Capital goods, power generation stocks decline

Key benchmark indices hovered within a small range in negative zone in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was down 106.66 points or 0.36% at 29,867.58. The Nifty 50 index was down 32.30 points or 0.35% at 9,232.85.

The market sentiment was subdued, tracking weakness in European and Asian stocks and overnight losses on Wall Street, after the Federal Reserve's minutes from March meeting showed that Fed officials want to start unwinding the central bank's massive $4.5 trillion balance sheet later this year.

The BSE Mid-Cap index declined 0.19%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.38%. The decline in this index was higher than the Sensex's decline in percentage terms.

The breadth, indicating overall health of the market, was negative. On the BSE, 1,429 shares declined and 1,341 shares rose. A total of 136 shares were unchanged.

Capital goods stocks were mostly lower. Havells India (down 1.44%), Siemens (down 1.36%), ABB India (down 1.31%), L&T (down 1.11%) and Thermax (down 0.53%) declined. Bharat Heavy Electricals (up 4.26%) and BEML (up 2.22%) edged higher.

Power generation and power distribution stocks also declined. CESC (down 1.94%), Reliance Power (down 1.19%), GMR Infrastructure (down 0.91%), NTPC (down 0.54%), Reliance Infrastructure (down 0.5%) and NHPC (down 0.3%) edged lower. Adani Power (up 3.45%) and JSW Energy (up 1.42%) edged higher.

Power Grid Corporation of India (PGCIL) rose 0.87% after the company announced that it has entered into loan agreements with Asian Development Bank (ADB) on 5 April 2017 for an amount of $225 million (including $50 million as Clean Technology Fund) for part funding of its transmission projects associated with solar power parks. The announcement was made after market hours yesterday, 5 April 2017.

Tata Power Company was down 1.25%. The company announced that its generation crossed 51,000 million units (MUs) of power for the first time, collectively from all its power plants in FY 2017.

The company also reported a significant increase in generation of 15.2% with the total power generation capacity of Tata Power in India standing at 10,577 megawatts (MW) from various fuel sources such as thermal, hydroelectric power, renewable energy (wind and solar PV) and waste heat recovery, thereby reinforcing its position as the largest integrated power company in India. The announcement was made during market hours today, 6 April 2017.

On macro front, the outcome of the Reserve Bank of India's (RBI) monetary policy meeting is slated at 14:30 IST today, 6 April 2017. The RBI had left its key repo rate unchanged at 6.25% for the second time at its February 2017 meeting.

Meanwhile, data released by Markit Economics during market hours today, 6 April 2017 showed that the Indian service sector moved further away from the demonetisation-related contractions seen towards the end of 2016 and beginning of 2017. The seasonally adjusted Nikkei India composite PMI output index increased to 52.3 in March, from 50.7 in February, signalling a quicker rise in private sector activity across the country.

Overseas, European and Asian stocks edged lower, after minutes of the US Federal Reserve's last meeting raised worries over high stock market valuations.

US stock markets closed lower yesterday, 5 April 2017, after the Federal Reserve released the minutes from its March meeting. The minutes showed Fed officials want to start unwinding the central bank's massive $4.5 trillion balance sheet later this year.

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