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Reports India

Indian stock market daily morning report (September 01, 2014, Monday)

September 1, 2014, Monday, 05:18 GMT | 01:18 EST | 09:48 IST | 12:18 SGT
Contributed by Keynote Capitals

Views on markets today

- Sensex extended gains for the sixth straight session and also gained for the seventh straight month, rising the most in May, after the Modi-led NDA government took charge and announced a slew of initiates that helped improve business sentiment and lifted the economy back on the growth track. Further, today was also the expiry of August futures and options contracts.

Both the benchmark share indices ended at record closing highs. The 30-share Sensex gained 78 points at 26,638 mark after hitting a fresh intra-day high of 26,674.38. For the seven months since February 2014, the benchmark index surged nearly 27%. The 50-share Nifty closed higher by 18 points at 7,954 levels.

- Hydro S&S Industries was locked in upper circuit for fourth straight day, up 10% at Rs 98 after the company said it got shareholders approval for preferential issue to strategic investor Hong Kong Victory Investment Company.

- Shares of 9 companies whose fortunes are linked to orders from Indian Railways rose by 0.87% to 5.04% on BSE after the government notified the liberalised foreign direct investment norms for rail infrastructure.

Texmaco Rail and Engineering (up 4.80%), Kernex Microsystems (India) (up 5%), Titagarh Wagons (up 2.37%), BEML (up 4.99%), Kalindee Rail Nirman (Engineers) (up 4.84%), Zicom Security Systems (up 1.05%), Stone India (up 4.99%), Bharat Heavy Electricals (up 5.04%) and Hind Rectifiers (up 0.87%), edged higher.

- Among the 12 BSE Sectoral Indices 6 Indices closed in positive while 6 Indices ended the day in negative. Top Gainers: BSE Capital Goods up by 1.43% and BSE Oil & Gas by 1.06%. Top Losers: BSE Realty down by 1.91% and BSE Metal by 0.85%.

Market breadth was negative at ~0.89 as investors sold large cap stocks. On provisional basis, FII's sold Rs 7.10bn worth of Indian equities while DII's bought Rs 7.30bn worth of equities.

Economic and Corporate Developments

- The Reserve Bank of India (RBI) has delegated to banks the power to approve in cases where the average maturity period of fresh external commercial borrowing (ECB) is more than the residual maturity of an existing one. Till now, RBI decided such cases.

- India's sovereign ratings are constrained by persistently high inflation that is weighing on an otherwise promising economic recovery, Moody's Investors Service said in a release on Thursday.

"Recurrent inflationary pressures ... keep domestic capital costs high, erode domestic purchasing power as well as savings and lower international competitiveness," the rating agency said.

Buzzing Stocks

- Jaiprakash Associates closed 3.91% down at Rs 46.65 on BSE, extending recent losses on continued selling pressure.

- D B Realty closed 4.72% up at Rs 80.90 on BSE after 0.21% equity changed hands in a bulk deal on BSE today, 28 August 2014.

- Jindal Steel & Power closed 4.43% down at Rs 233.25 on BSE, with the stock extending recent slump triggered by the Supreme Court terming the method of allotment of coal blocks between 1993 and 2011 as illegal.

- Indraprastha Gas closed 1.03% up at Rs 378.30 on BSE after the company signed share purchase agreement to acquire shares of Maharashtra Natural Gas.

- International Travel House closed 6.03% down at Rs 288.55 on BSE, with the stock declining on profit booking after recent rally.

- Bhushan Steel hit a lower circuit limit of 5% at Rs 101.35 on BSE, with the stock extending its recent steep slide.

- Singer India closed 2.53% up at Rs 155.80 on BSE after net profit rose 45.06% to Rs 2.35 crore on 37.44% rise in total income from operations (net) to Rs 65.37 crore in Q4 June 2014 over Q4 June 2013.

- SKS Microfinance closed 1.94% up at Rs 296.55 on BSE after a foreign brokerage initiated coverage on the stock with an overweight rating.

- Fedders Lloyd Corporation closed 19.91% down at Rs 75 on BSE after net profit dropped 64.24% to Rs 5.90 crore on 0.63% fall in total income from operations (net) to Rs 288.88 crore in Q4 June 2014 over Q4 June 2013.

- Havells India closed 3.93% down at Rs 283.70 on BSE on profit booking after the stock surged 18.45% in the preceding two trading sessions to Rs 295.30 on 27 August 2014, from a recent low of Rs 249.31 on 25 August 2014.

- Tata Communications closed 4.47% up at Rs 376.30 on BSE on reports that a foreign brokerage has re-initiated coverage on the stock with a buy rating.

- Nitesh Estates closed 9.73% up at Rs 14.88 on BSE after the company said it signed joint development agreement for Rs 170 crore project at Bangalore.

- Sun Pharmaceutical Industries closed 0.84% down at Rs 854.55 on BSE after the company received a communication from Competition Commission of India with respect to merger with Ranbaxy Laboratories.

- DLF closed 2.95% down at Rs 177.65 on BSE after the Supreme Court on Wednesday, 27 August 2014, directed the company to deposit Rs 630 crore in the registry within three months.

- Rollatainers hit an upper circuit limit of 5% at Rs 314.40 on BSE after the company said it signed a pact to launch Wendy's hamburger restaurant chain in India.