Sensex Ends the Day on a Flattish Note

After opening the day on a firm note, Indian share market lost its early gains and closed the day in the negative territory.

At the closing bell, the BSE Sensex stood lower by 5 points, while the NSE Nifty finished marginally higher by 3 points.

However, the S&P BSE Mid Cap & the S&P BSE Small Cap index ended the day in green. S&P BSE Mid Cap index ended the day trading higher by 0.6%.

Stocks in pharma sector witnessed maximum selling pressure during the day. Cipla share price fell by 3.19 per cent, whereas Lupin share price fell by 2.7 per cent.

In another news update, spot electricity rates continue to remain high in the Southern part of India as compared to other geographies. The spot rate of electricity in South on the Indian Energy Exchange (IEX) stood at Rs 2.75 per unit as compared to Rs 2.49 in the north and Rs 2.4 in the eastern and western parts.

The important point to note here is that the off take from renewable projects is reducing on the back of lower spot prices of electricity. The spot price at the power exchange market is hovering somewhere around Rs 2.41/ KWH.

Whereas, tariffs in some of the agreements that these DISCOMS have signed with renewable developers are as high as Rs 7/KWH. Burdened with a huge pile of losses, the DISCOMS are increasingly shifting to purchase cheaper power from the power exchanges. This puts into jeopardy the massive renewable projects that are scheduled to come up going forward.

Owing to this, stranded capacities could build up in-turn hampering the return ratios. Reportedly, solar power offtake is already seeing curtailment in the state of Rajasthan and Tamil Nadu.

Recently, we had written an article stating the major flaw in the US$ 100 billion solar sector.

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