Power generation stocks decline

Benchmark indices continued to trade around the neutral line in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex, was up 12.41 points or 0.05% at 26,771.64. The Nifty 50 index was currently up 6.55 points or 0.08% at 8,250.35. Market sentiment was sombre amid weakness in European stock markets and mixed trend among Asian peers.

The BSE Mid-Cap index was currently up 0.34%. The BSE Small-Cap index was currently up 0.56%. Both these indices outperformed the Sensex.

Overseas, major European stock indices edged lower. On the data front, the euro zone unemployment rate is due to be released today, 9 January 2017. Asian stocks were mixed. Japan stock market was shut for a holiday. In mainland China, the Shanghai Composite ended 0.54% higher. In Hong Kong, the Hang Seng closed 0.25% higher. Data over the weekend showed China's foreign-exchange reserves fell to the lowest level in nearly six years last month. The People's Bank of China said that the world's largest stockpile of foreign currency fell $41.08 billion in December to $3.011 trillion, the lowest level since March 2011. The decline was smaller than the previous month's drop of $69.06 billion.

US stocks registered modest gains on Friday, 6 January 2017 as gains in the technology, industrials and healthcare sectors led shares higher. US nonfarm payrolls rose by 156,000 jobs last month, the Labor Department said on Friday, 6 January 2017. The number of jobs created fell from an upwardly revised 204,000 in November. The jobless rate edged up last month to 4.7% from 4.6%.

Chicago Federal Reserve President Charles Evans on Friday, 6 January 2017 reportedly said that US economic conditions are likely to call for two interest-rate hikes in 2017, but a forecast of three hikes is not implausible. Evans said he was sticking with expectation of two rate hikes that he made in September even though things are now a little bit stronger than they were then.

Back home, the market breadth, indicating the overall health of the market, was positive. On the BSE, 1,581 shares rose and 1,107 shares declined. A total of 113 shares were unchanged.

Capital goods stocks were mixed. Bharat Electronics (up 2.32%), Bharat Heavy Electricals (up 1.19%), Havells India (up 0.94%), Praj Industries (up 0.36%) and Thermax (up 0.03%) edged higher. GE T&D India (down 1.52%), Crompton Greaves (down 0.4%), ABB India (down 0.37%), Siemens (down 0.36%) and L&T (down 0.34%) edged lower.

BEML jumped 13.95% at Rs 1,131.95 after the Government of India (GoI) approved a 26% stake sale in the state-run company to the strategic buyers. BEML said that the GoI has communicated in-principal approval of the Cabinet Committee on Economic Affairs (CCEA) for strategic disinvestment of 26% equity shares in the company out of GoI's shareholding of 54.03%. The shareholding would be sold to the strategic buyers to be identified by GoI by following due procedure.

Shares of power generation and power distribution companies edged lower. NTPC (down 1.31%), JSW Energy (down 1.3%), Power Grid Corporation of India (down 1.14%), Reliance Power (down 0.91%), Jaiprakash Power Ventures (down 0.72%), Tata Power Company (down 0.71%), Reliance Infrastructure (down 0.54%), GMR Infrastructure (down 0.24%) and NHPC (down 0.18%) declined. CESC (up 1.36%), Torrent Power (up 0.28%) and Adani Power (up 0.31%) edged higher.

Shares of state-run coal mining giant Coal India were down 1.54% at Rs 301.05.

On the macro front, as per the first advances estimates of real gross domestic product (GDP) released by the Central Statistics Office (CSO), the GDP growth is estimated at 7.1% for FY 2017, showing moderation from 7.6% in FY 2016. Real gross value added (GVA) is anticipated to increase 7% in FY 2017 against 7.2% growth in FY 2016. The data was announced after market hours on Friday, 6 January 2017.

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