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Reports India

Indian stock market daily morning report (July 17, 2014, Thursday)

July 17, 2014, Thursday, 05:16 GMT | 00:16 EST | 08:46 IST | 11:16 SGT
Contributed by Keynote Capitals


Views on markets today

- Benchmark share indices ended higher on Wednesday with bank shares leading the gains after the Reserve Bank of India exempted the mandatory reserve requirements on funds raised through bonds for extending credit to housing and infrastructure sectors.

The S&P BSE Sensex ended at 25,549.72 up by 321 points or 1.27% and the CNX Nifty ended 7624.40 up by 97.75 points or 1.30%.

To boost demand for infrastructure and housing, the RBI on Tuesday said banks would not have to maintain cash reserve ratio (CRR) or statutory liquidity ratio (SLR) and will not have to meet priority-sector lending targets for funds raised through bonds for extending credit to these sectors.

- Eleven banks rose by 0.10% to 2.61%, in the intraday, on BSE after the Reserve Bank of India on Tuesday, 15 July 2014, announced incentives to raise long term bonds for infrastructure financing.

ICICI Bank (up 2.61%), Federal Bank (up 1.73%), Union Bank of India (up 1.65%), State Bank of India (up 1.65%), Axis Bank (up 1.42%), Bank of India (up 0.56%), IDBI Bank (up 0.48%), Canara Bank (up 0.34%), Bank of Baroda (up 0.23%), Punjab National Bank (up 0.18%) and Yes Bank (up 0.10%), edged higher.

However, IndusInd Bank (down 0.65%), HDFC Bank (down 0.59%) and Kotak Mahindra Bank (down 0.16%), edged lower.

- All the 12 BSE Sectoral Indices closed in positive. Top Gainers: BSE Realty up by 4.28% and BSE Bankex by 2.50% and BSE Metal by 2.20%.

Market breadth was sharply positive at ~2.07 as investors bought large cap stocks. On provisional basis, FII's bought Rs 6.21 bn worth of Indian equities and DII's sold Rs 0.48bn worth of equities.


Economic and Corporate Developments

- The five BRICS countries have not discussed coordinated forex intervention in global markets, but it is an idea "worth thinking about," Reserve Bank of India (RBI) deputy governor Urjit Patel told Reuters on Tuesday.

The leaders of the five top emerging market economies agreed on Tuesday on a landmark deal to create a $100 billion development bank and a reserves fund of the same size to challenge Western dominance over global finances.


Buzzing Stocks

- Tech Mahindra closed 0.54% up at Rs 2,076.05 on BSE after the company said that it will be establishing its new Canadian Aerospace head office in Greater Montreal.

- Atlanta closed 7.56% up at Rs 66.15 on BSE after the company said it secured road maintenance order from National Highways Authority of India.

- Sun Pharmaceutical Industries rose 1.06%, in the opening trade, to Rs 746.55 on BSE after the company announced acquisition of Pharmalucence Inc., by one of its subsidiaries.

- National Buildings Construction Corporation closed 3.71% up at Rs 439.05 on BSE after the company said it is in advance stage of forming a joint venture company with the Rajasthan government.

- Natco Pharma was locked at 5% upper circuit at Rs 1,114.75 on BSE after the firm said that the Bombay High Court upheld the compulsory license granted to the company on Nexavar of Bayer's patented kidney cancer drug.

- Steel Strips Wheels closed 2.64% up at Rs 295.20 on BSE after the company said it has bagged its repeat export order from Russian territory.

- State Bank of India closed 2.26% up at Rs 2,573.15 on BSE, extending Tuesday's 4.32% rise triggered by the bank cutting interest rates on short-term fixed deposits.

- NIIT Technologies closed 7.28% down at Rs 379.40 on BSE, as the company's target of 16% EBIDTA margin for FY 2015 is lower compared with its earlier guidance of 17% due to lower revenue in Q1 June, 2014.

- IDFC closed 8.70% up at Rs 163.05 on BSE after the Reserve Bank of India announced incentives to raise long term bonds for infrastructure financing.

- Kotak Mahindra Bank closed 1.47% up at Rs 884.25 on BSE after net profit rose 6.69% to Rs 429.80 crore on 1.27% growth in total income to Rs 2,686.11 crore in Q1 June, 2014 over Q1 June, 2013.

- Pantaloons Fashion & Retail closed 3.98% up at Rs 125.55 on BSE after the company said its board will meet on 18th July, 2014, to consider rights issue of shares.

- Bajaj Finance rose 0.22%, in the opening hour, to Rs 2,189.35 on BSE after net profit surged 20% to Rs 211 crore on 34% growth in total income to Rs 1,246 crore in Q1 June, 2014 over Q1 June, 2013.

- Shriram EPC closed 7.66% up at Rs 34.45 on BSE after the company said its board has decided to defer the proposed rights issue to a later date.

- Advani Hotels & Resorts (India) hit an upper circuit limit of 20% at Rs 74.25 on BSE, extending recent gains triggered by a recent report that ITC is close to acquiring a luxury hotel in Goa for Rs 700 crore from the company.

- Federal Bank closed 0.93% up at Rs 125.20 on BSE after net profit surged 108.43% to Rs 220.23 crore on 3.15% growth in total income to Rs 1,928.04 crore in Q1 June, 2014 over Q1 June, 2013.