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Broader market trades firm; PSU banks in demand

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Last Updated : Sep 30 2021 | 12:04 PM IST
The main indices were trading in range with minor gains in mid morning trade. The Nifty was trading above the 17,700 mark. PSU banks, realty and FMCG stocks were in demand.

At 11:29 IST, the barometer index, the S&P BSE Sensex, was at 59,482.27, up 0.69 points. The Nifty 50 index traded 6 points or 0.03% higher at 17,717.30.

The broader indices outperformed the benchmark indices. The S&P BSE Mid-Cap index was up 0.59% while the S&P BSE Small-Cap index rose 0.76%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1953 shares rose and 1078 shares fell. A total of 156 shares were unchanged.

Trading could be volatile today traders roll over positions in the F&O segment from the near month September series to October series. The September 2021 F&O contracts expires today, 30 September 2021.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 233,231,373 with 4,773,860 deaths. India reported 277,020 active cases of COVID-19 infection and 448,062 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.

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In the last 24 hours, India added 23,529 new cases. Active cases accounted for less than 1% of total cases, currently at 0.82%. Active caseload stands at 2,77,020; lowest in 195 days. The recovery rate currently stands at 97.85%.

Buzzing Index:

The Nifty PSU Bank index jumped 2.24% to 2,518.65, rising for fourth trading session. The PSU bank index added 6.8% in four days.

Indian Overseas Bank (IOB) jumped 12.93% to Rs 23.15 after the Reserve Bank decided to remove the public sector bank from prompt corrective action (PCA) framework, subject to certain conditions and continuous monitoring. The government-backed lender has provided a written commitment to the RBI that it would comply with the norms of minimum regulatory capital, net NPA and leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.

"Taking all the above into consideration, it has been decided that Indian Overseas Bank is taken out of the PCA restrictions subject to certain conditions and continuous monitoring," the RBI said in a statement.

Central Bank of India (up 10.38%), Bank of Maharashtra (up 7.43%), Canara Bank (up 4%), Punjab Sindh Bank (up 3.8%), UCO Bank (up 3.37%), Indian Bank (up 3%) and Punjab National Bank (up 2.5%) were top gainers in public sector bank space.

Global Markets:

Asian stocks were mixed on Thursday as investors reacted to the release of Chinese factory activity data for September.

China's manufacturing PMI shrinked in September 2021 to 49.6 from 50.1 in August 2021. The index contracted unexpectedly due to increased curtailment of electricity usage and rising input prices.

Meanwhile, China's Caixin/Markit manufacturing PMI for the month rose to 50 compared with 49.2 in August.

In China, investors continue to monitor the situation at China Evergrande Group. As per reports, some bondholders did not receive a due coupon payment by the close of Asia business hours on Wednesday.

Wall Street ended firmer on Wednesday in a partial rebound from the previous day's broad sell-off, with remarks from US Federal Reserve Chairman Jerome Powell and the ongoing debt ceiling debate keeping a lid on gains. The S&P 500 index and the Dow Jones Industrial Average advanced, but the Nasdaq Composite closed lower.

Federal Reserve Chair Jerome Powell and his counterparts in Japan, Europe and the U.K. voiced cautious optimism that supply-chain disruptions lifting inflation rates around the world would ultimately prove temporary.

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First Published: Sep 30 2021 | 11:28 AM IST

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