After swinging between positive and negative zone alternately in intraday trade, key indices witnessed a divergent trend at the close. The barometer index, the S&P BSE Sensex, closed marginally lower while, the 50-unit CNX Nifty, settled slightly higher. The Nifty hit its highest closing level in more than a week. The Sensex fell 21.79 points or 0.08% to settle at 27,090.42. The market breadth indicating the overall health of the market once again turned negative from positive in late trade. European and Asian stocks gained as Scotland voted to reject independence from the UK. Overnight fall in Brent crude oil futures augur well for India as the country imports majority of its crude oil requirements. Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India 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 for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services.
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. Infosys rose after the company announced a global partnership with Huawei and expansion of its partnership with Hitachi Data Systems and Microsoft Corp. Realty stocks edged lower.
Pharma stocks gained on renewed buying. Shares of private banks rose. Shares of PSU banks declined.
In overseas markets, European stocks rose as Scotland voted to reject independence from the UK. Asian stocks rose as data overnight showed fewer Americans filed for jobless claims and as Scotland voted to reject independence from the UK. 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.
Scotland has chosen to stay in the United Kingdom, spurning independence in a historic referendum that had worried allies and investors, results showed today, 19 September 2014. 55.3% of Scottish voters supported the "no" campaign against 44.7% who backed independence.
Benchmark indices alternately swung between positive and negative zone in intraday trade. Key indices had risen to their highest level in more than a week in mid-morning trade after early results showed that Scotland voting against breaking from the United Kingdom.
In the foreign exchange market, the rupee was a tad lower against the dollar.
Brent crude oil prices edged higher in choppy trade after previous session's losses.
The S&P BSE Sensex fell 21.79 points or 0.08% to settle at 27,090.42, its lowest level since 17 September 2014. The index jumped 134.96 points at the day's high of 27,247.17 in mid-morning trade, its highest level since 10 September 2014. The index fell 64.53 points at the day's low of 27,047.68 in late trade.
The CNX Nifty rose 6.70 points or 0.08% to settle at 8,121.45, its highest closing level since 9 September 2014. The index hit a high of 8,160.90 in intraday trade. The index hit a low of 8,105.35 in intraday trade.
The total turnover on BSE amounted to Rs 5,152 crore, higher than Rs 3535.21 crore on Thursday, 18 September 2014.
The market breadth indicating the overall health of the market once again turned negative from positive in late trade. On BSE, 1,600 shares fell and 1,450 shares rose. A total of 105 shares were unchanged. Earlier, the market breadth alternately swung between positive and negative zone.
The BSE Mid-Cap index rose 4.04 points or 0.04% to settle at 9,865.26. The BSE Small-Cap index gained 70.02 points or 0.63% to settle at 11,191.18. 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 0.87%.
HCL Technologies gained 1.67% 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 1.61% 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.
But, Infosys fell 0.13% to Rs 3,695. The stock was volatile. The stock hit high of Rs 3,769.35 and low of Rs 3,681.10. Infosys today, 19 September 2014, announced a global partnership with Huawei, a leading global information and communication technology (ICT) solution provider. Through this partnership, the companies will jointly offer enterprise customers cloud, big data and communication solutions, along with other enterprise-oriented services which will combine Huawei's cloud infrastructure and global IT service expertise from Infosys. Infosys and Huawei will also further strengthen their existing partnership in the Huawei Business Process and Information Technology space.
Seperately, Infosys today, 19 September 2014, announced the expansion of its partnership with Hitachi Data Systems (HDS) to bring next-generation infrastructure and data center transformation solutions to enterprises. The new solutions will help improve operational efficiencies and facilitate smooth transition of their IT infrastructure to new cloud-based environments, Infosys said. Infosys will also establish a center of excellence to co-create pay-per-use solutions with HDS, the company said.
Seperately, Infosys also today, 19 September 2014, announced the expansion of its decade-long partnership with Microsoft Corp. to help enterprises transform their business and tap opportunities in a cloud-first, mobile-first world. Infosys will now expand its capabilities for analytics and other service offerings on Microsoft technologies.
