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Last Updated : Apr 08 2016 | 3:28 PM IST

A bout of volatility was witnessed as key benchmark indices came off highs. At 12:16 IST, the Sensex was almost unchanged for the day at 24,685.27. The Nifty 50 index was currently up 7.30 points or 0.1% at 7,553.75. The market breadth indicating the overall health of the market was positive. On BSE, 1,247 shares rose and 872 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index was currently up 0.35%. The BSE Small-Cap index was currently up 0.47%. Both these indices outperformed the Sensex.

In overseas stock markets, most Asian stocks edged lower after overnight decline on Wall Street. US stocks closed lower yesterday, 7 April 2016, with financials leading decline on profit taking in an overall risk-off environment ahead of earnings season.

Telecom stocks edged lower. Bharti Airtel (down 1.46%), Idea Cellular (down 1.46%) and Reliance Communications (down 1%) declined.

FMCG stocks witnessed a mixed trend. Emami (up 1.89%), Godrej Consumer Products (up 1.66%), Bajaj Corp (up 0.39%), Marico (up 1.13%), Nestle India (up 1.3%), Procter & Gamble Hygiene and Health Care (up 0.57%), Dabur India (up 1.05%) and Britannia Industries (up 0.15%) edged higher. Colgate-Palmolive (India) (down 0.55%), GlaxoSmithkline Consumer Healthcare (down 0.45%), Jyothy Laboratories (down 0.29%) and Tata Global Beverages (down 0.13%) edged lower.

Hindustan Unilever (HUL) was off 1.28% at Rs 849.60. The stock hit a high of Rs 864.60 and a low of Rs 847.95 so far during the day. HUL announced after market hours yesterday, 7 April 2016, that it has completed the acquisition of Masons Group flagship hair oil brand Indulekha. It may be recalled that in December 2015, HUL had announced signing an agreement with Masons Group for acquisition of its flagship Indulekha brand.

Tata Power rose 1.01% to Rs 64.75 after the company announced that its wholly owned Singapore subsidiary Tata Power International Pte (TPIPL) has signed an agreement with KS Orka Renewables Pte for the sale of its 50% stake in OTP Geothermal Pte (OTP). The aggregate cash consideration for TPIPL's 50% stake is $30 million. OTP, a 50:50 joint venture with Origin Energy, holds a 95% interest in Indonesia's PT Sorik Marapi Geothermal Power (SMGP). The divestment of the company's interest in OTP is consistent with its strategy to constantly review its businesses and restructure, as required, to deliver long-term value to shareholders, Tata Power said. Tata Power expects to complete the sale in next three months subject to necessary approvals. The announcement was made during market hours today, 8 April 2016.

Separately, Tata Power announced after trading hours yesterday, 7 April 2016, that the Appellate Tribunal for Electricity (APTEL) has decided against providing compensatory tariff to the company's 100% subsidiary Coastal Gujarat Power (CGPL). CGPL operates the 4,000 MW Ultra Mega Power Project (UMPP) at Mundra, Gujarat. APTEL, while pronouncing the order, also remarked that Central Electricity Regulatory Commission (CERC) has no power to grant compensatory tariffs. However, APTEL has thrown back the case to CERC. It has asked the commission to decide the tariff as per power purchase agreements (PPAs) and under 'force majeure' or 'change in law'. CERC has also been directed to conclude the exercise as expeditiously as possible and within a period of 3 months from 7 April 2016.

In an order dated February 2014, CERC decided a compensatory tariff to be paid by the states procuring power from Tata Power and Adani Power's power generation units at Mundra with effect from the commissioning date of the units. The compensatory tariff was over and above the tariff agreed in the power purchase agreement.

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Ipca Laboratories slumped 11.2% at Rs 496 after the company said that The Global Fund, Geneva, Switzerland, has decided not to source drugs from the company following a warning letter from the US drug regulator. The Global Fund, Geneva, Switzerland, vide its letter dated 4 April 2016 has informed the company that in the light of the warning letter issued to the company by the United States Federal Drug Regulatory Authority (US FDA) on 29 January 2016, it has re-assessed the situation and following a risk consideration exercise, will not allocate any volume of Artemisinin based Combination Therapy (ACTs) to the company and it will only source ACTs from other pre-qualified suppliers that have no outstanding issues with the regulators. The announcement was made after market hours yesterday, 7 April 2016.

Meanwhile, as per the monthly data released by Association of Mutual Funds In India (AMFI), investors withdrew a net Rs 1370 crore from equity mutual funds in March 2016. This compares with a net inflow of Rs 2522 crore into equity mutual funds in February 2016. There was a net inflow of Rs 78 crore in balanced funds in March 2016, which was lower than inflow of Rs 941 crore in February 2016. Balanced funds invest the money in a combination of equity and debt, with majority of the investment going into equity. The funds' investments range from 65% to 80% in equity and the rest in debt.

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First Published: Apr 08 2016 | 12:15 PM IST

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