MUMBAI: Indian equities Tuesday ended in the red but off day’s lows as traders lapped up power sectors stocks after the Central Electricity
Regulatory Commission upped the return on equity on power units.
In its new tariff regulation applicable from 2009-2014, CERC raised RoE to 15.5 per cent from 14 per cent. It also allowed an additional 0.5 per cent RoE to projects commissioned on schedule.
Markets opened with a gap-down tracking Asian peers and turned lacklustre due to lack of participation and any trigger. Some strength emerged as European markets opened higher led by gains in financials.
But the CERC announcement spiked the BSE Power Index and along with it, helped benchmarks shed some of its losses. The BSE Power Index closed up 1.44 per cent led by gains in Neyveli Lignite (13.27%), Power Grid (10.73%), Torrent Power (6.12%), NTPC (4.27%) and Tata Power (1.04%).
Bombay Stock Exchange’s Sensex ended at 9,100.55, down 229.02 points or 2.45 per cent. The index touched a high of 9159.76 and low of 9033.55.
National Stock Exchange’s Nifty closed at 2795.80, down 50.4 points or 1.77 per cent. The broader index hit an intra-day low of 2758 and high of 2842.90.
Secondline stocks were comparatively less affected. BSE Midcap Index ended down 0.9 per cent and BSE Smallcap Index slipped 0.36 per cent.
“Nifty is ranged bound between 2500-3100. Market is just spending time and there are no directional bets right now. Everyday one sector participates and it was turn of power today. Institutions have been shying away from the markets and US president Obama’s speech may not dramatically change the mood. There is no fresh money coming or going out of the system,” said a senior technical analyst.
Amongst other sectoral indices, BSE Metal Index closed 3.76 per cent lower, BSE Realty Index slipped 3.31 per cent, and BSE Bankex was down 3.11 per cent.
NTPC (4.27%), Reliance Infrastructure (3.16%) and Tata Power (1.04%) were the biggest Sensex gainers.
Market breadth on BSE showed 1,342 declines against 1,018 advances.
European markets which opened higher turned negative after UK pound fell against the yen and as fears of financial crisis emerged. US stock futures also indicated a gap-down opening ahead of Barrack Obama’s swearing in. Dow Jones futures were down 1.32 per cent, S&P 500 fell 1.54 per cent and Nasdaq declined 1.23 per cent.