Bharat Heavy Electricals (Bhel) dropped 0.92%. Mr. B. Prasada Rao, Chairman & Managing Director of Bhel while adressing to the shareholders at the 50th Annual General Meeting of the company today, 19 September 2014, said that as the economy is expected to move at pre recession levels in near term, the capital expenditure cycle could kick off in a big way in next few quarters. This will improve business environment and the company will benefit from emerging opportunities.
Mr Rao said given the current business environment, particularly in the power sector, Bhel is focusing on increasing its value contribution in a shrinking market. At the end of the year ended 31 March 2014, the total orders in hand for execution in year ending 31 March 2015 and beyond stood at Rs 101566 crore.
Realty stocks edged lower. DLF (down 2.28%), Housing Development & Infrastructure (HDIL) (down 1.71%), D B Realty (down 1.76%), and Unitech (down 4.05%) declined. Sobha rose 0.52%.
Shree Cement dropped 0.99%. The company said after market hours that it has entered into a business transfer agreement (BTA) with Jaiprakash Associates for acquisition of 1.50 million tonnes per annum (MTPA) cement grinding unit of Jaiprakash Associates situated at Panipat in Haryana on going concern basis. The board had already given approval for the above transaction. Shares of Jaiprakash Associates dropped 4.68%.
Power Grid Corporation of India was unchanged. The company said after market hours that the board of directors in a meeting held on 17 September 2014 have accorded approval for investment for 'Procurement of Telecom Equipment (DWDM/PTN/SDH), DCPS and Air-Conditioning System for Augmentation of Telecom Backbone and Access Network' at an estimated cost of Rs.331.88 crore, with commissioning schedule of 24 months from the date of award. The board also gave approval to the formation of a joint venture between the company and Rashtriya Ispat Nigam (RINL) on 50:50 equity participation basis for setting up manufacturing facility for transmission line towers & tower parts at Vishakhapatnam.
Pharma stocks gained on renewed buying. Dr Reddy's Laboratories (up 0.96%), Lupin (up 1.76%), and Sun Pharmaceutical Industries (up 0.2%) gained. Ranbaxy Laboratories fell 0.2%.
The government has capped the prices of 36 drugs, including those used to treat infections and diabetes to make essential medicines more affordable, an official at the National Pharmaceutical Pricing Authority (NPPA) was quoted as saying today, 19 September 2014. The medicines join the 348 drugs deemed essential and that are therefore subject to price caps, covering up to 30% of the total drugs sold.
Cipla gained 1.22% after the company after market hours on Thursday, 18 September 2014, announced that it has signed an agreement with Salix Pharmaceuticals, Inc., a US-based speciality pharmaceutical company. Under the agreement, Cipla has granted Salix exclusive rights under certain patent applications in the 'Rifaximin Complexes' patent family controlled by Cipla. The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa, Cipla said. Salix is required to make an up-front payment and, upon achievement, additional regulatory milestone payments to Cipla in respect of the new license agreement regarding the 'Rifaximin Complexes' patent rights. Salix also will pay a royalty on net sales of products covered by the 'Rifaximin Complexes' patents licensed to Salix, the company said.
Shares of private banks rose. IndusInd Bank (up 0.17%), HDFC Bank (up 0.36%), Axis Bank (up 0.57%) and ICICI Bank (up 0.33%) gained. Yes Bank declined 1.96%.
Kotak Mahindra Bank rose 1.49% after the bank said during market hours that Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of the bank, executed a definitive agreement to acquire the domestic schemes of PineBridge Mutual Fund (PBI MF). PBI MF is managed by PineBridge Investments Asset Management Company. As of 31 August 2014, the asset under management (AUM) of the Kotak Mahindra Mutual Fund was about Rs 37000 crore and the AUM of PBI MF was about Rs 660 crore.
