Key benchmark indices snapped two-day gains to settle with modest losses on first trading day of the week on negative global stocks. The barometer index, the S&P BSE Sensex, lost 187.96 points or 0.64% to settle at 29,233.44. The Nifty 50 index fell 62.80 points or 0.69% to settle at 9,045.20.
Sentiment also took a hit after private weather forecaster Skymet issued a statement today, 27 March 2017, that India's monsoon in 2017 is likely to remain below normal at 95% (with an error margin of +/-5%) of the long period average (LPA) of 887 mm for the four-month period from June to September. This may cause trouble for farmers and decide the fate of Kharif crop that depends heavily on the performance of the southwest Monsoon. Monsoon rain will arrive on the southern tip of Kerala by around June 1 and retreat from the western state of Rajasthan by September.
The Sensex lost 187.96 points or 0.64% to settle at 29,233.44, its lowest closing level since 22 March 2017. The Sensex fell 257.86 points, or 0.88% at the day's low of 29,163.54 in afternoon trade. The index fell 0.70 points at the day's high of 29,420.70 in early trade.
The Nifty 50 index fell 62.80 points or 0.69% to settle at 9,045.20, its lowest closing level since 22 March 2017. The Nifty fell 83.35 points, or 0.92% at the day's low of 9,024.65 in afternoon trade. The index fell 13.15 points, or 0.14% at the day's high of 9,094.85 in early trade.
Among secondary barometers, the BSE Mid-Cap index fell 0.27%. The BSE Small-Cap index fell 0.06%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,630 shares fell and 1,158 shares rose. A total of 231 shares were unchanged.
The total turnover on BSE amounted to Rs 8787.48 crore, higher than turnover of Rs 5566.64 crore registered during the previous trading session on 24 March 2017.
Among the sectoral indices on the BSE, the BSE Metal index (down 2.56%), the BSE Energy index (down 1.64%), the S&P BSE Basic Materials index (down 0.81%), the S&P BSE Healthcare index (down 0.83%), the S&P BSE Telecom index (down 0.91%), and the BSE Oil & Gas index (down 1.02%) underperformed the Sensex. The BSE Power index (down 0.02%), the BSE Consumer Durables index (up 0.88%) and the BSE Utilities index (down 0.1%) outperformed the Sensex.
Reliance Industries (RIL) lost 2.76% to Rs 1,250.75 after the markets regulator Sebi has directed the company to disgorge Rs 447.27 crore in the matter relating to trading of shares in Reliance Petroleum.
The markets regulator Securities and Exchanges Board of India (Sebi) directed Reliance Industries (RIL) to disgorge Rs 447.27 crore in the matter relating to trading of shares in Reliance Petroleum (RPL) by RIL in November 2007. Sebi also barred RIL from the futures and options (F&O) segment for a year and asked it to settle all existing open positions. It will also have to pay 12% per annum on the disgorgement amount of Rs 447.27 crore since 29 November 2007 onwards. RIL has been asked to pay up within 45 days of the order.
Meanwhile, RIL after market hours on Friday, 24 March 2017, said that the trades in RPL shares which were examined by Sebi were genuine and bona fide transactions. These were carried out keeping the best interest of the company and its shareholders, in view, it added. RIL said that Sebi appears to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions.
RIL said it is in the process of consulting its legal advisors. It proposes to prefer an appeal and challenge the order in Securities Appellate Tribunal (SAT). RIL said it remains confident of fully justifying the veracity of the transactions and vindicating its stand. RIL said that it has full confidence in the judicial process and it proposes to vigorously exercise all options available to it to challenge the untenable findings in the order.
Private bank stocks saw mixed trend. HDFC Bank (down 1.18%), Kotak Mahindra Bank (down 1.59%), ICICI Bank (down 0.47%), Axis Bank (down 0.37%), declined. RBL Bank (up 0.55%), Yes Bank (up 0.07%) and IndusInd Bank (up 1.04%) rose.
PSU bank stocks rose. UCO Bank (up 2.51%), State Bank of India (SBI) (up 1.14%), Punjab National Bank (up 3.86%), Bank of Baroda (up 1.36%), Canara Bank (up 1.01%), Bank of India (up 1.99%) and Union Bank of India (up 0.62%) rose. IDBI Bank (down 1.12%) fell.
Corporation Bank rose 1.56% after the bank said that it has raised the full amount of Rs 500 crore of the Basel III Compliant Additional Tier-I Perpetual Bonds [Series II]. The Securities Allotment Committee of the board of the bank has allotted the bonds on 24 March 2017 to the respective Bond investors with a coupon rate of 10.28% per annum. The announcement was made after market hours on Friday, 24 March 2017.
Metal shares declined as copper prices dropped in global commodity markets. Tata Steel (down 3.39%), JSW Steel (down 3.75%), Steel Authority of India (down 3.21%), Hindalco Industries (down 3.19%), Jindal Steel & Power (down 2.46%), Vedanta (down 2.17%), NMDC (down 1.61%), Bhushan Steel (down 2.49%), Hindustan Copper (down 1.8%) and National Aluminium Company (down 1.67%) edged lower. Hindustan Zinc (up 0.2%) rose.
