Volatility ruled the roost as key benchmark indices snapped two-day losing streak. The barometer index, the S&P BSE Sensex, rose 171.15 points or 0.67% to settle at 25,822.99. The gains for the Sensex were markedly higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty rose 33.95 points or 0.43% to settle at 7,845.95. 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 reversed 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.
Bank stocks led intraday rebound for key indices. Index heavyweights ITC, Infosys and L&T edged higher.
High volatility was witnessed as traders rolled over positions in the futures & options (F&O) segment from the September 2015 series to October 2015 series ahead of the expiry of the near month September 2015 contracts. The Sensex jumped 282.18 points or 1.1% at the day's high of 25,934.02 in mid-afternoon trade. The barometer index lost 265.36 or 1.03% at the day's low of 25,386.48 in early trade. The near month September 2015 derivatives contracts are set to expire tomorrow, 24 September 2015.
In overseas stock markets, European stocks edged higher after euro zone PMIs indicated that the region is on a solid track to recovery. Trading in US index futures indicated that the Dow Jones Industrial Average could rise 44 points at the opening bell today, 23 September 2015. Earlier during the global day, the Dow futures were off about 150 points as disappointing Chinese manufacturing data added to mounting concerns about slowdown of China's economy.
The Sensex rose 171.15 points or 0.67% to settle at 25,822.99, its highest closing level since 21 September 2015. The index jumped 282.18 points at the day's high of 25,934.02 in mid-afternoon trade. The index lost 265.36 points at the day's low of 25,386.48 in early trade, its lowest level since 10 September 2015.
The Nifty rose 33.95 points or 0.43% to settle at 7,845.95, its highest closing level since 21 September 2015. The index rose 70.90 points at the day's high of 7,882.90 in intraday trade. The index lost 88.75 points at the day's low of 7,723.25 in intraday trade, its lowest level since 10 September 2015.
The BSE Mid-Cap index rose 0.47%, underperforming the Sensex. The BSE Small-Cap index rose 0.71%, outperforming the Sensex.
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The market breadth indicating the overall health of the market was positive. On BSE, 1,531 shares rose and 1,141 shares fell. A total of 106 shares were unchanged.
The total turnover on BSE amounted to Rs 2389 crore, lower than turnover of Rs 2728.85 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 0.7%), BSE Bankex index (up 1.46%), BSE Consumer Durables index (up 1.7%), BSE Oil & Gas index (up 1%) and BSE Realty index (up 1.06%) outperformed the Sensex. The S&P BSE FMCG index (up 0.47%), BSE IT index (up 0.36%), BSE Auto index (up 0.02%), BSE Capital Goods index (up 0.46%), BSE Metal index ( up 0.1%), BSE Power index (down 0.31%) and BSE Teck index (down 0.03%) underperformed the Sensex.
Bank stocks staged a recovery from initial slide. Among PSU banks, IDBI Bank (up 9.27%), UCO Bank (up 5.24%), Union Bank of India (up 3.58%), Andhra Bank (up 3.56%), Syndicate Bank (up 2.79%), United Bank of India (up 1.61%), Canara Bank (up 1.62%), State Bank of India (up 0.92%), Bank of Baroda (up 0.86%), Punjab National Bank (up 0.74%) and Corporation Bank (up 0.9%) edged higher. Bank of India (down 0.51%) edged lower.
Among private sector banks, Kotak Mahindra Bank (up 2.81%), HDFC Bank (up 2.17%), IndusInd Bank (up 2.06%), ICICI Bank (up 1.2%), Axis Bank (up 0.56%) and Yes Bank (up 0.74%) edged higher.
Telecom stocks declined. Idea Cellular (down 1.36%), Bharti Airtel (down 1.49%), Tata Teleservices (Maharashtra) (down 0.48%) and Mahanagar Telephone Nigam (down 0.31%) edged lower. Reliance Communications (up 1.09%) edged higher.
Shares of public sector oil marketing companies (PSU OMCs) gained. BPCL (up 2.55%), HPCL (up 2.81%) and Indian Oil Corporation (up 1.16%) edged higher.
Shares of oil exploration and production (E&P) firms also edged higher. Reliance Industries (up 0.47%) and ONGC (up 0.7%) gained. Oil India (down 1.39%) edged lower.
In the global commodities markets, Brent crude oil futures edged higher. Brent for November settlement was currently up 27 cents at $49.35 a barrel. The contract had gained 16 cents or 0.32% to settle at $49.08 a barrel during previous trading session.
Vedanta group firm and oil explorer Cairn India rose 4.38% at Rs 147.75. The stock hit high of Rs 149 and low of Rs 139.20 in intraday trade.
Vedanta rose 2.71% at Rs 94.85. The stock hit high of Rs 95.50 and low of Rs 89 in intraday trade.
Power generation stocks edged higher. Jaiprakash Power Ventures (up 6.25%), Torrent Power (up 4.21%), JSW Energy (up 2.97%), Reliance Infrastructure (up 2.92%), Reliance Power (up 1.94%), Adani Power (up 0.61%), NTPC (up 0.46%) and Tata Power (up 0.4%) edged higher. NHPC (down 1.5%) and GVK Power & Infrastructure (down 0.29%) edged lower.
Shares of Power Grid Corporation of India (PGCIL) fell 2.14% at Rs 128.05. The stock hit a high of Rs 132 and a low of Rs 127.15 in intraday trade. PGCIL's board of directors has approved the project for North Eastern Strengthening Scheme-III involving an outlay of Rs 133.71 crore. The company made the announcement after market hours today, 23 September 2015.
NMDC fell 3.96% at Rs 98.15. The stock hit high of Rs 102 and low of Rs 97.70 in intraday trade.
Index heavyweight and cigarette major ITC rose 1.71% at Rs 317.40. The stock hit high of Rs 318.85 and low of Rs 308 in intraday trade.
Index heavyweight and IT major Infosys rose 1.01% at Rs 1,116.65. The stock hit high of Rs 1,126 and low of Rs 1,097.50 in intraday trade.
Index heavyweight L&T rose 0.78% at Rs 1,495.95. The stock hit high of Rs 1,503 and low of Rs 1,450 in intraday trade. 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.
Cadila Healthcare rose 4.19% to Rs 2,018.35 after the company fixed 7 October 2015 as record date for five-for-one stock split. The announcement was made during trading hours today, 23 September 2015.
Motherson Sumi Systems rose 1.94% to Rs 246.60 after clarification that as per its assessment there is no material impact on operational performance regarding regulatory problems being faced by its key client, Volkswagen. Volkswagen cars are at the centre of a US probe into rigged emissions tests of diesel-powered vehicles.
The Sensex and the Nifty today, 23 September 2015, snapped their two-day losing streak. The Sensex had lost 567.07 points or 2.16% in the preceding two trading sessions to settle at 25,651.84 yesterday, 22 September 2015, from a recent high of 26,218.91 on 18 September 2015. The Sensex has lost 460.10 points or 1.75% in this month so far (till 23 September 2015). The Sensex has fallen 1,676.43 points or 6.09% in this calendar year so far (till 23 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 989.45 points or 3.98%. The Sensex is off 4,201.75 points or 13.99% from a record high of 30,024.74 hit on 4 March 2015.
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