Key benchmark indices were trading with small losses in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex was down 68.98 points or 0.25% at 27,758.55. The Nifty 50 index was down 20.20 points or 0.24% at 8,571.05. Weakness in Asian stocks weighed on sentiment. Earlier, key indices hovered within a narrow range near the flat line. The buying was witnessed in select mid-cap and small-cap stocks.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,625 shares rose and 729 shares fell. A total of 169 shares were unchanged. The BSE Mid-Cap index was currently up 0.8%. The BSE Small-Cap index was currently up 0.97%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks fell tracking lower finish for US stocks yesterday, 29 September 2016 as Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender. The cause of Deutsche's crisis is a fine, disputed by Deutsche, of up to $14 billion by the US Department of Justice over its sale of mortgage-backed securities.
Meanwhile, revised data suggest that the US economy's performance in the spring was slightly better than expected, as business investment wasn't nearly as weak as previously reported. The gross domestic product grew a 1.4% pace in the second quarter. Philadelphia Federal Reserve President Patrick Harker said he backs a December rate increase if the economy continues to grow as expected, while Atlanta Fed President Dennis Lockhart said he expects the Fed to be in a position to raise rates soon. Fed Gov. Jerome Powell on the other hand said the Fed can afford to be patient in gradually raising rates as the economy slowly improves.
Cipla slumped 5.65% and the stock was the biggest loser from the Sensex pack.
Most telecom stocks gained. Tata Teleservices (Maharashtra) (up 1.08%) Reliance Communications (RCom) (up 5.99%) and Idea Cellular (up 0.44%) gained. Bharti Airtel fell 1.62%.
Shares of Bharti Infratel fell 2.13%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Cement stocks were mixed. ACC (up 0.5%) and UltraTech Cement (up 0.22%) gained. Shree Cement (down 0.65%) and Ambuja Cements (down 1.22%) declined.
Grasim Industries advanced 2.67%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Majesco rose 3.05% after the company announced a strategic partnership with Dropln, Inc. Dropln is an innovative provider of an on-demand live video platform for auto and home insurance, using smartphones and drones. In addition, they have access to a crowdsourced independent contractor network of 60,000 Droperators and 1,100 drone pilots, smartphone users who capture on-demand live video streams, and photos for insurance professionals. The announcement was made after market hours yesterday, 29 September 2016.
Corporation Bank rose 1.68% after the bank announced lending rates based on marginal cost of funds to be effective from 1 October 2016. The announcement was made after market hours yesterday, 29 September 2016. Corporation Bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.05%, for one month will be 9.15% and for three months will be 9.30%. The MCLR on 6-month loans will be 9.40% and for one-year loans the rate would be 9.50%, the bank said.
Seamec jumped 9.16% after the company said it won a contract worth approximately $33.44 million from HAL Offshore. The announcement was made after market hours yesterday, 29 September 2016. Seamec said that it has entered into an agreement with HAL Offshore (HAL) for deployment of vessel Seamec II along with provision of services of remotely operated vehicle (ROV), the contract commenced with effect from 28 September 2016. As intimated, the total contract value for the period of 3 years will be $33.44 million approximately.
Meanwhile, the Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalized framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth and notified yesterday, 29 September 2016. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. A Committee-based approach for determining the Monetary Policy will add lot of value and transparency to monetary policy decisions. The meetings of the Monetary Policy Committee shall be held at least 4 times a year and it shall publish its decisions after each such meeting. The factors constituting failure to meet inflation target under the Monetary Policy Committee Framework have also been notified. The Government, in consultation with RBI, has notified the inflation target in the Gazette of India Extraordinary dated 5 August 2016 for the period beginning from the date of publication of this notification and ending on the 31 March 2021, with inflation target of 4% with upper and lower tolerance level of 2%.
As per the provisions of the RBI Act, out of the six members of Monetary Policy Committee, three members will be from the RBI and the other three members of MPC will be appointed by the Central Government. The members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four years, with immediate effect or until further orders, whichever is earlier.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
