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Reports India

Indian stock market daily morning report (July 09, 2014, Wednesday)

July 9, 2014, Wednesday, 05:11 GMT | 00:11 EST | 08:41 IST | 11:11 SGT
Contributed by Keynote Capitals

Views on markets today

- Benchmark share indices slumped on Tuesday, recording their largest drop in percentage terms since January 27, 2014, as investors turned cautious and booked profits ahead of the Budget session on Thursday.

The 30-share Sensex was down 51- points to end the day at 25,582 and the Nifty slumped 164 points to close at 7,623.

- Earlier in the day, the benchmark indices hit record highs for the fourth straight session, hitting the 7,800 mark on the Nifty for the first time. However, the sell-off was triggered post the Rail Budget announcement.

Blue-chips like L&T, RIL, ICICI Bank, ONGC and SBI, together contributed to 267 point rout on the Sensex. 2- of the 30 Sensex stcoks were in red. The only exceptions were Sun Pharma and HDFC up 0.8% and 0.2% respectively.

- Shares of eight companies whose business is related to railways dropped by 4.91% to 19.84% on BSE after the presentation of Railway Budget today, - July 2014.

Texmaco Rail and Engineering (down 19.84%), BEML (down 5%), Titagarh Wagons (down 4.99%), Kalindee Rail Nirman (Engineers) (down 4.99%), Kernex Microsystems (India) (down 4.94%), Stone India (down 4.91%), Simplex Casting (down 8.45%) and Bharat Heavy Electricals (down 8.16%) edged lower.

- All the BSE Sectoral Indices ended the day in negative. Top Losers: BSE Realty down by 7.16%, BSE Power by 6.37%, BSE Capital Goods by 4.80%, BSE Consumer Durables by 4.55% and BSE Metal by 4.22%.

Market breadth was negative at ~0.34 as investors sold large cap stocks. On provisional basis, FII's bought Rs 1.92bn worth of Indian equities and DII's sold Rs 3.99bn worth of equities.

Economic and Corporate Developments

> The government has proposed dropping a crucial rider for increasing the foreign direct investment (FDI) limit in the insurance sector to 49% from the current 26%. The earlier proposal was that the higher FDI limit would be allowed only for health insurers.

The Centre's revenue deficit - the excess of non-capital expenditure over non-capital revenues - constituted about 54% of the interim Budget target for FY15 in just two months of the financial year, presenting a reality check for Finance Minister Arun Jaitley ahead of the Budget. As a percentage of Budget estimate (BE), the revenue deficit stood at a six-year high in the first two months of the current financial year.

Buzzing Stocks

- ONGC closed 4.23% down at Rs 397.60 on BSE on reports the government is planning to sell a 5 to 10% stake in state-run oil & gas exploration firm.

- Cairn India closed 1.94% down at Rs 355.45 on BSE as oil prices traded lower on reports that the militant insurgency hasn't spread to Iraq's south, the source of more than three-quarters of its oil output.

- ICRA closed 3.74% down at Rs 2,955.30 on BSE. The stock touched an intraday high of Rs 3,130 after consolidated net profit surged 32% to Rs 21.80 crore on 17% growth in total income to Rs 80.97 crore in Q1 June 2014 over Q1 June 2013.

- Housing Development Finance Corporation closed 0.48% up at Rs 1,022.40 on BSE on hopes of favorable announcements in the Union Budget on Thursday, 10 July 2014.

- Siemens closed 7.71% down at Rs 907.95 on BSE, with the stock sliding amid volatility after the company said it has won a prestigious order from NTPC for approximately Rs 52 crore.

- Shasun Pharmaceuticals closed 2.07% up at Rs 172.65 on BSE after the company said it has successfully completed both USFDA and Mexican COFEPRIS inspection at its API facility at Cuddalore in Tamil Nadu.

- PTC India Financial Services closed 10.25% down at Rs 35.45 on BSE, with the stock declining on profit booking after recent upmove.

- Ahmednagar Forgings closed 9.61% down at Rs 294.05 on BSE after Cresta Fund sold 3.85 lakh shares of Ahmednagar Forgings on NSE at Rs 327.26 per share on Monday, 7 July 2014.

- Coal India closed 4.96% down at Rs 376.85 on BSE in volatile trade after the government on Monday, 7 July 2014, said it has no plan to set up an independent pricing authority for coal.

- Pipavav Defence & Offshore Engineering Company closed 5% to Rs 66.65 on BSE, with the stock sliding on profit booking after recent rally.

- Network 1- Media & Investments and TV1- Broadcast closed 4.66% down at Rs 57.25 on BSE. The stock had touched an intraday high of Rs 63.05 after Reliance Industries announced that Independent Media Trust has completed the acquisition of control of both these companies.

- Adani Enterprises closed 8.70% down at Rs 454.30 on BSE on reports that the Competition Commission of India has imposed a penalty of Rs 25.67 crore on Adani Gas for violating competition norms by abusing its dominant market position.

- Aarti Industries closed 5.91% down at Rs 219.90 on BSE. The stock had hit 52 week high of Rs 244.30 after a mutual fund acquired 0.5% stake in the company on Monday, 7 July 2014.