Shares of PSU banks declined. Punjab National Bank (down 1.89%), Bank of Baroda (down 0.82%), Bank of India (down 2.11%), State Bank of India (SBI) (down 1.92%), Union Bank of India (down 2.48%), Indian Overseas Bank (down 3.24%), Andhra Bank down 1.24%), and Oriental Bank of Commerce (down 2.32%) declined.
Shares of major Tata Group companies were mixed after upward revision in rating of Tata Group companies by global credit rating agency Moody's Investors Service.
Tata Motors declined 1.26% to Rs 519. The stock was volatile. The stock hit high of Rs 528.95 and low of Rs 516.25. Moody's Investors Service has upgraded corporate family ratings of Tata Motors to Ba2/Stable from Ba3/Stable. The ratings of Tata Motor's luxury car unit, Jaguar Land Rover Automotive plc has not been affected by the rating actions, Moody's said in a statement.
Tata Steel rose 0.72%. Moody's has upgraded Tata Steel's rating to Ba2 from Ba3, Tata Steel UK Holdings' rating was upgraded to B2 from B3.
TCS rose 2.71% to Rs 2,708.05 after hitting record high of Rs 2,733.25 in intraday trade. Moody's has affirmed TCS' local currency issuer rating at A3/Stable.
Tata Power Company fell 0.06%, with the stock reversing intraday gains. The company said after market hours on Thursday, 18 September 2014, that Moody's has upgraded the company's corporate family rating to Ba3/Stable from B1/Negative, and senior unsecured rating to Ba3/Stable from B2/Negative, thus no longer notching for subordination.
Upward ratings revision of Tata Group companies reflects agency's expectation of parental and systemic support in case of need, which has been exhibited both in the form of extraordinary financial support from Tata Sons, the ultimate parent, and ongoing support through their close association with the Tata brand, Moody's said on Thursday, 18 September 2014.
Multiple rating actions are based on the track record of Tata Sons in providing timely support to investee companies and Moody's assessment of its ability to provide future support and on the need to protect the brand reputation of Tata from the consequences of an entity's distress, it said.
Maruti Suzuki India (MSIL) gained 1.29%.
The Sensex snapped two-day winning streak today, 19 September 2014. From recent low of 26,492.51 on 16 September 2014, the Sensex had risen 619.70 points or 2.33% in two trading sessions to settle at 27,112.21 on Thursday, 18 September 2014. The Sensex has gained 452.31 points or 1.69% in this month so far (till 19 September 2014). The Sensex has gained 5,919.74 points or 27.96% in calendar year 2014 so far (till 19 September 2014). From a record high of 27,354.99 on 8 September 2014, the Sensex has declined 264.57 points or 0.96%. From a 52-week low of 19,264.72 on 1 October 2013, the Sensex has risen 7,825.70 points or 40.62%.
In the foreign exchange market, the rupee was a tad lower against the dollar. The partially convertible rupee was hovering at 60.865, compared with its close of 60.85 during the previous trading session.
Brent crude oil prices edged higher in choppy trade after previous day's losses. Brent for November settlement was up 6 cents at $97.76 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.
Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India on Thursday, 18 September 2014, announced that China will invest $20 billion in India over the next 5 years. Under a five year Trade and Economic Development Plan, China has also agreed to improve the trade balance between the two countries which is heavily skewed in China's favour. The two Asian countries agreed that specific measures to enhance market access for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services. China will set up two industrial parks in India -- one in Gujarat and one in Maharashtra. India and China also agreed on specific steps to enhance cooperation in upgrading India's railways sector.
European stocks edged higher today, 19 September 2014, as Scotland voted to reject independence from the UK. Key benchmark indices in UK, France and Germany were up 0.19% to 0.69%.
Asian stocks rose today, 19 September 2014, as data showed fewer Americans filed for jobless claims. Key benchmark indices in China, Singapore, Hong Kong, Indonesia, Taiwan, Japan and South Korea rose by 0.04% to 1.58%.
Trading in US index futures indicated that the Dow could gain 75 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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