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Sensex trades below 27,800 amid volatility; Cipla falls 6%

Shares of Cipla have plunged by 6% after FDA inspects Goa plant

Market traders struggle to fully price in GST gains
Capital MarketSI Reporter Mumbai
Last Updated : Sep 30 2016 | 12:21 PM IST
Key benchmark indices continued to trade in a narrow range wiyh negative bia in late noon trade. At 12:20 PM, the barometer index, the S&P BSE Sensex was down 81 points at 27,747. The Nifty 50 index was down 16 points at 8,575. Weakness in Asian stocks weighed on sentiment.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,633 shares rose and 599 shares fell. A total of 151 shares were unchanged. The BSE Mid-Cap index was currently up 1.2%. The BSE Small-Cap index was currently up 1.34%. Both the indices outperformed the Sensex.

In overseas stock markets, Asian stocks fell tracking lower finish for US stocks yesterday, 29 September 2016 as Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender. The cause of Deutsche's crisis is a fine, disputed by Deutsche, of up to $14 billion by the US Department of Justice over its sale of mortgage-backed securities.

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Meanwhile, revised data suggest that the US economy's performance in the spring was slightly better than expected, as business investment wasn't nearly as weak as previously reported. The gross domestic product grew a 1.4% pace in the second quarter.

Philadelphia Federal Reserve President Patrick Harker said he backs a December rate increase if the economy continues to grow as expected, while Atlanta Fed President Dennis Lockhart said he expects the Fed to be in a position to raise rates soon. Fed Gov. Jerome Powell on the other hand said the Fed can afford to be patient in gradually raising rates as the economy slowly improves.

Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.31%), Havells India (up 1.93%), ABB India (up 1.39%), Bharat Electronics (up 1.18%), Crompton Greaves (up 1.89%), and Siemens (up 0.83%) gained. L&T fell 0.54%.

Cipla falls 6% after FDA inspects Goa plant. Shares of power generation and power distribution companies gained. NTPC (up 0.33%), Torrent Power (up 3.38%), Tata Power Company (up 0.48%), Power Grid Corporation of India (up 0.12%), Reliance Infrastructure (up 1.36%) and Reliance Power (up 1.06%) gained. Adani Power shed 0.8%.

NHPC rose 2.06% after the company said that a wind power purchase agreement (PPA) has been signed amongst Rajasthan Government, NHPC and INOX on 28 September 2016 for 50 megawatts (MW) wind power project in Jaisalmer, Rajasthan. As per the PPA, Rajasthan Government will purchase the power generated from the project. The announcement was made after market hours yesterday, 29 September 2016.

Shares of state run coal mining major Coal India dropped 2.51%.

Meanwhile, the Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalized framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth and notified yesterday, 29 September 2016. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level.

As per the provisions of the RBI Act, out of the six members of Monetary Policy Committee, three members will be from the RBI and the other three members of MPC will be appointed by the Central Government. The members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four years, with immediate effect or until further orders, whichever is earlier.

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First Published: Sep 30 2016 | 12:16 PM IST

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