Weak global cues take toll on domestic market

Key benchmark indices declined as weak global cues spoiled investors' sentiment. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 196.05 points or 0.75% at 26,022.86. The Sensex was tad above the psychologically important 26,000 mark. The 50-unit CNX Nifty was down 56.10 points, or 0.70% at 7,925.80.

The market breadth indicating the overall health of the market was negative. On BSE, 649 shares fell and 395 shares rose. A total of 45 shares were unchanged. The BSE Mid-Cap index was down 0.49%. The BSE Small-Cap index was down 0.25%. Both these indices outperformed the Sensex.

In overseas markets, Asian markets were trading lower today, 21 September 2015, tracking an uninspiring lead from Wall Street, as the Federal Reserve's decision to keep interest rates near zero stoked concerns about global growth. US stocks declined on Friday, 18 September 2015, as traders digested the news that there was no hike in interest rates. After a two-day policy meeting, the Fed decided the call would be 'hold' on rates, citing concerns over the global economy, particularly Chinese growth.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 643.51 crore on Friday, 18 September 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 415.09 crore on Friday, 18 September 2015, as per the provisional data.

Tata Steel was down 1.60%. The company said after market hours on Friday, 18 September 2015, that the company, as part of its portfolio restructuring has on 18 September 2015, sold through off-market transaction 3.7 crore ordinary shares of the face value of Rs 2 each of Tata Motors to Tata Sons at a price of Rs 330 per share, aggregating to Rs 1249.99 crore.

Sun Pharmaceutical Industries was down 0.08%. Strides Arcolab was up 1.85%. Sun Pharmaceutical Industries and Strides Arcolab announced on Saturday, 19 September 2015, that they have entered into a definitive agreement related to erstwhile Ranbaxy's 'Solus' and 'Solus Care' divisions operating in the central nervous system (CNS) segment in India. The agreement involves transfer of these two marketing divisions, along with employees to Strides for a consideration of Rs 165 crore. As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs 92 crore in sales. During the divestment process, Sun Pharma was cognizant that the interests of its employees working in Solus and Solus Care divisions were not compromised. The transaction is subject to approval from the Competition Commission of India and other customary closing conditions. All other terms and conditions of the transaction are confidential.

National Buildings Construction Corporation (NBCC) was up 0.94%. NBCC said after market hours on Friday, 18 September 2015, that Ministry of Textiles, Government of India has entrusted the project of construction of trade facilitation centre and crafts museum at Varanasi (Uttar Pradesh) to NBCC for an estimated amount of Rs 197 crore approximately.

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