Key benchmark indices pared losses in the afternoon trade. At 13:40 IST, the barometer index, the S&P BSE Sensex, was down 102.54 points or 0.28% at 36,622.94. The Nifty 50 index fell 9.60 points or 0.09% at 10,835.05.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1369 shares rose and 867 shares fell. A total of 136 shares were unchanged. The S&P BSE Mid-Cap index was up 0.32%. The S&P BSE Small-Cap index rose 0.70%.
Coal India (up 5.63%), BPCL (up 5.24%), and Tata Motors (up 5.16%) advanced.
HDFC (down 2.40%), ICICI Bank (down 1.85%) and HCL Technologies (down 1.70%) delcined.
Wipro fell 0.35%. The IT major has secured a strategic seven-year engagement, valued at $300 million, from ICICI Bank to provide a comprehensive suite of services. The announcement was made after market hours yesterday, 4 September 2019.
Power Grid Corporation of India gained 0.43%. The company was declared as the successful bidder under Tariff Based Competitive Bidding to establish transmission system for Intra-State Transmission Work associated with construction of 400 kV Substation near Guna (Distt.-Guna, Madhya Pradesh) & Intra-State Transmission Work associated with construction of 220 kV Substation near Bhind (Distt.-Bhind, Madhya Pradesh) on build, own operate and maintain (BOOM) basis. The Transmission system also comprises associated 400kV, 220kV and 132kV Transmission lines in Madhya Pradesh. The Letter of Intent (LoI) dated 2 September 2019 has been received by the company. The announcement was made after market hours yesterday, 4 September 2019.
NMDC rose 1.76%. The state-run company said that total production of iron ore on a provisional basis fell to 1.41 million tonnes (MT) in August 2019 from 1.46 MT in August 2018. Total sales of iron ore on a provisional basis dropped to 1.49 MT in August 2019 from 2.32 MT in August 2018. The announcement was made after market hours yesterday, 4 September 2019.
IT major Infosys was up 1.16% at Rs 830.55. It hit a record high of Rs 837 in intraday so far.
State-run ONGC jumped 4.87%. The company said that an unfortunate accident took place at Uran oil and gas processing plant in Mumbai on 3 September 2019. The accident occurred near demineralized water plant (oily water sewage pit) and outside CISF security cabin which was near the main process area. All out efforts were made to control the situation and fire was brought under control within a short span of time with the internal safety provisions aided by MARG (Mutual Aid Resource Group).
ONGC added that gas processing was restricted to maintain supplies to internal power generation and also to meet the requirements of Mahanagar Gas and the remaining gas quantities are diverted to the other processing unit of the company at Hazira plant. However, the offshore crude supply remains unaffected and the impact of fire in local vicinity is NIL, ONGC added.
Ultratech Cement rose 1.13% to Rs 3,921.30 after the company appointed Kailash Chandra Jhanwar as managing director of the company with effect from 1 January 2020.
Dr Reddy's Laboratories was up 2.74%. The pharmaceutical company has announced that it has launched Bupropion Hydrochloride Extended-Release tablets, USP (SR), a therapeutically equivalent generic version of Zyban (Bupropion Hydrochloride) Extended-Release Tablets, approved by the United States Food and Drug Administration (USFDA).
Hindalco Industries rose 1.32% after the company's US subsidiary Novelis reaffirmed its commitment to acquire Aleris. Novelis reaffirmed its full commitment to closing its proposed acquisition of Aleris Corporation, notwithstanding the U.S. Department of Justice (DOJ) lawsuit to block the transaction. Novelis intends to vigorously defend against the DOJ's challenge, which it believes is without merit.
The company is confident that the transaction will ultimately receive all necessary regulatory approvals in the U.S. and in other relevant jurisdictions.
The DOJ lawsuit is based on the contention that the only relevant competition among automotive body sheet providers is that among aluminum manufacturers such as Novelis and Aleris. It ignores competition from steel automotive body sheet, even though steel automotive body sheet is currently used for nearly 90% of the market.
The DOJ also disregards the extraordinary bargaining power of the automotive manufacturers and their ability to generate bid processes that will ensure competitive pricing for automotive body sheet.
Hindalco Industries owned Novelis was reportedly set to secure European Union (EU) antitrust approval for its bid for Aleris last week. Novelis had agreed to sell Aleris' Belgian plant to address European Commission worries that the deal may reduce competition and lead to higher prices, hitting carmakers in particular. The Commission is scheduled to decide on the case by 7 October 2019.
Novelis had announced in July 2018 that it has signed a definitive agreement to acquire Aleris Corporation, a global supplier of rolled aluminium products, for approximately $2.6 billion including the assumption of debt.
TVS Motor Company rose 2.28%. The company announced during trading hours today that its 100cc motorcycle TVS Sport set a new record for 'highest fuel efficiency on a motorcycle' in India. The motorcycle achieved the record with an on-road mileage of 76.4 kmpl.
Overseas, most shares in Europe and Asia advanced on Thursday, after confirmation of new US-China trade talks and Hong Kong showing signs of easing.
China's Ministry of Commerce said Thursday that U.S. and Chinese trade negotiators held a phone call in the morning and agreed to meet in early October for another round of negotiations.
China's Shanghai Composite was up 0.96% after Hong Kong Chief Executive Carrie Lam fully withdrew the controversial extradition bill which caused months of violent protests in the city.
Meanwhile, British Prime Minister Boris Johnson on Wednesday failed in his bid to call a snap general election for 15 October. A bill introduced by opposition parties to block Johnson from taking the U.K. out of the European Union without a deal on October 31 was also passed and will not ascend to the House of Lords, the upper chamber of parliament. The bill is now expected to pass through the Lords and be presented for royal ascent on Friday.
US stocks advanced on Wednesday, after robust economic data from China, easing tensions in Hong Kong and British lawmakers' approval of a law to delay Brexit provided relief to investors worried about global growth.
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