Fertilizer stocks gain

After hitting intraday high in mid-afternoon trade, key benchmark indices once again sink in the negative zone on fresh selling in index constituents. At 14:22 IST, the barometer index, the S&P BSE Sensex, was down 71.81 points or 0.28% at 25,791.69. The 50-unit CNX Nifty was down 14.70 points or 0.19% at 7,853.80.

A bout of volatility was witnessed in morning trade. The Sensex fell 124.96 points at the day's low of 25,738.54 in morning trade. The Nifty fell 37.15 points at the day's low of 7,831.35 in morning trade.

The market breadth indicating the overall health of the market was positive. On BSE, shares 1,307 rose and 1,274 shares fell. A total of 134 shares were unchanged. The BSE Mid-Cap index was up 0.31%. The BSE Small-Cap index was up 0.42%. Both these indices outperformed the Sensex.

In overseas markets, European and Asian stock markets edged lower with trading sentiment hurt by another weak data release from China. Markets in Hong Kong, Taiwan and South Korea are closed for holiday. Economic data showed that China's industrial profits fell 8.8% in August from a year ago, extending July's 2.9% fall as the slowing economy hit enterprises' profitability. US markets ended on a mixed note on Friday, 25 September 2015 due to a sharp sell-off in biotech and healthcare stocks. Prospects for the US economy generally appear solid, Federal Reserve Chairwoman Janet Yellen said in her speech late Thursday, 24 September 2015 after US markets had closed. She argued in favor of hiking interest rates this year, giving more clarity to Fed watchers.

IT stocks were mostly higher. TCS (up 1.06%), HCL Technologies (up 0.89%), Oracle Financial Services Software (up 0.95%), Tech Mahindra (up 1.29%), Hexaware Technologies (up 0.16%) and MphasiS (up 0.68%) rose. Infosys (down 2.71%) and Wipro (down 1.32%) declined.

Sun Pharmaceutical Industries (Sun Pharma) dropped 2.81% after the US Food and Drug Administration revoked an approval issued to the drugmaker, citing manufacturing quality problems at its production site. Shares of Sun Pharma's subsidiary, Sun Pharma Advanced Research Company (SPARC) fell 2.29%. SPARC on Saturday, 26 September 2015 announced that the US Food and Drug Administration (USFDA) has issued a Complete Response letter (CRL) to its New Drug Application (NDA) for Elepsia XR (Levetiracetam extended-release tablets 1000 mg and 1500 mg).

Fertilizer stocks gained on reports the government is planning $83 million debt waiver for fertilizers and chemicals companies. Deepak Fertilisers & Petrochemicals Corporation (up 4.24%), Chambal Fertilisers and Chemicals (up 4.42%), Rashtriya Chemicals and Fertilisers (up 6.88%), Gujarat State Fertilizers and Chemicals (up 2.23%), Gujarat Narmada Valley Fertilizers and Chemicals (up 0.95%), Fertilizers and Chemicals Travancore (up 11.52%), National Fertilizers (up 5.1%) and Southern Petrochemical (up 3.94%) rose.

Supreme Industries surged 4.99%. The Reserve Bank of India (RBI) on Thursday, 24 September 2015, notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 30% (revised from default 24%) of the paid up capital of Supreme Industries under the Portfolio Investment Scheme (PIS). RBI further said that the foreign shareholding by FIIs/RFPIs in Supreme Industries have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of Supreme Industries are withdrawn with immediate effect.

Indian Hume Pipe Company surged 13.32% after securing two work orders aggregating to Rs 1230.77 crore from Rural Water Supply and Sanitation Department of Telangana state government. The company made announcement on Friday, 25 September 2015.

Lanco Infratech galloped 15.94% after step-down subsidiaries announced the financial closure of cost overrun of projects with lenders. The company made announcement on Friday, 25 September 2015.

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