Key benchmark indices snapped two-day losing streak and ended with decent gains on Wednesday. Market steadied following a decline in crude prices Tuesday that spiked after a weekend attack on a Saudi oil facility. The Saudi oil minister said half of production that was cut already had been restored.
The barometer index, the S&P BSE Sensex, rose 82.79 points or 0.23% to 36,563.88, as per the provisional closing data. The Nifty 50 index rose 30.6 points or 0.28% to 10,848.20, as per the provisional closing data.
The Nifty saw a gap up opening and hit an intraday high in early trade. The index, however, sharply pared gains and hit fresh intraday low in morning trade. After trading in a narrow range near the flat line, the 50-unit index firmed up once again in the afternoon trade. The barometer traded in a wide range in the positive terrain before closing with near 10,850 mark. NSE India VIX tanked 5.25% at 15.175.
The market breadth was almost even. On the BSE, 1250 shares rose and 1232 shares fell. A total of 160 shares remain unchanged. The S&P BSE Small-Cap index rose 0.3%. The S&P BSE Mid-Cap index rose 0.39%.
Tata Steel (up 3.93%), Bharat Petroleum Corporation (up 3%), Vedanta (up 2.51%) and State Bank of India (up 2.37%) were top gainers for the day.
Britannia Industries (down 2.84%), Coal India (down 2.53%), ONGC (down 2.16%) and UPL (down 1.43%) were top losers for the day.
Shares of most public sector oil marketing companies (PSU OMCs) gained as Brent crude oil price tumbled after Saudi Aramco reassured that the supply will be restored by the end of September. The impact of weekend attacks on Saudi Arabia's biggest oil refinery faded as oil prices edged lower.
HPCL (up 3.88%), BPCL (up 3.78%) and Indian Oil Corporation (up 2.44%) advanced.
In the commodities market, Brent crude for September 2019 settlement was down 80 cents at $63.75 a barrel. The contract slumped 6.48% to settle at $64.55 a barrel in the previous trading session.
Shares of hotel and hospitality companies advanced on anticipation of reduction in Goods and Services Tax (GST) for five-star hotels. Hotel Leela Venture (up 8.3%), Taj Gvk Hotels & Resorts (up 6%), Indian Hotels Company (up 2.88%) and EIH (up 0.67%) jumped.
According to the media reports, GST council, in its next meeting, could rationalize rates for five-star hotels to provide relief to the hospitality industry. The 37th GST council meeting is scheduled to be held on Friday, 20 September 2019, in Goa.
Currently, five-star hotel rooms with a tariff of Rs 7,500 per night and above attract a GST rate of 28%. The fitment panel, comprising Central and State officials, has reportedly recommended cutting the GST rate on luxury hotel category from 28% to 18%, or increasing the room tariff threshold from Rs 7,500 to Rs 10,000 per night.
Shares of cigarette makers jumped after the Union Cabinet decided to ban e-cigarettes. Production, distribution, sales, advertisement, import or export of e-cigarettes will be banned. Godfrey Phillips India (up 7.46%), ITC (up 1.75%) and VST Industries (up 0.81%) advanced.
An electronic cigarette or e-cigarette is a handheld battery-powered vaporizer that simulates smoking, but without burning tobacco. E-cigarettes are heated and the vapors of nicotine as well as the flavours are then inhaled. Using an e-cigarette is known as "vaping". India plans to approve a ban on the manufacturing and sale of e-cigarettes, after vaping gets a bad rap globally following the death of six people in the United States recently. A study conducted by the Indian Council of Medical Research (ICMR) in 2018 warned of a potential public health disaster due to the unregulated use of these items.
Bajaj Finance gained 0.78%. The company's board of directors approved raising of capital through a Qualified Institutions Placement (QIP) for an aggregate amount not exceeding Rs 8500 crore by issue of equity shares and/or eligible securities. The announcement was made after market hours yesterday, 17 September 2019.
Coffee Day Enterprises was down 0.14%. Coffee Day Enterprises informed that the board has approved and the company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks, a wholly owned subsidiary of Tanglin Development (TDL). The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark. The transaction is at an Enterprise Value of Rs 2700 crore. This transaction will substantially bring down the debt level of the group which was earlier disclosed on 17 August 2019 as Rs 4970 crore. The announcement was made after market hours yesterday, 17 September 2019.
CG Power and Industrial Solutions was down 2.39% after Securities Exchange Board of India barred ex-chairman Gautam Thappar from accessing securities market. SebiI has also prohibited him from buying, selling or dealing in securities. This comes after Gautam Thappar was accused for 'serious' misstatement of accounts along with diversion of funds. SEBI has also ordered a forensic audit of the company. Along with Gautam Thappar, CG Powers' former Chief Financial Officer, VR Venkatesh and former directors, Madhav Acharya and B Hariharan are also facing a ban from securities market.
Dewan Housing Finance Corporation fell 2.49%. The company has been unable to meet its payment obligation of $20.17 million falling due on 16 and 17 September 2019 as per its existing schedule towards interest and principal amount on certain external commercial borrowings availed by the company. The announcement was made after market hours yesterday, 17 September 2019.
IIFL Finance announced that NSE and BSE have permitted the listing and commencement of trading of IIFL Weath Management and IIFL Securities from 20 September 2019. IIFL Finance was trading 0.27% higher at Rs 113.35.
Gujarat Alkalies & Chemicals was up 0.35% after the company announced the successful installation of 20 MW AC Solar Plant at Charanka, Gujarat. With this completion, the total installed capacity of Solar Power Plant now stands at 35 MW.
Eveready Industries was locked in a lower circuit of 5% at Rs 51.95. The stock hit an intraday low of Rs 51.95 which is also a 52-week low for the counter. The stock has tanked 32.84% in one month. The Calcutta High Court has restrained the company from transferring, alienating or encumbering any of its assets till the application filed by Infrastructure Leasing & Financial Services (IL&FS) was disposed off. The High Court Order is likely to delay the company's plan to sell its battery business to pare debt. The matter is currently subjudice and the company is in the process of taking appropriate action against the said order based on advice from its legal counsel, the company said its statement to the bourses on 15 September.
Dilip Buildcon was down 0.48% to Rs 426. The company announced a successful completion of NH-18 from Rayachoty to Kadapa section in state of Andhra Pradesh. The completion certificate was issued on 13 September 2019 and the company was entitled to a bonus of Rs 3.564 crore as the project was completed 60 days prior from the provisional completion date.
Overseas, most shares Europe and Asia edged higher Wednesday as investors await US Federal Reserve's interest rate decision. Investors are looking forward to a meeting of the Federal Reserve's interest-rate setting committee concluding Wednesday, after which Chairman Jerome Powell will announce the central bank's latest policy decision. Expectations are that the Fed will cut interest rates a second time this year.
Meanwhile, in Europe, investors would keenly look forward to the European Commission President Jean-Claude Juncker's address on Brexit in the European Parliament on Wednesday, 18 September 2019. British PM Boris Johnson had met Juncker earlier this week, to negotiate regarding Brexit solutions.
US stocks ended higher on Tuesday as the impact of weekend attacks on Saudi Arabia's biggest oil refinery faded.
On the data front, U.S. industrial production rose 0.6% in August, the Fed said Tuesday. Capacity utilization increased by 0.4 percentage point to 77.9%. Separately, the National Association of Home Builders' monthly confidence index increased one point to 68 in September, matching the highest reading in a year, the trade group said Tuesday.
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