Positive lead from global markets aided decent gains for key equity benchmark indices. The barometer index, the S&P Sensex, rose 258.04 points or 1% to settle at 25,963.97. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty gained 70.05 points or 0.89% to settle at 7,899.15. The Sensex and the Nifty, both, attained their highest closing level in more than two weeks. But, the Sensex failed to close above the psychological 26,000 level after piercing that mark in intraday trade. The Sensex and the Nifty remained in positive zone throughout the trading session. Stocks of private banks and index heavyweights ITC and HDFC led gains for key indices.
In overseas markets, Chinese stocks led gains in Asian markets. In mainland China, the Shanghai Composite jumped 4.89% as fears of forced liquidation of illegal margin trading accounts receded after a widely read news portal in China reported that a notice sent by brokerage GF Securities to a trust firm called Zhongrong International Trust Co. said Zhongrong would still be able to trade on its platform. European stocks edged higher taking cues from a rally in Chinese stocks and tracking broad based gains in US stocks overnight. US stocks witnessed broad-based gains 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. As economic recovery gathers strength, the Federal Reserve policy makers are debating the timing of first interest rate increase in the United States in nearly a decade.
The Sensex rose 258.04 points or 1% to settle at 25,963.97, its highest closing level since 31 August 2015. The index jumped 300.82 points at the day's high of 26,006.75 in afternoon trade. The index gained 110.57 points at the day's low of 25,816.50 at the onset of the trading session.
The Nifty gained 70.05 points or 0.89% to settle at 7,899.15, its highest closing level since 31 August 2015. The Nifty rose 84.80 points at the day's high of 7,913.90 in afternoon trade. The Nifty gained 24.20 points at the day's low of 7,853.30 at the onset of the trading session.
Among the sectoral indices on BSE, the Bankex rose 1.42% and outperformed the Sensex. The S&P BSE Consumer Durables index (down 1.45%), the S&P BSE Metal index (up 0.35%), the S&P BSE Auto index (up 0.46%), the S&P BSE Capital Goods index (down 0.46%), the S&P BSE Power index (up 0.7%), the S&P BSE Teck index (up 0.56%), the S&P BSE Healthcare index (up 0.67%), the S&P BSE Oil & Gas index (down 0.6%), the S&P BSE FMCG index (up 0.28%), the S&P BSE IT index (up 0.45%) and the S&P BSE Realty index (down 0.39%) underperformed the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,411 shares declined and 1,259 shares rose. A total of 116 shares were unchanged.
The BSE Mid-Cap index dropped 0.17%. The BSE Small-Cap index declined 0.44%. Both these indices underperformed the Sensex.
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The total turnover on BSE amounted to Rs 2307 crore, higher than turnover of Rs 2242.79 crore registered during the previous trading session.
Bank stocks edged higher on renewed buying. Among private sector banks, IndusInd Bank (up 1.24%), Axis Bank (up 2.52%), ICICI Bank (up 1.28%) and HDFC Bank (up 0.85%) edged higher. Kotak Mahindra Bank (down 0.25%) edged lower.
Yes Bank surged 3.98% on reports that the bank's advance tax payment rose 30% to Rs 310 crore in Q2 September 2015 over Q2 September 2014. Tuesday, 15 September 2015, was the deadline for the payment of the second installment of the advance tax.
Among PSU banks, Canara Bank (up 2.02%), Punjab National Bank (up 0.59%), Union Bank of India (up 1.03%), Bank of India (up 0.8%), State Bank of India (up 1.35%), Syndicate Bank (up 0.63%) and Bank of Baroda (up 0.69%) gained. Corporation Bank (down 0.63%) and United Bank of India (down 0.48%) edged lower.
Auto stocks gained. Hero MotoCorp (up 2.05%), Bajaj Auto (up 1.78%), Maruti Suzuki India (up 0.59%), Tata Motors (up 1.14%), TVS Motor Company (up 1.13%) and Mahindra & Mahindra (up 1.12%) edged higher. Eicher Motors (down 3.27%) and Ashok Leyland (down 0.34%) edged lower.
Index heavyweight and cigarette major ITC rose 1.59% at Rs 321.80.
Index heavyweight and housing finance firm HDFC rose 1.32% at Rs 1,193.05.
Index heavyweight Reliance Industries (RIL) rose 0.53% at Rs 872.15.
Shares of public sector oil marketing companies fell as global crude oil prices rose and as the rupee edged lower against the dollar. BPCL (down 1.91%), Indian Oil Corporation (down 0.88%) and HPCL (down 3.9%) edged lower.
Higher crude oil prices along with a weakness in rupee will increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. A weak rupee will increase cost of crude oil imports. The government has already freed pricing of petrol and diesel.
In global commodities markets, Brent for November settlement was currently up 69 cents at $48.44 a barrel. The contract had risen 40 cents or 0.84% to settle at $47.75 a barrel during previous trading session.
In the foreign exchange market, the partially convertible rupee was currently hovering at 66.435, compared with its close of 66.365 during the previous trading session.
HCL Technologies gained 1.02%. The company announced at the fag end of the trading session today, 16 September 2015, that it is collaborating with IBM to jointly develop Internet of Things (IoT) solutions to help customers on their IoT journey. The two companies will initially focus on specific verticals including industrial & manufacturing and smart facilities to co-develop innovative solutions such as remote monitoring, smart inventory management, smart building and facilities management. The two companies will also set up an incubation centre at Noida, India to develop these solutions for the chosen industries.
Tata Consultancy Services (TCS) rose 0.31%. The company announced after market hours today, 16 September 2015, that its Digital Software & Solutions (DS&S) group has launched a new TCS 'Customer Insights & Intelligence' (CI&I) software solution for retail banks.
Vedanta was up 2.12% at Rs 98.95. Cairn India fell 0.41% at Rs 144.40. Vedanta and Cairn India have received no objection from the BSE and the NSE for the proposed merger of Cairn India with Vedanta.
Shares of coal mining giant Coal India were down 0.06% at Rs 337.20.
The Sensex has lost 319.12 points or 1.21% in this month so far (till 16 September 2015). The Sensex has fallen 1,535.45 points or 5.58% in this calendar year so far (till 16 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,130.43 points or 4.55%. The Sensex is off 4,060.77 points or 13.52% from a record high of 30,024.74 hit on 4 March 2015.
India's stock market remains closed tomorrow, 17 September 2015, on account of Ganesh Chaturthi.
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