A recovery in bank stocks aided intraday for key benchmark indices. At 11:17 IST, the barometer index, the S&P BSE Sensex, was down 87.52 points or 0.33% at 26,131.39. The 50-unit CNX Nifty was down 24.60 points, or 0.31% at 7,957.30. 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 was positive. On BSE, 1,223 shares rose and 886 shares fell. A total of 84 shares were unchanged. The BSE Mid-Cap index was up 0.21%. The BSE Small-Cap index was up 0.75%. Both these indices outperformed the Sensex.
Index heavyweight and construction major L&T was up 0.59%. The company announced during trading hours today, 21 September 2015, that it has won orders worth Rs 1810 crore across various business verticals in this month so far. Separately, 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.
Shares of L&T Finance Holdings were off 3.06%. L&T Finance Holdings announced today, 21 September 2015, 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.
Bank stocks recovered from initial losses. Among private sector banks, Federal Bank (up 2.30%), City Union Bank (up 1.92%), Axis Bank (up 1.26%), Kotak Mahindra Bank (up 1.04%), ICICI Bank (up 0.34%), IndusInd Bank (up 0.30%) and Yes Bank (up 0.05%), edged higher. HDFC Bank was down 0.21%.
Among public sector banks, IDBI Bank (up 9.33%), UCO Bank (up 4.07%), Andhra Bank (up 3.66%), Indian Bank (up 2.60%), Canara Bank (up 2.53%), Central Bank of India 2.33%), Punjab and Sind Bank (up 1.94%), Syndicate Bank (up 1.91%), United Bank of India (up 1.65%), Bank of India (up 1.49%), Union Bank of India (up 1.40%), Allahabad Bank (up 1.30%), Punjab National Bank (up 1.19%), Vijaya Bank (up 0.86%), Dena Bank (up 0.51%), Bank of Baroda (up 0.45%), Corporation Bank (up 0.44%) and State Bank of India (up 0.39%) edged higher. Bank of Maharashtra was down 0.72%.
FMCG shares were mixed. Godrej Consumer Products (down 1.07%), Jyothy Laboratories (down 0.72%), Hindustan Unilever (down 0.68%), Procter & Gamble Hygiene & Health Care (down 0.54%), Bajaj Corp (down 0.2%), Nestle India (down 0.2%) and GlaxoSmithKline Consumer Healthcare (down 0.15%), edged lower. Tata Global Beverages (up 0.04%), Britannia Industries (up 0.05%), Dabur India (up 0.33%), Marico (up 0.39%) and Colgate Palmolive (India) (up 0.67%), edged higher.
Steel Strips Wheels jumped 5.09% after the company said that South Korea's Kalink Co., Ltd. has agreed to invest an amount equivalent to $2 million by subscribing equity shares in the company. The announcement was made during trading hours today, 21 September 2015. Kalink makes alloy wheels and supplies to major original equipment manufacturers (OEM) namely Volkswagen, Nissan and Chrysler.
TD Power Systems advanced 2.81% after the company secured an order from a large multinational company in Europe to supply multiple units of 10 megawatts generators to be installed in a single power plant inside Germany. The announcement was made after market hours on Friday, 18 September 2015.
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.
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