 "Markets turn flat; Broader markets outperform")
After a dismal opening, markets have turned flat in the late noon trades tracking muted trend in the global peers after US Federal Reserve maintained a status quo stoking fears of global growth especially in China. Meanwhile, profit booking at higher levels and a weak rupee continue to weigh on the bourses.
However, progress of monsoons with IMD reports stating that the overall monsoon deficit has dropped to 14% of the benchmark long-period average (LPA) from 16% has lifted the trading sentiments.
At 1:25 PM, the Sensex was lower by 36 points at 26,183 and the Nifty has slipped 8 points at 7,974.
However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3-1%. The markets breadth remains positive with 1,402 advances and 1,002 declines.
KEY EVENTS THAT WILL SHAPE THE WEEK
The markets might remain volatile ahead of the near-month September derivatives contracts expiry on Thursday, as traders roll-over positions to the October 2015 series. On the global front, China’s PMI index for the month of September will be released next week. Further, data on sales of existing homes and new homes for August in the US is scheduled for release next week.
STOCK TRENDS
On the sectoral front, BSE Healthcare, IT, Consumer Durables, Oiln & Gas and Realty indices are trading lower between 0.2-0.6%. However, BSE Auto, Capital Goods and Power indices are trading higher between 0.2-0.7%.
National Buildings Construction Corporation (NBCC) gained 1% at Rs 938 on the BSE after the company secured Rs 197-crore project to build a trade facilitation centre and crafts museum at Varanasi.
Renuka Sugars rallied 1.2% to Rs 7.55 on the Bombay Stock Exchange (BSE) in an otherwise weak market on the news that three of its promoters have pledged their shares as a security for loan that the subsidiary firm has taken.
Shares of Hotel Leela Venture have jumped 2% to Rs 21.80 on the BSE after the company sold its hotel in Goa for Rs 725 crore.
Shares of Prabhat Dairy were listed at Rs 117.70, a 4% premium against its issue price of Rs 115 per share on the Bombay Stock Exchange (BSE) as well as on the National Stock Exchange (NSE). Post listings, the stock hit a high of Rs 119.90 so far on the NSE.
IDFC climbed 2% to Rs 136.55 on the BSE after the RBI gave nod to the Infrastructure finance firm to use Rs 2,500 crore non-distributable reserves for provisions against bad loans, as part of an exercise to clean its book before venturing into universal banking.
DLF is trading with marginal gains on plans of opening its sixth mall in Delhi-NCR by May next year at an investment of Rs 300 crore.
Strides Acrola has gained 3% to quote at Rs 1,180.60 on the BSE after, India’s largest drug maker, Sun Pharma sold the central nervous system (CNS) product business of erstwhile Ranbaxy to Strides Arcolab for an amount of Rs 165 crore.
Shares of Dish TV India and Den Network are trading higher in a weak market on reports suggesting that the Government is considering a proposal to hike foreign direct investment (FDI) limits to 100% in broadcasting carriage and content services, including direct-to-home (DTH) and cable networks in order to attract overseas investment and improve infrastructure.
REC said that its shareholders have approved the proposal to raise up to Rs 42,000 crore through issuance of bonds or debentures on private placement basis. The stock has surged 3.5%.
FMCG giant ITC announced doubling its investment in Punjab from Rs 700 crore to Rs 1,400 crore. However, the stock is trading marginally lower.
Asian Paints plans to invest up to Rs 2,300 crore to set up a manufacturing plant at Mysuru in Karnataka. The stock is trading 1% lower
