Key benchmark indices reversed intraday gains in early afternoon trade, with the 50-unit CNX Nifty hitting its lowest level in more than 10 weeks. The market breadth indicating the overall health of the market was weak. The barometer index the S&P BSE Sensex, was currently down 56.86 points or 0.21% at 27,400.72.
Telecom stocks edged lower in volatile trade after all the major telecom companies separately announced information about the spectrum won by them in the recently concluded spectrum auction. Realty stocks also declined.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 521.23 crore yesterday, 26 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 687.09 crore yesterday, 26 March 2015, as per provisional data.
In overseas markets, Asian stocks were mixed. US stocks edged lower yesterday, 26 March 2015, as a better-than-expected report on weekly jobless claims did little to alleviate concerns of a marked slowdown in the US economy during the first quarter.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures declined after sharp gains in the previous session as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased.
At 12:15 IST, the S&P BSE Sensex was down 56.86 points or 0.21% at 27,400.72. The index fell 57.41 points at the day's low of 27,400.17 in early afternoon trade. The index jumped 236.83 points at the day's high of 27,694.41 at the onset of the trading session.
The 50-unit CNX Nifty was down 23.20 points or 0.28% at 8,318.95. The index hit a low of 8,318 in intraday trade, its lowest level since 14 January 2015. The index hit a high of 8,413.20 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,617 shares declined and 851 shares rose. A total of 125 shares were unchanged.
The BSE Mid-Cap index was off 74.37 points or 0.72% at 10,280.66. The BSE Small-Cap index was off 45.61 points or 0.44% at 10,428.95. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 1503 crore by 12:15 IST compared with turnover of Rs 1119 crore by 11:15 IST.
Telecom stocks edged lower in volatile trade after all the major telecom companies separately announced information about the spectrum won by them in the recently concluded spectrum auction.
Idea Cellular lost 3.49% to Rs 174.25. The stock was volatile. The stock hit a 52-week high of Rs 186.90 in intraday trade. The stock hit a low of Rs 172.40 so far during the day. Idea Cellular before market hours today, 27 March 2015, said that the company has successfully retained the crucial 900 MHz spectrum and won 54 MHz of 900 MHz Spectrum out of overall win of 79.4 MHz Spectrum, for nine of its leadership Service Areas covering over 73% of the company's revenues. With the acquisition of 79.40 MHz across three spectrum bands of 900, 1800 & 2100 MHz in the recent auction, Idea now has a total of 270.7 MHz of spectrum on a pan-India level. Including this Auction and November 2012 Spectrum Auction, Idea has managed to acquire/renew new licenses with liberalized spectrum for 16 out of the 22 Service Areas, which is among the highest for any telecom operator. The company has next renewal of only four Service Areas in the Year 2021 and remaining two Service Areas as late as Year 2026. The total spectrum bid made by Idea is valued at approximately Rs 30100 crore. The company will be availing of the deferred payment facility offered by the Government and likely to pay Rs 7732 crore as upfront payment, and the remaining amount in 10 equal annual installments starting after a moratorium of 2 years.
Bharti Airtel dropped 3.24% to Rs 385.75. The stock hit a high of Rs 404.25 and low of Rs 385.40 so far during the day. Bharti Airtel said before market hours today, 27 March 2015, that it has acquired 111.6 MHz of prime spectrum across 900 MHz, 1800 MHz and 2100 MHz bands for a total consideration of Rs 29130 crore in the just concluded spectrum auction conducted by the Government of India. Of this, Rs 17618 crore has been spent on the renewal of existing spectrum while the balance Rs 11512 crore has been spent on procuring new spectrum. The company's spectrum acquisition strategy is aimed at enhancing its leadership position in the fast growing data segment in the country. The auction results are subject to the outcome of the decision by the Supreme Court.
Reliance Communications lost 4.22%. Reliance Communications before market hours today, 27 March 2015, said total bids made by the company in the spectrum auctions stood at Rs 4299 crore, with upfront payment at Rs 1106 crore. Reliance Communications said that it became India's first and only operator with nationwide footprint of contiguous 800/850 MHz spectrum. The company's auction participation centered on building appropriate spectrum portfolio and value creation for next 20 years.
