After extending gains in morning trade, key benchmark indices moved in a narrow range in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently up 129.63 points or 0.49% at 26,522.14. 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. Realty stocks gained on renewed buying. Most pharma stocks also gained.
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 11:15 IST, the S&P BSE Sensex was up 129.63 points or 0.49% at 26,522.14. 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 was up 40.70 points or 0.51% at 7,973.60. 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 market breadth indicating the overall health of the market was positive. On BSE, 1,340 shares gained and 1,135 shares fell. A total of 80 shares were unchanged.
The BSE Mid-Cap index was down 6.43 points or 0.07% at 9,652.88. The BSE Small-Cap index was up 43.52 points or 0.4% at 10,839.83. Both these indices underperformed the Sensex.
Yes Bank rose 1.86%. 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).
Realty stocks gained on renewed buying. DLF (up 0.71%), D B Realty (up 1.35%), Housing Development & Infrastructure (HDIL) (up 0.12%), Anant Raj (up 1.75%) and Sobha (up 1.18%) gained. But, Unitech declined 0.44%.
Most pharma stocks gained. Dr Reddy's Laboratories (up 1.52%), Lupin (up 0.3%), Ranbaxy Laboratories (up 1.57%) and Sun Pharmaceutical Industries (up 1.28%) gained. But, Cipla fell 0.56%.
Aurobindo Pharma declined 1.32%. 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.
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 60.99, 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 8 cents at $98.97 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 for railways, industrial parks and roads in India.
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.
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 0.01% to 1.25%. China's Shanghai Composite was off 0.49%.
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 10 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 awaiting tomorrow, (18 September 2014)'s referendum on Scottish independence.
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