Key benchmark indices pared losses in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was down 31.03 points or 0.12% at 26,835.89. The Nifty 50 index was down 11.05 points or 0.13% at 8,227.45. The market breadth indicating the overall health of the market was negative. On BSE, 1,262 shares fell and 1,212 shares rose. A total of 202 shares were unchanged. The BSE Mid-Cap index was currently up 0.17%. The BSE Small-Cap index was currently up 0.28%. Both these indices outperformed the Sensex.
In overseas stock markets, main European markets edged higher after Germany's Federal Constitutional Court ruled in favour of the European Central Bank's (ECB) Outright Monetary Transactions or OMT unlimited bond-buying program created by the ECB at the height of Europe's debt crisis in September 2012. But UK stocks fell as uncertainty about the Brexit referendum continued to preoccupy investors. The FTSE 100 index was currently off 0.16%. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union or leave it. Two opinion polls yesterday, 20 June 2016, predicted opposite results on whether British voters will vote for Britain to remain or leave the European Union (EU) in a referendum on Thursday, 23 June 2016, with one poll predicting respondents backing membership in the EU and the other poll showing respondents backing the leave vote.
The Organization for Economic Cooperation and Development (OECD) has warned that Britain's leaving the EU -- the so-called Brexit -- could send shocks through global financial markets. The OECD said on 1 June 2016 that a United Kingdom vote to leave the EU would trigger negative economic effects on the UK, other European countries and the rest of the world. Brexit would lead to economic uncertainty and hinder trade growth, with global effects being even stronger if the British withdrawal from the EU triggers volatility in financial markets, the OECD said. By 2030, post-Brexit UK GDP could be over 5% lower than if the country remained in the European Union, the OECD said.
Most Asian shares rose on growing expectations that British voters will opt to remain in the European Union in this week's referendum. Japanese stocks edged higher as the yen eased from earlier gains against the US dollar. The Nikkei 225 Average ended 1.28% higher for the trading session. The yen eased after approaching a 22-month high against the dollar. A stronger yen hurts the competitiveness of Japanese exporters. Japan's finance minister Taro Aso said at a regular news conference that the government wouldn't intervene in currency markets easily. US stocks edged higher yesterday, 20 June 2016, following the lead of European markets as polls showed support swinging back toward the UK remaining a member of the European Union ahead of a referendum.
Most power generation stocks declined. Jaiprakash Power Ventures (down 2.96%), NTPC (down 1.62%), Reliance Power (down 0.86%), CESC (down 0.67%), JSW Energy (down 0.66%), Reliance Infrastructure (down 0.29%) and GMR Infrastructure (down 0.23%), edged lower. NHPC (up 0.20%), Adani Power (up 0.67%) and Torrent Power (up 0.82%), edged higher.
Tata Power was down 2.53% to Rs 73.25. The company announced during trading hours today, 21 June 2016, that its 100% subsidiary, Tata Power Renewable Energy (TPREL) has won solar grid connected photovoltaic project of 30 megawatts (MW) in Maharashtra. The project has been awarded in the DCR category under the Jawaharlal Nehru National Solar Mission (JNNSM). TPREL has received the Letter of Intent to develop the project and will sign a 25-year power purchase agreement (PPA) with NTPC Vidyut Vyapar Nigam. The JNNSM, launched in January 2010, is a major initiative of the Government of India that aims to establish India as a global leader in solar energy by creating favourable policy conditions for its diffusion across the country.
Most metal shares declined. Vedanta (down 1.64%), Jindal Steel & Power (down 1.04%), Steel Authority of India (down 0.67%), Tata Steel (down 0.52%), NMDC (down 0.49%), Hindustan Copper (down 0.48%), JSW Steel (down 0.45%) and National Aluminium Company (down 0.12%), edged lower. Bhushan Steel (up 0.63%), Hindustan Zinc (up 0.74%) and Hindalco Industries (up 1.98%) edged higher.
Meanwhile, copper prices edged lower in the global commodities markets. High Grade Copper for July 2016 delivery was currently down 0.57% at $2.081 per pound on the COMEX.
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