Further losses took the barometer index, the S&P BSE Sensex, and the 50-unit Nifty 50 index to one-week low. At 14:21 IST, the Sensex was down 310.17 points or 1.22% at 25,027.39. The losses for the Sensex were higher in percentage terms than those for the 50-unit Nifty 50 index. The Nifty was down 83.65 points or 1.08% at 7,632.85. Metal and banking stocks led losses for key benchmark indices.
The Sensex fell 302.97 points, or 1.2% at the day's low of 25,034.59 in mid-afternoon trade, its lowest level since 21 March 2016. The barometer index rose 95.38 points, or 0.38% at the day's high of 25,432.94 at the onset of trading session, its highest level since 6 January 2016. The Nifty fell 83.85 points, or 1.09% at the day's low of 7,632.65 in afternoon trade, its lowest level since 21 March 2016. The index rose 32.90 points or 0.43% at the day's high of 7,749.40 at the onset of trading session, its highest level since 6 January 2016.
In overseas stock markets, Asian stocks fell as recent remarks from US Federal Reserve policy makers reignited expectations for an early interest-rate increase in the United States. European markets were closed for the Easter Monday holiday. US stocks ended little-changed during the previous trading session on Thursday, 24 March 2016, after weaker-than-expected economic data. Meanwhile, St. Louis Federal Reserve President James Bullard said the relatively minor downgrades to the Fed's economic outlook suggest the next rate hike 'may not be far off provided that the economy evolves as expected.' On Friday, 25 March 2016, data showed that the US economy grew at a 1.4% seasonally adjusted annual rate in the fourth quarter, higher than a previous estimate for 1% growth.
Closer home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,872 shares fell and 694 shares rose. A total of 164 shares were unchanged. The BSE Mid-Cap index was currently down 1.35%. The BSE Small-Cap index was currently down 1.42%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
State-run ONGC was down 0.09% at Rs 214.35. The company announced during trading hours today, 28 March 2016, that its board approved the field development plan (FDP) for the development of fields falling under cluster 2 of deep water NELP block KG-DWN-98-2. The development would involve a capital expenditure of a staggering $5076.37 million (Rs 34012 crore).
Bank stocks witnessed selling pressure. Among state-run banks, Canara Bank (down 3.92%), State Bank of India (down 3.3%), IDBI Bank (down 2.82%), Syndicate Bank (down 2.62%), Bank of India (down 2.58%), Punjab National Bank (down 2.3%), Allahabad Bank (down 2.26%), UCO Bank (down 2.24%), Union Bank of India (down 2.07%), Indian Bank (down 1.99%), Bank of Baroda (down 1.87%), Vijaya Bank (down 1.77%), Bank of Maharashtra (down 1.71%), Dena Bank (down 1.57%), Corporation Bank (down 1.52%), Central Bank of India (down 1.17%), Andhra Bank (down 0.89%), United Bank of India (down 0.78%) and Punjab and Sind Bank (down 0.29%) edged lower.
Among private sector banks, Federal Bank (down 3.22%), ICICI Bank (down 3.16%), Axis Bank (down 1.3%), City Union Bank (down 0.93%), IndusInd Bank (down 0.79%) and Yes Bank (down 0.09%), edged lower. HDFC Bank (up 0.01%) and Kotak Mahindra Bank (up 2.06%) edged higher.
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Most capital goods shares edged lower. Jindal Saw (down 2.51%), Suzlon Energy (down 2.08%), Thermax (down 1.77%), BEML (down 1.66%), SKF India (down 1.39%), Praj Industries (down 1.1%), Reliance Defence and Engineering (down 1.05%), Crompton Greaves (down 1.04%), Alstom T&D India (down 0.96%), Siemens (down 0.86%), Lakshmi Machine Works (down 0.66%), AIA Engineering (down 0.59%), Havells India (down 0.41%), ALSTOM India (down 0.08%) and Bharat Electronics (down 0.03%), edged lower. Punj Lloyd (up 1.82%) and ABB India (up 2.46%), edged higher.
Bharat Heavy Electricals (Bhel) was off 0.77% at Rs 115.65. The company announced during market hours today, 28 March 2016, that it has commissioned a 40 megawatts (MW) second hydro electric generating unit of Teesta Low Dam Hydro Electric Project (HEP) Stage-IV in West Bengal. Teesta HEP is being set up by National Hydroelectric Power Corporation (NHPC) on the River Teesta. The remaining two units of the project are also in advanced stages of execution, Bhel said.
Separately, Bhel announced on Friday, 25 March 2016, that it has commissioned 600 MW coal-based thermal power plant in Telangana. Bhel said that the power plant was commissioned at the upcoming 1,200 megawatts (MW) Singareni Thermal Power Project located in Adilabad district in Telangana. The second unit of Singareni Thermal Power Project is also in an advanced stage of construction and is expected to be commissioned shortly. The project is being developed by Singareni Collieries Company (SCCL), a coal mining company.
Index heavyweight and engineering & construction major L&T was down 1.06% to Rs 1,228.60. The stock hit a high of Rs 1,245.50 and a low of Rs 1,225.30 so far during the day.
Kesoram Industries rose 3.05% after the company announced that its board of directors approved disposal and transfer of the company's rayon and transparent paper undertaking to Cygnet Industries. The announcement was made on Saturday, 26 March 2016.
Kesoram Industries announced that the board of directors of the company at a meeting held on 26 March 2016, approved disposal and transfer of the company's rayon and transparent paper undertaking to Cygnet Industries, an unlisted and unrelated entity through a slump sale. Cygnet is however, proposed to be converted into a company's wholly owned subsidiary upon Kesoram acquiring its entire issued and paid-up share capital. The disposal and transfer of rayon undertaking will be effective from close of business 31 March 2016 and will further be subject to receipt of such permissions and consents, if any, that may be required.
The transfer will be at such consideration as may be decided by the board in the best interest of the company subject to such consideration not being lower than Rs 480 crore payable in a manner as may be agreed by and between the company and Cygnet (including by way of issue of equity shares of Rs 10 each of Cygnet to the company of an amount not exceeding Rs 50 crore) and such transaction is at arms length.
The amount of gross revenue and net worth of the rayon undertaking and percentage thereof, in relation to company as a whole for the financial year ended 31 March 2015 (FY 2015) was Rs 257 crore and Rs 109 crore respectively. It is expected that the transaction will be consummated within 30 June 2016. A Term Sheet and such other relevant documentation as may be required will be executed between the company and Cygnet. There can, however, be no assurance that such transaction will be completed within the time frame indicated or at all, Kesoram Industries said.
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