On the back of further gains for index heavyweights ITC, Infosys and L&T, the barometer index, the S&P BSE Sensex, extended gains in mid-afternoon trade. At 14:16 IST, the Sensex was up 181.10 points or 0.71% at 25,832.94. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently up 36.70 points or 0.47% at 7,848.70. 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 erased almost entire 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.
Trading in US index futures indicated that the Dow Jones Industrial Average could slide 5 points at the opening bell today, 23 September 2015. Earlier, the Dow futures were off about 150 points. US stocks closed sharply lower yesterday, 22 September 2015, as a slump in commodity prices fueled concerns over slowing global growth.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,412 shares rose and 1,088 shares fell. A total of 121 shares were unchanged. The BSE Mid-Cap index was up 0.36%. The BSE Small-Cap index was up 0.61%. Both these indices underperformed the Sensex.
Power generation shares were in demand. GMR Infrastructure (up 5.10%), Jaiprakash Power Ventures (up 4.44%), JSW Energy (up 3.26%), Reliance Infrastructure (up 1.82%), Reliance Power (up 1.58%), NTPC (up 1.45%), CESC (up 1.26%), Torrent Power (up 1.21%), Adani Power (up 1.02%), Tata Power (up 0.95%) and NHPC (up 0.30%) edged higher.
Capital goods shares were mixed. Bharat Electronics (up 3.70%), Punj Lloyd (up 1.06%), Jindal Saw (up 0.86%), SKF India (up 0.85%), ALSTOM India (up 0.77%), BEML (up 0.54%), Pipavav Defence and Offshore Engineering Company (up 0.43%), AIA Engineering (up 0.37%), Thermax (up 0.27%), Siemens (up 0.26%) and Praj Industries (up 0.12%), edged higher. Havells India (down 0.06%), ABB India (down 0.56%), Lakshmi Machine Works (down 0.57%), Suzlon Energy (down 0.72%), Bharat Heavy Electricals (down 1.26%), Alstom T&D India (down 1.58%) and Crompton Greaves (down 2.18%), edged lower.
Index heavyweight L&T was up 0.78% at Rs 1,496. The stock hit high of Rs 1,503 and low of Rs 1,450 so far during the trading session. 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.
Trident rose 4.18% after the company said it has commenced production today, 23 September 2015, at its integrated bed-linen project of 500 looms capable of producing 43.2 million meters of bed-linen per annum and 1.9 lakh yarn spindles for captive consumption at Budni, Madhya Pradesh. The company made announcement during market hours today, 23 September 2015. The project involves capital investment of Rs 1667 crore and it will add potential revenue of Rs 1200 crore at optimum utilisation.
Jindal Stainless was up 4.33%. The company announced during market hours today, 23 September 2015, that it has received a notice dated 22 September 2015 from JSL Overseas, a member of promoter group, for conversion of 48.10 lakh cumulative compulsory convertible preference shares (CCCPS) of Rs 2 each into an equal number of equity shares of Rs 2 each.
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