Key benchmark indices further pared intraday gains in early afternoon trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was currently up 82.37 points or 0.31% at 26,574.88. BSE Small-Cap and Mid-Cap indices were, both, in red. Asian stocks were firm after overnight gains for US stocks which took the Dow Jones Industrial Average to an intraday record high. Shares of two-wheeler makers gained. Shares of other auto companies were mixed. Apollo Hospitals Enterprise rose after the company announced 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.
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 would maintain an important phrase that rates will remain low for a considerable time after its bond-buying program is over. 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, small gains helped the rupee strengthen past 61 against the dollar.
Brent crude oil prices edged lower after overnight gains.
At 12:15 IST, the S&P BSE Sensex was up 82.37 points or 0.31% at 26,574.88. 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 26.50 points or 0.33% at 7,959.40. 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 turned negative from positive in early afternoon trade. On BSE, 1,454 shares fell and 1,195 shares rose. A total of 97 shares were unchanged.
The BSE Mid-Cap index was off 38.80 points or 0.4% at 9,620.51. The BSE Small-Cap index was off 4.51 points or 0.04% at 10,791.80. Both these indices underperformed the Sensex.
Shares of two-wheeler makers gained. Bajaj Auto (up 0.92%), Hero MotoCorp (up 1.66%) and TVS Motor Company (up 0.62%) gained.
Shares of other auto stocks were mixed. Mahindra & Mahindra (M&M) rose 1.42%. 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 declined 0.37%. 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 declined 0.52%. Ashok Leyland fell 1.53%.
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.
Clariant Chemicals (India) rose 1.9% 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.
NRB Bearings shed 2.62% to Rs 118.95 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.
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, small gains helped the rupee strengthen past 61 against the dollar. The partially convertible rupee was hovering at 60.9525, 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 16 cents at $98.89 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 China were up 0.19% to 1.25%. 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 that the Dow could fall 13 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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