Key benchmark indices slipped into the red and hit fresh intraday low in mid afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex was down 26.04 points or 0.09% at 27,977.08. The Nifty 50 index was currently down 12.85 points or 0.15% at 8,623.70. The Sensex dropped below the psychological 28,000 level. Weakness in global stocks weighed on investors' sentiment.
The Sensex fell 59.21 points or 0.21% at the day's low of 27,943.91 in mid-afternoon trade. The barometer index rose 172.10 points or 0.61% at the day's high of 28,175.22 in early trade. The Nifty declined 25.15 points or 0.29% at the day's low of 8,611.40 in mid-afternoon trade. The index rose 50.65 points or 0.58% at the day's high of 8,687.20 in early trade.
In overseas stock markets, European and Asian stocks edged lower taking cues from a modestly lower day on Wall Street overnight as US crude oil prices slid. In Japan, the Nikkei 225 Average ended 1.47% lower. According to reports, Japanese Prime Minister Shinzo Abe's cabinet approved 13.5 trillion yen ($132.04 billion) in fiscal measures today, 2 August 2016 as part of efforts to revive the flagging economy, with cash payouts to low-income earners and infrastructure spending. The stimulus spending is part of a renewed government effort to coordinate its policy with the Bank of Japan.
US stocks lost momentum to finish mostly lower yesterday, 1 August 2016 as crude-oil futures returned to bear-market territory and weaker-than-expected manufacturing data raised doubts about the strength of the economy. The ISM manufacturing activity index fell to 52.6 in July, down from 53.2 the previous month.
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,653 shares fell and 976 shares rose. A total of 132 shares were unchanged. The BSE Mid-Cap index was currently down 0.41%. The BSE Small-Cap index was currently down 0.56%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Shares of power generation and power distribution companies edged lower. GVK Power & Infrastructure (down 2.34%), NHPC (down 0.4%), Tata Power Company (down 0.01%), Adani Power (down 0.91%), Reliance Infrastructure (down 2.37%) and Reliance Power (down 1.04%) declined. Torrent Power (up 2.28%) and Power Grid Corporation of India (up 0.14%) gained.
NTPC declined 0.19%. The company announced that its board of directors at a meeting held on Friday, 29 July 2016, approved the issue of secured/unsecured, redeemable, taxable/ tax-free, cumulative/non-cumulative, non-convertible debentures (bonds/NCDs) upto Rs 15000 crore during the period commencing from the date of passing of Special Resolution in the Annual General Meeting (AGM), to be held on 20 September 2016, till completion of one year thereof or the date of next AGM in the financial year 2017-18 whichever is earlier. The announcement was made after market hours yesterday, 1 August 2016.
Separately, NTPC announced after market hours yesterday, 1 August 2016 that it has commissioned a 50 megawatts (MW) capacity of NP Kunta Ultra Mega Solar Power Project Stage-I at Anantapuramu on 29 July 2016. With this the installed capacity of NP Kunta Ultra Mega Solar Power Project Stage-I at Anantapuramu has become 250 MW and that of NTPC Group has become 47,228 MW.
Shares of PSU coal miner Coal India declined 0.74%.
Capital goods stocks dropped. BEML (down 0.25%), Bharat Heavy Electricals (Bhel) (down 0.32%), Thermax (down 0.01%), Crompton Greaves (down 0.89%) and Siemens (down 2.55%) declined. Bharat Electronics (up 0.32%), Havells India (up 0.01%), and L&T (up 0.54%) gained.
UltraTech Cement declined 1.54%. The company announced that it has participated in the auction of coal linkages for captive power plant sub-sector and secured 1.29 lakh tons of coal at a premium of Rs 100 per ton over floor price of Rs 970 per ton from Gevra Road mines in Maharashtra and 1.38 lakh tons of coal at a premium of Rs 125 per ton over floor price of Rs 970 per ton from New Kusmunda (NKCR) mines in Chhattisgarh. A formal communication vesting the linkages in the company's favour is expected in due course. With these auctions, the company has secured in all, coal linkages for 4.09 lakh tons for its plants located at Maharashtra and Chhattisgarh. Both these locations are land locked and this helps the company in mitigating the impact of rising costs of petcoke/imported coal. The company intends to participate in the future linkage auctions for its plants located strategically near the coal mines.
TVS Motor Company rose 0.66% after the company reported 14% increase in total sales to 2.48 lakh units in July 2016 over July 2015. The company announced the monthly sales volume data after market hours yesterday, 1 August 2016. TVS Motor Company's total two-wheeler sales rose 15.4% to 2.40 lakh units in July 2016 over July 2015. Domestic two-wheeler sales rose 18.7% to 2.06 lakh units in July 2016 over July 2015. Scooter sales fell 2.28% to 68,033 units in July 2016 over July 2015. Motorcycle sales rose 23% to 95,062 units in July 2016 over July 2015. Three-wheeler sales fell 22.54% to 7,960 units in July 2016 over July 2015. Total exports fell 5.82% to 40,192 units in July 2016 over July 2015. Exports of two-wheelers fell 1.49% to 33,437 units in July 2016 over July 2015.
Tata Communications rose 6.66%. The company's consolidated net profit fell 3.5% to Rs 41.78 crore on 2.9% decline in net sales to Rs 5031.69 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 1 August 2016. The result was announced after market hours yesterday, 1 August 2016. Consolidated earnings include exceptional loss of Rs 92 crore in Q1 June 2016 representing the impairment of Neotel goodwill. On 28 June 2016, Tata Communications announced selling its majority stake in South African internet service provider Neotel to Econet Wireless Global for ZAR 6.55 billion. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 18.3% to Rs 863 crore in Q1 June 2016 over Q1 June 2015 on the back of strong performance by data services and aided by voice solutions.
The company said that in line with its strategy, revenue and EBITDA have shown a healthy trend over the last few quarters. The company is seeing a clear shift in its business mix with revenue from data services contributing 56% to gross revenue and 78% to EBITDA.
JMT Auto rose 4.38% after the company scheduled a board meeting on 4 August 2016 to consider a 2-for-1 stock-split proposal. The announcement was made after market hours yesterday, 1 August 2016. JMT Auto's net profit rose 39.5% to Rs 3.92 crore on 3.5% growth in net sales to Rs 88.48 crore in Q4 March 2016 over Q4 March 2015.
On the macro front, eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) increased 5.2% in June 2016 over June 2015, compared to 2.8% growth in May 2016 and 3.1% growth in June 2015. Its cumulative growth during the three months period from April to June 2016 was 5.4%. The data was announced after market hours yesterday, 1 August 2016.
Meanwhile, investors are awaiting the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the long-pending GST Bill is listed for consideration and passage in Rajya Sabha tomorrow, 3 August 2016 amidst strong indications that the most far-reaching taxation reform would be supported by Congress and all other major political parties. The government is keen to get the GST Bill approved during the Monsoon Session of Parliament ending on 12 August 2016.
The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax.
Powered by Capital Market - Live News
