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Key benchmark indices move in a narrow range

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Last Updated : Oct 12 2015 | 1:13 PM IST

A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line in mid-morning trade. At 11:23 IST, the barometer index, the S&P BSE Sensex, was up 7.56 points or 0.03% at 27,087.07. The 50-unit CNX Nifty was up 4.05 points or 0.05% at 8,193.75.

The market breadth indicating the overall health of the market was positive. On BSE, 1,281 shares gained and 963 shares fell. A total of 94 shares were unchanged. The BSE Mid-Cap index was up 0.51%. The BSE Small-Cap index was up 0.41%. Both these indices outperformed the Sensex.

Shares of PSU banks were mixed. IDBI Bank (down 2.66%), Vijaya Bank (down 0.55%), Union Bank of India (down 0.38%), Punjab National Bank (down 0.29%) and United Bank of India (down 0.66%) edged lower. Bank of India (up 0.1%), State Bank of India (up 0.66%), Indian Overseas Bank (up 0.67%) and Corporation Bank (up 0.01%) edged higher.

Bank of Baroda (BoB) tumbled 4.42% at Rs 174.25 after the Central Bureau of Investigation (CBI) began a probe under the Prevention of Corruption Act, 1988 against 59 current account holders of Bank of Baroda and unknown officials of the state-run bank and some private persons. The allegation is that the current account holders of the bank and bank officials conspired to send overseas remittances of foreign exchange worth approximately Rs 6000 crore in illegal and irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports. The CBI began investigation into the case after a complaint from Bank of Baroda.

Shares of private sector banks edged higher. Kotak Mahindra Bank (up 1.02%), ICICI Bank (up 1.1%), IndusInd Bank (up 1.09%), Axis Bank (up 0.53%) and HDFC Bank (up 0.62%) edged higher.

Yes Bank edged higher after the bank announced during market hours today, 12 October 2015, it has received an approval from the Reserve Bank of India (RBI) to sponsor a mutual fund and to set up an asset management company (AMC), and a Trustee Company. The stock rose 0.8% at Rs 731. The AMC and the Trust Companies shall be set up as wholly owned subsidiaries of Yes Bank, the bank said in a statement. Yes Bank will now apply to the Securities and Exchange Board of India (Sebi) to seek necessary approvals.

Cement stocks gained. UltraTech Cement (up 1.58%), Ambuja Cements (up 0.45%), ACC (up 0.23%) and Shree Cement (up 0.29%) edged higher.

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Grasim Industries was up 0.28% at Rs 3,662.80. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Zensar Technologies rose 2.96% at Rs 866 after a company backed by funds advised by Apax Partners announced the acquisition of 23.2% stake in the software firm. The stake was acquired from Electra Partners Mauritius (Electra), an existing minority shareholder. RPG Group continues to be the promoter and the largest shareholder in the company with a 48% stake. Zensar and Apax made the announcement in a joint press release after market hours on Friday, 9 October 2015.

Ind-Swift Laboratories surged 14.29% at Rs 35.20 after the company's board of directors approved issue of 11.74 lakh equity shares of Rs 10 each at a premium of Rs 45.50 per share to the promoter group on preferential basis under the CDR package of the company. The issue price of Rs 55.50 per share represents a premium of 80.19% to the stock's closing price of Rs 30.80 on the BSE on Friday, 9 October 2015.

In overseas stock markets, Chinese stocks led gains in Asian markets on stimulus measures from Beijing and signals of reform in China's telecommunications sector. In mainland China, the Shanghai Composite was currently up 3.25%. China's central bank announced over the weekend that it would expand a pilot program that would boost banks' lending abilities. The plan, currently in place in Shandong and Guangdong, allows banks to pledge certain assets to secure loans from the central bank. It will be expanded to nine provinces including Shanghai and Beijing.

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First Published: Oct 12 2015 | 11:24 AM IST

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