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.
Investors looked ahead to the outcome of FOMC's two-day meet which concludes later today. The US Federal Reserve is widely expected on Wednesday to trim short-term interest rates by 0.25%.
The barometer index, the S&P BSE Sensex, rose 82.79 points or 0.23% to 36,563.88. The Nifty 50 index rose 23.05 points or 0.21% to 10,840.65.
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, 1244 shares rose and 1240 shares fell. A total of 158 shares remain unchanged. The S&P BSE Small-Cap index rose 0.30%. The S&P BSE Mid-Cap index rose 0.39%.
Tata Steel (up 3.70%), Vedanta (up 3.16%), GAIL (India) (up 2.77%), State Bank of India (up 2.35%) and JSW Steel (up 2.17%) advanced.
Britannia Industries (down 2.88%), Indiabulls Housing Finance (down 2.78%), Coal India (down 2.61%), ONGC (down 1.97%) and Eicher Motors (down 1.49%) declined.
Reliance Industries (RIL) gained 0.71% to Rs 1205.70 after the promoter group hiked stake in the company. On 13 September 2019, Reliance Services and Holdings, a part of promoter group, acquired 17.18 crore equity shares, or 2.71% stake, in RIL. The aggregate shareholding of the promoter and promoter group now stands at 309.80 crore shares, or 48.87% equity.
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 5.55%), VST Industries (up 3.43%) and ITC (up 1.03%) advanced.
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 3.64%), BPCL (up 3.65%) and Indian Oil Corporation (up 2.68%) advanced.
In the commodities market, Brent crude for September 2019 settlement was down 31 cents at $64.24 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 8.84%), Taj GVK Hotels & Resorts (up 6.05%), Indian Hotels Company (up 3.03%) and EIH (up 0.38%) 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.
Bajaj Finance gained 1.47% to Rs 3415.05. 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.
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 rose 1.68% to Rs 114.95.
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.
Balmer Lawrie & Company slumped 6.58% to Rs 168.35 after the company said its board in its meeting on Tuesday, 17 September 2019, deferred decision on bonus share issue.
IndiaMART InterMESH advanced 3.12% to Rs 1745.40, extending recent gains on strong buying support. The stock has risen 9.25% in five trading sessions from a recent closing low of Rs 1,597.65 on 11 September 2019.
Last week, a domestic brokerage had given a 'buy' rating on IndiaMART InterMESH with a target price of Rs 1,900.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.265, compared with its close of 71.785 during the previous trading session.
In the commodities market, Brent crude for November 2019 settlement was down 28 cents at $64.27 a barrel. The contract slumped 6.48% to settle at $64.55 a barrel in the previous trading session.
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 undertake negotiations 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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