A bout of volatility was witnessed as key benchmark indices regained positive terrain after reversing initial gains. The barometer index, the S&P BSE Sensex was currently up 28.72 points or 0.11% at 27,140.93. The market breadth indicating the overall health of the market was strong. Asian stocks were in green after early results showed that Scotland is voting against breaking from the United Kingdom. Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India on on Thursday, 18 September 2014, announced that China will invest $20 billion in India over the next 5 years. The two Asian countries also agreed that specific measures to enhance market access in China to Indian products such as agricultural, pharmaceutical and export of services will be expedited.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra gained after the company announced that it will work together with Bosch Software Innovations to develop an ecosystem to enable innovative solutions for the connected world and connected enterprises. HCL Technologies rose after the company informed the stock exchanges about an announcement by North Carolina state government of HCL Technologies expanding its presence in Wake County in United States.
In overseas markets, Asian stocks rose as data overnight showed fewer Americans filed for jobless claims and after early results showed that Scotland is voting against breaking from the United Kingdom. In the US, the S&P 500 and Dow Jones Industrial Average closed at record levels yesterday, 18 September 2014, as investors welcomed the Federal Reserve's commitment to low interest rates long after the ending of monetary stimulus.
In UK, Scotland rejected independence in a referendum, with the campaign to keep the country in the UK prevailing by a wider margin than predicted in the most recent polls, according to reports.
Earlier, key indices had risen in early trade on higher Asian stocks and after S&P 500 and Dow Jones Industrial Average closed at record levels overnight. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than a week.
In the foreign exchange market, the rupee edged higher against the dollar.
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Brent crude oil prices steadied after falling during the previous trading session following a higher-than-expected crude oil inventory build.
At 10:15 IST, the S&P BSE Sensex was up 28.72 points or 0.11% at 27,140.93. The index rose 77.52 points at the day's high of 27,189.73 in early trade, its highest level since 10 September 2014. The index fell 41.45 points at the day's low of 27,070.76 in morning trade.
The CNX Nifty was up 6.60 points or 0.08% at 8,121.35. The index hit a high of 8,145.80 in intraday trade, its highest level since 9 September 2014 The index hit a low of 8,107.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,296 shares gained and 742 shares fell. A total of 59 shares were unchanged.
The BSE Mid-Cap index was up 80.04 points or 0.81% at 9,941.26. The BSE Small-Cap index was up 86.02 points or 0.77% at 11,207.18. Both these indices outperformed the Sensex.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Wipro gained 0.55%. But, Infosys fell 0.05%.
TCS rose 2.1%. Global credit rating agency Moody's Investor Service has reportedly affirmed TCS' local currency issuer rating at A3/Stable.
HCL Technologies gained 1.93% after the company informed the stock exchanges about an announcement by North Carolina state government of HCL Technologies expanding its presence in Wake County in United States. The company plans to expand its existing center and create an additional 1,237 jobs in Cary by the end of 2018. As part of its strategy to accelerate innovation and further enhance satisfaction for its clients, HCL sees Cary as a strategic talent hub in the Americas and will invest approximately $9 million in expanding the center.
Tech Mahindra gained 1.24% after the company after market hours on Thursday, 18 September 2014 announced that it will work together with Bosch Software Innovations to develop an ecosystem to enable innovative solutions for the connected world and connected enterprises.
Biocon rose 1.9% after the company said it has sold a 10% stake in its research services arm, Syngene International, to Silver Leaf Oak (Mauritius) for Rs 380 crore. Silver Leaf Oak (Mauritius) (Silver Leaf), an investment vehicle advised by India Value Fund Advisors (IVFA) has agreed to acquire a minority 10% stake in Syngene International (Syngene), Biocon's Research Services subsidiary. Silver Leaf will acquire the stake from Biocon Research (BRL), a wholly-owned subsidiary of Biocon at a valuation of Rs 3800 crore. Post the completion of this transaction, Biocon and BRL will jointly hold 85.54% stake in Syngene.
SPML Infra spurted 6.63% after the company said its board approved raising funds through qualified institutional placement route for an amount to the extent of Rs 100 crore. SPML Infra's board of directors at its meeting held on Thursday, 18 September 2014, also approved a proposal to sell investments in the hydro power and road assets.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.7875, compared with its close of 60.85 during the previous trading session.
Brent crude oil prices steadied after falling during the prevoius trading session following a higher-than-expected crude oil inventory build. Brent for November settlement was down 2 cents at $97.68 a barrel. The contract had fallen $1.27 a barrel or 1.28% to settle at $97.70 a barrel on Thursday, 18 September 2014.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Asian stocks rose today, 19 September 2014, as data showed fewer Americans filed for jobless claims. Key benchmark indices in Singapore, Hong Kong, Indonesia, Taiwan, Japan and South Korea rose by 0.08% to 1.7%. China's Shanghai Composite fell 0.1%.
Trading in US index futures indicated that the Dow could gain 84 points at the opening bell on Friday, 19 September 2014. US stocks rose on Thursday, 18 September 2014, a day after the US Federal Reserve kept intact its pledge to keep interest rates low, providing a backstop for investors that helped lift both the Dow Jones Industrial Average and the S&P 500 index to record highs.
US housing starts and permits fell in August, but upward revisions to the prior month's data indicated gradual improvement in the housing market.
Separately, American jobless claims fell by 36,000 to 280,000 in the period ended 13 September 2014, the Labor Department said yesterday. Those already collecting unemployment benefits fell to a more than seven-year low.
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