Meanwhile, the Ministry of Communications & Information Technology said in a statement late yesterday, 26 March 2015, that the spectrum auction in 1800 MHz, 900 MHz, 2100 MHz and 800 MHz band, which commenced on 4th March 2015 and ended on 25th March 2015 after 115 rounds over 19 days has fetched over Rs 1.09 lakh crore. In all 470.75 MHz has been put to auction in various LSAs (in 800, 900, 1800 & 2100 MHz bands). This compares with 390 MHz in November 2012 and 426 MHz in February 2014.
There was robust activity in the all the spectrum bands and vibrant bidding. Prices have significantly increased in 50 of the 69 offerings with bid price being as high as 300% over reserve price in some instances. Over 88% of the spectrum on offer has been provisionally committed at a value of over Rs 1.09 lakh crore. The overall increase over estimated proceeds from auction is about 37%, the ministry said.
Index heavyweight Reliance Industries (RIL) lost 2.59% to Rs 809.90. The stock hit a high of Rs 835.15 and low of Rs 803 so far during the day. Reliance Jio Infocomm (RJIL), a subsidiary of RIL, announced before market hours today, 27 March 2015, that it has successfully acquired the right to use spectrum in 13 key circles across India in the recently concluded spectrum auction conducted by DoT, Government of India. RJIL plans to provide seamless 4G services using LTE in 800MHz, 1800MHz and 2300MHz bands through an integrated ecosystem.
With this investment, in addition to the pan-India 2300MHz spectrum, RJIL has spectrum in either 800MHz or 1800MHz or both in 20 out of total 22 circles in the country. The payment to be made for the right to use this technology agnostic spectrum for a period of 20 years is Rs 10077.53 crore, RJIL said.
Realty stocks declined. Indiabulls Real Estate (down 1.32%), Housing Development and Infrastructure (down 1.53%), D B Realty (down 0.09%), Unitech (down 0.31%), Sobha (down 1.34%), Godrej Properties (down 0.53%), and Hubtown (down 0.93%) declined.
Realty major DLF lost 4.02%.
Yes Bank slipped 0.19%.
Jindal Steel & Power (JSPL) jumped 4.29% after the Delhi High Court reportedly said yesterday, 26 March 2015, that the government's decision to cancel the bid of the company's power unit Jindal Power (JPL) for two Chhattisgarh coal mines by annulling the tender process and allotting them to Coal India (CIL) is prima facie wrong. It may be recalled that that the Government of India had rejected JSPL's bids for Gare Palma IV/2 & IV/3 and Tara coal blocks in the recently concluded coal auctions.
Idea Cellular and Yes Bank today, 27 March 2015, replaced DLF and Jindal Steel & Power as constituents in the 50-unit CNX Nifty index.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.57, compared with its close of 62.68 during the previous trading session.
Brent crude oil futures declined after sharp gains in the previous session as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased. Brent for May settlement was off $1.18 a barrel at $58.01 a barrel. The contract had gained $2.71 a barrel or 4.79% to settle at $59.19 a barrel yesterday, 26 March 2015. Global oil prices had surged yesterday, 26 March 2015, as air strikes in Yemen by Saudi Arabia and its Gulf Arab allies sparked fears that escalation of the Middle East battle could disrupt world crude supplies.
Asian stocks were mixed today, 27 March 2015. Key benchmark indices in Japan, Hong Kong, Taiwan and South Korea fell by 0.14% to 0.95%. Key benchmark indices in China, Indonesia and Singapore rose by 0.35% to 0.41%.
Trading in US index futures indicated that the Dow could rise 26 points at the opening bell today, 27 March 2015. US stocks edged lower yesterday, 26 March 2015, as a better-than-expected report on weekly jobless claims did little to alleviate concerns of a marked slowdown in the US economy during the first quarter.
In economic data, the number of people who applied for US unemployment benefits fell by 9,000 to 282,000 in the seven days from March 15 to March 21. The average of new claims over the past month, meanwhile, dipped below the key 300,000 threshold for the first time since late February. The four-week average dropped by 7,750 to 297,000, the Labor Department said yesterday, 26 March 2015.
In Europe, Greece is locked in talks with the IMF and European creditors on a deal on economic reforms that would unlock 7.2 billion euros in aid. Greece needs the funding as it faces several major debt repayments in early April.
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