Key benchmark indices ended almost flat as mixed global cues failed to provide clear direction to the market. The barometer index, the S&P BSE Sensex, rose 21.66 points or 0.06% to 36,161.64, as per the provisional closing data. The Nifty 50 index rose 1.50 points or 0.01% to 11,085.20, as per the provisional closing data.
Indices opened higher and hit fresh record highs in early trade. After some profit booking in morning trade, the market regained positive terrain in mid-morning trade. Indices hovered near the flat line with small gains in early afternoon trade. After slipping into the red, indices bounced back in afternoon trade and were hovering in a narrow range in positive terrain throughout the session.
Among secondary barometers, the BSE Mid-Cap index provisionally fell 0.57%. The BSE Small-Cap index provisionally fell 0.90%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,899 shares fell and 1,008 shares rose. A total of 132 shares were unchanged.
The total turnover on BSE amounted to Rs 6086.28 crore, lower than turnover of Rs 6809.35 crore registered during the previous trading session.
Shares of telecom companies fell after Reliance Jio Infocomm cut tariffs to counter bigger rival Bharti Airtel's revision in data plans. MTNL (down 3.61%), Reliance Communications (down 1.37%) and Tata Teleservices (Maharashtra) (down 0.43%), edged lower.
Jio, the telecom arm of Reliance Industries reportedly announced today, 24 January 2018, the revision was a response to Airtel's tariff changes, which would help it maintain its price leadership. Bharti Airtel, India's No.1 mobile carrier, revised its data plans earlier this week.
Shares of Bharti Infratel rose 1.15%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Telecom firm Idea Cellular fell 5.58% after the company reported consolidated net loss of Rs 1284.50 crore in Q3 December 2017 higher than net loss of Rs 383.90 crore in Q3 December 2016. Total income fell 24.75% to Rs 6551.60 crore in Q3 December 2017 over Q3 December 2016. The result was announced during trading hours today, 24 January 2018.
Effective 1 October 2017, Telecom Regulatory Authority of India (TRAI) amended the domestic interconnection usage charge (IUC) settlement regulation reducing the mobile termination charge (MTC) from 14 paisa to 6 paisa per minute aggravating the financial stress of the industry. Therefore, this quarter results are not comparable to the earlier periods. The regulation imposed 57% sharp decline in IUC settlement rates negatively impacting Idea's revenue and earnings before interest, tax, depreciation and amortization (EBITDA) for this quarter.
In its merger update, company said that on 20 March 2017 Vodafone Group Plc and Idea Cellular announced an agreement to combine their operations in India (excluding Vodafone's 42% stake in Indus Towers) to create India's largest telecom operator. The parties have a complementary footprint and the merged entity would have one of the highest overall spectrum holding of 1,850 MHz across multiple spectrum bands.
The merger transaction is subject to approval from the relevant regulatory authorities. The companies have already received approval for the proposed combination from Competition Commission of India (CCI), SEBI & stock exchanges and (recently from National Company Law Tribunal (NCLT), Bench of Ahmedabad and Mumbai. The merger of Idea and Vodafone India is in the final leg of regulatory approvals and is expected to complete in first half of calendar year 2018.
Telecom major Bharti Airtel fell 6.91%.
The company announced during trading hours today, 24 January 2018, that it has received an approval for the acquisition of Tigo Rwanda, a subsidiary of Millicom International Cellular S. A. from the Rwanda Utilities Regulatory Authority (RURA).
The merged entity will have the largest customer base in Rwanda with 5.9 million subscribers. The combined networks of the two companies will serve customers with voice/ data services, global roaming and mobile banking services. It will also have Rwanda's largest sales and distribution network. The merger will result in the only negative ebitda OpCo joining other 13 positive ebitda OpCos in Africa.
Reliance Industries (RIL) dropped 1.79% to Rs 964.15. The company announced that Reliance Eagleford Midstream LLC (REM LLC) has ceased to be a subsidiary of the company on account of amalgamation of REM LLC with its holding company namely, Reliance Holding USA Inc, which in turn in a wholly owned subsidiary of RIL. The announcement was made during market hours today, 24 January 2018. As informed from time to time, REM LLC had in June 2015 divested its entire stake of 49.9% held in EFS Midstream LLC.
Metal shares fell across the board. Jindal Steel & Power (down 5.31%), Bhushan Steel (down 3.61%), National Aluminium Company (down 3.31%), Hindustan Copper (down 3.16%), NMDC (down 2.88%), Steel Authority of India (down 2.54%), Hindalco Industries (down 2.06%), Tata Steel (down 2.05%), JSW Steel (down 1.7%), Hindustan Zinc (down 1.48%) and Vedanta (down 0.87%), edged lower.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2018 delivery was currently up 1.46% at $3.1565 per pound on the COMEX.
Overseas, European shares declined while Asian shares settled on a mixed note as investors kept an eye on political developments. Investors were worried about global trade after US President Donald Trump on Tuesday approved tariffs on solar cells and washing machines imported to the United States. South Korea said it will bring the matter to the World Trade Organization.
Japan's Nikkei 225 settled lower by 0.81%. Japan's trade surplus fell sharply in 2017 despite record high exports to China and Asia, while its surplus with the US edged up. Japan's overall balance of trade fell 25% to 2.991 trillion Yen ($27.1 billion). On a monthly basis, exports increased 9.3% in December from a year earlier, for the 13th straight rise. Japan's surplus with the US rose 3.1% to 7.036 trillion Yen, the highest since 2015 and the 12th largest on record.
Most US stocks gained yesterday, 23 January 2018, with market focus shifting from politics to corporate earnings after a government shutdown came to an end on Monday. The Dow Jones Industrial Average slipped 0.1%. The S&P 500 index climbed 0.2% and ended at record high. The Nasdaq Composite Index rose 0.7% and closed at record high.
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