Key benchmark indices were trading with small gains in the morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 59.46 points or 0.21% at 28,658.49. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty was currently up 27.45 points or 0.31% at 8,807.30. Gains in Asian markets aided the upmove on the domestic bourses.
The Sensex rose 72.03 points or 0.25% at the day's high of 28,671.06 at the onset of trading session. 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 30.10 points or 0.34% at the day's high of 8,809.95 at the onset of trading session. 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, Asian stocks were trading higher 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 broad market depicted strength. There were nearly two gainers against every loser on BSE. 1,305 shares rose and 667 shares declined. A total of 122 shares were unchanged. The BSE Mid-Cap index was currently up 0.56%. The BSE Small-Cap index was currently up 0.56%. Both these indices outperformed the Sensex.
Stocks of public sector banks nudged higher. Canara Bank (up 0.9%), Bank of Baroda (up 1.33%), Union Bank of India (up 1.1%), Bank of India (up 1.07%), State Bank of India (up 0.63%), Punjab National Bank (up 0.65%) and IDBI Bank (up 0.93%) gained. United Bank of India (down 0.23%) edged lower.
Stocks of private sector banks were mixed. RBL Bank (down 0.33%) and Kotak Mahindra Bank (down 0.2%) edged lower. Yes Bank (up 1.81%) and IndusInd Bank (up 1.15%) edged higher.
Index heavyweight HDFC Bank was down 0.37% at Rs 1,293.25. The stock hit a high of Rs 1,302 and a low of Rs 1,292.55 so far during the day.
ICICI Bank was up 1.07% at Rs 270.40. 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 0.63% at Rs 597.35. 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.
Cement stocks witnessed a mixed trend. ACC (up 0.86%) and Ambuja Cements (up 0.86%) edged higher. Shree Cement (down 0.15%) and UltraTech Cement (down 0.39%) edged lower.
Grasim Industries was up 0.63% at Rs 4,881. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Vipul surged 8.16% at Rs 80.90 after the company said it has received environmental clearance from State Environment Impact Assessment Authority, Haryana, for its project Aarohan on Golf Course road in Gurgaon. By June 2016, the company had already sold more than 26% of flats in Phase 1 of the project. Further, the company said it had raised debt from DMI Finance (DMI) to the tune of Rs 175 crore and this money was utilised toward pre-operative expenses of Project Aarohan. With permissions now in place and construction likely to commence soon, Vipul has received sanction for a loan of Rs 275 crore from PNB Housing Finance at an average rate of 13.35% per annum. Part of the amount raised from PNB Housing will be utilised towards pre-payment of the debt from DMI, resulting in interest and cash flow savings. Vipul will prepay debt to the tune of Rs 163 crore availed from DMI Finance, the company added. The announcement was made after market hours on Friday, 16 September 2016.
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