• Indian stock market daily morning report (September 16, 2015, Wednesday)

    Markets Today

    - Markets ended lower, amid weak global cues, as investors booked profits in financial shares which had gained in the previous session on rate cut hopes by the RBI amid easing consumer price inflation for August. Further, traders maintained cautious stance ahead of the two-day US Federal Reserve meet which begins tomorrow.

    The 30-share Sensex ended at 25,705.93 down 150.77 points and the 50- share Nifty slipped 43.15 points to close at 7,829.10. The broader markets ended weak in line with the benchmark indices-BSE Midcap and Smallcap indices fell nearly 1% each.

    - Four four steel majors closed 2.65% to 5.08% down on BSE on profit booking after the government issued notification imposing a provisional safeguard duty effective from 14 September 2015. Tata Steel (down 5.08%), JSW Steel (down 4.81%), Jindal Steel & Power (down 2.65%) and Steel Authority of India (Sail) (down 3.36%), edged lower.

    - Among the 12 BSE sectoral indices, 2 indices closed in positive while 10 indices closed in negative. Top Gainers: BSE FMCG up by 0.80% and BSE IT by 0.03%. Top Losers: BSE Metal down by 2.34% and BSE Capital Goods by 2.11%.

    Market breadth was negative at ~0.71 as investors sold large cap stocks. On provisional basis, FII's sold Rs 9.10bn worth of Indian equities while DII's bought Rs 4.80bn worth of Indian equities.

    Economic and Corporate Developments

    - Reserve Bank of India (RBI) Deputy Governor R Gandhi said on Tuesday there was an "urgent" need for banks to reduce their stressed assets, given the impact on liquidity and capital in the sector.

    The RBI had received a proposal to limit the number of banks in a lending consortium as a way to improve recovery of loans, Gandhi said in a speech at an industry event in Mumbai. He, however, said such a move would have also drawbacks.

    - Government has permitted foreign investments through partly paid shares and warrants in a move to facilitate FDI in the country. "The government has reviewed the provisions of the extant FDI policy and it has been decided to allow partly paid shares and warrants as eligible capital instruments for the purposes of FDI policy," the Department of Industrial Policy and Promotion (DIPP) said in a notification. An official said that the natures of these instruments are also of equity and the move would help in attracting FDI.

    - The government will allow commercial lumber enterprises and other industries having a sustainable development model to use forestlands, Union Minister for Environment Prakash Javadekar, said on Tuesday at the 10th Confederation of Indian Industry (CII) Sustainable Summit.

    Saying sustainability is the need of the hour, Javadekar announced a proposed policy whereby industry will be allowed to set up units in forest lands. He clarified that it will generally be in degraded forest areas. An estimated ten per cent of the area, will be reserved for regenerating afforestation. This area will also serve the local community.

    Buzzing Stocks

    - L&T closed 2.92% down at Rs 1,556.95 on BSE after a foreign bank reportedly downgraded the stock to hold and also slashed future earnings estimates due to demand pushback expectations.

    - Suzlon Energy closed 4.70% down at Rs 21.30 on BSE on profit booking after the stock rose 12.59% in the preceding five trading sessions to Rs 22.35 yesterday, 14 September 2015, from a recent low of Rs 19.85 on 7 September 2015.

    - DLF closed 2.42% down at Rs 123 on BSE on profit booking after gaining 11.89% in preceding five trading sessions.

    - Sun Pharmaceutical Industries closed 1.11% up at Rs 866.70 on BSE on reports the company has bid to acquire US-based eye care company InSite Vision Inc.

    - Prism Cement closed 0.76% up at Rs 92.25 on BSE after a bulk deal of 20 lakh shares was executed on the scrip at Rs 93.40 per share at 10:51 IST on BSE today, 15 September 2015.

    - Shares of Gujarat Gas hit a lower circuit limit of 5% at Rs 646 on BSE on relisting on the stock exchanges today, 15 September 2015.

    - Venky's (India) closed 3.20% up at Rs 523 on BSE, with the stock extending yesterday's 18.66% rally triggered by the company's board declaring a 1:2 bonus issue of equity shares.

    - Corporation Bank closed 1.50% up at Rs 47.50 on BSE after the bank said Life Insurance Corporation of India has expressed its intention to infuse Rs 143 crore into the bank.

    - Alok Industries closed 5.23% up at Rs 6.24 on BSE after the company received an additional advance under the Export Performance Bank Guarantee Scheme backed export advance scheme.

    - Divi's Laboratories closed 0.12% up at Rs 2,190.40 on BSE after the company fixed 26 September 2015 as record date for the purpose of determining the eligibility of shareholders entitled to receive 1:1 bonus shares.

    - Nava Bharat Ventures closed 17.44% up at Rs 158.95 on BSE after the company said it entered into an agreement with Tata Steel for conversion of chrome ore into ferro chrome.

    - Texmaco Rail & Engineering closed 0.86% up at Rs 105.45 on BSE after the company said its board has approved acquiring a majority 76% stake in Bright Power for Rs 100 crore.

    - Maruti Suzuki India closed 0.25% up at Rs 4,330.95 on BSE after the Reserve Bank of India notified that registered foreign portfolios investors can now invest up to 40% of the paid up capital of the company.

    - Shares of aviation companies - Jet Airways (up 1.86%) and SpiceJet (up 5.67%) - ended higher on the BSE in an otherwise subdued market after InterGlobe Aviation secured approval from the Securities and Exchange Board of India (Sebi) for Rs 2,500-crore initial public offering (IPO).

    Contributed by Keynote Capitals
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