Key benchmark moved in a narrow range in positive zone in mid-afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently up 85.15 points or 0.32% at 26,577.66. The BSE Small-Cap and Mid-Cap indices were, both, in red. Asian and European stocks were firm after overnight gains for US stocks which took the Dow Jones Industrial Average to an intraday record high. Metal and mining stocks were mixed. Hindalco edged higher in choppy trade after the company said that stoppage of operations at its six bauxite mines in Jharkhand will not have any adverse material impact in near future on the operation and performance of the company.
Key indices have retained positive zone so far during the day after a higher opening triggered by firm Asian stocks and after the Dow Jones Industrial Average hit an intraday record high overnight.
In overseas markets, European stocks edged higher as investors weighed central-bank stimulus around the world before the Federal Reserve's decision on monetary policy. Asian stocks rose on a report China's central bank is boosting stimulus. Investors across the globe are awaiting the outcome on the Federal Reserve's two-day policy meeting that concludes today, 17 September 2014, to gauge the timing of interest rate hike in the US. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
In the foreign exchange market, the rupee was a tad higher against the dollar.
Brent crude oil prices edged lower after overnight gains.
At 14:15 IST, the S&P BSE Sensex was up 85.15 points or 0.32% at 26,577.66. The index jumped 190.13 points at the day's high of 26,682.64 in morning trade. The index rose 19.20 points at the day's low of 26,511.71 in morning trade.
The CNX Nifty was up 24.85 points or 0.31% at 7,957.75. The index hit a high of 7,990.65 in intraday trade. The index hit a low of 7,936.95 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,683 shares fell and 1,204 shares rose. A total of 92 shares were unchanged.
The BSE Mid-Cap index was off 26.31 points or 0.27% at 9,633. The BSE Small-Cap index was off 21.30 points or 0.22% at 10,773.01. Both these indices underperformed the Sensex.
Metal & mining stocks were mixed. Sesa Sterlite (down 2.19%), Tata Steel (down 0.06%), Steel Authority of India (Sail) (down 2.72%) and Hindustan Copper (down 0.69%) declined.
Hindalco edged higher in choppy trade after the company said that stoppage of operations at its six bauxite mines in Jharkhand will not have any adverse material impact in near future on the operation and performance of the company as the company has sufficient inventory and other operating mines in the area which also supply bauxite to the company's alumina refineries at Muri and Renukoot. The stock was up 0.25% at Rs 160.70. The scrip hit high of Rs 163.30 and low of Rs 157.10 so far during the day. The company said it expects to get renewal of the mining lease for these six mines from the Jharkhand state government within a period of six months.
Jindal Steel & Power (JSPL) dropped 4.08% to Rs 290.50 in volatile trade. The stock hit high of Rs 224 and low of Rs 205.40 so far during the day.
NMDC (up 1.12%) and Bhushan Steel (up 1.78%) gained.
Hindustan Zinc rose 0.59%. Hindustan Zinc's board of directors at its meeting held today, 17 September 2014, declared interim dividend of Rs 1.90 per equity share for the financial year ending 31 March 2015.
National Aluminium Company rose 6.28% to Rs 64.35 on bargain hunting after the stock fell 8.47% in the preceding three trading sessions to Rs 60.55 on 16 September 2014, from a recent high of Rs 66.15 on 11 September 2014.
JSW Steel rose 1.28%. With reference to various news reports indicating that JSW Steel is close to buying assets/mills/plant of Italy's Lucchini, JSW Steel after market hours on Tuesday, 16 September 2014, clarified that in line with the company's long term strategy to acquire finishing mills near to the market, it has submitted binding bid for take over of rolling mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. The company is yet to get the response on this bid, JSW Steel said.
Glenmark Pharmaceuticals rose 1.26%. The company said during market hours that its first in class Transient Receptor Potential Ankyrin I (TRPA 1) antagonist, GRC 17536 has shown positive data in a phase 2a proof of concept study conducted on 138 patients with painful diabetic neuropathy. The sturdy was conducted on 138 patients in France and India.
