Banking and IT sector stocks and index heavyweight Reliance Industries (RIL) trimmed gains which in turned pulled key benchmark indices sharply off the day's highs. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 157.64 points or 0.59% at 27,003.45. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The 50-unit CNX Nifty was up 41.35 points or 0.51% at 8,170.70. The Sensex regained psychological 27,000 mark after dropping below that mark for a brief period in mid-morning trade. Earlier, the Sensex had regained that mark in early trade after a strong opening.
Earlier, the Sensex jumped 354.63 points or 1.32% at the day's high of 27,200.44 in morning trade, a seven-week high. The Nifty also hit seven-week high when it jumped 102.85 points or 1.25% at the day's high of 8,232.20 in morning trade.
In overseas markets, Asian shares surged, taking their cue from overnight gains in US stocks after the minutes of the Federal Reserve's latest meeting damped down expectations of an imminent Fed rate hike. Though the Fed said overseas turmoil had not materially altered economic prospects for the United States, the US central bank opted to hold interest rates steady after a monetary policy review last month. Riskier asset markets, which had risen when the Fed held off raising rates in September, got a further boost on confirmation policy makers won't rush to tighten rates at a time of slackening global growth.
Closer home, the market breadth indicating the overall health of the market was positive. 1,473 shares rose and 988 shares declined. A total of 115 shares were unchanged. The BSE Mid-Cap index was up 0.09%. The BSE Small-Cap index was up 0.29%. Both these indices underperformed the Sensex.
Though most bank stocks were in green, they were off the day's highs. Among public sector banks, UCO Bank (up 0.1%), Syndicate Bank (up 1.79%), Punjab National Bank (up 0.79%), Corporation Bank (up 0.33%), Allahabad Bank (up 0.58%), State Bank of India (SBI) (up 1.62%), Union Bank of India (up 0.59%), Canara Bank (up 1.49%), and Bank of India (up 0.72%) edged higher. Bank of Baroda (down 0.27%) and United Bank of India (down 0.44%) declined.
Among private sector banks, Axis Bank (up 0.18%), HDFC Bank (up 0.44%), ICICI Bank (up 3.05%), Kotak Mahindra Bank (up 0.46%), Federal Bank (up 0.08%), Yes Bank (up 1.1%), and IndusInd Bank (up 0.77%) edged higher.
The Reserve Bank of India (RBI) has announced rationalization of risk weights and Loan to Value (LTV) ratio on individual housing loans of commercial banks. The lowest risk weight on individual housing loans has been reduced to 35% from 50% earlier. The modifications are aimed at improving the affordability of low cost housing for economically weaker sections and low income groups and giving a fillip to the government's 'Housing for All' scheme.
Shares of housing finance companies edged higher as the National Housing Bank (NHB) which regulates housing finance companies is expected to follow suit after the Reserve Bank of India yesterday, 8 October 2015, announced rationalization of risk weights and Loan to Value (LTV) ratio on individual housing loans of commercial banks. LIC Housing Finance (up 2.42%), HDFC (up 0.77%), GIC Housing Finance (up 5.7%) and Dewan Housing Finance (up 2.93%) gained.
Cairn India gained 0.18%. Hindustan Zinc rose 2.82%. Vedanta jumped 10.12%. Vedanta said during market hours today, 9 October 2015, that in its oil exploration business, the average gross operated production and working interest production were up 6% and 4% at 205,361 barrels of oil equivalent per day (boepd) and 128,021 boepd, respectively in Q2 September 2015 over Q2 September 2014. Production at Rajasthan was up 3% y-o-y at 168,126 boepd, primarily driven by inline reservoir performance in Mangala and production from additional infill wells in the Aishwariya field. At Mangala EOR, the injection ramp up plan is on track and work on the drilling and surface facilities work is ongoing. Gross production from DA1 and DA2 averaged at 147,443 boepd and 20,683 boepd, respectively.
In Q2 September 2015, gas production from the RDG field increased to an average rate of 30 mmscfd from 19 mmscfd in Q1 June 2015, recording a peak production of 34 mmscfd. This was largely on account of optimization of existing infrastructure. Both the offshore assets registered a gross average production of 37,235 boepd, an increase of 19% y-o-y. Production at Ravva grew 27% y-o-y to 26,064 boepd due to consistently higher gas production, effective infill drilling campaign and prudent reservoir management. Cambay saw a production growth of 5% y-o-y, driven by effective reservoir management practices including well intervention campaign undertaken in the last quarter.
Mined metal production in its zinc business in India rose 13% at 240,000 tonnes in Q2 September 2015 over Q2 September 2014. The increase was driven by higher ore production across all mines.
Vedanta in its financial update said that in light of the current market conditions, the company is focused on optimising operational expenditure and capital expenditure, increasing free cash flow and reducing net debt. During the quarter, several initiatives and programmes to generate cash savings, including a reduction of working capital, have been implemented across its businesses. These initiatives have resulted in an improved cost performance and lower net debt at the end of the quarter.
Redington (India) rose 3.12% after the company announced that Redington Gulf FZE, a step-down subsidiary of the company, has been appointed by US-based Apple Inc as a distributor for iPhones in the UAE with immediate effect. The announcement was made during trading hours today, 9 October 2015. This is a key addition to Redington Gulf's telecom distribution portfolio and the company expects this to significantly increase its offering to customers in the smart phones category, the company said in a statement.
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