Key benchmark indices continued to trade in a narrow range near the flat line in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex was down 23.15 points or 0.08% at 27,804.38. The Nifty 50 index was down 3.95 points or 0.05% at 8,587.30. Weakness in Asian stocks weighed on sentiment.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,633 shares rose and 599 shares fell. A total of 151 shares were unchanged. The BSE Mid-Cap index was currently up 1.2%. The BSE Small-Cap index was currently up 1.34%. Both the indices outperformed the Sensex.
In overseas stock markets, Asian stocks fell tracking lower finish for US stocks yesterday, 29 September 2016 as Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender. The cause of Deutsche's crisis is a fine, disputed by Deutsche, of up to $14 billion by the US Department of Justice over its sale of mortgage-backed securities.
Meanwhile, revised data suggest that the US economy's performance in the spring was slightly better than expected, as business investment wasn't nearly as weak as previously reported. The gross domestic product grew a 1.4% pace in the second quarter. Philadelphia Federal Reserve President Patrick Harker said he backs a December rate increase if the economy continues to grow as expected, while Atlanta Fed President Dennis Lockhart said he expects the Fed to be in a position to raise rates soon. Fed Gov. Jerome Powell on the other hand said the Fed can afford to be patient in gradually raising rates as the economy slowly improves.
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.31%), Havells India (up 1.93%), ABB India (up 1.39%), Bharat Electronics (up 1.18%), Crompton Greaves (up 1.89%), and Siemens (up 0.83%) gained. L&T fell 0.54%.
Shares of power generation and power distribution companies gained. NTPC (up 0.33%), Torrent Power (up 3.38%), Tata Power Company (up 0.48%), Power Grid Corporation of India (up 0.12%), Reliance Infrastructure (up 1.36%) and Reliance Power (up 1.06%) gained. Adani Power shed 0.8%.
NHPC rose 2.06% after the company said that a wind power purchase agreement (PPA) has been signed amongst Rajasthan Government, NHPC and INOX on 28 September 2016 for 50 megawatts (MW) wind power project in Jaisalmer, Rajasthan. As per the PPA, Rajasthan Government will purchase the power generated from the project. The announcement was made after market hours yesterday, 29 September 2016.
Shares of state run coal mining major Coal India dropped 2.51%.
Meanwhile, the Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalized framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth and notified yesterday, 29 September 2016. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. A Committee-based approach for determining the Monetary Policy will add lot of value and transparency to monetary policy decisions. The meetings of the Monetary Policy Committee shall be held at least 4 times a year and it shall publish its decisions after each such meeting. The factors constituting failure to meet inflation target under the Monetary Policy Committee Framework have also been notified. The Government, in consultation with RBI, has notified the inflation target in the Gazette of India Extraordinary dated 5 August 2016 for the period beginning from the date of publication of this notification and ending on the 31 March 2021, with inflation target of 4% with upper and lower tolerance level of 2%.
As per the provisions of the RBI Act, out of the six members of Monetary Policy Committee, three members will be from the RBI and the other three members of MPC will be appointed by the Central Government. The members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four years, with immediate effect or until further orders, whichever is earlier.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
