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Last Updated : Sep 30 2014 | 5:00 PM IST

After languishing in red in early trade, key benchmark moved into positive zone in morning trade. The gains were small, with investors awaiting the outcome of the Reserve Bank of India's fourth bi-monthly monetary policy review due at 11:00 IST today 30 September 2014. The barometer index, the S&P BSE Sensex was currently up 34.54 points or 0.13% at 26,631.56. The market breadth indicating the overall health of the market was strong. Capital goods stocks edged higher.

A Vision Statement for the US-India Strategic Partnership released ahead of Prime Minister Narendra Modi's talks with US President Barack Obama later today, 30 September 2014, stated that the United States and India commit to expand and deepen their strategic partnership in order to harness the inherent potential of the two democracies and the burgeoning ties between people, economies, and businesses of the two nations. Modi is on a five-day visit to the US.

In overseas markets, Asian stocks declined amid concern over tensions in Hong Kong and as a Chinese manufacturing gauge missed estimates. US stocks ended lower yesterday, 29 September 2014, following protests in Hong Kong that added to worries about Chinese growth and after a disappointing forecast from Ford Motor Co.

Brent crude oil prices edged higher as Ukraine's army suffered its highest casualties since signing a truce early this month in new clashes with pro-Russian fighters that are threatening to shatter a cease-fire that brought calm to the six-month old conflict.

In the foreign exchange market, the rupee edged lower against the dollar.

At 10:14 IST, the S&P BSE Sensex was up 34.54 points or 0.13% at 26,631.56. The index rose 42.44 points at the day's high of 26,639.55 in morning trade. The index lost 49.67 points at the day's low of 26,547.44 in early trade.

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The CNX Nifty was up 8.65 points or 0.11% at 7.967.55. The index hit a high of 7,968 in intraday trade. The index hit a low of 7,943.75 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,247 shares rose and 737 shares fell. A total of 83 shares were unchanged.

The BSE Mid-Cap index was up 57.81 points or 0.61% at 9,574.79. The BSE Small-Cap index was up 64.47 points or 0.6% at 10,732.14. Both these indices outperformed the Sensex.

Capital goods stocks edged higher. ABB (India) (up 0.31%), Bharat Heavy Electricals (Bhel) (up 0.31%), BEML (up 0.74%) and L&T (up 1.04%) gained.

Wipro rose 0.38% on reports the company has started a three-year exercise to become a leaner company, initiating its reorganisation effort. The company employs 1.46 lakh employees and the aim is to slim down by about a third without resorting to mass layoffs, report said.

BPL rose 3.56% after the company said its board of directors at its meeting held on Monday, 29 September 2014, approved disinvestment of 11.54 crore equity shares of Rs 10 each in Bharat Energy Ventures. These shares are held as investment by BPL. The shares will be sold at a fair value of Rs 10 each to Electronic Research, BPL said.

Strides Arcolab surged 4% after the company said that it has entered into an agreement with GMS Holdings (GMS) whereby GMS will invest $21.90 million for a 25.1% stake in Stelis Biopharma (Stelis), the biotech arm of Strides, to fund its Greenfield project. The transaction is expected to close in Q4 of 2014 and is subject to customary closing conditions, regulatory and corporate approvals, as may be required, Strides Arcolab said.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.645, compared with its close of 61.53 during the previous trading session.

Brent crude oil prices edged higher as Ukraine's army suffered its highest casualties since signing a truce early this month in new clashes with pro-Russian fighters that are threatening to shatter a cease-fire that brought calm to the six-month old conflict. Brent for November settlement was up 11 cents at $96.31 a barrel. The contract had risen 20 cents to settle at $97.20 a barrel yesterday, 29 September 2014.

The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged after its fourth bi-monthly monetary policy review today, 30 September 2014. The central bank may reduce the statutory liquidity ratio (SLR) -- the portion of deposits that banks are required to keep in government bonds -- to support credit demand as the economy recovers from two years of tepid growth. The central bank's policy stance after the review could provide cues on the direction of interest rates in the coming months. The central bank is targeting consumer price inflation at 8% by end January 2015 and 6% by end January 2016.

Finance Secretary Dr Arvind Mayaram said at a function in Chennai yesterday, 29 September 2014, that that the government is committed to an early roll-out of the goods and services tax (GST), providing gainful employment to its youth through its skill development programme, fast tracking work on industrial corridors and bringing in the requisite amendments in the Land Acquisition Act to expedite project clearances.

Asian stocks declined today, 30 September 2014, amid concern over tensions in Hong Kong and as a Chinese manufacturing gauge missed estimates. Key benchmark indices in China, South Korea, Hong Kong, Taiwan, Japan, and Singapore were off 0.1% to 1.2%. Indonesia's Jakarta Composite was up 0.05%.

Activity in China's vast factory sector showed signs of steadying in September as export orders climbed, a private survey showed today, 29 September 2014, easing fears of a hard landing but pointing to a still-sluggish economy facing considerable risks. The final HSBC/Markit Manufacturing Purchasing Managers' Index (PMI) hovered at 50.2 in September, unchanged from the August reading which was a three-month low, but lower than a preliminary reading of 50.5. A sub-index measuring new export orders, a gauge of external demand, expanded to a 4-1/2-year-high of 54.5, though domestic demand appeared soft. The 50 mark separates expansion from contraction in activity on a monthly basis.

China will release its official factory PMI tomorrow, 1 October 2014.

Small numbers of protesters reportedly continued to block roads in central Hong Kong in the fifth day of pro-democracy demonstrations today, 30 September 2014, as leaders warned the standoff would escalate if their demands are not met. Protest organizers are insisting that the city's top political figure, Chief Executive Leung Chun-ying, resign and that the government in Beijing drops plans to control who gets to run as Leung's successor in 2017.

Trading in US index futures indicated that the Dow could gain 3 points at the opening bell on Tuesday, 30 September 2014. US stocks ended lower on Monday, 29 September 2014, following protests in Hong Kong that added to worries about Chinese growth and after a disappointing forecast from Ford Motor Co.

Data on Tuesday showed US consumer spending rose by 0.5% last month, after being little changed in July, adding to signs the world's largest economy is on a stronger footing.

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First Published: Sep 30 2014 | 10:17 AM IST

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