarter, boosted by higher government spending and record bank lending. The economy expanded 6.7% in 2016, the National Bureau of Statistics said today, 20 January 2017, roughly in the middle of the government's 6.5-7% growth target but still the slowest pace in 26 years.
US stocks posted losses yesterday, 19 January 2017, as the Dow Jones Industrial Average fell for the fourth straight session. On macroeconomic data front, US homebuilding rebounded sharply in December amid stronger demand for rental housing, and the number of Americans filing for unemployment benefits fell to near the 43-year low touched in mid-November.
The European Central Bank held rates and its bond-buying program steady at its yesterday's, 19 January 2017, meeting. The bank's President Mario Draghi said the governing body stood ready to intervene further if conditions worsened.
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