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Reports India

Indian stock market daily morning report (June 16, 2014, Monday)

June 16, 2014, Monday, 06:20 GMT | 02:20 EST | 10:50 IST | 13:20 SGT
Contributed by Keynote Capitals

Views on markets today

- Benchmark indices, the S&P BSE Sensex and CNX Nifty, were weighed down by spike in oil price amid increasing violence in Iraq in trade on Friday.

After a positive start, the markets were unable to hold on to their gains as all round selling in scrips across the sectors dragged the indices sharply. The 30-share Sensex ended 34- points lower and the 50-share Nifty was down 107 points at 25,22- and 7,542 levels, respectively.

- Shares of Corporation Bank and Rallis India lost 0.26% and 1.19%, in the afternoon trade, on BSE on turning ex-dividend on friday.

Rallis India (down 1.19% at Rs 203.40) and Corporation Bank (down 0.26% at Rs 399.50) edged lower.

- Tata Motors closed 2.64% down at Rs 446.75 on BSE after the company reported a 5.14% drop in its global wholesales in May, 2014 over May, 2013.

- Among the 12 BSE Sectoral indices, 1 index closed in positive while 11 indices ended the day in negative. Top Gainers: BSE IT up by 0.13%. Top Losers: BSE Realty down by 5.24%, BSE Power by 3.53% and BSE Consumer Durables by 3.21%.

Market breadth was negative at ~0.40 as investors sold large cap stocks. On provisional basis, FII's bought Rs 10.99bn worth of Indian equities and DII's sold Rs 3.58bn worth of equities.

Economic and Corporate Developments

- After falling for two months, industrial production grew at a 13-month-high rate of 3.4 per cent in April, driven mainly by electricity generation and manufacturing.

The numbers, if sustained, could push up economic growth, stuck below five per cent for two years now. However, economists are still not certain about the recovery in manufacturing, as it is driven by volatile capital goods.

The country's industrial output, as measured by the Index of Industrial Production (IIP), had declined 0.5 per cent in March and 1.7 per cent in February, official data showed on Thursday.

- Retail inflation, measured by the consumer price index (CPI), fell to a three-month low of 8.2- per cent in May, against a high of 8.59 per cent in April, as prices of vegetables and cereals increased at a slower pace.

Inflation in rural parts fell to 8.86 per cent in May from 9.17 per cent in April. In urban areas, it came down to 7.55 per cent from 7.69 per cent, showed the official data issued on Thursday.

Buzzing Stocks

- Three PSU OMCs lost 4.63% to 7.54%, in the intraday; on BSE as US crude oil futures surged on supply concerns as violence escalated in Iraq, the second-largest oil producer in OPEC.

HPCL (down 7.54% at Rs 394.95), Indian Oil Corporation (down 6.55% at Rs 328), and BPCL (down 4.63% at Rs 571.30) edged lower.

- Shares of seven capital goods firms gained 0.33% to 2.23%, in the afternoon trade, on BSE after data on Thursday, 12th June, 2014, showed that capital goods production jumped 15.7% in April, 2014.

ABB (India) (up 0.59% to Rs 1,007.10), Bharat Heavy Electricals (Bhel) (up 2.15% to Rs 249.45), L&T (up 0.7% to Rs 1,731), Bharat Electronics (up 1.95% to Rs 1,843), AIA Engineering (up 2.23% to Rs 799), Siemens (up 0.33% to Rs 938.65), Thermax (up 0.81% to Rs 941) gained. Crompton Greaves fell 0.33% to Rs 206.80.

- Idea Cellular closed 4.32% down at Rs 135.10 on BSE after the company announced the successful closure of its qualified institutional placement to qualified institutional buyers.

- Indian Overseas Bank closed 5.54% down at Rs 80.20 on BSE after the bank said it has requested the government to infuse capital fund to the bank to an extent of Rs 3,500 crore for the current financial year.

- Rainbow Papers closed 2.55% down at Rs 82.05 on BSE after the company scheduled a board meeting to consider allotment of shares to promoter group firm.

- Deepak Nitrite closed 1.19% down at Rs 886.95 on BSE after the company said it has fixed 23rd June, 2014 as record date for 5-for-1 stock split and also for 1:1 bonus issue.

- Jubilant Life Sciences closed 1.98% down at Rs 207.40 on BSE, with the stock extending Thursday's 2.84% gains triggered by the company announcing a price hike of 9% for Niacinamide, with immediate effect.

- Bharat Heavy Electricals closed 2.66% down at Rs 245.40 on BSE after the company said it has successfully commissioned a 6- megawatts hydro power plant of SJVN at Rampur.

- Bharti Airtel closed 2.50% down at Rs 333.00 on BSE, with the stock extending Thursday's fall triggered by a foreign brokerage downgrading the stock and reducing its target price citing competition.

- JMT Auto was locked at 5% upper circuit at Rs 447.35 on BSE, with the stock extending recent rally triggered by the company's board approving issue of bonus shares in the ratio of 5:2.

- L&T closed 1.93% down at Rs 1,685.75 on BSE, with the stock sliding amid volatility after the firm said its construction division has secured new orders worth Rs 1,027 crore across various business segments in May and June, 2014.