A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming gains in morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex was up 165.82 points or 0.65% at 25,871.75. The 50-unit CNX Nifty was up 41 points or 0.52% at 7,870.10. The Sensex hit two-week high when it jumped 215.97 points at the day's high of 25,921.90 in early trade. The Nifty hit its highest level in more than two weeks when it rose 59.50 points at the day's high of 7,888.60 in early trade. Gains in global stocks underpinned sentiment on the domestic bourses.
The market breadth indicating the overall health of the market was positive. On BSE, 1,111 shares rose and 983 shares declined. A total of 97 shares were unchanged. The BSE Mid-Cap index was down 0.09%. The BSE Small-Cap index was down 0.15%. Both these indices underperformed the Sensex.
In overseas markets, Asian stocks were in green after a broad-based rally on the Wall Street overnight. US stocks surged yesterday, 15 September 2015, on speculation that the Federal Reserve will hold off on raising interest rates at its two-day policy meeting which concludes on Thursday, 17 September 2015. The Federal Reserve policy makers are considering the timing of first interest rate increase in the US in nearly a decade. The Fed has held its benchmark short-term interest rate near zero since December 2008.
Closer home, IT stocks advanced on weak rupee. Wipro (up 1.38%), HCL Technologies (up 1.31%), Oracle Financial Services Software (up 1.16%), TCS (up 0.51%), Infosys (up 0.12%) and MindTree (up 0.51%) edged higher. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
In the foreign exchange market, the partially convertible rupee was hovering at 66.4825, compared with its close of 66.365 during the previous trading session.
Tech Mahindra was up 0.83% at Rs 545.70. The company announced after market hours yesterday, 15 September 2015, the release of a solution for the communications industry under the name Telco360. This proven solution can provide faster and more predictable deployments for partners, empowering them to connect with their customers in entirely new ways, Tech Mahindra said.
Telecom stocks were mostly lower. Tata Teleservices (Maharashtra) (down 1.25%), Mahanagar Telephone Nigam (down 0.64%) and Reliance Communications (down 0.23%) edged lower. Bharti Airtel (up 1.9%) and Idea Cellular (up 0.9%) edged higher.
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L&T was off 1.02% at Rs 1,541.10. The stock hit a high of Rs 1,573 and a low of Rs 1,535.20 so far during the day. L&T during market hours today, 16 September 2015, announced that it has received an order valued at around Rs 1700 crore from Marubeni Corporation, Japan, for setting up the Bibiyana III 400 megawatts (MW) combined cycle power plant project of Bangladesh Power Development Board (BPDB).
Suven Life Sciences (Suven) surged 3.64% at Rs 240.35 after the company said it has secured three product patents in Canada and China for the treatment of disorders associated with Neurodegenerative diseases. These Patents are valid through 2029 and 2030. The announcement was made during trading hours today, 16 September 2015.
Reliance Capital was off 1.86% at Rs 337.85 as the stock turned ex-dividend today, 16 September 2015, for dividend of Rs 9 per share for the year ended 31 March 2015.
Oil India was off 2.73% to Rs 436 as the stock turned ex-dividend today, 16 September 2015, for final dividend of Rs 10 per share for the year ended 31 March 2015.
On the macro front, India's exports fell sharply and trade deficit widened last month, as per the latest data released by the Ministry of Commerce & Industry. Merchandise exports fell 20.66% to $21.26 billion in August 2015 over August 2014. Non-oil imports rose 7.01% to $26.38 billion whereas oil imports plunged 42.59% at $7.35 billion in August 2015 over August 2014. The trade deficit rose sharply to $12.47 billion in August 2015 from $10.66 billion in August 2014.
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