Positive cues from world markets helped key equity benchmark indices in India register modest gains. The market breadth indicating the overall health of the market turned positive from negative in late trade. The barometer index, the S&P BSE Sensex, garnered 138.78 points or 0.52% to settle at 26,631.29. BSE Small-Cap and Mid-Cap indices, both, reversed intraday losses in late trade. IT and capital goods stocks gained. Cement stocks gained on hopes demand will pick up as construction activity will be in full swing as the southwest monsoon starts withdrawing.
In pharma pack, Dr Reddy's Laboratories scaled record high. In auto pack, Hero MotoCorp scaled record high. In telecom pack, Reliance Communications hit 52-week low. Cairn India rose after the company announced three new oil discoveries in Rajasthan block. Sugar stocks declined after an industry body Indian Sugar Mills Association (ISMA) said that the country is likely to churn out a surplus sugar for the fifth straight year despite erratic rainfall in key growing areas.
Benchmark indices witnessed intermittent volatility within positive zone in intraday trade after a higher opening triggered by firm Asian stocks and after the Dow Jones Industrial Average hit an intraday record high overnight.
In overseas markets, European stocks edged higher ahead of the Federal Reserve's decision on monetary policy. Asian stocks rose on a report China's central bank is boosting stimulus. 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 higher in choppy trade.
The S&P BSE Sensex gained 138.78 points or 0.52% to settle at 26,631.29, its highest closing level since 15 September 2014. The index jumped 190.13 points at the day's high of 26,682.64 in morning trade. The index rose 19.20 points at the day's low of 26,511.71 in morning trade.
The CNX Nifty gained 42.60 points or 0.54% to settle at 7,975.50, its highest closing level since 15 September 2014. The index hit a high of 7,990.65 in intraday trade. The index hit a low of 7,936.95 in intraday trade.
The total turnover on BSE amounted to Rs 3880 crore, lower than Rs 4368.82 crore on Tuesday, 16 September 2014.
The market breadth indicating the overall health of the market was turned positive from negative in late trade. On BSE, 1,519 shares rose and 1,498 shares fell. A total of 101 shares were unchanged.
The BSE Mid-Cap index rose 24.61 points or 0.25% to settle at 9,683.92. The BSE Small-Cap index rose 33.53 points or 0.31% at 10,829.84. Both these indices underperformed the Sensex.
The S&P BSE IT index (up 1.52%), the S&P BSE Power index (up 1.35%), the S&P BSE Teck index (up 1.26%), the S&P BSE Auto index (up 1.02%) and the S&P BSE Capital Goods index (up 0.81%) outperformed the Sensex.
The S&P BSE Realty index (up 0.51%), the S&P BSE Healthcare index (up 0.28%), the S&P BSE Metal index (up 0.27%), the S&P BSE FMCG index (up 0.26%), the S&P BSE Oil & Gas index (up 0.21%), the S&P BSE Bankex (down 0.04%), and the S&P BSE Consumer Durables index (down 1.06%) underperformed the Sensex.
Shares of private sector upstream oil stocks were in demand. Reliance Industries rose 0.59%.
Cairn India gained 1.48%. Cairn India during market hours today, 17 September 2014, announced three new oil discoveries in Rajasthan block. Cairn India said one the oil discoveries is a significant discovery in view of its proximity to the Mangala oil field and fast track appraisal is planned to facilitate rapid commercialization of this discovery.
Meanwhile, Cairn India's board of directors at its meeting held today, 17 September 2014, declared an interim dividend of Rs 5 per equity share for the financial year ending 31 March 2015. This will entail an outflow of Rs 1097 crore, including the dividend distribution tax of Rs 159 crore.
Dr Reddy's Laboratories rose 2.85% to Rs 3,095, also its record high.
Glenmark Pharmaceuticals rose 0.99%. The company said during market hours that its first in class Transient Receptor Potential Ankyrin I (TRPA 1) antagonist, GRC 17536 has shown positive data in a phase 2a proof of concept study conducted on 138 patients with painful diabetic neuropathy. The sturdy was conducted on 138 patients in France and India.
Piramal Enterprises gained 2.85%. In clarification to reports indicating that Piramal leads race for three Ramky highway projects, Piramal Enterprises at fag end of the day's trading session said that the company from time to time explores various investment opportunities as part of its structured investment business, in the normal course of its business.
