Positive market breadth

Key benchmark indices traded with modest losses in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, fell 157.45 points or 0.49% at 32,225.85. The Nifty 50 index declined 39.15 points or 0.39% at 9,981.40. The Nifty was trading below the 10,000 mark after slipping below that level in early trade.

Key indices declined in early trade on weak global cues. Later, indices hovered with modest losses so far.

The S&P BSE Mid-Cap index rose 0.5%. The S&P BSE Small-Cap index advanced 0.42%. Both these indices outperformed the Sensex.

Overseas, Asian stocks edged lower after US tech shares retreated from recent rallies, though optimism about US corporate earnings and the global economy underpinned overall sentiment. US equities closed mixed yesterday, 27 July 2017 after the technology sector rolled over.

Closer home, the breadth, indicating the overall health of the market, was positive. On the BSE, 1,214 shares rose and 1,113 shares declined. A total of 163 shares were unchanged.

Metal and mining stocks declined. Hindustan Copper (down 2.18%), Vedanta (down 1.39%), Hindalco Industries (down 0.93%), Tata Steel (down 0.62%), Jindal Steel & Power (down 0.56%), National Aluminium Company (down 0.64%) and Steel Authority of India (down 0.47%) edged lower. Hindustan Zinc (up 0.62%), JSW Steel (up 0.35%) and NMDC (up 0.29%) edged higher.

Auto stocks were mixed. Bajaj Auto (down 1.05%), Hero MotoCorp (down 1.01%), Mahindra & Mahindra (down 0.51%), Tata Motors (down 0.31%) and Eicher Motors (down 0.19%) declined. Maruti Suzuki India (up 0.73%), TVS Motor Company (up 0.51%) and Ashok Leyland (up 0.43%) edged higher.

Idea Cellular dropped 0.86% to Rs 91.85 after the company reported consolidated net loss of Rs 814.90 crore in Q1 June 2017 compared with net profit of Rs 220.40 crore in Q1 June 2016. The result was announced after market hours yesterday, 27 July 2017.

Idea Cellular's total income fell 14.34% to Rs 8181.70 crore in Q1 June 2017 over Q1 June 2016. EBITDA (earnings before interest, taxes, depreciation and amortization) margin fell to 25.6% in Q1 June 2017 from 29.1% in Q1 June 2016.

The financial stress in the mobile sector remains at its peak, post the introduction of aggressive unlimited bundled plans by new entrant forcing other operators to follow. Resultantly, all 'Telecom Service Providers' are reporting steep decline in revenues, profitability and cash flows and all but one Indian wireless operator quarterly results are likely to show significant financial losses, the company added.

Among other news, the Lok Sabha yesterday, 27 July 2017, passed the Companies Act (Amendment) Bill, 2016 that seeks to make significant changes to the 2013 law to remove complexities and improve ease of doing business, strengthen corporate governance standards and prescribes strict action against defaulting companies. The bill will now go to the Rajya Sabha.

The India Meteorological Department (IMD) in its weather report yesterday, 27 July 2017 said that for the country as a whole, cumulative rainfall during this year's southwest monsoon season has so far upto 26 July is 5% above the long period average (LPA).

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