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Indian stock market daily morning report (September 04, 2014, Thursday)

September 4, 2014, Thursday, 05:26 GMT | 00:26 EST | 09:56 IST | 12:26 SGT
Contributed by Keynote Capitals


Views on markets today

- Benchmark share indices continued their record breaking spree to end at record closing highs led by IT stocks amid upbeat US economic data while the cease fire agreement between Russia and Ukraine boosted sentiment in the latter half of the trading session.

The 30-share Sensex ended at 27,140 levels up by 121 points after hitting a record high of 27,225.85 and the 50-share Nifty closed at 8,115 levels up by 32 points after hitting a record high of 8,141.90.

The U.S. manufacturing activity hit nearly 3-1/2-year high last month and construction spending rebounded strongly in the month of July.

The index of national factory activity increased to 59.0 in August 2014, the highest reading since March, 2011, compared with 57.1 in July, 2014, the Institute for Supply Management said. A reading above 50 indicates expansion in the manufacturing sector.

Further, the US Commerce Department in a release said, construction spending rose to 1.8% in July, 2014, the highest monthly gain since May, 2012.

- Among the 12 BSE Sectoral Indices 9 Indices closed in positive while 3 indices ended the day in negative. Top Gainers: BSE IT up by 2.50% and BSE Teck by 2.21%. Top Losers: BSE FMCG down by 0.59% and BSE Bankex by 0.12%.

Market breadth was negative at ~0.97 as investors sold large cap stocks. On provisional basis, FII's bought Rs 12.88bn worth of Indian equities while DII's sold Rs 4.69bn worth of equities.


Economic and Corporate Developments

- With a rise in non-performing assets exerting pressure on their profitability, Indian banks' capital adequacy ratio (CAR) has fallen in the aftermath of the global economic slowdown of 200- — to 13 per cent as of March 2014 from 13.8- per cent a year earlier, according to data compiled by the Reserve Bank of India. The ratio — a measure of banks' capital to their risk — was 13.01 per cent as of March 2008.

Public-sector banks have been the worst hit, with their average capital adequacy ratio falling to 10.67 per cent as of the quarter ended June, compared with 11.1- per cent in March.


Buzzing Stocks

- Cipla rose 0.34% to Rs 559.30 on BSE after the company announced the launch of Serroflo, its Salmeterol/Fluticasone MDI, in Germany and Sweden.

- Era Infra Engineering was locked at 5% upper circuit at Rs 16.50 on BSE after the company bagged a construction contract from Airport Authority of India.

- NMDC closed 2.46% up at Rs 178.85 on BSE after the company reported rise in iron ore production and sales in five months upto August, 2014 over the previous corresponding year ago period.

- Maruti Suzuki India rose 0.16%, in the morning trade, to Rs 2,917.45 on BSE, in volatile trade as the company opens customer bookings for mid-sized premium sedan Ciaz from, 3rd September, 2014.

- HCL Technologies rose 1.59%, in the intraday, to Rs 1,670.05 on BSE after the company announced that it has been selected by Sydney Trains as a strategic partner to provide bespoke systems support services.

- Carborundum Universal jumped 9%, in the late morning trade, to Rs 206.50 on BSE after HDFC Mutual Fund bought 0.53% stake in the company on Tuesday, 2 September 2014.

- Ballarpur Industries closed 3.41% up at Rs 18.20 on BSE as the Board of IFC approved investment comprising a combination of an equity investment of up to $100 million and Long Term Loans of up to $150 million into its step down subsidiary.

- Punj Lloyd closed 2.64% up at Rs 40.75 on BSE after the company said that the Board of Directors of the company at its meeting held, on 3rd September, 2014 approved issue of Non Convertible Debentures including bonds.

- Bhushan Steel was locked at 5% upper circuit at Rs 96.05 on BSE, with the stock reversing recent steep slide on bargain hunting.

- BEML rose 2.65%, in the morning trade, to Rs 642.25 on BSE after the company said it launched a new version of motor grader for the construction sector.

- Tata Power Company closed 1.07% up at Rs 90.05 on BSE after the company's wholly owned subsidiary Bhira Investments redeemed $450 million fixed to floating rate subordinated notes.

- L&T closed 1.36% up at Rs 1,598.15 on BSE after the company said its construction division recently commissioned the world's largest solar photovoltaic plant of 7.52 MWp on a single roof at Amritsar in Punjab.

- Gruh Finance closed 2.82% up at Rs 203.55 on BSE after 0.39% equity changed hands in a bulk deal on BSE.

- ONGC closed 1.48% down at Rs 438.00 on BSE after ONGC Videsh and YPF S.A., the major oil producing company of Argentina entered into a memorandum of understanding on 1st September, 2014 to cooperate in the hydrocarbon sector.