The News International Team
03:20pm Benchmarks recover
The market recovered in late trade led by further buying in steel stocks and cutting losses in banks and oil & gas stocks.
The Sensex declined 2.16 points to 26434.86 and the Nifty dipped 2.35 points to 7903.95. About 1035 shares have advanced, 1869 shares declined, and 130 shares are unchanged.
02:55pm Reliance Power in News
Reliance Power announced that the fifth 660 MW unit of its 3,960 MW Sasan ultra mega power project has commenced generation.
With this, the total operational capacity of the Sasan plant in Madhya Pradesh has reached 3,300 MW, Reliance Power said in a release.
Last unit is in advanced stages of construction and will be commissioned over the next few months, the statement added.
After the completion of the fifth unit of Sasan, Reliance Power’s generation capacity has increased to 5,185 MW which includes 5,100 MW of thermal capacity and 85 MW of renewable energy based capacity.
However, the stock lost another 7 percent in addition to 4 percent in previous session after the Supreme Court on Monday disallowed exploitation of captive mines by ultra mega power projects.
Slamming media reports according to which the Shipping Corporation of India (SCI) is looking to exit its container shipping business, chairman and managing director Arun Gupta says the reports are totally unfounded.
Speaking to CNBC-TV18, Gupta said the company, on the contrary is working towards restructuring it in order to make it viable.
“We are not exiting that line of business. Within that we will restructure it and try and make it profitable. If, however, that doesn’t happen, then we may think of exiting it. But as of now, we are very much in the container business,” says Gupta.
On the company’s business, Gupta says that the entire shipping industry is under pressure and its margins are very thin.
The country’s largest ocean liner reported a net profit of Rs 49.60 crore for the first quarter ended June 2014. It had reported a net loss of Rs 98.70 crore during April-June quarter of the last fiscal.
But Gupta is hopeful of a better Q2 as the container segment, he adds, is seeing slight positivity.
The company has an outstanding of Rs 7300 crore but Gupta rules out selling any ship in order to pare its debt.
“We have a strong restruring plan in place and it will service our debt efficiently,” he adds.
02:00pm The market fell further in afternoon trade weighed down by oil & gas, banks, capital goods and power stocks. However, the buying in technology, FMCG, healthcare and select metals stocks capped downside.
The Sensex plummeted 69.25 points to 26367.77 and the Nifty declined 25.85 points to 7880.45. The broader markets saw major fall compared to benchmarks; the BSE Midcap and Smallcap indices dipped 0.8 percent and 1.3 percent, respectively.
About 901 shares have advanced, 1916 shares declined, and 113 shares are unchanged.
JSPL extended losses, down 7 percent on the back of Supreme Court order on coal allocation. Other power companies too take a beating. Power Finance Corporation and Rural Electrification saw further selling after brokerages say pure power financing companies will get hit more while experts say it’s too early to panic, must wait till first September to assess the full impact.
Tata Steel was among the top Nifty gainers as its operational captive coal mines were allocated long before 1993. Morgan Stanley believes the stock is more attractive after the unfair stock reaction it saw yesterday.
Auto stocks were under pressure after the CCI imposed a Rs 2,545 crore penalty on 14 car makers for indulging in unfair practices in the spare parts market. Tata Motors faced maximum fine of Rs 1,346 crore while Maruti and M&M have a fine of Rs 471 and Rs 292 crore, respectively.
Globally, Asian markets closed lower as tensions over Ukraine took the shine off the S&P crossing 2000 mark. European markets were also mixed. Investors will keenly watch for cues from the Ukrainian president meeting with Russian leader, Vladimir Putin later today.