After a weak opening, key benchmark indices pared some losses in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was down 41.14 points or 0.16% at 25,637.79. The Nifty 50 index was down 3.85 points or 0.05% at 7,851.20. Negative cues from Asian markets and overnight slide in the US market spoiled investors' sentiment.
The Sensex fell 22.23 points, or 0.09% at the day's high of 25,656.70 in morning trade. The index fell 129.88 points, or 0.51% at the day's low of 25,549.05 in early trade, its lowest level since 13 April 2016. The Nifty fell 2.95 points, or 0.04% at the day's high of 7,852.10 in morning trade. The index fell 32.50 points, or 0.41% at the day's low of 7,822.55 in early trade, its lowest level since 13 April 2016.
The market breadth indicating the overall health of the market was positive. On BSE, 999 shares rose and 762 shares fell. A total of 107 shares were unchanged. The BSE Mid-Cap index was currently up 0.16%. The BSE Small-Cap index was currently up 0.17%. Both these indices outperformed the Sensex.
In overseas markets, Asian stocks edged lower after oil prices eased and as investors braced for central bank policy meetings in the United States and Japan later this week. The Bank of Japan (BOJ) holds a two-day monetary policy meeting on Wednesday, 27 April 2016 and Thursday, 28 April 2016. Market participants are becoming more confident in their expectations of further easing from the Bank of Japan. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.
US stock prices fell yesterday, 25 April 2016, as weaker oil prices weighed on energy shares. The US Federal Reserve holds a two-day policy meeting on Tuesday, 26 April 2016 and Wednesday, 27 April 2016. As per market expectations, the Fed is likely to hold rates steady this week. The Fed statement could provide clues on the future path for interest rates.
Metal shares edged higher. Bhushan Steel (up 3.28%), Jindal Steel & Power (up 2.68%), Vedanta (up 2.20%), Tata Steel (up 2.17%), National Aluminium Company (up 1.83%), Steel Authority of India (up 1.32%), Hindustan Zinc (up 0.89%), JSW Steel (up 0.84%) and Hindustan Copper (up 0.64%), edged higher. NMDC was down 0.51%
Hindalco Industries was up 4.02% to Rs 102.25 after the company announced that it has communicated to its subsidiary, Aditya Birla Minerals its intention to accept the improved offer by Metal X to acquire shares of ABML. The announcement was made before market hours today, 26 April 2016.
Hindalco announced that it has communicated to Aditya Birla Minerals (ABML) its intention to accept the offer by Metal X to acquire shares of ABML subject to receiving the approval of the Reserve Bank of India and no bona fide superior proposal being announced by a third party within 5 business days of Metals X announcing its intention to make the aforesaid offer.
Metal X, a listed company in Australia has made an announcement regarding its intention to improve its ongoing takeover offer for acquiring shares of ABML under the relevant laws of Australia. ABML is a subsidiary of Hindalco Industries and listed on Australian Stock Exchange. Metal X has offered 1 fully paid ordinary share in Metals X for every 4.5 ABML shares and A$0.08 in cash for every ABML share held. The offer is conditional upon Hindalco's acceptance and confirmation that it has obtained the requisite approval of Reserve Bank of India in this regard.
Most IT shares declined. Oracle Financial Services Software (down 1.3%), Persistent Systems (down 1.23%), HCL Technologies (down 1.04%), Hexaware Technologies (down 1%), Tech Mahindra (down 0.97%), MphasiS (down 0.64%), Infosys (down 0.44%) and Wipro (down 0.04%), edged lower. TCS (up 0.09%) and MindTree (up 0.79%), edged higher.
ABB India lost 4.41% as the company at the time of announcing Q1 March 2016 results reported a 1.4% decline in its order inflow at Rs 1830 crore over corresponding previous quarter.
ABB India said that large orders, especially those based on industry capex, remained scarce as customers continued to delay investment decisions on low demand and under-utilized capacity. The company's order backlog stood at Rs 7804 crore as on 31 March 2016.
ABB India's net profit rose 31.5% to Rs 71 crore on 10.2% growth in revenue to Rs 2000 crore in Q1 March 2016 over Q1 March 2015. The company attributed the growth in bottom line during the quarter to continuous focus on localization and engineering, while improving operational efficiences.
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