Key benchmark indices logged modest gains in an intensely choppy session of trade. The barometer index, the S&P BSE Sensex, rose 161.82 points or 0.63% to settle at 25,778.66. The 50-unit CNX Nifty rose 47.60 points or 0.61% to settle at 7,843.30. The Sensex settled below the psychological 26,000 mark after hitting one-week high above that level in mid-afternoon trade. Gains triggered by a steeper-than-expected rate cut by the Reserve Bank of India (RBI) after its fourth bi-monthly monetary policy review for the year 2015-16 today, 29 September 2015 helped domestic bourses outpace losses caused by weak global cues. After staging a strong intraday pullback in first half of the day's trading session, domestic bourses pared gains in second half.
The Sensex rose 161.82 points or 0.63% to settle at 25,778.66, its highest closing level since 24 September 2015. The Sensex surged 437.53 points at the intraday high of 26,054.37 in mid-afternoon trade, its highest level since 22 September 2015. The index hit three-week low when it dropped 329.51 points at the day's low of 25,287.33 in mid-morning trade, its lowest level since 8 September 2015.
The Nifty rose 47.60 points or 0.61% to settle at 7,843.30, its highest closing level since 24 September 2015. The Nifty jumped 130.85 points at the intraday high of 7,926.55 in mid-afternoon trade, its highest level 22 September 2015. The index hit its lowest level in over 2-1/2 weeks when it fell 104.50 points at the day's low of 7,691.20 in mid-morning trade, its lowest level since 10 September 2015.
The BSE Mid-Cap index rose 0.42%. The BSE Small-Cap index fell 0.11%. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,356 shares declined and 1,250 shares gained. A total of 109 shares were unchanged.
The total turnover on BSE amounted to Rs 3045 crore, higher than turnover of Rs 2769.51 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Metal index (down 1.45%), the S&P BSE Healthcare index (down 0.89%), the S&P BSE Oil & Gas index (down 0.85%), the S&P BSE Consumer Durables index (down 0.38%), the S&P BSE Teck index (up 0.05%), the S&P BSE FMCG index (up 0.26%), the S&P BSE IT index (up 0.38%) and the S&P BSE Power index (up 0.52%), underperformed the Sensex. The S&P BSE Capital Goods index (up 0.65%), the S&P BSE Auto index (up 0.76%), the S&P BSE Bankex (up 0.90%) and the S&P BSE Realty index (up 1.99%), outperformed the Sensex.
In overseas markets, European equities were hovering near 2015 lows and Asian stocks dropped to 3-1/2-year as global economy worries continue to batter risk assets. Taiwan's market was closed because of Typhoon Dujuan. South Korea's market was closed for holiday. US stocks settled yesterday, 28 September 2015 at their lowest levels since late August as concerns about slowing economic growth in China and mixed domestic economic data unnerved investors.
The Reserve Bank of India (RBI) surprised the financial markets by announcing a steeper-than-expected cut in the policy repo rate under the liquidity adjustment facility by 50 basis points to 6.75% at its fourth bi-monthly monetary policy review for the year 2015-16 today, 29 September 2015. The RBI has kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL). The RBI marked down slightly the FY16 gross domestic product (GDP) growth target to 7.4% from 7.6% earlier as global growth and trade were slower than initial expectations, a continuing lack of appetite for new investment in the private sector, the constraint imposed by stressed assets on bank lending and waning business confidence. Inflation has dropped to a nine-month low in August, and despite the monsoon shortfall and the uneven distribution of seasonal rains, food inflation pressures have been contained by the government's supply-management policies, the RBI said.
Bank stocks gained in volatile trade after the RBI surprised the financial markets by announcing a steeper-than-expected cut in repo rate by 50 basis points to 6.75% at its fourth bi-monthly monetary policy review for the year 2015-16 today, 29 September 2015.
Among private bank stocks, IndusInd Bank (up 2.14%), HDFC Bank (up 1.20%), Yes Bank (up 1.16%), Kotak Mahindra Bank (up 0.74%), Federal Bank (up 0.62%) and ICICI Bank (up 0.11%), edged higher. Axis Bank (down 0.56%) and City Union Bank (down 0.87%), edged lower.
