Stock market in India extended losing streak to third consecutive trading session on 19th May 2016. After opening with a negative gap, indices kept losing ground gradually, the decline was led by capital goods, FMCG, energy, banking, metals and oil & gas stocks. Even the mid cap and small cap stocks were not spared. Selling aggravated as the day progressed, not a single sectoral index on the BSE ended in the green. Nifty closed with a loss of 87 points at 7,783 while Sensex ended with a loss of 305 points at 25,400.

Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.1%, while the Hang Seng led the Shanghai Composite lower. They fell 0.67% and 0.02% respectively. European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.55%, while London’s FTSE 100 is off 1.38% and France’s CAC 40 is lower by 0.88%.

Most of the power stocks finished weak with Adani Power and Torrent Power leading the losses. Shares of Torrent Power nosedived 12% after the company’s net profit for the quarter ended March 2016went down by over 95%.

According to a leading financial daily, Tata Power’s100% subsidiary – Tata Power Renewable Energy (TPREL) has won two solar grid connected photovoltaic projects of 50 MW capacity each in Pavagada Solar Park in the Tumkur district of Karnataka.

The projects have been awarded through open category under the Jawaharlal Nehru National Solar Mission (JNNSM) Phase-II Batch-II Tranche-I under ‘State Specific Bundling Scheme’. TPREL has received the Letter Of Intent to develop the projects and will sign a 25 year Power Purchase Agreement with NTPC Vidyut Vyapar Nigam. Tata Power finished the day down by 2.1% on the BSE.

Meanwhile, shares of Power Grid Corporation of India finished the trading day on an optimistic note (up 0.6%) after it was reported that the company has operationalized its ultra-high voltage 1200 kV National Test Station (NTS) at Bina in Madhya Pradesh. This will help the company in increasing power carrying capacity. Reportedly, the 1,200 kV station has five to six times more power carrying capacity than the 400 kV stations for transmission of power.

The power sector is going through troubled times. The State Electricity Boards (SEBs) that buy power from generators are reeling under huge losses and bloated debt. The government program ‘Ujwal Discom Assurance Yojana’ (UDAY) for SEBs holds hope to revitalize the power sector (Subscription Required). This is because unlike the previous bail-out packages that were provided for debt restructuring, the UDAY offers a framework for the long-term revamp of SEB operations.

USDINR trade today trading down 36 paise at 66.33 per US dollar

Out of 1,811 stocks traded on the NSE, 1,073 declined and 465 advanced today.

Top 5 Nifty Gainers: Lupin Ltd (1.43%), Wipro (0.70%), Tata Motors (0.70%), Maruti Suzuki (0.32%) and TCS (0.20%).

Top 5 Nifty Losers: Adani Ports & Sez (-6.14%), SBI (-4.05%), L&T (-3.24%), HDFC (-2.61%) and GAIL (-2.50%),

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After two consecutive weeks of gains, the Indian equity market shut with modest losses on Wednesday amid a sharp late recovery. Weak global cues dragged the Indian indices to open with a negative gap down. However, the day progressed; benchmarks staged a smart recovery led by gains in the realty, metals and capital goods stocks. The auto, power, utilities and consumer durables stocks ended with losses. Nifty closed with a loss of 21 points at 7,870 while Sensex ended with a loss of 69 points at 25,705.

A bulk of this supply would go to the power sector where around 30,000 MW of plants do not have any coal supply agreement from Coal India. Coal India is looking to offer 8 mt of coal to power companies and 2 tonnes to other sectors every month.

At present, despite surplus coal, some 57,000 MW of thermal power units are fuel deprived since they do not have supply contract from Coal India. Reportedly, 9,000 MW of capacity is already achieved commercial operation with coal received on ad hoc sources and the rest (48,000 MW) of capacity is in various stages of construction. These plants would come up from this year onwards till 2020.

In another development, Coal India and NTPC have formally inked a joint venture agreement for the revival of now defunct gas-based Sindri and Gorakhpur plants of Fertilizer Corporation of India. The revival of these plants was estimated to cost about Rs 180 billion over the next four years. Gas for the plants will be supplied through the proposed Jagdishpur-Haldia pipeline. State utility GAIL has been reportedly asked to expedite the pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal. Having failed to revive the plants through auctions, the government asked NTPC and Coal India to take over the units. India’s urea production touched a record 24.5 million tonnes in 2015-16. While the country’s total demand is about 30 million tonnes, the rest is met through imports.

