A bout of volatility was witnessed as key benchmark indices recovered from lower level soon after giving away most of the initial gains after a firm opening. The barometer index, the S&P BSE Sensex, was currently up 108.91 points or 0.41% at 26,601.42. Asian stocks were firm after overnight gains for US stocks which took the Dow Jones Industrial Average to an intraday record high. The market breadth indicating the overall health of the market was positive. IT stocks gained. Apollo Tyres gained after the company announced that Apollo Tyres Africa Proprietary, a wholly-owned step subsidiary of the company in South Africa, has voluntarily initiated business rescue proceedings.
Key indices had opened on a firm note on higher Asian stocks and after overnight gains for US stocks which took the Dow Jones Industrial Average to an intraday record high.
Asian stocks rose on a report China's central bank is boosting stimulus. US stocks rose on Tuesday, 16 September 2014, as investors grew optimistic about the US Federal Reserve keeping US interest rates low for a while after a news report said the Fed may keep the words "considerable time" in its policy statement, but qualify them. Investors across the globe are awaiting the outcome on the Federal Reserve's two-day policy meeting that concludes today, 17 September 2014, to gauge the timing of interest rate hike in the US. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
In the foreign exchange market, the rupee was a tad higher against the dollar.
Brent crude oil prices edged lower after overnight gains.
At 10:15 IST, the S&P BSE Sensex was up 108.91 points or 0.41% at 26,601.42. The index jumped 163.14 points at the day's high of 26,655.65 in early trade. The index rose 19.20 points at the day's low of 26,511.71 in morning trade.
The CNX Nifty was up 33.10 points or 0.42% at 7,966. The index hit a high of 7,983.95 in intraday trade. The index hit a low of 7,936.95 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,095 shares gained and 1,034 shares fell. A total of 66 shares were unchanged.
The BSE Mid-Cap index was down 11.27 points or 0.12% at 9,648.04. The BSE Small-Cap index was up 17.58 points or 0.16% at 10,813.89. Both these indices underperformed the Sensex.
IT stocks edged higher. HCL Technologies gained 0.49%.
Infosys rose 0.8%, with the stock extending Tuesday's gains. The company said during market hours on Tuesday, 16 September 2014, that Muji, a leading retailer in Japan, has deployed InteractEdge from Infosys which will enable Muji to deliver a superior shopping experience through real time insights into the buying behaviour of its customers.
Tata Consultancy Services (TCS) gained 0.75%.
Wipro rose 0.25%. Wipro early this week said that the company's subsidiary Wipro Arabia has entered into a strategic partnership with Saudi-based Saudi Electricity Company (SEC), the largest power utility company in the Middle East serving approximately 5 million customers in the Kingdom of Saudi Arabia (KSA). As part of this engagement, Wipro will implement and rollout the plant maintenance and project system functionality of the SAP ERP application for SEC's distribution business line across KSA.
Tech Mahindra gained 0.28%.
Apollo Tyres gained 2.99% after the company announced that Apollo Tyres Africa Proprietary, a wholly-owned step subsidiary of the company in South Africa, has voluntarily initiated business rescue proceedings. It has appointed a specialist to re-structure its operations and to secure best value for all stakeholders. The evaluation by such specialist will decide the future course of action for the company in South Africa, the company said in a statement.
Meanwhile, provisional data released by the stock exchanges after trading hours on Tuesday, 16 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 828.95 crore on that day.
In the foreign exchange market, the rupee was a tad higher against the dollar. The partially convertible rupee was hovering at 61.025, compared with its close of 61.06 during the previous trading session.
Brent crude oil prices edged lower after staging its steepest climb in two weeks in the previous session triggered by hopes the Organization of the Petroleum Exporting Countries (OPEC) will cut output and reduce a global supply glut. Brent for November settlement was off 10 cents at $98.95 a barrel. The contract had risen $2.4 a barrel or 1.2% to settle at $99.05 a barrel on Tuesday, 16 September 2014.
Chinese President Xi Jinping comes for a three-day visit to India today, 17 September 2014. The Chinese President is expected to pledge billions of dollars in railways, industrial parks and roads.
On the political front, the ruling government led by Bharatiya Janata Party (BJP) suffered a major blow in the Assembly by-elections in Uttar Pradesh, Rajasthan and Gujarat, the states it had swept in the Lok Sabha polls four months ago, losing 13 of the 24 seats held by it. Considered yet another test of popularity of Prime Minister Narendra Modi, reversal in the outcome of by-elections come after the party's disappointing performance in the assembly by-elections in Bihar, Uttarakhand, Karnataka and Madhya Pradesh in the last two months.
Asian stocks rose today, 17 September 2014, on a report China's central bank is boosting stimulus. Key benchmark indices in Hong Kong, Indonesia, South Korea, Singapore, Taiwan and Japan were up 0.11% to 1.14%. China's Shanghai Composite was off 0.18%.
China reportedly provided 500 billion yuan ($81.4 billion) of liquidity to its five biggest banks, as leaders in Asia's largest economy seek to support growth. The People's Bank of China started providing the banks with 100 billion yuan each through standing lending-facilities with tenor of three months. The PBOC will complete the process today, 17 September 2014, according to reports.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell on Wednesday, 17 September 2014. US stocks rose on Tuesday, 16 September 2014, with the Dow Jones Industrial Average hitting a record intraday high as markets reacted to wavering expectations over the language the Federal Reserve will use Wednesday, 17 September 2014, to describe its next policy move.
Investors will look to Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. A two-day policy meeting of the Federal Open Market Committee (FOMC) ends today, 17 September 2014. At the end of a two-day meeting, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
The Fed will also announce US economic projections after the policy meet. Fed now releases economic projections four times a year (March, June, September, and December). Traditionally, the Fed forecasts covered GDP, the PCE price index, and the civilian unemployment rate. However, the forecast report additionally now includes forecasts for the appropriate timing of the next change in the fed funds rate and the expected fed funds rate at the end of the next two years. The policy meet will be followed by a press conference by Federal Reserve Chairwoman Janet Yellen on 17 September 2014.
The Federal Reserve after two-day policy meeting on 30 July 2014, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected.
In UK, investors are also waiting tomorrow, (18 September 2014)'s referendum on Scottish independence.
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