Key benchmark indices edged higher in early trade. At 9:16 IST, the barometer index, the S&P BSE Sensex was up 62.86 points or 0.22% at 28,661.89. The Nifty 50 index was currently up 8.60 points or 0.1% at 8,788.45. Gains in Asian markets aided the upmove on the domestic bourses.
In overseas stock markets, Asian stocks were trading higher with sentiment driven by a rebound in oil prices while traders were also keeping an eye on crucial monetary policy decisions due from the US and Japan later this week. Japan stock market remained closed for a holiday.
US stocks registered modest losses on Friday, 16 September 2016, with financials and energy shares lagging. The US Federal Reserve policy makers begin their two-day policy meeting tomorrow, 20 September 2016. The Federal Reserve is projected to keep its benchmark interest rate unchanged in the wake of downbeat US economic indicators. The Federal Reserve left the target range for its federal funds rate unchanged at 0.25% to 0.5% for the fifth time during its July 2016 meeting.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 841 shares rose and 241 shares declined. A total of 46 shares were unchanged. The BSE Mid-Cap index was currently up 0.65%. The BSE Small-Cap index was currently up 0.56%. Both these indices outperformed the Sensex.
Telecom stocks were mixed. Bharti Airtel (down 0.15%) and Idea Cellular (down 0.12%) edged lower. Reliance Communications (up 0.93%) edged higher.
Bharti Infratel was up 0.03%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
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ICICI Bank was up 1.33% at Rs 271.10. The bank is selling shares in the initial public offer (IPO) of ICICI Prudential Life Insurance Company (ICICI Prudential) which begins today, 19 September 2016. The offer comprises sale up to 18.13 crore equity shares of ICICI Prudential, representing about 12.63% of its equity share capital for cash, through an offer for sale (OFS) by ICICI Bank. The entire proceeds from the OFS will be paid to ICICI Bank. The price band for the IPO has been fixed at Rs 300 to Rs 334 per share.
Axis Bank was up 0.19% at Rs 602.30. The bank has kept its Marginal Cost of Funds based Lending Rate (MCLR) unchanged after a latest review. The bank said that its MCLR for overnight loans will be 8.85%, the rate for one month will be 8.9% and for three months it will be 9.1%. The MCLR on 6-month loans will be 9.2% and for one-year loans the rate will be 9.25%, the bank said. MCLR on two-year loans will be 9.35% and for three-year loans the rate will be 9.4%. The announcement was made after market hours on Friday, 16 September 2016.
Seperately, Axis Bank after market hours on Friday, 16 September 2016 said that it has signed a Share Purchase Agreement with IFCI for acquisition of 73.28 lakh equity shares (13.67% of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise (ACRE) from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore. The transaction is subject to requisite regulatory approvals, including from Reserve Bank of India, Axis Bank said.
Power Grid Corporation of India (PGCIL) was down 0.54% at Rs 174.60. The company said that its board of directors at a meeting held on Friday, 16 September 2016, accorded an investment approval at an estimated cost of Rs 562.25 crore, with commissioning schedule of 30 months progressively from the date of investment approval. The announcement was made after market hours on Friday, 16 September 2016.
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