After seeing a rangebound movement in intraday trade, the two key benchmark indices provisionally settled near the flat line. The barometer index, the S&P Sensex, lost 8.66 points or 0.04% to 24,676.76, as per the provisional closing data. The Nifty 50 index rose 8.75 points or 0.12% at 7,555.20, as per the provisional closing data. The Sensex rose 50.61 points or 0.2% at the day's high of 24,736.03 in mid-morning trade. The barometer index hit its lowest level in more than three weeks when it lost 76.91 points or 0.31% at the day's low of 24,608.51 in early trade. The Nifty rose 22.90 points or 0.3% at the day's high of 7,569.35 in mid-morning trade. The index hit three-week low when it lost 19.75 points or 0.26% at the day's low of 7,526.70 in early trade.
In overseas stock markets, European stocks edged higher after stronger-than-expected German trade data for February 2016. The German economy is the Europe's biggest. Earlier during the global day, Asian stocks ended on a mixed trend. 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.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,462 shares rose and 1,061 shares fell. A total of 166 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.64%. The BSE Small-Cap index provisionally rose 0.63%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1948 crore, lower than turnover of Rs 2956.03 crore registered during the previous trading session.
Telecom stocks edged higher. Bharti Airtel (up 1.27%), Idea Cellular (up 0.09%), Mahanagar Telephone Nigam (up 1.74%) and Tata Teleservices (Maharashtra) (up 0.45%) rose.
Reliance Communications (RCom) was up 0.4% at Rs 50.40. The stock hit a high of Rs 50.60 and a low of Rs 48.75 in intraday trade. Global credit rating agency Moody's Investors Service has cut the outlook on RCom's Ba3 corporate family rating to negative from stable, citing persistent delay in the company's sale of non-core assets. Moody's has affirmed RCom's Ba3 corporate family rating and senior secured rating. The negative outlook reflects Moody's view that ongoing delay in RCom's rollout of its deleveraging plans will keep its financial and credit profile strained over the near term.
Index heavyweight and IT major Infosys fell 1.07% at Rs 1,169. The stock hit a high of Rs 1,178 and a low of Rs 1,162.05 in intraday trade. The company will announce its Q4 March 2016 results on 15 April 2016.
Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) rose 2.68% at Rs 122.50, with the stock extending previous trading session's gains triggered by the company announcing a surge in its order inflow for the year ended 31 March 2016 (FY 2016). The stock had risen 4.64% to settle at Rs 119.30 yesterday, 7 April 2016. On provisional basis, Bhel's order inflow jumped 41.9% at Rs 43727 crore in FY 2016 over FY 2015. Based on tentative financial performance, Bhel reported net loss of Rs 877 crore in FY 2016 as against net profit of Rs 1419 crore in FY 2015. Turnover declined 13.71% to Rs 26702 crore in FY 2016 over FY 2015.
Tata Power rose 2.18% at Rs 65.50 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.
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.
Meanwhile, global credit rating agency Moody's Investors Service said in a recent report that the rapid rise in foreign direct investment (FDI) inflows in India mitigates the risks related to a potential widening of the nation's current account deficit from weaker remittances from Gulf countries and is credit positive for the country's sovereign rating. Moody's expects FDI inflows to climb further in response to government measures, such as efforts to liberalize foreign investment limits in several sectors and the 'Make in India' initiative. These trends are credit positive, as they lower India's susceptibility to external shocks at a time when capital flows to emerging markets are volatile and weak economic conditions globally and, in particular, in the Gulf countries, may dampen remittances, according to a statement issued by the rating agency yesterday, 7 April 2016 after the release of the report.
The report says that a lower energy import bill and policy measures to contain gold imports are contributing to keeping the trade deficit at moderate levels. Going forward, the imposition of an excise tax on gold in the Union Budget 2016-17 is likely to dampen overall gold imports. India's current account deficit is now more than covered by its FDI inflows. The rise in FDI points to stronger investor interest in India on the back of robust economic growth, according to the report. The development of industrial corridors, investment and manufacturing zones, and 'smart cities' will further bolster investment inflows. Moody's expects acceleration in FDI inflows into the manufacturing sector as the government seeks to boost the manufacturing sector's share of GDP to 25% by 2022.
Powered by Capital Market - Live News