With reference to a report indicating that DiaSys to buy Piramal's diagnostic business, Piramal Enterprises after market hours on Tuesday, 16 September 2014 clarified that the company has signed an agreement for sale of its Lab Diagnostics & Point of Care Business to Diasys Diagnostics India, for a consideration of Rs 13 crore. In addition, the company would be transferring related technology for a consideration of Rs 0.30 crore. This business is a trading business, comprising buying and selling of diagnostic equipments, serving large pathological laboratories, Piramal Enterprises said further informing that it does not form part of the core manufacturing activity of the company, nor does it involve any material patented products. It comprises a small portion (about 1%) of the company's consolidated business, Piramal Enterprises said.
Aurobindo Pharma rose 2.07%. The company after market hours on Tuesday, 16 September 2014 said that the company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Amoxicillin for Oral Suspension USP 125mg/5mL and 250mg/5mL. Amoxicillin for Oral Suspension is the generic equivalent to the reference listed drug product (RLD), Amoxicillin for Oral Suspension, of Teva Pharmaceutical Industries and indicated in the treatment of infections due to susceptible aetalactamase-negative strains of the designated microorganisms. The product had an estimated market size of approximately $19 million in the United States for twelve months ended July 2014, according to IMS.
Apollo Hospitals Enterprise rose 1.57% after the company said during market hours that it has entered into a memorandum of understanding (MoU) with Hetero Med Solutions (HMSL) for the acquisition of HMSL's retail pharmacy stores currently operated in Telengana, Andhra Pradesh and Tamilnadu. The addition of 320 stores are in existing core geographies where Apollo Pharmacy has a strong market presence and further consolidate its presence as a significant player in this region, Apollo Hospitals said. Apollo Pharmacy plans to leverage its existing backend infrastructure to drive economies of scale, thereby accelerating profitability for these stores, the company said. The acquisition would be in the form of purchase of the business undertaking, on a slump sale basis and comprises of 320 pharmacy stores, at an overall consideration not exceeding Rs 146 crore.
IT stocks edged higher. HCL Technologies gained 1.85%.
Infosys rose 2.42%, 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 1.19%.
Wipro rose 1.83%. 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 0.34%.
Capital goods stocks gained. ABB (India) (up 7.07%), Bharat Heavy Electricals (Bhel) (up 2.06%), BEML (up 0.82%), Bharat Electronics (up 1.56%), Crompton Greaves (up 3.93%), L&T (up 0.09%), Punj Lloyd (up 0.38%) and Siemens (up 3.55%) gained.
Hindalco edged higher in choppy trade after the company said that stoppage of operations at its six bauxite mines in Jharkhand will not have any adverse material impact in near future on the operation and performance of the company as the company has sufficient inventory and other operating mines in the area which also supply bauxite to the company's alumina refineries at Muri and Renukoot. The stock was up 0.37% at Rs 160.90. The scrip hit high of Rs 163.30 and low of Rs 157.10. The company said it expects to get renewal of the mining lease for these six mines from the Jharkhand state government within a period of six months.
Jindal Steel & Power (JSPL) dropped 1.95% to Rs 214.05 in volatile trade. The stock hit high of Rs 224 and low of Rs 205.40.
Hindustan Zinc rose 1.08%. Hindustan Zinc's board of directors at its meeting held today, 17 September 2014, declared interim dividend of Rs 1.90 per equity share for the financial year ending 31 March 2015.
National Aluminium Company jumped 6.44% to Rs 64.45 on bargain hunting after the stock fell 8.47% in the preceding three trading sessions to Rs 60.55 on 16 September 2014, from a recent high of Rs 66.15 on 11 September 2014.
JSW Steel rose 3.9%. With reference to various news reports indicating that JSW Steel is close to buying assets/mills/plant of Italy's Lucchini, JSW Steel after market hours on Tuesday, 16 September 2014, clarified that in line with the company's long term strategy to acquire finishing mills near to the market, it has submitted binding bid for take over of rolling mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. The company is yet to get the response on this bid, JSW Steel said.
