Key benchmark indices trimmed intraday gains in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 226.98 points or 0.8% at 28,734.40. The Nifty 50 index was currently up 72.35 points or 0.82% at 8,849.50. Gains in global markets aided the upmove on the domestic bourses.
The Sensex rose 185.65 points or 0.65% at the day's low of 28,693.07 in early afternoon trade. The barometer index surged 364.50 points or 1.27% at the day's high of 28,871.92 in early trade, its highest level since 9 September 2016. The Nifty rose 60.65 points or 0.69% at the day's low of 8,837.80 in early afternoon trade. The index jumped 116.20 points or 1.32% at the day's high of 8,893.35 in early trade, its highest level since 9 September 2016.
In overseas stock markets, Asian stocks edged higher tracking gains in US markets overnight. US stocks registered strong gains yesterday, 21 September 2016, after the Federal Reserve kept interest rates unchanged but hinted at the possibility of a rate hike later this year. Concluding a two-day meeting, the Federal Open Market Committee (FOMC) announced that the federal funds rate will remain at 0.25% to 0.5%. The Fed also said risks to the economy have diminished since its last meeting in July. The Fed last raised rates in December 2015, the first hike in almost a decade.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,567 shares rose and 890 shares declined. A total of 176 shares were unchanged. The BSE Mid-Cap index was currently up 0.8%. The BSE Small-Cap index was currently up 0.66%. Both these indices underperformed the Sensex.
Private sector lender ICICI Bank rose 1.63% at Rs 274.05 after the initial public offer (IPO) of private sector life insurance company ICICI Prudential Life Insurance Company (ICICI Prudential) saw strong demand from investors. The IPO received bids for 138.77 crore shares and it was subscribed 10.48 times. The bidding for the IPO concluded yesterday, 21 September 2016. The IPO comprised sale of 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.
Engineering and construction major L&T rose 1.51% at Rs 1,493.50 after the company said it has signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. The announcement was made during market hours today, 22 September 2016.
Pharma stocks gained. Aurobindo Pharma (up 3.05%), Alkem Laboratories (up 2.35%), Glenmark Pharmaceuticals (up 1.68%), Ipca Laboratories (up 1.6%), Cipla (up 1.38%), Wockhardt (up 1.07%), Sun Pharmaceutical Industries (up 0.81%), Cadila Healthcare (up 0.72%), Dr Reddy's Laboratories (up 0.11%), Strides Shasun (up 0.17%) and GlaxoSmithkline Pharmaceuticals (up 0.09%) edged higher. Divi's Laboratories (down 0.06%) and Lupin (down 1.5%) edged lower.
Realty stocks edged higher. Indiabulls Real Estate (up 1.34%), DLF (up 1.45%), Unitech (up 1.45%), D B Realty (up 0.95%), Housing Development & Infrastructure (up 0.48%), Prestige Estates Projects (up 0.39%) and Sobha (up 0.34%) rose. Oberoi Realty (down 1.01%) edged lower.
Godrej Properties rose 1.14% at Rs 341.10 after the company announced that it has acquired a land parcel in South Bangalore to build a housing project. Godrej Properties announced that it has acquired a land parcel measuring around 12 acres off Sarjapur Road in South Bangalore. The company plans to develop a residential housing project of approximately 92,900 square meters or around one million square feet. This project will be developed in partnership with Godrej Residential Investment Program II (GRIP II). This is the second project under GRIP II, the $275 million fund which was announced by the company in March 2016. The announcement was made after market hours yesterday, 21 September 2016.
Godrej Properties had announced on 21 March 2016 that it had created a dedicated real estate funds management business in India and Singapore namely, Godrej Fund Management (GFM). GFM raised a $275 million or Rs 1900 crore pool of capital, Godrej Residential Investment Program II (GRIP II) with Dutch pension fund asset manager APG Asset Management N.V. (APG) as the lead investor. GFM advises GRIP II investors on investments into a residential development platform with Godrej Properties in India.
On the macro front, data released by the Reserve Bank of India (RBI) after trading hours yesterday, 21 September 2016, showed that India's current account deficit (CAD) narrowed to $0.3 billion or 0.1% of GDP in Q1 June 2016, which was significantly lower than CAD of $6.1 billion or 1.2% of GDP in Q1 June 2015. The contraction in the CAD was primarily on account of a lower trade deficit.
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