Market breadth negative

Key indices reversed early gains and hit day's low in morning trade. The Nifty descended below 11,550 level. At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 105.36 points or 0.27% at 38,899. The Nifty 50 index was down 32.10 points or 0.28% at 11,539.10.

Finance Minister Nirmala Sitharaman after meeting with private banks, microfinance institutions (MFIs) and non-banking finance companies (NBFCs) yesterday, 26 September 2019, asserted that the economy will revive in second half of the financial year as consumption takes off and banks raise their lending. FM said there are no complaints of liquidity shortage in the system and near unanimity that most microfinance institutions in rural India are seeing strong credit demand. Private sector banks will be setting up stalls in loan fairs next to their state-owned peers as they have "voluntarily" agreed to participate in the government's credit outreach program, FM said.

The S&P BSE Mid-Cap index was down 0.26%. The S&P BSE Small-Cap index was down 0.31%.

The market breadth was negative. On the BSE, 856 shares rose and 923 shares fell. A total of 99 shares were unchanged.

Auto stocks tumbled. Tata Motors (down 3.94%), Ashok Leyland (down 2.25%), TVS Motors Company (down 2.06%), Mahindra and Mahindra (down 1.74%), Hero MotoCorp (down 1.6%), Maruti Suzuki India (down 1.22%) and Bajaj Auto (down 0.85%) and Eicher Motors (down 0.71%) declined.

The S&P BSE Auto was down 1.24% at 16,932.83.

FMCG major Nestle India (down 1.68%) replaced Indiabulls Housing Finance (down 2.52%) in the Nifty 50 index today. The indices are reconstructed twice every year.

Lakshmi Vilas Bank was locked in a lower circuit of 5% after Economic Offences Wing, filed an FIR against board of directors of Lakshmi Vilas Bank for offences of cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy under the Indian Penal Code, 1860.

Strides Pharma Science fell 3.47%. The company announced that Strides Pharma Global, step‐down wholly owned subsidiary, has received USFDA approval for Solifenacin Succinate Tablets. According to IQVIA MAT data, the US market for Solifenacin Succinate Tablets is approximately $20 million. The product will be manufactured at Alathur facility in Chennai and will be marketed by Strides Pharma Inc. in USA. Solifenacin Succinate Tablet is an antispasmodic indicated for the treatment of overactive bladder.

Thomas Cook (India) was up 4.2% to Rs 146.25 after credit rating agency, CRISIL reported that Thomas Cook (India) has no linkage with bankruptcy of Thomas Cook PLC in United Kingdom. Furthermore, CRISIL has reaffirmed the rating on debt programmes and bank facilities of Thomas Cook (India) at 'CRISIL AA' with a stable outlook and CRISIL A1+ rating on the short-term bank facilities and short-term debt of the Company.

Recently, media reports suggested that, the Ministry of Corporate Affairs (MCA) is probing Thomas Cook (India) in relation to a 'suspicious' money transaction with a Delhi-based forex trader, Aarush Forex. The ministry's Western Regional Director has commenced inspection of the world's oldest travel firm, reports added. The company, however, clarified to the bourses post the trading hours yesterday, 23 September 2019 that the media reports were factually incorrect. The company said that it has not received intimation from the Ministry of Corporate Affairs and have no existing relationship with Aarush Forex.

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