Key benchmark indices hovered in negative terrain in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex was down 116.07 points or 0.4% at 28,552.15. The Nifty 50 index was currently down 34.95 points or 0.4% at 8,796.60. Weakness in Asian stocks weighed on sentiment.
The Sensex fell 37.30 points or 0.13% at the day's high of 28,630.92 at the onset of the trading session. The barometer index dropped 162.24 points or 0.56% at the day's low of 28,505.98 in early trade, its lowest level since 21 September 2016. The Nifty shed 22 points or 0.24% at the day's high of 8,809.55 at the onset of the trading session. The index dropped 50.85 points or 0.57% at the day's low of 8,780.70 in early trade, its lowest level since 21 September 2016.
In overseas stock markets, Asian stocks dropped after losses on Wall Street on Friday, 23 September 2016, as investors' attention turned from central banks to American politics ahead of the first US presidential debate. US stocks logged weekly gains but ended with solid losses on Friday, 23 September 2016. Investors awaited US presidential debate between Donald Trump and Hillary Clinton due later in the global day today, 26 September 2016.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,109 shares rose and 909 shares fell. A total of 130 shares were unchanged. The BSE Mid-Cap index was currently up 0.08%. The BSE Small-Cap index was currently up 0.21%. Both these indices outperformed the Sensex.
Bank stocks declined. Among public sector banks, UCO Bank (down 0.66%), Bank of Baroda (down 0.62%), Syndicate Bank (down 0.85%), Punjab National Bank (down 0.79%), Corporation Bank (down 0.68%), Allahabad Bank (down 0.43%), State Bank of India (SBI) (down 0.39%), Union Bank of India (down 1.07%), and United Bank of India (down 0.46%) edged lower. Bank of India rose 0.04%.
Canara Bank rose 0.03% after the bank's board of directors at meeting held on Friday, 23 September 2016, permitted the bank to raise additional equity share capital of an amount not exceeding Rs 1128 crore, including premium by way of rights issue with the Government of India (GoI) contribution of Rs 748 crore and Rs 380 crore from public shareholders. The board decided to constitute a rights issue committee of the board of directors to decide and permit on terms, timing, pricing, and other modalities of the rights issue. Further, the board decided to issue senior unsecured bonds in foreign currency in the range of $500 million in the international market under the $2 billion medium term note (MTN) programme of the bank for the purpose of providing funds to the overseas branches of the bank (the bank has so far raised $1100 million under this programme) and form a committee to decide the quantum, timing, tenor, pricing, costs etc. The announcement was made after market hours on Friday, 23 September 2016.
Among private sector banks, Axis Bank (down 0.97%), HDFC Bank (down 0.66%), ICICI Bank (down 2.13%), Kotak Mahindra Bank (down 1.03%), Yes Bank (down 0.35%), and IndusInd Bank (down 1.37%) edged lower. Federal Bank rose 1.3%.
Cement stocks also dropped. ACC (down 1.24%), Shree Cement (down 0.83%), Ambuja Cements (down 1.26%), and UltraTech Cement (down 0.78%) declined.
Grasim Industries gained 0.14%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Rain Industries rose 5.99% after the company said that on 22 September 2016, Rain Cements, company's wholly owned subsidiary has commenced operations of waste heat recovery based power plant to generate up to 7 megawatts (MW) of gross electrical energy from the waste heat and the flue gases evolved during the cement manufacturing process at Boincheruvupalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh. The project was completed at a cost of Rs 70 crore and the same was funded from internal accruals, Rain Industries said. The process of waste heat generation is environmental friendly that will bring down the flue gas temperatures. The heat recovery from the flue gases not only saves large quantities of fossil fuels but also substantially reduces the cost of power generation, the company said. The announcement was made after market hours on Friday, 23 September 2016.
KNR Constructions rose 5.2% after the company said that its board of directors will meet on 30 September 2016, after the conclusion of the 21st annual general meeting of the company, to consider sub-division of the face value of the equity shares of Rs 10 per share to Rs 2 per share. The announcement was made after market hours on Friday, 23 September 2016.
Vardhman Textiles rose 3.73% after the company said its board approved the proposed buyback of equity shares. The announcement was made on Saturday, 24 September 2016. The board of Vardhman Textiles approved the proposal to buyback the fully paid-up equity shares of face value of Rs 10 each of the company. The buyback shall be upto an aggregate amount not exceeding Rs 720 crore at a maximum price of Rs 1,175. At maximum buyback price, the buyback translates into approximately 61.27 lakh equity shares of the company.
The board noted the intention of the promoter and promoter group of the company to participate in the proposed buyback with the intent that subsequent to the buyback, the combined shareholding of the promoters remains atleast 60% of the post buyback total paid up capital of the company.
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