Copper edged lower in the global commodities market. High Grade Copper for May 2017 delivery was currently off 1.71% at $2.5860 per pound on the COMEX.
Dr Reddy's Laboratories (DRL) rose 0.79% to Rs 2,644. DRL and Integra LifeSciences Holdings Corporation, a leading global medical technology company, announced that they have entered into an exclusive distribution agreement. Under the agreement, DRL will market and distribute DuraGen Plus and Suturable DuraGen Dural Regeneration Matrices for use in patients in India. The announcement was made during market hours today, 27 March 2017.
M. V. Ramana, Executive Vice President and Head of Emerging Markets & India Business, DRL said, the company is delighted to partner with Integra LifeSciences. With the launch of DuraGen, it looks forward to building its presence in the segment of regenerative technologies and making a difference to the lives of patients undergoing neurosurgery.
Auto shares edged lower. Tata Motors (down 1.17%), Ashok Leyland (down 1.15%), Escorts (down 1.03%), Hero MotoCorp (down 0.79%), Eicher Motors (down 0.84%), Bajaj Auto (down 0.81%), Mahindra & Mahindra (down 0.35%) and Maruti Suzuki India (down 0.19%), edged lower. TVS Motor Company rose 0.09%.
Telecom shares declined. Idea Cellular (down 3.47%), Tata Teleservices (Maharashtra) (down 3.83%), Reliance Communications (down 1.68%), MTNL (down 1.64%) and Bharti Airtel (down 0.13%) edged lower.
Telecom tower infrastructure provider Bharti Infratel rose 1.16%.
Engineering and construction major L&T fell 0.41% at Rs 1,545. The company announced during trading hours today, 27 March 2017, that the building and factories business segment of the construction arm of L&T has won orders worth Rs 2490 crore. A mega order has been bagged from a premier government organization for the construction of hospital building, a medicaL institute, a nursing college, a school for paramedics, an auditorium, hosteLs, residential quarters along with associated works, in New Delhi. Also, a design and build order has been secured from a prestigious client to construct a technical building in Maharashtra. Yet another design and built contract has been bagged from a major client for the construction of a residential project at Bengaluru, Karnataka. The scope includes construction of shell and core works. The business has also received additional orders from ongoing jobs.
In a separate announcement during trading hours today, 27 March 2017, L&T said that the water and effluent treatment business segment of the construction arm of L&T has won an order worth Rs 705 crore. The project will be executed by L&T in a joint venture with Shriram EPC.This engineering, procurement and construction order has been secured from the Ministry of Water and Irrigation of the United Republic of Tanzania for the extension of the water transmission pipeline from the Lake Victoria Water Supply scheme to Tabora, Nzega and Igunga Towns, Package II.
State-run Bharat Heavy Electricals (Bhel) rose 0.3% at Rs 167.70. The company announced during trading hours today, 27 March 2017, that it successfully commissioned 250 MW unit based on eco-friendly Circulating Fluidized Bed Combustion (CFBC) technology, using low grade coal (lignite) as the primary fuel. The 250 MW lignite based thermal unit is the second unit to be commissioned at Bhavnagar Energy Company (BECL)'s 2x250 MW thermal power project, located at Padva village in Bhavnagar District of Gujarat. The first unit of the project was commissioned earlier in May, 2016. The project is based on CFBC technology - an environment friendly technology to utilize India's large resource of low grade, high moisture lignite.
Meanwhile, key indices snapped two-day winning streak today, 27 March 2017. The Sensex had gained 65.76 points or 0.23% in two sessions, to settle at 29,421.40 on 24 March 2017, from its close of 29,167.68 on 22 March 2017. The Sensex has risen 490.12 points or 1.71% in this month so far (till 27 March 2017). The Sensex has gained 2,606.98 points, or 9.79% in the calender year 2017 (till 27 March 2017). From a 52-week low of 24,523.20 hit on 11 April 2016, the barometer index has risen 4,710.24 points or 19.21%. From a 52-week high of 29,824.62 hit on 17 March 2017, the barometer index has fallen 591.18 points or 1.98%. The Sensex is off 791.30 points or 2.64% from a record high of 30,024.74 hit on 4 March 2015.
Overseas, trading in US index futures indicated that the Dow Jones Industrial Average could decline 142 points at the opening bell today, 27 March 2017.
European shares edged lower as investors adopted a cautious tone on the back of US President Donald Trump's surprise failure to deliver swift health-care reform.
Asian stocks declined as investors continued to worry about the Trump's administration's inability to push through its policy initiatives. US stocks ended lower on Friday, 24 March 2017, as House Republicans withdrew the American Health Care Act after determining that they did not have enough votes to pass the bill. The withdrawal is a major setback for President Donald Trump who had made the repeal and the replacement of the existing Affordable Care Act one of his main campaign pledges.