Weak opening in European shares spoiled sentiments in domestic market as key benchmark indices hit fresh intraday low in afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was down 100.19 points or 0.34% at 29,321.21. The Nifty 50 index was currently down 36.05 points or 0.40% at 9,071.95. Weakness in other Asian indices also put pressure on domestic shares.
The Sensex fell 257.86 points, or 0.88% at the day's low of 29,163.54 in afternoon trade, its lowest level since 22 March 2017. The index fell 0.70 points at the day's high of 29,420.70 in early trade. The Nifty fell 83.35 points, or 0.92% at the day's low of 9,024.65 in afternoon trade, its lowest level since 22 March 2017. The index fell 13.15 points, or 0.14% at the day's high of 9,094.85 in early trade.
Among secondary barometers, the BSE Mid-Cap index was currently down 0.14%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.02%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,534 shares fell and 1,077 shares rose. A total of 203 shares were unchanged.
Overseas, European shares edged lower in early trade as investors adopted a cautious tone on the back of US President Donald Trump's surprise failure to deliver swift health-care reform.
Asian stocks declined as investors continued to worry about the Trump's administration's inability to push through its policy initiatives. US stocks ended lower on Friday, 24 March 2017, as House Republicans withdrew the American Health Care Act after determining that they did not have enough votes to pass the bill. The withdrawal is a major setback for President Donald Trump who had made the repeal and the replacement of the existing Affordable Care Act one of his main campaign pledges.
Back home, most realty shares edged lower. Parsvnath Developers (down 2.87%), Godrej Properties (down 2.21%), Unitech (down 1.39%), Anant Raj (down 1.17%), Prestige Estates Projects (down 1.09%), Peninsula Land (down 0.8%), Sunteck Realty (down 0.75%), Sobha (down 0.52%), D B Realty (down 0.48%), DLF (down 0.41%), Omaxe (down 0.32%) and Housing Development and Infrastructure (HDIL) (down 0.13%), edged lower. Mahindra Lifespace Developers (up 0.34%), Phoenix Mills (up 0.73%) and Oberoi Realty (up 0.83%), edged higher.
Drug major Dr Reddy's Laboratories (DRL) was up 0.79% to Rs 2,644. DRL and Integra LifeSciences Holdings Corporation, a leading global medical technology company, announced that they have entered into an exclusive distribution agreement. Under the agreement, DRL will market and distribute DuraGen Plus and Suturable DuraGen Dural Regeneration Matrices for use in patients in India. The announcement was made during market hours today, 27 March 2017.
M. V. Ramana, Executive Vice President and Head of Emerging Markets & India Business, DRL said, the company is delighted to partner with Integra LifeSciences. With the launch of DuraGen, it looks forward to building its presence in the segment of regenerative technologies and making a difference to the lives of patients undergoing neurosurgery.
Most power generation stocks declined. Reliance Infrastructure (down 2.07%), JSW Energy (down 1.62%), Reliance Power (down 1.25%), Adani Power (down 1.14%), GMR Infrastructure (down 0.91%), Tata Power (down 0.64%), CESC (down 0.43%), Jaiprakash Power Ventures (down 0.39%) and Torrent Power (down 0.35%), edged lower. NTPC (up 0.12%) and NHPC (up 2.12%), edged higher.
State-run Power Grid Corporation of India was up 0.46% to Rs 194.60.
State-run Coal India was down 2.26% to Rs 291.30. The Competition Commission of India (CCI) has found Coal India (CIL) and its subsidiaries to be in contravention of the provisions of Section 4(2)(a)(i) of the Competition Act, 2002 for imposing unfair/discriminatory conditions in Fuel Supply Agreements (FSAs) with the power producers for supply of non-coking coal. The final order has been passed on a batch of informations filed by Maharashtra State Power Generation Company and Gujarat State Electricity Corporation against Coal India and its subsidiaries (Mahanadi Coalfields Ltd., Western Coalfields Ltd., South Eastern Coalfields Ltd.).
The order has been passed by CCI pursuant to the directions issued by Competition Appellate Tribunal remanding the matter back while setting aside the original order of CCI in which a penalty of Rs 1773.05 crore had been imposed upon CIL. After hearing the parties afresh in terms of the directions issued by Competition Appellate Tribunal, CCI held that CIL through its subsidiaries operates independently of market forces and enjoys dominance in the relevant market of production and supply of non-coking coal in India.
CCI noted in the order that CIL did not evolve/ draft/ finalize the terms and conditions of FSAs through a bilateral process and the same were imposed upon the buyers through a unilateral conduct. CCI found CIL and its subsidiaries to be in contravention of the provisions of Section 4(2)(a)(i) of the Competition Act, 2002 for imposing unfair/ discriminatory conditions in FSAs with the power producers for supply of non-coking coal.
Apart from issuing a cease and desist order against CIL and its subsidiaries, CCI has directed modification of FSAs in light of the findings and observations recorded in the order. The impugned clauses related to sampling and testing procedure, charging transportation and other expenses for supply of ungraded coal from the buyers, capping compensation for supply of stones etc.
For effecting the modifications in FSAs, CIL has been ordered to consult all the stakeholders. CIL has also been directed to ensure uniformity between old and new power producers as well as between private and PSU power producers.
Further, CCI has imposed a penalty of Rs 591.01 crore upon CIL for the abusive conduct. While reducing penalty, CCI noted the steps taken by CIL to improve the sampling procedure even post-passing of the original order by CCI.
However, while holding the extant sampling procedure as unfair, CIL has been directed to incorporate suitable modifications in fuel supply agreements to provide for a fair and equitable sampling and testing procedure besides considering the feasibility of sampling at the unloading-end in consultation with power producers and adopting international best practices. The announcement was made after market hours on Friday, 24 March 2017.
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