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Indian stock market daily morning report (August 22, 2014, Friday)

August 22, 2014, Friday, 05:06 GMT | 00:06 EST | 09:36 IST | 12:06 SGT
Contributed by Keynote Capitals


Views on markets today

- Markets ended marginally higher on Thursday led by gains in bank shares after Finance Minister Arun Jaitley said that the government    was working towards bringing in more professionalism in the functioning of banks and improving risk management, amid the backdrop of the recent scams in some public sector banks.

- Further, steel shares came under pressure after the government hiked royalty on iron and bauxite. The 30-share Sensex ended higher by 46 points at 26,360 and the 50-share Nifty gained 16 points at 7,891.

- Shares of PSU OMCs and upstream oil firms closed 0.52% to 4.42% up on BSE on reports that under- recoveries of oil firms are set to come down substantially in the current fiscal on account of better pricing and stable global crude prices.

- Shares of PSU OMCs viz. HPCL (up 4.42% at Rs 467.45), Indian Oil Corporation (up 3.79% at Rs 368.75), and BPCL (up 2.66% at Rs 686.05) edged higher. Shares of upstream oil & gas producers viz. GAIL (India) (up 0.64% at Rs 431.45), ONGC (up 0.52% at Rs 426), and Oil India (up 0.59% at Rs 604.95) edged higher.

- Zee Entertainment Enterprises closed 1.28% up at Rs 291.90 on BSE as the stock will be included in the 50-share CNX Nifty index from 19 September 2014.

- Among the 12 BSE Sectoral Indices 7 Indices closed in positive while 5 Indices ended the day in negative. Top Gainers: BSE Consumer Durables up by 3.78% and BSE Bankex by 1.18%. Top Losers: BSE Realty down by 1.91% and BSE Metal by 1.35%.

Market breadth was positive at ~1.22 as investors bought large cap stocks. On provisional basis, FII's bought Rs 4.12bn worth of Indian equities while DII's bought Rs 0.63bn worth of equities.


Economic and Corporate Developments

- India's economy is on course to grow by around 5.8% in the fiscal year to March 2015, the finance ministry's top official said on Thursday, expressing confidence that "green shoots" of recovery were taking hold. Finance Secretary Arvind Mayaram told an industry event that industrial production data suggested that corporate order books are building up.

Mayaram said he hoped that the Reserve Bank of India would not hold interest rates high for longer than necessary. Falling oil prices would wipe out the cost of diesel subsidies and the government will stick to its fiscal deficit target, he added.

- Prime Minister Narendra Modi will review the performance of key infrastructure sectors, including coal and power, in achieving targets at a meeting early next month. This follows Modi's meeting with the secretaries of nine infrastructure ministries last month to set targets for 2014-15 and identifying key projects in sectors like road, power and railways.


Buzzing Stocks

- Aries Agro closed 4.64% up at Rs 86.90 on BSE after the firm said it has on Wednesday commissioned its first captive solar power generation unit with a capacity of 100 KW at its second largest manufacturing facility in Hyderabad.

- Financial Technologies (India) closed 4.70% up at Rs 255 on BSE on bargain hunting after the stock tumbled 19.51% in the preceding 10 trading sessions to Rs 243.55 on 20 August 2014, from a recent high of Rs 302.60 on 5 August 2014.

- Amara Raja Batteries closed 4.38% down at Rs 571 on BSE on profit booking after recent gains triggered by the company reporting decent Q1 earnings.

- Nine metals stocks closed 0.71% to 5% down on BSE on reports the government has decided to increase royalty rates on minerals.

- Bhushan Steel was locked at 5% lower circuit, Steel Authority of India (down 3.17%), Tata Steel (down 1.62%), JSW Steel (down 0.94%), Sesa Sterlite (down 1.73%), Hindalco Industries (down 1.36%), Jindal Steel & Power (down 1.80%), Hindustan Zinc (down 1.27%), and NMDC (down 0.71%) edged lower.

- SpiceJet closed 3.34% up at Rs 14.56 on BSE after the company said it became India's second largest carrier in July 2014 in terms of market share.

- Axis Bank closed 1.18% up at Rs 398.70 on BSE after the bank said its board at a meeting held today, 21 August 2014, approved issuance of long term bonds/non-convertible debentures upto Rs 6000 crore on a private placement basis.

- Kotak Mahindra Bank closed 1.92% up at Rs 1,016.10 on BSE after the bank said a promoter group firm sold a 0.20% stake in the bank to comply with the central bank's guidelines on equity holding in local banks.

- Venus Remedies closed 0.91% up at Rs 265.50 on BSE, with the stock extending Wednesday's 5.3% rally triggered by the company receiving marketing authorisation from Swiss drug authority for anti-cancer drug Gemcitabine.

- Indraprastha Gas closed 1.95% up at Rs 374.05 on BSE after petroleum ministry issued notification that GAIL (India) could supply gas 10% above the company's current allocation to gas distribution firms.

- Titan Company closed 6.04% up at Rs 367.15 on BSE after a foreign brokerage upgraded the stock to overweight from equal-weight.

- Claris Lifesciences closed 3.56% up at Rs 181.60 on BSE after the company said it has received the MHRA approval for its newly commissioned plant.

- Bosch closed 1.91% up at Rs 14,552 on BSE after the company said workers at Jaipur plant called off tool down strike from Wednesday, 20 August 2014.

- Sterlite Technologies were locked in 5% upper circuit at Rs 60.35 on expectations that the integrated optical fibre company would be one of the key beneficiaries of the Digital India plan.