After witnessing a volatile day, although largely in the positive territory, the BSE-Sensex closed the day flattish note - with gains of 40 points only. The NSE-Nifty on the other hand closed higher by about 5 points. Stocks from the power and capital goods spaces were amongst the top gainers while those from the banking and oil and gas sectors were the under performers. As for midcaps and smallcaps, they ended the day mainly on a firm note with the BSE Mid Cap and the BSE Small Cap indices ending higher by 0.6% to 0.8%.
As regards global markets, Asian indices ended on a firm note, while European indices opened on a weak note. The rupee was trading at Rs 64.45 to the dollar at the time of writing.
Stocks of financial services companies ended the day on a mixed note today with Mahindra Finance and Prime Securities leading the gains while IDFC and Geojit BNP Paribas facing the maximum selling pressures. The Reserve Bank of India (RBI) in its statement today stated that foreign investors can buy only 54% of IDFC shares which is down from 74% earlier through primary markets and stock exchanges. The company has asked all custodian banks not to make any further purchases through secondary market on behalf of their FII and NRI clients with immediate effect. The move from the Central Bank comes in the light of the fact that the company has applied for a banking license. IDFC has applied for bank license which is expected to aid in diversifying its business operations. However, the decrease in foreign institutional investors (FIIs) limit has pressurized the stock momentum today.
Stocks from the power sector have ended the day on a firm note with National Thermal Power Corporation (NTPC), Adani Power and JSW Energy leading the gains. A per a leading business daily, the Cabinet Committee on Investments (CCI) is to discuss the issues related to environment and forest clearances today. The outcome of this discussion would be crucial as it involves investments to the tune of Rs 500 bn, largely made by private power players. This discussion would involve matters relating to the diversion of forest land, as well as allocation of coal blocks associated with certain power projects. The outcome of this meeting would play a big role in changing the dull sentiments surrounding the sector.