Key benchmark indices provisionally settled with small gains in a lacklustre trading session. The barometer index, the S&P BSE Sensex, rose 48.95 points or 0.17% at 28,647.98, as per the provisional closing data. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty rose 30.05 points or 0.34% at 8,809.90, as per the provisional closing data.
The Sensex rose 115.74 points or 0.4% at the day's high of 28,714.77 in mid-morning trade. The barometer index lost 47.48 points or 0.16% at the day's low of 28,552.55 in early trade. The Nifty rose 44.45 points or 0.5% at the day's high of 8,824.30 in mid-afternoon trade. The index lost 5.65 points or 0.06% at the day's low of 8,774.20 in early trade.
In overseas stock markets, European shares edged higher led by gains in banking and energy shares. Asian stocks rose with sentiment driven by a rebound in oil prices while traders were also keeping an eye on crucial monetary policy decisions due from the US and Japan later this week. Japan stock market remained closed for a holiday. US stocks registered modest losses on Friday, 16 September 2016, with financials and energy shares lagging. The US Federal Reserve policy makers begin their two-day policy meeting tomorrow, 20 September 2016. The Fed is expected to keep its benchmark interest rate unchanged in the wake of recent downbeat US economic indicators. The Fed left the target range for its federal funds rate unchanged at 0.25% to 0.5% for the fifth time during its July 2016 meeting.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,490 shares rose and 1,254 shares declined. A total of 230 shares were unchanged. The BSE Mid-Cap index provisionally gained 0.63%. The BSE Small-Cap index provisionally rose 0.52%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3548 crore, lower than turnover of Rs 4506.66 crore registered during the previous trading session.
Metal and mining stocks edged higher. National Aluminium Company (up 2.35%), JSW Steel (up 2.48%), Hindustan Zinc (up 2.4%), NMDC (up 1.87%), Vedanta (up 1.39%), Steel Authority of India (up 0.96%), Jindal Steel & Power (up 0.49%), Hindalco Industries (up 0.91%), Hindustan Copper (up 0.16%) and Tata Steel (up 0.77%) gained.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for December 2016 delivery was currently down 0.49% at $2.1495 per pound on the COMEX.
Index heavyweight and cigarette major ITC was down 0.56% at Rs 258.95. The stock hit a high of Rs 262.55 and a low of Rs 257.70 in intraday trade.
ICICI Bank was up 1.57% at Rs 271.75. The bank is selling shares in the initial public offer (IPO) of ICICI Prudential Life Insurance Company (ICICI Prudential) which began today, 19 September 2016. The offer comprises sale up to 18.13 crore equity shares of ICICI Prudential, representing about 12.63% of its equity share capital for cash, through an offer for sale (OFS) by ICICI Bank. The entire proceeds from the OFS will be paid to ICICI Bank. The price band for the IPO has been fixed at Rs 300 to Rs 334 per share. The IPO closes on 21 September 2016.
Axis Bank was down 1.19% at Rs 594. The bank has kept its Marginal Cost of Funds based Lending Rate (MCLR) unchanged after a latest review. The bank said that its MCLR for overnight loans will be 8.85%, the rate for one month will be 8.9% and for three months it will be 9.1%. The MCLR on 6-month loans will be 9.2% and for one-year loans the rate will be 9.25%, the bank said. MCLR on two-year loans will be 9.35% and for three-year loans the rate will be 9.4%. The announcement was made after market hours on Friday, 16 September 2016.
Separately, Axis Bank after market hours on Friday, 16 September 2016 said that it has signed a Share Purchase Agreement with IFCI for acquisition of 73.28 lakh equity shares (13.67% of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise (ACRE) from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore. The transaction is subject to requisite regulatory approvals, including from Reserve Bank of India, Axis Bank said.
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