Telecom stocks edge higher

Key benchmark indices trimmed losses in mid-afternoon trade as European stocks edged higher. At 14:15 IST, the barometer index, the S&P BSE Sensex, was down 75.83 points or 0.3% at 25,254.66. The 50-unit Nifty 50 index was currently down 20.20 points or 0.26% at 7,694.70. The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. On BSE, 1,223 shares gained and 1,210 shares declined. A total of 164 shares were unchanged. The BSE Mid-Cap index was currently up 0.09%. The BSE Small-Cap index was currently up 0.3%. Both these indices outperformed the Sensex.

In overseas stock markets, European shares edged higher after a pullback during the previous trading session triggered by deadly attacks in Brussels. Most Asian stocks edged lower following lackluster cues overnight from US markets and geopolitical concerns following the deadly terror attacks in Brussels yesterday, 22 March 2016. Most US stocks fell yesterday, 22 March 2016, as a decline in financial and consumer-staples shares weighed on the main benchmarks.

Index heavyweight Reliance Industries (RIL) lost 1.52% to Rs 1,032.55 after media reports suggested that its telecom arm Reliance Jio Infocomm might delay the launch of its much-awaited mobile broadband service (4G) to the end of this calendar year. Shares of RIL had gained 3.24% in the preceding three trading sessions to settle at Rs 1,048.50 yesterday, 22 March 2016, from its close of Rs 1,015.55 on 17 March 2016. According to reports, the reason for the likely delay for the launch of mobile broadband service is that the network is taking time to stabilise. There were expectations that Reliance Jio will launch its mobile broadband service on pan India basis at the start of the new financial year in April 2016. The company had announced soft launch of the broadband services for its employees in December 2015.

Telecom stocks edged higher as a delay in the launch of mobile broadband service from Reliance Jio will give other telecom players time to consolidate their position in the market. Bharti Airtel (up 2.08%), Idea Cellular (up 3.67%), Reliance Communications (up 0.48%) and Tata Teleservices (Maharashtra) (up 2.09%) gained. MTNL shed 0.85%.

Capital goods stocks gained. ABB India (up 3.26%), Bharat Heavy Electricals (Bhel) (up 0.16%), Punj Lloyd (up 0.26%), Bharat Electronics (up 1.65%), Crompton Greaves (up 2.13%), Siemens (up 1.4%) and Thermax (up 0.69%) gained.

Index heavyweight and engineering and construction major L&T advanced 0.52% after the company announced winning orders worth Rs 3205 crore across its various businesses. The announcement was made during market hours today, 23 March 2016.

Graphite India jumped 8.29% to Rs 77.70 after a large bulk deal of 58.40 lakh shares was executed on the scrip at Rs 72 per share in opening bell on BSE today, 23 March 2016.

Pennar Engineered Building Systems spurted 11.76% after the company said it has secured new orders worth Rs 120 crore. The announcement was made during market hours today, 23 March 2016.

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