Key benchmark indices edged lower in early trade as weakness in Asian stocks weighed on sentiment. The barometer index, the S&P BSE Sensex slipped below the psychological 27,000 level. The Sensex was currently down 125.30 points or 0.46% at 26,965.12. The market breadth indicating the overall health of the market was positive. Asian Paints, Hindustan Zinc and Cairn India dropped ex-dividend.
At 9:23 IST, the S&P BSE Sensex was down 125.30 points or 0.46% at 26,965.12. The index lost 171.49 points at the day's low of 26,918.93 in early trade. The index fell 80.20 points at the day's high of 27,010.22 in early trade.
The CNX Nifty was down 42.35 points or 0.52% at 8,079.10. The index hit a low of 8,064.80 in intraday trade. The index hit a high of 8,086.95 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 910 shares gained and 777 shares fell. A total of 44 shares were unchanged.
The BSE Mid-Cap index was down 9.28 points or 0.09% at 9,855.98. The BSE Small-Cap index was up 12.35 points or 0.11% at 11,203.53. Both these indices outperformed the Sensex.
Hindustan Zinc dropped 1.32% as the stock turned ex-dividend today, 22 September 2014, for interim dividend of Rs 1.90 per share for the year ending 31 March 2015 (FY 2015).
Cairn India slipped 1.4% as the stock turned ex-dividend today, 22 September 2014, for interim dividend of Rs 5 per share for the year ending 31 March 2015 (FY 2015).
Asian Paints declined 2.08% as the stock turned ex-dividend today, 22 September 2014, for interim dividend of Rs 1.80 per share for the year ending 31 March 2015 (FY 2015).
Power Grid Corporation of India (PGCIL) fell 0.4%. The company announced after market hours on Friday, 19 September 2014, that the board of directors in a meeting held on 17 September 2014 have accorded approval for investment for 'Procurement of Telecom Equipment (DWDM/PTN/SDH), DCPS and Air-Conditioning System for Augmentation of Telecom Backbone and Access Network' at an estimated cost of Rs 331.88 crore, with commissioning schedule of 24 months from the date of award. The board also gave approval to the formation of a joint venture between the company and Rashtriya Ispat Nigam (RINL) on 50:50 equity participation basis for setting up manufacturing facility for transmission line towers & tower parts at Vishakhapatnam.
IDFC dropped 0.78% to Rs 146.80 after shares issued by the company to institutional investors recently are admitted for trading on the bourses today, 22 September 2014. A total of 7.3 crore shares will be admitted for trading. IDFC had on 16 September 2014 said that it had allotted 7.3 crore shares to Qualified Institutional Buyers (QIBs) at an issue price of Rs 137 per share. The stock had risen 0.37% to settle at Rs 147.95 on Friday, 19 September 2014, on BSE. The company had raised Rs 1000.10 crore from the sale of shares to QIBs.
GMR Infrastructure declined 1.09%. GMR Group announced before market hours the finalization and execution of the project development agreement for the 900 megawatts (MW) Upper Karnali Hydro Power Project with the Government of Nepal, on 19 September, 2014. The project, with a capacity of 900 MW, is being developed as an export oriented Project, to be constructed in a period of about 5 years. The financial closure of the project (long term tieup of debt and equity capital) is expected to be achieved within September 2016 and thereafter the commencement of the commercial operation is expected by September 2021. Continuing with its ALAR Strategy, GMR Group will be exploring strategic/ long term capital tie up of both debt and equity for the project at an appropriate time. The project is expected to generate about 3500 MUs of energy annually and 420 MUs of energy (12% of installed capacity) has been earmarked as free power to Nepal. The Nepal Electricity Authority will hold 27% free equity stake in the project including all project royalties and the 100% ownership of the project will be transferred to the Government of Nepal, at the end of the 25 year concession period.
Separately, GMR Infrastructure announced after market hours on Friday, 19 September 2014, that the company has filed on 19 September, 2014, the draft letter of offer (DLOF) with Securities and Exchange Board of India (SEBI) for rights issue of shares.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2014 series to October 2014 series. The near-month September 2014 F&O contracts expire on Thursday, 25 September 2014.
Asian stocks fell today, 22 September 2014, as SoftBank Corp. drove Japan's Nikkei 225 Stock Average lower. Key benchmark indices in Singapore, Hong Kong, Indonesia, Taiwan, Japan and South Korea fell by 0.02% to 1.48%.
Most US stocks edged lower on Friday, 19 September 2014, after a three-day rally.
Group of 20 finance chiefs and central bankers said low interest rates could lead to a potential increase in financial-market risk, as major economies rely on monetary stimulus to bolster uneven growth. "We are mindful of the potential for a build-up of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility," the G-20 officials reportedly said yesterday, 21 September 2014 in Cairns, Australia.
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