While the barometer index, the S&P BSE Sensex, traded with modest gains in early afternoon trade, the gains for the 50-unit CNX were quite muted. At 12:21 IST, Sensex was up 103.98 points or 0.4% at 26,258.81. The Nifty was up 14.05 points or 0.18% at 7,962.95. The Nifty failed to retain the psychological 8,000 level after crossing that level in early trade. Earlier, the Sensex hit its highest level in almost two weeks when in jumped 276.97 points or 1.05% at day's high of 26,431.80 in early trade. The Nifty hit its highest level in more than a week when it rose 59.35 points or 0.74% at the day's high of 8,008.25 in early trade.
In overseas stock markets, Asian stocks edged higher after the better-than-expected official Chinese manufacturing data for September and solid US private sector payroll data for the month just gone by. Trading in US index futures indicated that the Dow Jones Industrial Average may surge 155.50 points at the opening bell today, 1 October 2015. US stocks surged yesterday, 30 September 2015, as investors welcomed a report from the payroll processor ADP that showed better-than-expected job gains in the private sector in September, while they shrugged off a dismal reading on Chicago-area manufacturing, which dropped into contraction territory.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,290 shares rose and 1,065 shares declined. A total of 125 shares were unchanged. The BSE Mid-Cap index was up 0.38%, underperforming the Sensex. The BSE Small-Cap index was up 0.41%, outperforming the Sensex.
Shares of PSU banks were mixed. Indian Overseas Bank (up 2.07%), Oriental Bank of Commerce (up 0.23%), State Bank of India (up 0.27%), Punjab National Bank (up 0.04%) and Corporation Bank (up 0.23%) edged higher. Syndicate Bank (down 0.24%), Andhra Bank (down 0.82%), Central Bank of India (down 0.36%), United Bank of India (down 0.45%) and Canara Bank (down 0.13%) edged lower.
Bank of Baroda (BoB) was off 0.49% at Rs 182.40. The bank announced after market hours yesterday, 30 September 2015, that it has decided to reduce the base rate by 25 basis points to 9.65% and its Benchmark Prime Lending Rate (BPLR) by 25 basis points to 13.9% per annum with effect from 5 October 2015.
IDBI Bank was up 1.33% at Rs 79.80. The bank has cut its base rate by 25 bps to 9.75% with effect from 5 October 2015. The bank has also reduced the Benchmark Prime Lending Rate (BPLR) by 25 bps to 14.25% p.a. with effect from 5 October 2015. The bank has also decided to reduce the retail term deposit rates in select buckets by 25 to 50 bps with effect from 5 October 2015.
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Private sector banks edged higher. IndusInd Bank (up 0.56%) and HDFC Bank (up 0.1%) edged higher. Yes Bank (down 0.49%) edged lower. Shares of ICICI Bank were flat at Rs 270.25.
Axis Bank rose 0.01% at Rs 495.60. The stock hit a high of Rs 503.45 and a low of Rs 490.40 so far during the day. Axis Bank has cut its base rate by 35 basis points (bps) to 9.5% with effect from 5 October 2015. Accordingly, the effective rate applicable to various fund based credit and credit limits which are linked to the bank's base ratee will reduce by 35 basis points.
Meanwhile, Axis Bank announced after market hours yesterday, 30 September 2015, that the board of directors has allotted 15,000 Unsecured Redeemable Non Convertible Subordinated Debentures (Basel - III Compliant Tier II Debentures) (Series - 23) of the face value of Rs 10 lakh each for cash at par aggregating to Rs 1500 crore on a private placement basis. The debentures will be listed on the Wholesale Debt Market segment of the BSE and National Stock Exchange of India. The debentures are rated "AAA" by CRISIL, CARE and ICRA.
Kotak Mahindra Bank (KMBL) was up 0.07% at Rs 649.30. The stock hit a high of Rs 654.10 and a low of Rs 643.65 so far during the day. KMBL during market hours today, 1 October 2015, said that it has reduced its base rate by 25 basis points to 9.5% per annum with effect from 5 October 2015. All categories of loans other than the exceptions permitted by the Reserve Bank of India (RBI) will be priced with reference to the revised base rate, KMBL said.
A number of banks have announced reduction in their base rate after the Reserve Bank of India (RBI) cut its benchmark lending rate viz. the repo rate by 50 basis points after a monetary policy review early this week.
Shares of power generation firms edged higher. Torrent Power (up 1.71%), Reliance Power (up 1.86%), Reliance Infrastructure (up 1.57%), Tata Power (up 1.84%), NHPC (up 0.9%), NTPC (up 0.97%) and JSW Energy (up 0.64%) gained. GVK Power & Infrastructure (down 1.42%), Adani Power (down 0.61%) and Jaiprakash Power Ventures (down 0.57%) edged lower.
Shares of state-run power transmission major Power Grid Corporation of India (PGCIL) was up 0.15% at Rs 132.35. The stock hit a high of Rs 133.75 and a low of Rs 131.60 so far during the day. PGCIL announced before market hours today, 1 October 2015, that the Ministry of Power vide an order dated 30 September 2015, assigned additional charge to the post of Chairman and Managing Director (CMD) of PGCIL to S. Jha, Director (Projects), PGCIL with effect from 1 October 2015 for a period of 3 months or till the appointment of regular CMD or until further orders, whichever event occurs earliest.
Meanwhile, the outcome of a monthly survey showed that India's manufacturing sector lost growth momentum last month. Due to slower increase in new business, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to seven-month low of 51.2 in September 2015 from 52.3 in August 2015.
Meanwhile, data released by the government after trading hours yesterday, 30 September 2015, showed that the output of eight core industries, comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) registered growth of 2.6% in August 2015 over August 2014. Its cumulative output growth during April to August 2015-16 was 2.2% compared with 5.6% growth in the corresponding period of last year.
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