Key indices register minuscule losses

Minuscule losses were recorded for key benchmark indices as decline for index heavyweights Reliance Industries (RIL), ITC and HDFC offset gains for banking and power sector stocks. The barometer index, the S&P BSE Sensex, dropped 25.93 points or 0.1% to settle at 26,192.98. The 50-unit CNX Nifty fell 4.80 points or 0.06% to settle at 7,977.10. The Sensex and the Nifty staged a recovery from a near 1% slide in early trade triggered by weakness in Asian stocks. The recovery on the domestic bourses materialized as European stocks edged higher. The Sensex reclaimed the psychological 26,000 mark after falling below that level in early trade.

Indian stocks witnessed intraday volatility. The Sensex and the Nifty trimmed losses soon after a near 1% slide in early trade. Intraday recovery gathered steam with key benchmark indices erasing almost entire intraday losses in afternoon trade. Benchmark indices once again drifted lower shortly thereafter. The Sensex and the Nifty once again witnessed a recovery towards the latter part of the trading session.

In overseas stock markets, European stocks edged higher on expectations that Greece will stick to its bailout commitments after a convincing victory for the left-wing Syriza party in Greece's general election held yesterday, 20 September 2015. Earlier during the global day, Asian stocks edged lower as the US Federal Reserve's decision last week to keep interest rates at record low raised fresh concerns about global economic growth. The US central bank cited concerns about the global economy and a lack of inflation growth in the United States as the reasons for its decision to leave interest rates at record low after the conclusion of a two-day monetary policy meeting on 17 September 2015.

The Sensex dropped 25.93 points or 0.1% to settle at 26,192.98, its lowest closing level since 16 September 2015. The index fell 246.37 points at the day's low of 25,972.54 in early trade. The index rose 14.55 points at the day's high of 26,233.46 in late trade.

The Nifty dropped 4.80 points or 0.06% to settle at 7,977.10, its lowest closing level since 16 September 2015. The index fell 73.55 points at the day's low of 7,908.35 in intraday trade. The index rose 6 points at the day's high of 7,987.90 in intraday trade.

The BSE Mid-Cap index rose 0.44%. The BSE Small-Cap index rose 1.21%. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 1,604 shares rose and 1,032 shares fell. A total of 133 shares were unchanged.

The total turnover on BSE amounted to Rs 2190 crore, lower than turnover of Rs 4593.90 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE FMCG index (down 0.76%), BSE Consumer Durables index (down 0.19%) and BSE Oil & Gas index (down 0.27%) underperformed the Sensex. The S&P BSE Healthcare index (up 0.04%), BSE IT index (up 0.01%), BSE Auto index (up 0.17%), BSE Bankex index (up 0.8%), BSE Capital Goods index (up 0.5%), BSE Metal index (down 0.08%), BSE Power index (up 1.08%), BSE Realty index (up 0.29%) and BSE Teck index (up 0.1%) outperformed the Sensex.

Banks shares staged a recovery from initial losses. Among PSU banks, UCO Bank (up 5.66%), Andhra Bank (up 4.19%), Syndicate Bank (up 3.81%), United Bank of India (up 1.65%), Canara Bank (up 2.47%), Bank of India (up 2.21%), Union Bank of India (up 1.68%), State Bank of India (up 1.16%), Punjab National Bank (up 0.9%), Bank of Baroda (up 0.76%) and Corporation Bank (up 0.11%) edged higher.

IDBI Bank surged 16.72% at Rs 69.45 after Finance Minister Arun Jaitley reportedly said in an interview to a television channel that the government is working out ways to give more operational freedom to state-run banks and hinted at IDBI Bank being one of the first test cases.

Among private sector banks, Axis Bank (up 2.05%), Kotak Mahindra Bank (up 0.9%), ICICI Bank (up 0.49%) and HDFC Bank (up 0.42%) edged higher. Yes Bank (down 0.19%) and IndusInd Bank (down 0.51%) edged lower.

