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IT, realty stocks edge higher

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Last Updated : Sep 29 2014 | 11:16 AM IST

Volatility ruled the roost as key benchmark indices regained positive zone after reversing intraday gains in morning trade. The broad market showed strength, with more than two gainers for every loser on BSE. The barometer index, the S&P BSE Sensex was currently up 48 points or 0.18% at 26,674.32. The BSE Small-Cap index was up 1.4%, outperforming the Sensex. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1133.64 crore during the previous trading session on Friday, 26 September 2014, as per provisional data. Hong Kong led decline in Asian stocks due to political unrest in the Chinese city.

IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms and on weak rupee. Interest rate sensitive realty stocks edged higher ahead of the Reserve Bank of India's policy review tomorrow, 30 September 2014.

Earlier, key indices had edged higher in early trade after seeing initial volatility.

Meanwhile, Prime Minister Narendra Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.

In overseas market, Hong Kong led decline in Asian stocks after clashes between police and pro-democracy protesters in the Chinese city.

In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates.

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Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar.

At 10:15 IST, the S&P BSE Sensex was up 48 points or 0.18% at 26,674.32. The index rose 82.83 points at the day's high of 26,709.15 in morning trade. The index lost 86.63 points at the day's low of 26,539.69 in early trade.

The CNX Nifty was up 5.50 points or 0.07% at 7.974.35. The index hit a high of 7,987.60 in intraday trade. The index hit a low of 7,937.80 in intraday trade.

The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 1,459 shares rose and 508 shares fell. A total of 51 shares were unchanged.

The BSE Mid-Cap index was up 75.35 points or 0.8% at 9,496.75. The BSE Small-Cap index was up 146.74 points or 1.4% at 10,657.73. Both these indices outperformed the Sensex.

IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra (up 0.36%), TCS (up 1.23%), Wipro (up 0.16%) and Infosys (up 0.73%) gained. HCL Technologies fell 0.3%.

Weakness in rupee also supported IT stocks. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Interest rate sensitive realty stocks edged higher ahead of the Reserve Bank of India's policy review meet tomorrow, 30 September 2014. Purchases of both residential and commercial property are largely driven by finance. DLF (up 0.19%), Housing Development & Infrastructure (HDIL) (up 1.91%), D B Realty (up 1.4%), Anant Raj (up 4.25%) and Unitech (up 0.49%) gained.

In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates. The partially convertible rupee was hovering at 61.37, compared with its close of 61.15 during the previous trading session.

Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar. Brent for November settlement was down 31 cents at $96.69 a barrel. The contract had settled unchanged at $97 a barrel on Friday, 26 September 2014.

Prime Minister, Narendra Modi, while addressing to Indian Community at Madison Square Garden, New York on Sunday, 28 September 2014, exhorted Indians to join in the development effort as a mass movement. The Prime Minister unveiled a series of facilitation initiatives aimed at making travel from America to India easier. He said one of his key initiatives was to remove redundant laws, and he would be happy if he could do so at a pace of one a day.

Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.

The Reserve Bank of India (RBI) undertakes fourth bi-monthly monetary policy review tomorrow, 30 September 2014. 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.

Asian stocks declined today, 29 September 2014, after clashes between police and pro-democracy protesters in the Chinese city. Key benchmark indices in Indonesia, Singapore, Hong Kong, South Korea and Taiwan were off 0.07% to 1.94%. Key benchmark indices in Japan and China were up 0.38% to 0.41%.

The Hong Kong government reportedly said today, 29 September 2014, that it has withdrawn riot police from city streets after pro-democracy protests began to calm down. Hong Kong police used pepper spray, tear gas and baton charges in an attempt to disperse thousands of pro-democracy protesters in the centre of the global financial hub at the weekend, reports said.

Chinese industrial profits fell 0.6% in August from a year earlier, reversing from July's 13.5% rise, the government said on Saturday, 27 September 2014, adding to problems such as unsteady exports, a housing downturn and cooling investment growth in the world's second largest economy.

Trading in US index futures indicated that the Dow could fall 49 points at the opening bell on Monday, 29 September 2014. US stocks closed higher on Friday, 26 September 2014, after a read on second-quarter GDP showed that the economy grew at its fastest pace in 2-1/2 years.

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First Published: Sep 29 2014 | 10:14 AM IST

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