Key benchmark indices trimmed losses in afternoon trade after European stocks edges higher in early trade there. At 13:18 IST, the barometer index, the S&P BSE Sensex, was off 54.34 points or 0.21% at 25,802.36. The 50-unit CNX Nifty was down 21.35 points or 0.27% at 7,850.90. Most IT stocks dropped. Realty stocks were mixed.
Chinese stocks led decline in Asian markets after a recent batch of disappointing Chinese economic data. US stocks edged lower yesterday, 14 September 2015, on caution ahead of a US Federal Reserve meeting later this week that could end with the first rate-increase in nearly a decade. The Fed's policy-making committee holds a two-day meeting on 16 and 17 September 2015. The Fed has held its benchmark short-term interest rate near zero since December 2008.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,314 shares declined and 1,046 shares rose. A total of 99 shares were unchanged. The BSE Mid-Cap index was down 0.4%. The BSE Small-Cap index was down 0.22%. The decline both these indices was higher than Sensex's decline in percentage terms.
On the macro front, the latest data showed that inflation based on the consumer price index (CPI) remained benign last month. The headline CPI inflation eased to 3.66% in August 2015 from 3.69% in July 2015. Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.
NTPC (up 2.23%), State Bank of India (up 1.19%) and Hindustan Unilever (up 0.8%) were among the major gainers from the Sensex pack.
Most IT stocks dropped. HCL Technologies (down 0.14%), TCS (down 0.34%), Oracle Financial Services Software (down 1.19%), MphasiS (down 0.19%) and Wipro (down 0.3%) edged lower. Tech Mahindra (up 1.99%) and Infosys (up 0.03%) gained.
Realty stocks were mixed. DLF (down 1.07%), Indiabulls Real Estate (down 2.12%), Unitech (down 0.66%), D B Realty (down 0.46%), and Phoenix Mills (down 0.8%) edged lower. Sobha (up 0.16%), Godrej Properties (up 4.61%), and Housing Development & Infrastructure (HDIL) (up 1.64%), gained.
Corporation Bank rose 1.92% to Rs 47.70 after the bank announced that subsequent to the decision of the Government of India to infuse upto Rs 857 crore into the bank, the bank has received a proposal from Life insurance Corporation of India (LIC) expressing its intention to infuse Rs 143 crore into the capital funds of the bank by way of issue of equity shares on preferential basis to LIC. Shares of Corporation Bank had risen 2.41% to Rs 46.80 yesterday, 14 September 2015, after the announcement was made at the fag end of trading session.
Corporation Bank is seeking shareholders' approval for allotting upto 2.81 crore equity shares at Rs 50.78 each aggregating to Rs 143 crore on preferential basis to LIC. Currently, the Government of India (GoI) owns 63.33% stake while LIC owns 22.54% stake in Corporation Bank. After the proposed preferential allotment, the GoI's stake in Corporation Bank will increase to 67.20% and LIC's stake will decline to 21.22%.
Powered by Capital Market - Live News
