Shares of Adani Group companies drop

Key benchmark indices remained firm in mid-afternoon trade despite a weak trend witnessed in most of the European and Asian markets. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 195.48 points or 0.66% at 29,770.70. The Nifty 50 index was up 47.20 points or 0.51% at 9,228.65. Capital goods stocks extended intraday gains. Auto stocks were mixed.

Market held firm after extending initial gains after witnessing a positive opening despite lower Asian stocks.

The BSE Mid-Cap index rose 0.32%, underperforming the Sensex. The BSE Small-Cap index advanced 0.7%, outperforming the Sensex.

The breadth, indicating overall health of the market, was positive. On BSE, 1,647 shares rose and 1,126 shares fell. A total of 119 shares were unchanged.

 

Tata Power company slipped 3.56% and Adani Power slumped 17.02% on reports the Supreme Court today, 11 April 2017, set aside an order by the Appellate Tribunal For Electricity allowing compensatory tariff to these companies. The tribunal, in April last year, had said that the two companies needed to be compensated as the change in Indonesian laws on coal export prices were outside the control of these companies.

Shares of Adani group companies tanked following the news on Adani Power. Adani Ports & Special Economic Zone (down 4.6%), Adani Transmission (down 10%), and Adani Enterprises (down 0.06%) declined.

Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 0.16%), Maruti Suzuki India (down 0.12%), Bajaj Auto (down 0.59%) and TVS Motor Company (down 1.3%) declined. Ashok Leyland (up 0.36%), Eicher Motors (up 0.33%), and Hero MotoCorp (up 0.53%) gained.

Capital goods stocks extended intraday gains. Bharat Heavy Electricals (Bhel) (up 1%), Thermax (up 0.35%), Havells India (up 1.78%), ABB India (up 2%), Bharat Electronics (up 2.3%), L&T (up 1.57%), and Siemens (up 0.42%) gained.

Suzlon Energy rose 1.55% after the company said it has won a repeat order of 50.40 megawatts (MW) wind power project in Karnataka from a leading independent power producer (IPP) company. The project will be completed by June 2017.

Suzlon will execute the entire project on a turnkey basis and will also provide operation and maintenance services. The announcement was made after market hours yesterday, 10 April 2017.

Indian Hume Pipe Company rose 2.1% after the company secured work order of Rs 109.64 crore from the Public Health Engineering Department of the Government of Rajasthan. The announcement was made after market hours yesterday, 10 April 2017.

Indian Hume Pipe Company secured work order from Public Health Engineering Department, NCR Region, Alwar, Government of Rajasthan for execution of the work of re-organization of urban water supply scheme at Alwar and Bhiwadi towns. The project is to be completed within 24 months from signing of agreement.

Overseas, European and Asian stocks declined as rising tensions in the Middle East and political uncertainty in Europe kept investors on edge, underpinning safe assets such as the yen, gold and treasuries.

The upcoming French presidential election and the heightened tensions in the Middle East following the US strikes on Syria have left investors nervous even as a raft of global data over recent months have pointed to a steadily improving global economy.

In France, polls for many weeks have been showing centrist Emmanuel Macron and far-right leader Marine Le Pen on track to top the first round of voting on 23 April and go through to a 7 May runoff.

US stocks closed fractionally higher yesterday, 10 April 2017, amid geopolitical tensions while investors looked ahead to the start of earnings season.

Federal Reserve Chairwoman Janet Yellen indicated yesterday that the era of extremely stimulative monetary policy was coming to an end. In a public discussion at the University of Michigan, Yellen said the Fed was moving away from its efforts to revive a recession-scarred economy and focusing instead on maintaining the gains of the past few years.

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