Power generation shares edged higher. Torrent Power (up 8.74%), Jaiprakash Power Ventures (up 6.58%), Adani Power (up 5.08%), JSW Energy (up 4.47%), Reliance Power (up 4.93%), GVK Power & Infrastructure (up 2.16%), Tata Power (up 0.78%), NHPC (up 0.6%) and NTPC (up 0.28%) edged higher. Reliance Infrastructure (down 0.99%) edged lower.

Shares of state-run power transmission major Power Grid Corporation of India rose 2.36% to Rs 136.65. The stock hit a high of Rs 137 and a low of Rs 131.80 in intraday trade.

Tata Motors rose 0.97% at Rs 331.60. Tata Steel after market hours on Friday, 18 September 2015, announced that the company, as part of its portfolio restructuring, sold 3.7 crore ordinary shares of Tata Motors to Tata Sons at a price of Rs 330 per share. The share sale aggregating to Rs 1249.99 crore was carried out on 18 September 2015 through off-market transaction.

Shares of Tata Steel dropped 0.74% at Rs 226.85. The stock hit a high of Rs 229.15 and a low of Rs 223.30 in intraday trade.

Bharat Heavy Electricals (Bhel) fell 0.72% at Rs 207.40. The stock hit a high of Rs 208.70 and a low of Rs 205.70 in intraday trade. Bhel said during market hours today, 21 September 2015, that it has achieved a major milestone with the commencement of the first unit of the upcoming 1,980 megawatts (MW) supercritical thermal power plant at Mirchwara in Lalitpur district of Bundelkhand region of Uttar Pradesh. The second and third units of the project are also in advanced stages of completion, Bhel said. Bhel also said that three supercritical thermal units at Bara and the second 500 MW unit at Anpara, both in Uttar Pradesh, are also in advanced stages of completion.

Index heavyweight and construction major L&T rose 0.76% at Rs 1,551.75. The company announced during trading hours today, 21 September 2015, that it has won orders worth Rs 1810 crore across various business verticals in this month so far. Separately, L&T announced before trading hours today, 21 September 2015, that it is considering selling 5% stake in its subsidiary L&T Finance Holdings. The announcement came soon after L&T Finance Holdings unveiled a proposal of preferential allotment of equity shares and warrants to Bain Capital. Shares of L&T Finance Holdings dropped 2.55% at Rs 66.85. L&T Finance Holdings announced today, 21 September 2015, that its board of directors has approved a preferential allotment of equity shares and warrants to Bain Capital which will result into an infusion of Rs 707.86 crore into the company. L&T Finance Holdings will issue 3.18 crore equity shares at a price of Rs 74 per share Bain Capital. This will constitute about 1.75% of the post issue equity share capital on a fully diluted basis. The company will issue 6.38 crore warrants at a price of Rs 74 per warrant, constituting about 3.51% of the post issue equity share capital on a fully diluted basis. The warrants may be exercised by Bain Capital within a period of 18 months from the allotment date or accelerated after 6 months from the date of allotment based on L&T Finance Holdings' capital requirement.

Infosys lost 0.01% at Rs 1,104.65. The stock hit a high of Rs 1,108.80 and a low of Rs 1,093.55 in intraday trade. Infosys after market hours today, 21 September 2015, announced that it has signed a three-year agreement with TOMS to become its partner to maintain and develop its digital platform. The agreement will enable TOMS to streamline the management of its web-based properties and introduce automation technologies to lower overall support and development costs, Infosys said in a statement.

Shares of index heavyweight Reliance Industries (RIL) dropped 1.94% at Rs 877.70. The stock hit a high of Rs 887.75 and a low of Rs 875.70 in intraday trade.

Index heavyweight and housing finance major HDFC fell 0.29% at Rs 1,206.95. The stock hit a high of Rs 1,209.40 and a low of Rs 1,185.55 in intraday trade.

Index heavyweight and cigarette major ITC dropped 1.32% at Rs 314.30 The stock hit a high of Rs 318.80 and a low of Rs 313.55 in intraday trade.

The Sensex has lost 90.11 points or 0.34% in this month so far (till 21 September 2015). The Sensex has fallen 1,306.44 points or 4.75% in this calendar year so far (till 21 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,359.44 points or 5.47%. The Sensex is off 3,831.76 points or 12.76% from a record high of 30,024.74 hit on 4 March 2015.

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