Volatility was the order of the day as Indian stocks bounced back from an initial decline triggered by weakness in Asian stocks. The barometer index, the S&P BSE Sensex, was up 227.41 points or 0.89% to 25,879.25, as per provisional closing data. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty rose 33.95 points or 0.43% at 7,845.95, as per provisional closing data. The two benchmark indices bounced back from their lowest level in almost two weeks. The strong intraday recovery on the domestic bourses materialized as European stocks nudged higher and as US index futures reversed losses. Earlier, the Sensex and the Nifty fell more than 1% each in early trade on weakness in Asian stocks triggered by disappointing Chinese manufacturing data.
Bank stocks led intraday rebound for key indices. Index heavyweights ITC, Infosys and L&T edged higher.
Trading was quite volatile as traders rolled over positions in the futures & options (F&O) segment from the September 2015 series to October 2015 series ahead of the expiry of the near month September 2015 contracts. The Sensex jumped 282.18 points or 1.1% at the day's high of 25,934.02 in mid-afternoon trade. The barometer index lost 265.36 or 1.03% at the day's low of 25,386.48 in early trade. The near month September 2015 derivatives contracts are set to expire tomorrow, 24 September 2015.
The market breadth indicating the overall health of the market was positive. On BSE, 1,536 shares rose and 1,136 shares fell. A total of 106 shares were unchanged. The BSE Mid-Cap index rose 0.47%. The BSE Small-Cap index rose 0.71%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2389 crore, lower than turnover of Rs 2728.85 crore registered during the previous trading session.
Vedanta group firm and oil explorer Cairn India rose 4.56% at Rs 148. The stock hit high of Rs 149 and low of Rs 139.20 in intraday trade.
Vedanta rose 3.03% at Rs 95.15. The stock hit high of Rs 95.50 and low of Rs 89 in intraday trade.
NMDC fell 3.77% at Rs 98.35. The stock hit high of Rs 102 and low of Rs 97.70 in intraday trade.
Index heavyweight and cigarette major ITC rose 1.71% at Rs 317.40. The stock hit high of Rs 318.85 and low of Rs 308 in intraday trade.
Index heavyweight and IT major Infosys rose 1.04% at Rs 1,117. The stock hit high of Rs 1,126 and low of Rs 1,097.50 in intraday trade.
Index heavyweight L&T rose 0.85% at Rs 1,497. The stock hit high of Rs 1,503 and low of Rs 1,450 in intraday trade. L&T Group Executive Chairman A.M. Naik said in interview to a news agency today, 23 September 2015, that L&T is looking to sell some assets including roads and infrastructure projects and dilute its stake in non-core subsidiaries to revive performance. Naik also said that L&T will appoint individual unit chief executives and individual boards to encourage independence and boost returns among its more than 70 businesses.
Earlier during the trading session, L&T confirmed media reports of loan defaults by two special purpose vehicles (SPVs) promoted by L&T Infrastructure Development Projects, a subsidiary of L&T. The defaults aggregating to Rs 12 crore were with respect to servicing of project loans as on 31 August 2015. According to L&T, the defaults have occurred primarily out of failure of the respective concession authorities in meeting certain of their obligations under the concession agreements. The loans availed by these two SPVs are without recourse to either L&T Infrastructure Development Projects or to L&T.
Power generation stocks edged higher. Jaiprakash Power Ventures (up 5.92%), GMR Infrastructure (up 5.02%), Torrent Power (up 4.33%), Reliance Infrastructure (up 3.22%), JSW Energy (up 3.14%), Reliance Power (up 2.07%), Tata Power (up 0.72%), Adani Power (up 0.61%), NTPC (up 0.58%) and CESC (up 0.51%), edged higher. NHPC was down 1.50%.
Cadila Healthcare rose 4.07% to Rs 2,016 after the company fixed 7 October 2015 as record date for five-for-one stock split. The announcement was made during trading hours today, 23 September 2015.
Motherson Sumi Systems rose 2.15% to Rs 247.10 after clarification that as per its assessment there is no material impact on operational performance regarding regulatory problems being faced by its key client, Volkswagen. Volkswagen cars are at the centre of a US probe into rigged emissions tests of diesel-powered vehicles.
In overseas markets, European stocks edged higher after euro zone PMIs indicated that the region is on a solid track to recovery. Trading in US index futures indicated that the Dow Jones Industrial Average could rise 30 points at the opening bell today, 23 September 2015. Earlier during the global day, the Dow futures were off about 150 points as disappointing Chinese manufacturing data added to mounting concerns about slowdown of China's economy.
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