Bank stocks edge higher

Key benchmark indices traded firm in positive zone in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex was up 238.72 points or 0.87% at 27,768.69. The Nifty 50 index was currently up 68.80 points or 0.81% at 8,589.20. Gains in Asian stocks aided the upmove on the domestic bourses.

The Sensex rose 251.44 points or 0.91% at the day's high of 27,781.41 in morning trade. The barometer index rose 122.79 points or 0.44% at the day's low of 27,652.76 at the onset of trading session. The Nifty rose 73.75 points or 0.86% at the day's high of 8,594.15 in morning trade. The index rose 35.50 points or 0.41% at the day's low of 8,555.90 at the onset of trading session.

In overseas stock markets, Asian stocks edged higher tracking a rebound in oil prices. US stocks registered small losses yesterday, 17 October 2016, amid falling oil prices, as investors digested a number of corporate results, key economic data and remarks from a key Federal Reserve official. Fed Vice Chair Stanley Fischer reportedly warned of the dangers of low interest rates, suggesting they could lead to longer and deeper recessions, making the economy more vulnerable.

Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,663 shares rose and 685 shares declined. A total of 142 shares were unchanged. The BSE Mid-Cap index was currently up 0.97%. The BSE Small-Cap index was currently up 0.92%. Both these indices outperformed the Sensex.

Bank stocks edged higher. Among public sector banks, Bank of Baroda (up 0.63%), Punjab National Bank (up 0.8%), IDBI Bank (up 0.66%), Bank of India (up 0.14%), Canara Bank (up 0.39%), Indian Bank (up 0.65%), Union Bank of India (up 0.51%) and State Bank of India (up 0.49%) gained.

Among private sector banks, ICICI Bank (up 1.47%), Yes Bank (up 1.46%), Kotak Mahindra Bank (up 0.71%), RBL Bank (up 0.68%) and IndusInd Bank (up 0.44%) edged higher.

Index heavyweight HDFC Bank was up 0.44% at Rs 1,243.20. The stock hit a high of Rs 1,245 and a low of Rs 1,240.25 so far during the day.

Axis Bank rose 0.24%. The bank said it has reduced its lending rates based on marginal cost of funds based lending rate (MCLR) by 5 basis points across all tenors effective from 18 October 2016. Axis Bank said that the bank's MCLR for overnight loans will be 8.8%, the rate for one month will be 8.85% and for three months it will be 9.05%. The MCLR on 6-month loans will be 9.15% and for one-year loans the rate will be 9.2%, the bank said. MCLR on two-year loans will be 9.3% and for three-year loans the rate will be 9.35%. The announcement was made after market hours yesterday, 17 October 2016.

Separately, Axis Bank announced after market hours yesterday, 17 October 2016 that it has received request for redemption of $46 million - 7.167% Callable Hybrid Tier I Notes on 16 November 2016. The Notes were issued on 15 November 2006.

IT stocks edged higher. Oracle Financial Services Software (up 1.22%), HCL Technologies (up 1.3%), Wipro (up 0.72%) and Tech Mahindra (up 0.27%) gained. TCS (down 0.14%) edged lower.

Index heavyweight and software major Infosys was up 0.68% at Rs 1,028.95. The stock hit a high of Rs 1,035 and a low of Rs 1,027.40 so far during the day.

Shriram EPC surged 10.27% at Rs 26.30 after the company said it bagged a Rs 61 crore contract for a water supply scheme in Bengaluru. The project is to be executed over a period of 36 months. The announcement was made after market hours yesterday, 17 October 2016.

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