Among PSU bank stocks, IDBI Bank (up 2.91%), Central Bank of India (up 2.28%), Indian Bank (up 2.18%), Bank of Baroda (up 1.66%), Bank of India (up 1.51%), Canara Bank (up 1.20%), State Bank of India (up 1.02%), Syndicate Bank (up 0.66%), Andhra Bank (up 0.60%), Union Bank of India (up 0.45%), Allahabad Bank (up 0.32%), Punjab National Bank (up 0.30%) and UCO Bank (up 0.11%), edged higher. Bank of Maharashtra (down 0.29%), Dena Bank (down 1%) and United Bank of India (down 1.11%), edged lower.
Most realty stocks reversed intraday fall in volatile trade after the RBI surprised the financial markets by announcing a steeper-than-expected cut in repo rate by 50 basis points to 6.75% at its fourth bi-monthly monetary policy review for the year 2015-16 today, 29 September 2015. Purchases of both residential and commercial property are largely driven by finance.
Housing Development and Infrastructure (HDIL) (up 9.83%), Indiabulls Real Estate (up 4.30%), DLF (up 4.18%), Sobha (up 3.94%), D B Realty (up 3.45%), Peninsula Land (up 2.97%), Unitech (up 1.48%) and Anant Raj (up 0.71%), edged higher. Parsvnath Developers (down 0.56%), Prestige Estates Projects (down 1.14%), Sunteck Realty (down 1.15%), Phoenix Mills (down 1.72%), Oberoi Realty (down 1.95%) and Godrej Properties (down 2.44%), edged lower.
Hero MotoCorp fell 0.81% to Rs 2,331.70. Hero MotoCorp during market hours today, 29 September 2015 said that the company has launched two new scooters - the Maestro Edge and Duet - both 110cc models. The Maestro Edge will be launched across markets on 13 October 2015 with two variants LX and VX priced at Rs 49,500 and Rs 50,700 respectively (ex-showroom, Delhi). The market launch of the will follow thereafter, Hero MotoCorp said.
TCS fell 0.01% to Rs 2,590.20 after the company announced a new partnership with Nationwide Building Society in the UK for the provision of the ignio neural automation system which will initially be used for Batch Performance and Capacity Management. The company made the announcement during market hours today, 29 September 2015.
Shares of housing finance companies gained after the Reserve Bank of India (RBI) announced a steeper-than-expected cut in the policy repo rate at its fourth bi-monthly monetary policy review for the year 2015-16 today, 29 September 2015.
GIC Housing Finance (up 7.93%), LIC Housing Finance (up 6.28%), Can Fin Homes (up 5.64%), HDFC (up 3.46%), Gruh Finance (up 2.71%) and Indiabulls Housing Finance (up 2.30%), gained.
The Sensex has lost 504.43 points or 1.92% in this month so far (till 29 September 2015). The Sensex has fallen 1,720.76 points or 6.26% in this calendar year so far (till 29 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 945.12 points or 3.81%. The Sensex is off 4,246.08 points or 14.14% from a record high of 30,024.74 hit on 4 March 2015.
In overseas markets, concern over a slowdown in China, the world's second-largest economy, and its potential impact on the US Federal Reserve's plans to normalize monetary policy after years of rock-bottom rates, has fueled market volatility in recent weeks. The International Monetary Fund (IMF) is reportedly likely to revise downwards its estimates for global economic growth due to slower expansion in emerging economies. In China, data yesterday, 28 September 2015 showed industrial profits dropping the most in at least four years.
US economic data released yesterday, 28 September 2015 showed household spending climbed more than forecast in August and incomes also rose as the biggest part of the US economy continued to power past a global slowdown. Separate data showed contract signings to purchase previously owned US homes unexpectedly declined in August for just the second time this year, signaling residential real estate might have difficulty building on recent momentum.
Meanwhile, Federal Reserve Bank of New York President William C. Dudley reportedly said yesterday, 28 September 2015 the central bank will probably raise interest rates later this year despite uncertainties over global growth. John Williams, head of the San Francisco Fed, also reportedly signaled support for an interest rate hike this year, though Chicago Fed chief Charles Evans sounded a far more dovish tone.
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