Power generation stocks decline

Weakness prevailed in mid-afternoon trade as key benchmark indices were hovering in negative terrain. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 127.03 points or 0.39% at 32,675.41. The Nifty 50 index was down 49.40 points or 0.49% at 10,068.85.

Negative leads from Asian markets and overnight fall on the Wall Street spoiled investors sentiment. Cautiousness also prevailed ahead of the outcome of the Reserve Bank of India (RBI)'s monetary policy decision later today, 6 December 2017. RBI is widely expected to hold rates for a second time in a row at the end of its two-day meeting later in the day.

Key indices opened lower and pared losses in morning trade. After some range bound trading in mid-morning trade, key indices tumbled in early afternoon trade on fresh selling pressure. The Sensex hit its lowest level in more than six weeks, while the Nifty hit its lowest level in almost eight weeks in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was down 0.59%, underperforming the Sensex. The BSE Small-Cap index was down 0.25%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,465 shares fell and 1,097 shares rose. A total of 141 shares were unchanged.

Most power generation stocks declined. JSW Energy (down 2.72%), Adani Power (down 2.09%), Torrent Power (down 1.27%), Tata Power (down 0.96%), Jaiprakash Power Ventures (down 0.74%), GMR Infrastructure (down 0.58%), CESC (down 0.5%), NTPC (down 0.42%), Reliance Power (down 0.41%) and NHPC (down 0.18%), edged lower. Reliance Infrastructure was up 0.23%.

State-run Coal India was up 0.68%. State-run Power Grid Corporation of India was up 0.20%.

FMCG shares were mixed. Godrej Consumer Products (up 2.22%), Jyothy Laboratories (up 1.47%), Hindustan Unilever (up 1.23%), Colgate Palmolive (India) (up 1.18%), Nestle India (up 0.18%) and GlaxoSmithKline Consumer Healthcare (up 0.14%), edged higher. Procter & Gamble Hygiene & Health Care (down 0.44%), Marico (down 0.63%), Britannia Industries (down 0.64%), Tata Global Beverages (down 1.38%) and Bajaj Corp (down 1.8%), edged lower.

Torrent Pharmaceuticals rose 1.43% after the company said that it has issued non-convertible debentures on private placement basis for Rs 500 crore.

On the macro front, the government yesterday, 5 December 2017, announced incentives worth a total Rs 8450 crore to boost exports and employment in labour-intensive sectors in the mid-term review of the five-year foreign trade policy (FTP) that was rolled out in 2015.

Export incentives under Merchandise Exports from India (MEIS) have been increased by 2% across the board for labour intensive MSME sectors leading to additional annual incentive of Rs 4567 crore. This is in addition to the already announced increase in MEIS incentives from 2% to 4% for ready-made garments and made ups in the labour intensive textiles sector with an additional annual incentive of Rs 2743 crore.

Further, incentives under Services Exports from India Scheme (SEIS) have also been increases by 2% leading to additional annual incentive of Rs 1140 crore. The FTP will continue to be reviewed and evaluated regularly for addressing concerns of the exporters, simplification of procedures and for promotion of exports, an official statement said.

Overseas, European shares were trading lower in early trade as investors monitored corporate earnings and fresh economic data.

Asian shares were trading lower, mirroring losses on the Wall Street. US stock ended lower Tuesday, driven by losses in utilities, telecoms and industrials sectors. The S&P 500 index fell 0.37%. The Nasdaq Composite ended 0.19% lower. The Dow Jones Industrial Average ended 0.45% lower.

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