Market pares losses

Recovery in bank stocks aided intraday recovery for key benchmark indices. At 10:17 IST, the barometer index, the S&P BSE Sensex, was down 148.83 points or 0.57% at 26,070.08. The 50-unit CNX Nifty was down 41.20 points, or 0.52% at 7,940.70. The Sensex was currently trading above the psychological 26,000 mark. Earlier during the trading session, the Sensex fell below the psychological 26,000 mark on weakness in global stocks.

The market breadth indicating the overall health of the market turned positive from negative in morning trade. On BSE, 996 shares rose and 839 shares fell. A total of 73 shares were unchanged. The BSE Mid-Cap index was up 0.14%. The BSE Small-Cap index was up 0.47%. Both these indices outperformed the Sensex.

In overseas markets, Asian stocks edged lower after the US Federal Reserve's decision last week to keep interest rates at record low raised fresh concerns about global economic growth. The losses for Asian stocks came after US stocks declined sharply during the previous trading session on Friday, 18 September 2015. 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.

Closer home, shares of index heavyweight Reliance Industries (RIL) were off 1.3% at 883.50.

Index heavyweight and housing finance major HDFC was down 1.69% at Rs 1,190.

Index heavyweight and cigarette major ITC was down 1% at 315.30.

L&T was down 0.47%. L&T Finance Holdings was down 2.99%. L&T announced before trading hours today, 21 September 2015, that it has received an expression of interest for purchase of around 5% of the equity share capital of its subsidiary L&T Finance Holdings. The company said it was evaluating this offer and may sell around 5% of the equity share capital of L&T Finance Holdings, subject to appropriate internal clearances.

Separately, L&T Finance Holdings announced 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 in 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.

Metal shares edged lower. Jindal Steel & Power (down 2.65%), Hindalco Industries (down 2.43%), Tata Steel (down 1.71%), Hindustan Zinc (down 1.4%), NMDC (down 1.26%), National Aluminium Company (down 0.82%), Steel Authority of India (down 0.77%), JSW Steel (down 0.76%), Vedanta (down 0.45%) and Bhushan Steel (down 0.34%), edged lower. Hindustan Copper was up 1.54%

Cement stocks edged lower. Ambuja Cements (down 1.84%), UltraTech Cement (down 1.8%) and ACC (down 0.85%), edged lower. Shree Cement was up 2.28%.

Grasim Industries was down 1.42%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

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