Amid a divergent trend among various index constituents, the 50-unit CNX Nifty traded near the flat line in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was trading with small gains. At 14:17 IST, the Sensex was up 64.31 points or 0.25% at 26,219.14. The Nifty was up 1.20 points or 0.02% at 7,950.10. The Nifty could not retain the psychological 8,000 level which it crossed in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,329 shares rose and 1,222 shares declined. A total of 112 shares were unchanged. The BSE Mid-Cap index was up 0.31%, outperforming the Sensex. The BSE Small-Cap index was up 0.2%, underperforming the Sensex.
In overseas stock markets, Asian and European stocks edged higher as better-than-expected Chinese manufacturing data for September 2015 helped calm fears about the economic slowdown in the world's second largest economy. Trading in US index futures indicated further gains for US stocks after a rally overnight triggered by solid US private sector payroll data for September 2015. Trading in US index futures indicated that the Dow Jones Industrial Average may surge 127.50 points at the opening bell today, 1 October 2015.
Closer home, 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.
Shares of oil exploration and production (E&P) firms gained along with crude oil prices. Reliance Industries (up 0.11%), Oil India (up 1.58%) and ONGC (up 0.37%) edged higher. Cairn India (down 0.42%) edged lower. Higher crude oil prices will increase realization from crude sales for oil exploration firms.
In the global commodities markets, Brent for November settlement was currently up 39 cents at $48.76 a barrel. The contract had risen 14 cents or 0.29% to settle at $48.37 a barrel during previous trading session.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after raising diesel prices. BPCL (up 0.39%), HPCL (up 0.82%) and Indian Oil Corporation (IOCL) (up 0.22%) gained. IOCL has announced increase in the retail selling price of diesel by 50 paise per litre at Delhi (including state levies), with corresponding price revision in other states with effect from midnight of 30 September/1 October 2015. After the latest increase, diesel would now cost Rs 44.95 a litre in Delhi, up from Rs 44.45. The price of petrol was left unchanged. Meanwhile, PSU OMCs cut price of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs 42 per 14.2-kg cylinder.
FMCG stocks gained. Britannia Industries (up 1.08%), Godrej Consumer Products (up 0.83%), Colgate Palmolive (India) (up 1.04%), Procter & Gamble Hygiene and Health Care (up 1.32%), Tata Global Beverages (up 1.25%), Nestle India (up 0.51%), Dabur India (up 0.78%), Hindustan Unilever (up 0.22%) and GlaxoSmithkline Consumer Healthcare (up 0.08%) edged higher. Marico (down 0.88%), Bajaj Corp (down 0.4%) and Jyothy Laboratories (down 0.13%) edged lower.
HDFC was down 1.09% at Rs 1,200. The stock hit a high of Rs 1,231 and a low of Rs 1,197.75 so far during the day. The company during market hours today, 1 October 2015, announced the opening of the issue of secured redeemable non-convertible debentures (NCDs). HDFC is simultaneously issuing warrants exchangeable into equity shares along with the NDC issue on qualified institutional placement basis. Each warrant is convertible into one equity share of the company. The floor price for the warrants has been fixed at Rs 1,189.66 each. The warrants proposed to be issued along with the NCD issue are exchangeable for equity shares within a period of 36 months from the date of allotment of warrants. The maximum dilution that could take place in future, if all the warrants are exchanged for equity shares, would be up to 2.2% of the expanded equity share capital of the company.
Yes Bank fell 0.72% at Rs 724.35. The stock hit a high of Rs 739.75 and a low of Rs 715.10 so far during the day. The bank during market hours today, 1 October 2015 said that it has cut its base rate by 25 basis points to 10.25% with effect from 5 October 2015.
A number of banks have announced reduction in their base rate after the Reserve Bank of India (RBI) cut its benchmark interest rate viz. the repo rate by 50 basis points after a monetary policy review early this week.
IDFC slumped 56.55% at Rs 61.40 as the demerger scheme has come into effect today, 1 October 2015, in which the financing undertaking of IDFC gets transferred to IDFC Bank. Post 1 October 2015, the lending and financing business of IDFC will be carried out by IDFC Bank. After the demerger scheme becoming effective, the shares of IDFC Bank will be listed on the stock exchanges. IDFC has fixed 5 October 2015 as the record date for the purpose of entitlement of shares of IDFC Bank to shareholders of IDFC pursuant to the demerger scheme. IDFC Bank will issue and allot 1 share of IDFC Bank for every one share held by them in IDFC.
IDFC said after market hours yesterday, 30 September 2015, that Dr. Rajiv Lall will be taking over the position of MD & CEO of IDFC Bank with effect from 1 October 2015 pursuant to the Reserve Bank of India (RBI), vide its letter dated 23 July 2015, issuing a license to IDFC Bank to launch the banking business. As a result, the board of directors of IDFC has accepted the resignation of Dr. Rajiv Lall, as executive Chairman of the company with effect from 30 September 2015.
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