Coal India finished flat while NTPC closed on a negative note (down 0.6%) on the BSE.

Moving on to news from textile sector. According to The Economic Times, SRF is planning to invest Rs 35 billion over the next four years, 70% of which would go into its fast-growing chemicals business. SRF, which exports 90% of its chemicals and counts Syngenta, BASF, Bayer CropScience and other global biggies as its clients, has over the years steered its focus away from technical textiles to chemicals, where it has witnessed a rapid revenue growth and fat operating margins.

Reportedly, SRF will use internal resources to fund the planned investment as the company generates about Rs 10 billion of free cash flow every year. In four years, even as it completes its planned expansion, SRF’s net debt-equity ratio will improve to 0.3 from 0.74 now.

SRF’s shares have risen more than 25% in the past year as its focus on chemicals intensified. SRF is confident of capturing a larger share of the chemicals market because of its rising knowledge and technological capabilities(Subscription Required) in a world where increased demand for food and medicine require food and drugs companies to engage more with innovative chemicals suppliers.

SRF finished the day up by 0.2% on the BSE.

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USDINR trade today trading down 10 paise at 66.97 per US dollar.

Out of 1,432 stocks traded on the NSE, 692 declined and 649 advanced today.

Top 5 Nifty Gainers: Lupin Ltd (2.06%), Tata Motors (1.35%), Tata Steel (1.02%), BHEL (0.92%) and Wipro (0.57%).

Top 5 Nifty Losers: HDFC (-1.62%), NTPC (-1.61%), ITC Ltd (-1.55%), Bharti Airtel (-1.18%) and Wipro (-0.97%),

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The Indian equity market managed to eke out modest gains on Tuesday extending winning streak to second consecutive trading session. Overnight gains in the US and Asian markets lifted the benchmarks to open with a positive gap up, indices remained upbeat in first half, however, a sudden bout of selling pressure in the power, telecom, FMCG and few metals stocks dragged indices off day’s high finally. Nifty closed with a gain of 30 points at 7,891 while Sensex ended with a gain of 120 points at 25,774.

Barring China, major Asian markets finished on a positive note as of the most recent closing prices. Stock markets in Singapore and Japan ended the day higher by 1.6% and 1.1% respectively. Oil prices were trading at US$ 47.90 a barrel at the time of writing. The rupee was trading at 66.72 against the US$.

Sectoral indices finished the day on a positive note with stocks from oil &gas and automobile sectors witnessing buying interest.

As per an article in leading financial daily, Bharat Forge reported its results for the quarter ended March 2016. The company’s revenues declined by 17.6% YoY to Rs 10 billion during the quarter. The revenue was impacted by subdued demand of commercial vehicles (CV) from North America. Reportedly, the exports declined by 28.7% as compared to a year ago. While, the business from America too declined by 41.8%.

Further, the operating profits fell by 17.1% YoY to Rs 2.9 billion. However, operating margins improved by 0.2% YoY to 29.6% during the quarter. The margins expanded on the back of lower raw material costs and other expense.

The company’s net profits declined by 19% to Rs 1.6 billion during the quarter. The management expects the demand to worsen in the first quarter of FY17 as compared to the fourth quarter of FY16 because of inventory destocking and continued weakness in the export market.

The company is gearing itself to capitalise on the opportunities presented by the Modi government’s ‘Make in India’ programme particularly in the rail, power, defense and aerospace sector. Going forward, a revival in demand from North America coupled with the order inflows from the ‘Make in India’ initiative will be the key things to watch out for the company.

In another news update, India’s coffee output is expected to drop by around a quarter to the lowest in nearly two decades in the next crop year. This is on account of poor rains and hot temperatures hitting plantations during the crucial flowering stage.

Coffee growing regions in southern India received up to 70% lower rainfall than normal from March to mid-May. Reportedly, India is the sixth biggest coffee producer behind Brazil and Vietnam. India exports three-quarters of its coffee production and production problems are expected to dent shipments in FY17.

USDINR trade today trading up 3 paise at 66.77 per US dollar.

Out of 1,431 stocks traded on the NSE, 692 declined and 672 advanced today.

Top 5 Nifty Gainers: ONGC (1.83%), SBI (0.45%) and Dr. Reddys Lab (0.25%).

Top 5 Nifty Losers: Maruti Suzuki (-2.16%), Hero Motocorp (-1.91%), Tata Motors (-1.86%), Bajaj Auto (-1.83%) and BHEL (-1.82%),

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.