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Reports India

Indian stock market daily morning report (June 20, 2014, Friday)

June 20, 2014, Friday, 06:07 GMT | 01:07 EST | 09:37 IST | 12:07 SGT
Contributed by Keynote Capitals

Views on markets today

- Markets ended marginally lower, amid a volatile trading session on Thursday, as investors booked profits in shares of oil explorers amid concerns over gas pricing.

The S&P BSE Sensex ended at 25,201.80 down by 44.45 points or 0.18% after hitting a high of 25,425 and low of 25,069 and the CNX Nifty ended 7,540.70 down by 17.50 points or 0.23% after hitting a high of 7,606 and low of 7,502.

- Among the 12 BSE Sectoral indices, 6 indices closed in positive while 6 indices ended the day in negative. Top Gainers: BSE IT up by 1.89% and BSE Teck by 1.36%. Top Losers: BSE Oil & Gas down by 3.11% and BSE Bankex by 0.91%.

Market breadth was negative at ~0.8- as investors sold large cap stocks. On provisional basis, FII's sold Rs 4.20bn worth of Indian equities and DII's sold Rs 1.17bn worth of equities.

Economic and Corporate Developments

- Capital market regulator Securities and Exchange Board of India (Sebi) yesterday, made a slew of announcements---mainly in the primary market space--- to infuse life into the moribund initial public offering (IPO) market.

To encourage more promoters to tap the IPO market, Sebi has relaxed the minimum dilution criteria. Companies can now sell a minimum 25% stake or Rs 400 crore, whichever is more, in public offerings.

Earlier, companies with valuations of less than Rs 4,000 crore had to sell minimum 25% stake in IPO. While, bigger companies are allowed to sell just 10% and are were given three years time to sell another 15%. This led to artificial manipulation in valuations by promoters to ensure that they had to dilute less.

Another major decision taken by the Sebi board, which met yesterday in Delhi, was to extend the 25% minimum public shareholding requirement to state-owned companies. Previously, the minimum public float requirement for public sector undertakings (PSUs) was just 10%. The move will impact as much as 36 PSUs, where the government currently owns more than 75%.

Sebi has also extended the ambit of the popular offer for sale (OFS) mechanism for share sales. The regulator has said that top 200 companies will now be allowed to divest using the OFS route. Earlier, only top 100 companies were allowed to use the OFS route for share sales other than those wanting to achieve MPS requirement.

Buzzing Stocks

- TVS Motor Company rose 3.37%, in the opening trade, to Rs 147.05 on BSE, with the stock extending Wednesday's gains triggered by a foreign brokerage upgrading its rating on the stock to buy from underperform with a target of Rs 200 per share.

- Engineers India jumped 3.60%, in the opening trade, to Rs 315.10 on BSE on reports the company has won its largest ever consultancy contract for a 20 million tonne oil refinery in Nigeria.

- Crompton Greaves closed 1.87% down at Rs 202.70 on BSE on reports the company has put up a part of its land parcel at LBS Marg in the eastern suburbs of Mumbai for sale.

- Unitech rose 0.95% to Rs 31.85, in the opening trade, on BSE, with the stock recovering on bargain hunting after recent slide.

- GMR infrastructure rose 2.89%, in the opening trade, to Rs 33.80 on BSE after favourable verdict from the arbitration tribunal with regard to concession agreement for modernization and operation of Ibrahim Nasir International Airport.

- Hanung Toys & Textiles was locked at 5% upper circuit at Rs 37.70 on BSE after the firm said that corporate debt restructuring cell has approved the corporate debt restructuring package of the company in its meeting held on 23rd May, 2014.

- Zee Media Corp and Zee Entertainment rose by 0.74% to 1.21%, the intraday trade, on BSE after the company said its unit, Taj Television India, will distribute over 47 leading television channels belonging to Zee Group and Turner International India.

- Maruti Suzuki India closed 2.48% down at Rs 2,378.50 on BSE, with the stock sliding amid volatility after the company said it has commissioned its 1 megawatts mono-crystallince photovoltaic solar power plant at its Manesar facility this month.

- Man Infraconstruction closed 2.97% up at Rs 143.85 on BSE, with the stock extending recent gains triggered by the firm's announcement that its board will meet on 25th June, 2014, to consider stock-split and declaration of interim dividend.

- Aditya Birla Nuvo closed 1.87% up at Rs 1,394.00 on BSE after the company said it has revoked the suspension of work and production has started at the company's Aditya Birla Insulators, Rishra Plant with effect from 18th June, 2014.

- Ricoh India hit a lower circuit limit of 10% at Rs 124.45 on BSE, extending recent losses triggered by the company's failed delisting offer.

- Mahindra & Mahindra closed 1.41% up at Rs 1,175.70 on BSE, with the stock recovering on bargain hunting after recent slide.

- United Spirits closed 7.73% down at Rs 2,589.30 on BSE as the open offer made by Diageo, the world's largest liquor maker, to acquire additional stake in the company ended yesterday.