Steel Authority of India lost 2.2% on buzz that the 5% stake-divestment in the company by the government is likely to happen between 24 and 26 September 2014. The Government of India (GoI) owns 80% stake in SAIL (as per shareholding pattern as on 30 June 2014).
Bank stocks were mixed. Among private bank stocks, HDFC Bank (down 0.66%), IndusInd Bank (down 0.08%), Kotak Mahindra Bank (down 0.43%), Axis Bank (down 0.3%) declined. ICICI Bank rose 0.18%.
Yes Bank rose 1.92%. The bank said during market hours that it has received ratings upgrade from ICRA for its various long term debt programme, with the lower tier II bonds of the bank upgraded from ICRA AA (stable) to ICRA AA+ (stable).
Among PSU bank stocks, Punjab National Bank (up 0.88%), Bank of Baroda (up 0.17%), Bank of India (up 0.49%) and Union Bank of India (1%) rose. State Bank of India (SBI) shed 0.04%).
NTPC gained 0.87% after the company after market hours on Tuesday, 16 September 2014 said that the company has signed a memorandum of understanding (MoU) with Government of Andhra Pradesh (GoAP) to develop 1000 megawatt (MW) Solar Power Project(s) at suitable sites identified by GoAP in a phased manner. The projects will be implemented on Build-Own-Operate basis in the State of Andhra Pradesh, NTPC said.
ABB India galloped 6.18% to Rs 1,220.85. The stock hit a 52-week high of Rs 1,240.40 today, 17 September 2014.
Shares of two-wheeler makers gained. Bajaj Auto (up 0.58%) and TVS Motor Company (up 1.04%) gained.
Hero MotoCorp advanced 1.67% to Rs 2,838 after scaling record high of Rs 2,873.75 in intraday trade. The company said during market hours yesterday, 16 September 2014, that the company has entered into a Memorandum of Understanding (MOU) with the state government of Andhra Pradesh to set-up a manufacturing plant in Chittoor district of the state of Andhra Pradesh. The plant with an investment of about Rs 1600 crore will have a production capacity of around 1.8 million per annum.
Shares of other auto stocks were mixed. Mahindra & Mahindra (M&M) rose 0.97%. With respect to the media report titled "M&M in talks to buy Peugeot Scooter business," the company issued clarification after market hours on Tuesday, 16 September 2014, that the company examines/pursues various opportunities in different areas, from time to time on a continuing basis and it is not practicable to comment upon every opportunity at every stage. The company is not in a position to confirm or deny the veracity of the news given its policy of not commenting on speculative news/reports that emanates from such activity, it said.
Maruti Suzuki India rose 1.49%. The company after market hours on Tuesday, 16 September 2014, said that the company's Manesar facility has crossed the 25 lakh production milestone this month. The company's twin facilities at Gurgaon and Manesar have together rolled out over 1.4 crore vehicles cumulatively, it added.
Tata Motors gained 1.49%. Ashok Leyland fell 0.76%.
IDFC gained 0.59% to Rs 144.75 after the lender said after market hours on Tuesday, 16 September 2014, that the Capital Raise Committee of Directors of the company has, by a resolution dated 16 September 2014, approved the allotment of 7.30 crore shares at a price of Rs 137 aggregating to Rs 1000.10 crore, to qualified institutional buyers.
Bajaj Finserv climbed 4.13% to Rs 1,068.65 on bargain hunting after the stock fell 6.79% in the preceding five trading sessions to Rs 1,026.25 on 16 September 2014, from a recent high of Rs 1,101 on 9 September 2014.
Cement stocks gained on hopes demand will pick up as construction activity will be in full swing as the southwest monsoon starts withdrawing. ACC (up 0.59%), Ambuja Cements (up 1.23%), and UltraTech Cement (up 1.8%), gained.
Shree Cement fell 0.23%.
Grasim Industries declined 0.49%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Asian Paints dropped 0.52%. The company said during market hours that the board of directors of the company at its meeting held today, 17 September 2014, recommended payment of interim dividend of Rs 1.80 per share for the year ending 31 March 2015.
Reliance Communications lost 3.37% to Rs 103.30 after hitting a 52-week low of Rs 99.35 in intraday trade.
Credit Analysis and Research (CARE) gained 3.38% to Rs 1,426 after scaling record high of Rs 1,440 in intraday trade.
