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Power generation, telecom stocks decline

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Key benchmark indices cut losses in mid-morning trade as stocks came off day's low zone. At 11:25 IST, the barometer index, the S&P Sensex, was down 72.22 points or 0.23% at 31,725.62. The index was down 21.55 points or 0.22% at 9,886.50. Weak global stocks weighed on the domestic bourses. from power generation and telecom sectors declined.

Domestic stocks nudged lower in early trade on negative global cues weighed by escalation in tensions between the US and North Korea. Key benchmark indices hovered in negative zone in morning trade.

The S&P Mid-Cap index was down 0.62%. The S&P Small-Cap index was down 0.83%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,594 declined and 589 rose. A total of 86 shares were unchanged.

Overseas, Asian stocks were trading lower as investors continued to take risks off the table even as American officials tried to ease concerns amid an escalation in tensions between the US and North Korea.

US stocks closed lower yesterday, 9 August 2017 as tensions between North Korea and the US added a dollop of geopolitical uncertainty to markets, and as high-profile companies disappointed with their quarterly results.

In the latest escalation of tensions between Washington and Pyongyang, the isolated Asian country threatened a missile strike at US territory Guam. That saber-rattling came a day after US President Donald Trump said he would respond with fire and fury like the world has never seen if the country doesn't halt its threats.

On the Federal Reserve front, Chicago Fed President Charles Evans said he supported starting a reduction of the central bank's $4.5 trillion balance sheet in September but was ambivalent about another rate hike this year.

Back home, Tata Motors slumped 6.37% to Rs 390.20 after declaring Q1 result after market hours yesterday, 9 August 2017. The stock had hit a high of Rs 404 so far during the day. The stock hit a low of Rs 386.25 so far during the day, which is a 52-week low. Tata Motors' consolidated net profit rose 41.59% to Rs 3200 crore on 9.92% drop in revenue to Rs 58651 crore in Q1 June 2017 over Q1 June 2016.

Tata Motors' consolidated revenue was lower due to translation impact from Pound to Rupee. Also, PAT in Q1 June 2017 was boosted by a one-time gain of Rs 3609 crore relating to the changes made to the Jaguar Land Rover (JLR) pension plans.

The operating performance broadly reflects lower wholesale volumes for JLR business excluding the China joint venture, and continuation of higher competitive incentive levels and launch and growth costs seen in FY 2017.

In standalone business, a significant de-growth in the medium & heavy commercial vehicles (M&HCV) segment, flat light commercial vehicles (LCV) segment and moderate growth in passenger vehicle segment was seen.

Power generation stocks dropped. Reliance Infrastructure (down 4.09%), Company (down 0.39%), CESC (down 1.7%), NTPC (down 0.95%), (down 1.09%), NHPC (down 2.44%), Adani Power (down 4.6%) and JSW Energy (down 0.42%) edged lower. (up 0.64%) and Jaiprakash Power Ventures (up 0.59%) rose.

State-run coal-mining giant Coal India was off 0.23% at Rs 242.

Shares of state-run power transmission major of India slipped 1.08%.

Shares of state-run power sector finance firms also moved higher. Rural Electrification Corporation fell 1.65%. slipped 1.19%.

Telecom stocks fell. Bharti Airtel (down 0.29%), MTNL (down 0.27%), Tata Teleservices (Maharashtra) (down 1.29%) and Reliance Communications (down 1.57%) fell. Idea Cellular (up 0.71%) rose.

Shares of Bharti Infratel rose 0.5%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

National Peroxide rose 8.56% after net profit rose 47.25% to Rs 17.95 crore on 18.08% rise in net sales to Rs 68.30 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

Separately, National Peroxide announced after market hours yesterday, 9 August 2017, that its board approved the capacity expansion of the company's Hydrogen Peroxide plant at Kalyan (on 50% w/w basis) from 95,000 tonnes per annum to 1.50 lakh tonnes per annum.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 10 2017. 11:27 IST