Meanwhile, provisional data released by the stock exchanges after trading hours on Tuesday, 16 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 828.95 crore on that day.
In the foreign exchange market, the rupee was a tad higher against the dollar. The partially convertible rupee was hovering at 61.01, compared with its close of 61.06 during the previous trading session.
Brent crude oil prices edged lower after staging its steepest climb in two weeks in the previous session triggered by hopes the Organization of the Petroleum Exporting Countries (OPEC) will cut output and reduce a global supply glut. Brent for November settlement was off 28 cents at $98.77 a barrel. The contract had risen $2.4 a barrel or 1.2% to settle at $99.05 a barrel on Tuesday, 16 September 2014.
Chinese President Xi Jinping comes for a three-day visit to India today, 17 September 2014. The Chinese President is expected to pledge billions of dollars for railways, industrial parks and roads in India.
On the political front, the ruling government led by Bharatiya Janata Party (BJP) suffered a major blow in the Assembly by-elections in Uttar Pradesh, Rajasthan and Gujarat, the states it had swept in the Lok Sabha polls four months ago, losing 13 of the 24 seats held by it. The results of the by-elections held in nine states were announced on Tuesday, 16 September 2014. Counting in one assembly seat in Chhattisgarh will be held on Saturday, 20 September 2014. Considered yet another test of popularity of Prime Minister Narendra Modi, reversal in the outcome of by-elections come after the party's disappointing performance in the assembly by-elections in Bihar, Uttarakhand, Karnataka and Madhya Pradesh in the last two months.
European stocks edged higher today, 17 September 2014, as investors weighed central-bank stimulus around the world before the US Federal Reserve's decision on monetary policy. Key benchmark indices in UK, France and Germany were 0.03% to 0.31%.
UK unemployment has fallen to the lowest in six years, indicating continued strength in the labor market that Bank of England Governor Mark Carney says will eventually boost earnings. The jobless rate based on International Labor Organisation methods fell to 6.2% in the three months through July from 6.4%, a bigger decline than forecast. A separate measure for August put the claimant count rate at 2.9%. Both rates are at their lowest levels since 2008.
Meanwhile, a crucial vote on Scottish independence will be held tomorrow, 18 September 2014. Scotland is currently a part of United Kingdom.
Asian stocks rose today, 17 September 2014, on a report China's central bank is boosting stimulus. Key benchmark indices in Hong Kong, Indonesia, South Korea, Singapore, Taiwan and China were up 0.49% to 1.2%. Japan's Nikkei Average was off 0.14%.
China reportedly provided 500 billion yuan ($81.4 billion) of liquidity to its five biggest banks, as leaders in Asia's largest economy seek to support growth. The People's Bank of China started providing the banks with 100 billion yuan each through standing lending-facilities with tenor of three months. The PBOC will complete the process today, 17 September 2014, according to reports.
Trading in US index futures indicated that the Dow could fall 6 points at the opening bell on Wednesday, 17 September 2014. US stocks rose on Tuesday, 16 September 2014, with the Dow Jones Industrial Average hitting a record intraday high as markets reacted to wavering expectations over the language the Federal Reserve will use Wednesday, 17 September 2014, to describe its next policy move.
Investors will look to Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. A two-day policy meeting of the Federal Open Market Committee (FOMC) ends today, 17 September 2014. At the end of a two-day meeting, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
The Fed will also announce US economic projections after the policy meet. Fed now releases economic projections four times a year (March, June, September, and December). Traditionally, the Fed forecasts covered GDP, the PCE price index, and the civilian unemployment rate. However, the forecast report additionally now includes forecasts for the appropriate timing of the next change in the fed funds rate and the expected fed funds rate at the end of the next two years. The policy meet will be followed by a press conference by Federal Reserve Chairwoman Janet Yellen on 17 September 2014.
The Federal Reserve after two-day policy meeting on 30 July 2014, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected.
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