Rate-cut, firm Asian cues lift markets higher; Banks underperform

The broader markers are in line with the benchmarks, BSE Midcap and Smallcap indices are up almost 1% each

Markets continue to hold on to its gains in the late morning trades as investors cheer the RBI surprise repo rate cut by 50 bps. Meanwhile, strength in the Asian peers after registering losses in the past sessions has lifted the trading sentiments.

By 12:00, the Sensex was higher by 203 points at 25,981 and the Nifty has gained 52 points at 7,895. The broader markers are performing in line with the benchmark indices- BSE Midcap and Smallcap indices are up almost 1% each. Market breadth is positive on the BSE with 1,489 advances and 746 declines.

The Indian rupee is trading at 65.75 against the US dollar up 21 paise tracking gains in the local equities and Asian currencies markets.

STOCK TRENDS

On the sectoral front, 11 out of 12 sectoral indices are trading in green barring BSE Bankex which is trading 0.8% lower.

Metal shares have bounced back in today’s trade as commodity prices edged up overnight. Meanwhile, steel producers like Tata Steel  and JSW Steel  likely to hike prices by up to Rs 1,500/ton as government recently imposed a prov safeguard duty of 20%. Safeguard duty imposed only on import of certain hot-rolled flat steel pdts. Tata Steel and JSW steel have gained over 3.5% each. Hindalco is up 2.6%. 

In a deal that would also fit the 'Make in India' mandate, Larsen and Toubro has emerged as the finalist for a $750-million (about Rs 5,000 crore) contract to supply 100 self-propelled artillery guns to the Indian Army and is trading 0.3% up.

Hero MotoCorp unveiled two scooters developed in-house on new platforms, as the company expands its presence in a segment where former partner Honda Motor is the market leader in India.  However, the stock is 0.25 down

Sun Pharma Advanced Research has climbs 2% while Aditya Birla Nuvo is up 1% after FIPB on Tuesday cleared 18 foreign investment proposals, including that of Aegon Religare Life Insurance, Sun Pharma Advanced Research  and Aditya Birla Nuvo, worth about Rs.5,000 crore. 

RIL is up nearly 1% after Reliance Jio Infocomm raised Rs 3,500 crore by issuing non-convertible debentures through private placement.

PVR has gained 2.1% after the company said its shareholders have approved raising Rs.500 crore through issuance of non-convertible debentures (NCDs) on private placement basis.

Sun Pharma has climbed 1.6% after it has made a tender offer to acquire US-based eyecare firm InSite Vision for $0.35 per share in cash.

On the flip side, banks are losing sheen in today’s trade despite a rate cut by the RBI. SBI cut the base rate by a hefty 40 basis points, taking it to 9.3%, the lowest in the industry. The stock is trading 1.3%. Following peers, another state lender and SBI associate State Bank of Travancore announced a cut in the base or minimum lending rate by 0.2 per cent to 9.95 per cent. The new rates will come into effect from October 5.