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Reports India

Indian stock market daily morning report (August 27, 2014, Wednesday)

August 27, 2014, Wednesday, 05:41 GMT | 01:41 EST | 10:11 IST | 12:41 SGT
Contributed by Keynote Capitals

Views on markets today

- Markets ended flat, amid a volatile trading session, even as select metal stocks rebounded while power stocks extended losses after the apex court's verdict on coal block allocations.

The 30-share Sensex ended up 6 points at 26,443 and the 50-share Nifty ended down 2 points at 7,905.

- Shares of 10 companies operating in the power sector fell by 0.92% to 4.36%, in the intraday trade, on BSE after the Supreme Court ruled that all coal block allocations post 1992 were illegal.

Reliance Power (down 4.36%), Adani Power (down 4.17%), Tata Power (down 3.15%), JSW Energy (down 1.90%), Lanco Infratech (down 1.85%), Reliance Infrastructures (down 1.38%), NHPC (down 1.17%), Power Grid Corporation of India (down 1.09%), Torrent Power (down 1.04%) and NTPC (down 0.92%), edged lower.

- Six auto stocks fell by 0.19% to 2.51%, in the intraday trade, on BSE after the Competition Commission of India imposed penalty on 14 car companies after it found them to be in contravention of the provisions of the Competition Act, 2002.

Hindustan Motors (down 2.51%), Maruti Suzuki India (down 1.19%), Mahindra & Mahindra (down 0.6%), Force Motors (down 0.47%), Eicher Motors (down 0.38%) and Hero MotoCorp (down 0.19%) declined.

TVS Motor Company (up 4.68%), Ashok Leyland (up 0.84%), Bajaj Auto (up 0.28%) and Tata Motors (up 0.26%) edged higher.

- Among the 12 BSE Sectoral Indices 7 Indices closed in positive while 5 Indices ended the day in negative. Top Gainers: BSE Healthcare up by 1.12% and BSE FMCG by 0.90%. Top Losers: BSE Power down by 1.32% and BSE Capital Goods by 0.84%.

Market breadth was negative at ~0.60 as investors sold large cap stocks. On provisional basis, FII’s bought Rs 3.64bn worth of Indian equities while DII’s sold Rs 2.59bn worth of equities.

Economic and Corporate Developments

- India's economy likely grew at its fastest in two years between April and June, according to a Reuters poll, as improved sentiment after Narendra Modi's election victory in the middle of the quarter coincided with a rebound in investment, manufacturing and construction.

Prime Minister Modi is expected to deliver major reforms, but the lack of progress on that front, along with poor monsoon rains is expected to hamper the recovery in growth from worryingly low levels.

Asia's third largest economy likely grew 5.3% in the first quarter of this fiscal year (April-March), up from 4.6% in January-March, according to the median consensus of over 40 economists surveyed by Reuters last week.

Buzzing Stocks

- TCS closed 0.49% up at Rs 2,533.45 on BSE after the company said it tied-up with US-based Cloudera to offer Big Data and analytics services globally.

- Muthoot Finance rose 2.69%, in the opening trade, to Rs 194.85 on BSE after the company said it acquired a 30% stake in Sri Lanka-based Asia Asset Finance for $2.1 million.

Sunil Hitech Engineers closed 1.68% up at Rs 130.15 on BSE, after the company bagged new orders aggregating to Rs 137.56 crore.

- Pidilite Industries closed 4.90% up at Rs 413.25 on BSE, with the stock extending recent gains on renewed buying.

- Jet Airways (India) closed 3.25% down at Rs 225.10 on BSE, with the stock extending Monday's fall triggered by ICRA downgrading the company's loan ratings due to delays in debt servicing.

- Tech Mahindra closed 1.70% to Rs 2,349.35 on BSE after a media report suggested that the company expects its digital unit to contribute more than $500 million to revenue by 2015.

- Havells India closed 9.40% up at Rs 272.75 on BSE after stock split.

- ONGC closed 2.48% down at Rs 418.10 on BSE on reports the government is considering offering higher discount in the forthcoming big-ticket public offer of state-owned firm.

- Chambal Fertilisers & Chemicals closed 0.17% up at Rs 59.65 on BSE after the company said that one of its urea plants in Rajasthan shut down on 23rd August, 2014 due to leakage in ammonia synthesis gas converter.

- L&T closed 1.33% down at Rs 1,504.00 on BSE after the company signed contract for 225 megawatt Sikalbaha gas based power plant in Bangladesh.

- Godrej Consumer Products closed 3.84% up at Rs 937.75 on BSE on bargain hunting after the stock fell 5.40% in the preceding two trading sessions to Rs 903.10 on 25th August, 2014, from a recent high of Rs 954.70 on 21st August, 2014.

- Jindal Steel & Power closed 6.16% up at Rs 237.55 on BSE, with the stock extending Monday's slump triggered by the Supreme Court terming the method of allotment of coal blocks between 1993 and 2011 as illegal.

- Shree Cement closed 0.30% down at Rs 7,915.10 on BSE after net profit fell 2.56% to Rs 277.02 crore on 11.45% increase in total income to Rs 1,708.17 crore in Q4 June, 2014 over Q4 June, 2013.