Key indices moved in a very narrow range in positive terrain in mid-afternoon trade after seeing high intraday volatility earlier during the day. The market breadth indicating the overall health of the market turned positive from negative. The barometer index, the S&P BSE Sensex, was currently up 13.20 points or 0.16% at 8,127.95. European and Asian stocks gained as Scotland voted to reject independence from the UK. Brent crude oil futures dropped which augur well for India as the country imports majority of its crude oil requirements. Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India on Thursday, 18 September 2014, announced that China will invest $20 billion in India over the next 5 years. The two Asian countries also agreed that specific measures to enhance market access for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services.
Kotak Mahindra Bank rose after the bank said Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of the bank, executed a definitive agreement to acquire the domestic schemes of PineBridge Mutual Fund (PBI MF). Pharma stocks gained on renewed buying.
In overseas markets, European stocks rose as Scotland voted to reject independence from the UK. Asian stocks rose as data overnight showed fewer Americans filed for jobless claims and as Scotland voted to reject independence from the UK. In the US, the S&P 500 and Dow Jones Industrial Average closed at record levels yesterday, 18 September 2014, as investors welcomed the Federal Reserve's commitment to low interest rates long after the ending of monetary stimulus.
Scotland has chosen to stay in the United Kingdom, spurning independence in a historic referendum that had worried allies and investors, results showed today, 19 September 2014. With 31 of 32 constituencies declared, unionists had won 55% of the vote while separatists were on 45%.
Earlier, high intraday volatility was witnessed as key indices alternately swung between positive and negative zone. Key indices had risen to their highest level in more than a week in mid-morning trade after early results showed that Scotland voting against breaking from the United Kingdom.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil prices edged lower, extending previous day's losses, as a strong dollar offset oil supply worries.
At 14:15 IST, the S&P BSE Sensex was up 12.78 points or 0.05% at 27,124.99. The index jumped 134.96 points at the day's high of 27,247.17 in mid-morning trade, its highest level since 10 September 2014. The index fell 57.17 points at the day's low of 27,055.04 in early afternoon trade.
The CNX Nifty was up 13.20 points or 0.16% at 8,127.95. The index hit a high of 8,160.90 in intraday trade, its highest level since 9 September 2014 The index hit a low of 8,105.35 in intraday trade.
The market breadth indicating the overall health of the market turned positive from negative in mid-afternoon trade. On BSE, 1,468 shares rose and 1,444 shares fell. A total of 95 shares were unchanged. Earlier, the market breadth had turned negative from positive in early afternoon trade.
The BSE Mid-Cap index was up 17.56 points or 0.18% at 9,878.78. The BSE Small-Cap index was up 86.32 points or 0.78% at 11,207.48. Both these indices outperformed the Sensex.
Kotak Mahindra Bank rose 1.86% after the bank said during market hours that Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of the bank, executed a definitive agreement to acquire the domestic schemes of PineBridge Mutual Fund (PBI MF). PBI MF is managed by PineBridge Investments Asset Management Company. As of 31 August 2014, the asset under management (AUM) of the Kotak Mahindra Mutual Fund was about Rs 37000 crore and the AUM of PBI MF was about Rs 660 crore.
Pharma stocks gained on renewed buying. Dr Reddy's Laboratories (up 1.45%), Lupin (up 1.47%), Ranbaxy Laboratories (up 1.36%), and Sun Pharmaceutical Industries (up 1.25%) gained.
Cipla gained 0.93% after the company after market hours on Thursday, 18 September 2014, announced that it has signed an agreement with Salix Pharmaceuticals, Inc., a US-based speciality pharmaceutical company. Under the agreement, Cipla has granted Salix exclusive rights under certain patent applications in the 'Rifaximin Complexes' patent family controlled by Cipla. The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa, Cipla said. Salix is required to make an up-front payment and, upon achievement, additional regulatory milestone payments to Cipla in respect of the new license agreement regarding the 'Rifaximin Complexes' patent rights. Salix also will pay a royalty on net sales of products covered by the 'Rifaximin Complexes' patents licensed to Salix, the company said.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.825, compared with its close of 60.85 during the previous trading session.
Brent crude oil prices edged lower, extending previous day's losses, as a strong dollar offset oil supply worries. Brent for November settlement was off 24 cents at $97.46 a barrel. The contract had fallen $1.27 a barrel or 1.28% to settle at $97.70 a barrel on Thursday, 18 September 2014.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Meanwhile, on the second day of Chinese President Xi Jinping's three-day visit to India, China and India on Thursday, 18 September 2014, announced that China will invest $20 billion in India over the next 5 years. Under a five year Trade and Economic Development Plan, China has also agreed to improve the trade balance between the two countries which is heavily skewed in China's favour. The two Asian countries agreed that specific measures to enhance market access for Indian companies in China will be expedited in agricultural and pharmaceutical products and for export of services. China will set up two industrial parks in India -- one in Gujarat and one in Maharashtra. India and China also agreed on specific steps to enhance cooperation in upgrading India's railways sector.
European stocks edged higher today, 19 September 2014, as Scotland voted to reject independence from the UK. Key benchmark indices in UK, France and Germany were up 0.4% to 0.64%.
Asian stocks rose today, 19 September 2014, as data showed fewer Americans filed for jobless claims. Key benchmark indices in China, Singapore, Hong Kong, Indonesia, Taiwan, Japan and South Korea rose by 0.04% to 1.58%.
Trading in US index futures indicated that the Dow could gain 72 points at the opening bell on Friday, 19 September 2014. US stocks rose on Thursday, 18 September 2014, a day after the US Federal Reserve kept intact its pledge to keep interest rates low, providing a backstop for investors that helped lift both the Dow Jones Industrial Average and the S&P 500 index to record highs.
US housing starts and permits fell in August, but upward revisions to the prior month's data indicated gradual improvement in the housing market.
Separately, American jobless claims fell by 36,000 to 280,000 in the period ended 13 September 2014, the Labor Department said yesterday. Those already collecting unemployment benefits fell to a more than seven-year low.
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