Daily Market Commentary : 26th August 2016

The Indian equity market closed lower on the first day of the September contracts ahead of US Fed Reserve Chair’s speech. Indices ended on a negative zone for the second straight day as heavy selling pressure seen in realty, capital goods, IT, banking and industrial stocks. On the other hand, consumer durables, oil & gas and energy stocks were among the gainer on the BSE index. Nifty closed with a loss of 20 points at 8,573, while BSE Sensex ended with a loss of 54 points at 27,782.

On the global front, Asian stocks were mixed on Friday. Chinese shares ended flat. The Shanghai Composite index closed up 0.07%, while Hong Kong’s Hang Seng index was up 0.41%. Nikkei 225 ended 1.2% lower hitting three-week lows.

European equities were trading lower. The FTSE 100 was trading marginally up. The CAC 40 and DAX was trading in red.

Tata Motors gained 2% to Rs.504. The company reported a 57% YoY plunge in consolidated PAT to Rs.2,236 crore for the June quarter compared with Rs.5,231 crore in corresponding quarter last year.

Welspun India erased early morning gains and closed lower by 8.6%. The stock slipped for the fifth straight session after Target Corp’s decision to terminate business with the firm for passing off cheap sheets as premium Egyptian cotton escalated.

Tata Communications climbed 4.5% to Rs.524 on the BSE. The company is planning to set up necessary storage infrastructure in countries of operations to win over the local business by addressing its concerns on overseas data storage.

Trident jumped 12.4% after the media reports said that Target is considering shifting its bedsheets orders to Trident. The stock is at the highest level in two-months.

ICRA soared 4.4% to Rs.3751 after the Reserve Bank of India announced a slew of measures to improve the corporate bond markets.

Gammon Infra dropped 4% to Rs.5.12 on BSE. The company reported Rs.5.9 crore for the quarter ended June 30 compared with Rs.6 crore reported in the year-ago period.

J Kumar Infraprojects hit 5% upper circuit at Rs.162. The company said Mumbai Metro Rail Corporation Ltd (MMRC) has issued LOA (letter of award) to J Kumar-CRTG’s joint venture for Rs.5,012 crore projects.

Biocon soared 3% to Rs.892. The European Medicines Agency (EMA) has accepted for review Biocon and Mylan’s Marketing Authorization Application (MAA) for a proposed biosimilar Trastuzumab, used to treat certain breast and gastric cancers.

Spice Mobility climbed 4.4%. The telecom company informed BSE that Spice Digital Limited (SDL), a subsidiary of the Company, has divested its entire equity stake constituting 26% of share capital in Vavia Technologies Private Limited (Vavia) pursuant to a Share Purchase Agreement entered into by them. Consequent to this, Vavia has ceased to be an associate of the Company.

USDINR trading marginally up one paise at 67.03 per US dollar.

Out of 1,491 stocks traded on the NSE, 929 declined and 500 advanced today.

Top 5 Nifty Gainers: Tata Motors (4.42%), Hero Motocorp (1.54%), Reliance Ind. (1.11%), Tata Steel (1.01%) and Bharti Airtel (0.77%).

Top 5 Nifty Losers: TCS (-1.93%), Wipro (-1.58%), Lupin Ltd. (-1.16%), HDFC Bank (-1.16%) and Asian Paints (-1.10%)

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