Market Live: Nifty opens below 9,900, Sensex falls 100 pts; ACC, BoB lower

10:15 am Market Check: Equity benchmarks extended losses in morning as the Sensex was down 227.05 points or 0.72 percent at 31,523.77, dragged by index heavyweights HDFC, HDFC Bank, Reliance Industries and Infosys.

The Nifty broke 9,850 level, down 68.95 points or 0.70 percent to 9,843.85.

The broader markets outperformed benchmarks, though they were also under pressure. The BSE Midcap index was down 0.3 percent and Smallcap declined 0.5 percent as about 1,171 shares declined against 705 advancing shares on the BSE.

10:05 am Infosys buyback: Infosys founders are likely to sell some of their stake in the company’s Rs 13,000-crore share buyback programme, the company said today.

The promoters’ keenness to participate in the buyback comes within days of a silent coup by founders led by N R Narayana Murthy to seize control of India’s second-biggest software services firm.

The founders and their families between them hold some 12.75 percent (29.28 crore shares) of Infosys. Murthy declined to comment on if he would participate in the buyback.

The buyback price of Rs 1,150 is higher than the current stock trading price of Rs 941.15 and is considered “reasonably good” by the firm’s former CFO V Balakrishnan.

Founded in 1981 by seven engineers – all former employees of Patni Computer Systems – with an initial capital of USD 250, Infosys today has grown into over USD 10 billion company.

9:58 am Buzzing: Share price of Swan Energy gained 4 percent as it subsidiary company entered into contract with Hyundai Heavy Industries Company

Triumph Offshore, 100 percent subsidiary of company, has executed ship building contract with Hyundai Heavy Industries Company, South Korea in connection with its upcoming FSRU project at Jafrabad, Gujarat.

The contract includes the construction of one 180000 CBM LNG Floating Storage and re-gasification unit (FSRU).

9:45 am OFS opens: NTPC fell more than 4 percent in early trade on equity dilution by the government through offer for sale route.

The offer for sale issue of the country’s largest power generation company has opened for subscription today and will remain opened till Wednesday.

In two days, the Government of India will a 5 percent stake (i.e. 41,22,73,220 equity shares) in the company with a greenshoe option to sell an additional 5 percent stake.

The government has set a floor price at Rs 168 per share for the sale through a stock market auction. It will get more than Rs 13,500 crore through this stake sale.

Non-retail investors are allowed to place their bids for the issue on both days while retail investors can participate in the issue on second day i.e. Wednesday.

Retail investors will get shares at a 5 percent discount to the cut-off price.

9:29 am FII View: Alexander Redman of Credit Suisse said the research house recommended that investors refrain from buying into the recent rally in Indian equities and remain 15 percent underweight.

“While we remain constructive on the long-term investment case for India given its sustainable economic growth model underpinned by structural drivers such as urbanisation, superior demographics, improving financial inclusion and productivity catch-up, we wait for a better entry point to participate in this structural growth story,” he said.

9:15 am Market Check: Equity benchmarks opened sharply lower on Tuesday on weakness in Asian peers after the launch of missile by North Korea.

The 30-share BSE Sensex was down 128.02 points at 31,622.80 and the 50-share NSE Nifty fell 41.95 points to 9,870.85.

ACC, Bank of Baroda and Tata Power were under pressure, down 1-2 percent after NSE decided to exclude these stocks from Nifty50. HPCL and UPL gained up to 2 percent on addition in Nifty50.

Nifty Midcap was down 0.5 percent on market breadth. About two shares declined for every share rising on the NSE.

DLF lost further, down 2 percent after losing 3.6 percent in previous session despite GIC deal.
Thyrocare, Fortis Healthcare, JP Associates, Biocon and Amara Raja Batteries gained up to 5 percent while Jaypee Infra, RBL Bank, 8K Miles, Dish TV, Bata India and Reliance Infrastructure fell up to 4 percent.