• Indian stock market daily morning report (September 30, 2015, Wednesday)

    Markets Today

    - Benchmark shares indices recouped early losses to end higher on expectations that higher-than-expected rate cut by the Reserve Bank of India would boost growth. The 30-share Sensex ended up 162 points at 25,779 and the 50-share Nifty gained 48 points to end at 7,843. The broader market ended mixed, the BSE MidCap index ended up 0.4% and the BSE SmallCap index closed 0.1% lower.

    - Six auto stocks closed 0.11% to 3.12% up and five realty stocks closed 1.48% to 9.83% up on BSE after the central bank reduced the policy repo rate by 50 basis points from 7.25% to 6.75% after a policy meet today, 29 September 2015. Among realty stocks, Sobha (up 3.94%), Indiabulls Real Estate (up 4.30%), Unitech (up 1.48%), DLF (up 4.18%) and Housing Development & Infrastructure (HDIL) (up 9.83%) edged higher. Among auto stocks, Mahindra & Mahindra (M&M) (up 2.48%), Ashok Leyland (up 0.11%), Maruti Suzuki India (up 3.12%), Eicher Motors (up 0.90%), Tata Motors (up 1.19%) and TVS Motor Company (up 0.15%) gained.

    - Among the 12 BSE sectoral indices, 8 indices closed in positive while 4 indices closed in negative. Top Gainers: BSE Realty up by 1.99% and BSE Bankex by 0.90%. Top Losers: BSE Metal down by 1.45% and BSE Healthcare by 0.89%.

    Market breadth was negative at ~0.88 as investors sold large cap stocks. On provisional basis, FII's sold Rs 11.12bn worth of Indian equities while DII's bought Rs 8.76bn worth of Indian equities.

    Economic and Corporate Developments

    - The Reserve Bank of India at its fourth bi-monthly monetary policy review today reduced the repurchase, or repo, rate by a higher-than-expected 50 basis points to 6.75%. However, the central bank lowered its real GDP forecast for FY16 by 20 basis points to 7.4% compared with 7.6% earlier.

    - With RBI lowering the growth forecast to 7.4% for the current fiscal, Finance Minister Arun Jaitley on Tuesday said the government will reassess its GDP projections. "It is not necessary for us to make our own parallel judgement at this stage. We will reassess the situation," he said after the Reserve Bank announced its fourth bi-monthly monetary policy review. Chief Economic Adviser Arvind Subramanian said the reassessment would be done after second quarter results.

    - In a signal to banks to cut lending rates, government today said it would review the interest rate on small savings, like PPF and Post Office deposits, to bring them in line with market rates. With small saving deposits commanding an interest rate of 8.7% to 9.3%, banks have been reluctant to transmit the entire policy rate cut by RBI to borrowers.

    - Welcoming the Reserve Bank of India's decision to cut short-term lending rates by 50 basis points, Finance Minister Arun Jaitley said on Tuesday this will support growth, while showing that inflationary pressures were now moderating. The finance minister also welcomed the decision to allow the corporate sector to issue rupee-denominated bonds in overseas markets, often called "Masala Bonds", and said it will give access to additional credit for India Inc.

    Buzzing Stocks

    - Lanco Infratech closed 10.40% up at Rs 4.14 on BSE, with the stock extending 17.19% gains in previous session triggered by its step-down subsidiaries announcing the financial closure of cost overrun of projects with lenders.

    - TCS closed flat at Rs 2,590.20 on BSE amid volatility after the company announced a new partnership with Nationwide Building Society in the UK for the provision of the ignio neural automation system.

    - Goa Carbon closed 0.77% up at Rs 65.50 on BSE after the company said that it has resumed operations at its Bilaspur unit in Chattisgarh from 26 September 2015.

    - Nestle India closed 0.12% up at Rs 6,210 on BSE, with the stock witnessing volatility on media reports that the company has canceled its 12-year old contract for manufacturing its Maggi instant noodles with SAJ Food Products.

    - Suzlon Energy closed flat at Rs 20.25 on BSE amid volatility after the company announced that it has completed the commissioning of 100.8 megawatts wind power turnkey project for CLP India in Rajasthan, India.

    - Dr Reddy's Laboratories closed 2.67% down at Rs 4,080.05 on BSE, with the stock sliding on profit booking after a recent rally.

    - Container Corporation of India closed 5.88% up at Rs 1,399 on BSE, with the stock reversing two-day losses on bargain hunting.

    - Infosys closed 1.16% up at Rs 1,121.10 on BSE on media reports the company has partnered with US-based venture capital firm Vertex Ventures US Fund I LP to boost its access to start-ups focused on new-age technologies.

    - Orient Green Power Company closed 1.54% down at Rs 11.52 on BSE on equity dilution concerns after the board approved preferential allotment of 5.83 crore equity shares at Rs 14.56 each to the two separate entities.

    - Elder Pharmaceuticals closed 1.27% down at Rs 112.35 on BSE after the company said that the board of Elder International, FZCO - Dubai will put forward the proposal for sale of Elder Pharmaceuticals' step down overseas subsidiaries.

    - Fifteen bank stocks closed 0.11% to 2.14% up on BSE after the central bank reduced the policy repo rate under the liquidity adjustment facility by 50 basis points from 7.25% to 6.75% after a policy meet today, 29 September 2015. Among public sector banks, UCO Bank (up 0.11%), Syndicate Bank (up 0.66%), Punjab National Bank (up 0.30%), Allahabad Bank (up 0.32%), Bank of Baroda (up 1.66%), State Bank of India (SBI) (up 1.02%), Union Bank of India (up 0.45%), Canara Bank (up 1.20%) and Bank of India (up 1.51%) edged higher. Among private sector banks, HDFC Bank (up 1.20%), Kotak Mahindra Bank (up 0.74%), Federal Bank (up 0.62%), Yes Bank (up 1.16%), IndusInd Bank (up 2.14%) and iCiCI Bank (up 0.11%) edged higher.

    - Shares of housing finance companies closed up to 8% on the bourses after RBI Governor, in its monetary policy statement today said it is proposed to reduce the risk weights applicable to lower value but well collateralised individual housing loan. HDFC, LIC Housing Finance, Dewan Housing Finance Corporation, Gruh Finance, Indiabulls Housing Finance, Can Fin Homes and GIC Housing Finance closed 2.5%-8% up on BSE.

    Contributed by Keynote Capitals
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