Key benchmark indices languished in the red in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex fell 174.76 points or 0.55% at 31,425. The Nifty 50 index dropped 50.95 points or 0.52% at 9,820.55. Federal Reserve Chairwoman Janet Yellen hinting at possible hike in US interest rates increased worries of pull out of money from risky assets in emerging markets like India.
The market opened with decent gains but soon slipped into the red in morning trade. Indices extended losses and hit fresh intraday low in mid-morning trade with the Sensex and Nifty, both, hitting their lowest level in more than four weeks. Stock languished in the red in early afternoon trade.
The S&P BSE Mid-Cap index fell 0.36%. The S&P BSE Small-Cap index fell 0.15%. The decline in both the indices was lower than the Sensex's fall in percentage terms.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,332 shares fell and 933 shares rose. A total of 126 shares were unchanged.
Metal and mining stocks declined. Jindal Steel & Power (down 0.8%), Vedanta (down 1.73%), Tata Steel (down 1.05%), NMDC (down 1.83%), Hindalco Industries (down 1.04%), Steel Authority of India (down 2.03%), JSW Steel (down 1.49%), Hindustan Zinc (down 0.43%) and National Aluminium Company (down 0.65%) edged lower. Bhushan Steel rose 1.09%.
Pharma stocks also dropped. Glenmark Pharmaceuticals (down 0.41%), Aurobindo Pharma (down 0.78%), Cipla (down 1.03%), Dr Reddy's Laboratories (down 0.86%), Cadila Healthcare (down 2.45%), Lupin (down 0.45%), Divi's Laboratories (down 7.08%), and Sun Pharmaceutical Industries (down 2.89%) declined.
NTPC dropped 0.09%. The company said that 50 megawatts (MW) capacity, Rojmal Wind Energy Project of NTPC in Gujarat has been fully commissioned. With this, the total installed capacity of NTPC on standalone basis has become 44492 MW and that of NTPC group has become 51708 MW. The announcement was made during market hours today, 27 September 2017.
Separately, Central Electricity Regulatory Commission vide its order, in petition no. 130/MP/2015 filed by GRIDCO of Odisha, has inter-alia decided the commercial operation date of Unit-1 (660 MW) of Barh Super Thermal Power Station, Stage-II (2x660 MW) as 8 March 2016 instead of 15 November 2014. NTPC is studying the detailed order and would take all appropriate actions as available under the law.
Shriram Transport Finance Company jumped 4.92% on reports that the company and IDFC decided to abandon the merger plan worked out in July this year. IDFC (down 1.16%) and IDFC Bank (down 0.17%) edged lower. According to reports, Shriram Transport Finance Company (STFC) and IDFC decided to abandon the merger plan worked out in July this year as shareholder pressure and dilution fears forced them to examine a new, less complicated structure.
The boards of IDFC Group and Shriram Group had on 8 July 2017 approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination of certain businesses and subsidiaries/affiliates/associate companies of the Shriram Group engaged in the credit and non-credit financial services sector with the IDFC Group. The agreement primarily provides for a mutually agreed exclusivity period for due diligence and discussions between the relevant parties in relation to the potential combination, the companies had stated in a press release issued at that time.
Overseas, Asian stocks were mixed amid positive economic data in China and as investors hoped for progress on major tax reform in the United States. Annual profits at China's industrial companies rose 24% in August, accelerating from the previous month in an indication economic growth remains in good heart even as signs emerge of fading momentum following a robust first half.
US stock-market indexes relinquished earlier gains to close little changed yesterday, 26 September 2017, with the Dow Industrials Average extending a losing streak to a fourth session. Investors appeared to shrug off comments from Federal Reserve Chairwoman Janet Yellen, who cautioned against moving too slowly on interest rates. Yellen said there is a risk that the labor market could become overheated, causing an inflation problem down the road.
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