Sugar stocks declined after an industry body Indian Sugar Mills Association (ISMA) said that the country is likely to churn out a surplus sugar for the fifth straight year despite erratic rainfall in key growing areas. Dhampur Sugar Mills (down 1.04%), Balrampur Chini Mills (down 4.88%), Triveni Engineering & Industries (down 1.71%) and Dwarikesh Sugar Industries (down 0.27%) declined.
Shree Renuka Sugars settled unchanged for the day at Rs 17.75. Bajaj Hindusthan rose 0.94%.
India is likely to produce 25 million tonnes to 25.50 million tonnes of sugar in 2014-15 year starting 1 October 2014, Indian Sugar Mills Association (ISMA) said on Wednesday, 17 September 2014. In the current year 2013-14, it is expected that 24.3 million tonnes of sugar would be produced and domestic consumption would be a little over 24 million tonnes, ISMA said.
The surplus production could depress local prices and increase losses of debt-ridden sugar mills, reports indicated.
Clariant Chemicals (India) rose 1.35% after the company said it has inaugurated an important new extension to its production facility in Roha, South-east of Mumbai. Clariant said that the expansion at its production facility at Roha doubles its capacity there for pigments and pigment preparations. The increased output will enable the company to increase its market coverage in India and the neighboring countries of Bangladesh and Sri Lanka, and to provide products better tailored to customer needs, Clariant Chemicals said in a statement.
Apollo Tyres gained 3.12% 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.
NRB Bearings dropped 3.89% to Rs 117.40 after venture fund Catamaran Capital sold a total of about 13.50 lakh shares in bulk deals on BSE and NSE at Rs 127.50 per share on Tuesday, 16 September 2014.
In the foreign exchange market, the rupee was a tad higher against the dollar. The partially convertible rupee was hovering at 60.9125, compared with its close of 61.06 during the previous trading session.
Brent crude oil prices edged higher in choppy trade 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 up 33 cents at $99.38 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.
Key indices snapped two-day losing streak today, 17 September 2014. The Sensex had lost 568.53 points or 2.1% in two trading days to settle at 26,492.51 on Tuesday, 16 September 2014 from recent high of 27,061.04 on 12 September 2014. The Sensex has declined 6.82 points or 0.02% in this month so far (till 17 September 2014). The Sensex has gained 5,460.61 points or 25.79% in calendar year 2014 so far (till 17 September 2014). From a record high of 27,354.99 on 8 September 2014, the Sensex has declined 723.70 points or 2.64%. From a 52-week low of 19,264.72 on 1 October 2013, the Sensex has risen 7,366.57 points or 38.23%.
Chinese President Xi Jinping arrived in India today afternoon for a three-day official visit. The Chinese President is expected to pledge billions of dollars for railways, industrial parks and roads in India, according to reports.
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. The results of the by-elections held in nine states were announced on Tuesday, 16 September 2014. Counting in one assembly seat in Chhattisgarh will be held on Saturday, 20 September 2014. 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.
European stocks edged higher today, 17 September 2014, before the US Federal Reserve's decision on monetary policy. Key benchmark indices in UK, France and Germany were 0.14% to 0.71%.
Euro area inflation was higher than initially forecast in August, easing pressure on the European Central Bank after it took action to shield the region from the threat of a downward spiral in prices. Annual inflation was 0.4%, unchanged from July, the European Union's statistics office in Luxembourg said today. That's above Eurostat's Aug. 29 estimate of 0.3%, which was the lowest reading in almost five years.
UK unemployment has fallen to the lowest in six years, indicating continued strength in the labor market that Bank of England Governor Mark Carney says will eventually boost earnings. The jobless rate based on International Labor Organisation methods fell to 6.2% in the three months through July from 6.4%, a bigger decline than forecast. A separate measure for August put the claimant count rate at 2.9%. Both rates are at their lowest levels since 2008.
Meanwhile, a crucial vote on Scottish independence will be held tomorrow, 18 September 2014. Scotland is currently a part of United Kingdom.
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 China were up 0.49% to 1.12%. Japan's Nikkei Average was off 0.14%.
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 a flat opening of US stocks 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.
Powered by Capital Market - Live News
