Bank stocks log across the board gains

Key benchmark indices held firm in early afternoon trade. The barometer index, the S&P BSE Sensex was currently up 273.05 points or 1.04% at 26,519.84. The market breadth indicating the overall health of the market was strong with over two gainers for every loser. Bank stocks gained across the board.

In overseas markets, Asian stocks rose today, 9 October 2014 as US Federal Reserve concerns over a global economic slowdown spurred bets that US interest rates will remain low. US stocks scored their biggest one-day gains of the year yesterday, 8 October 2014 after minutes of September Federal Open Market Committee meeting reaffirmed the central bank's intent to be prudent in raising interest rates.

Key indices held firm after opening with an upward gap mirroring positive Asian stocks. The barometer index, the S&P BSE Sensex, hit over one week high.

In the foreign exchange market, the rupee edged higher against the dollar on sustained selling of the US currency by exporters and banks.

Brent crude futures held steady above $91 a barrel today, 9 October 2014 after rebounding from a 27-month low hit in the previous session as the US dollar weakened.

At 12:15 IST, the S&P BSE Sensex was up 273.05 points or 1.04% at 26,519.84. The index jumped 324.87 points at the day's high of 26,571.66 in mid-morning trade, its highest level since 1 October 2014. The index gained 147.42 points at the day's low of 26,394.21 in early trade.

The CNX Nifty was up 81.90 points or 1.04% at 7,924.60. The index hit a high of 7,940.70 in intraday trade, its highest level since 7 October 2014. The index hit a low of 7,886.50 in intraday trade.

The market breadth indicating the overall health of the market was strong with over two gainers for every loser. On BSE, 1,781 shares gained and 775 shares fell. A total of 100 shares were unchanged.

The BSE Mid-Cap index was up 126.10 points or 1.34% at 9,529.93. The BSE Small-Cap index was up 127.78 points or 1.21% at 10,691.92. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 1293 crore by 12:20 IST compared to Rs 991 crore by 11:20 IST.

Coal India rose 0.47%. Coal India during market hours said that the company and its subsidiaries, on a provisional basis, achieved 96% of targeted production at 34.88 million tonne in September 2014. Coal India achieved 96% of targeted offtake at 35.12 million tonne in September 2014.

Bank stocks gained across the board. Among private bank stocks, HDFC Bank (up 0.74%), IndusInd Bank (up 0.5%), Kotak Mahindra Bank (up 0.82%), Axis Bank (up 1.69%), Yes Bank (up 2.59%), and ICICI Bank (up 1.66%) gained.

DCB Bank rose 2.66% at Rs 82.90. DCB Bank after market hours on Wednesday, 8 October 2014 said that in respect of the qualified institutional placement (QIP), the bank's Capital Raising Committee of the Board (CRC) at its meeting held on 8 October 2014, has approved the closure of the QIP on 8 October 2014. The CRC has approved the issue price of Rs 82.15 per share which is at a discount of Rs 4.30 per share, to the floor price of Rs 86.45 per share, for the shares to be allotted to eligible qualified institutional buyers (QIBs) in the QIP. The QIP opened on 29 September 2014.

Among PSU bank stocks, State Bank of India (SBI) (up 2.09%), Punjab National Bank (up 2.06%), Bank of Baroda (up 1.81%), Bank of India (up 3.58%) and Union Bank of India (up 3.41%) gained.

Meghmani Organics rose 3.58% after the firm said that rating agency CARE revised upwards the credit ratings for long term bank facilities and short term bank facilties of the firm's subsidiary viz. Meghmani Finechem. The announcement was made during market hours today, 9 October 2014.

Den Networks rose 6.05% to Rs 135.90 on bargain hunting after the stock slumped 14.08% in the preceding four trading sessions to Rs 128.15 on 8 October 2014 from a recent high of Rs 149.15 on 29 September 2014.

Ramco Systems hit an upper circuit limit of 5% at Rs 455.45 after the company and its subsidiaries won three orders amounting over $5 million. The announcement was made after market hours on Wednesday, 8 October 2014.

Ahluwalia Contracts (India) surged 5.76% after the company said it secured new orders worth Rs 178 crore for construction of housing project including finishing and electrical works. The announcement was made after market hours on Wednesday, 8 October 2014.

New aggregating order in first half of the financial year ending 31 March 2015 (FY 2015) is Rs 792.85 crore. Unexecuted order book as on 30 September 2014 is Rs 3350 crore, Ahluwalia Contracts (India) said in a statement.

The government will unveil industrial production data for August 2014 tomorrow, 10 October 2014. India's index of industrial production (IIP) growth moderated to 0.5% in July 2014, showing moderation in the pace of growth from 3.9% (revised) increase recorded in the previous month of June 2014.

In the foreign exchange market, the rupee edged higher against the dollar on sustained selling of the US currency by exporters and banks. The partially convertible rupee was hovering at 61.0425, compared with its close of 61.4 during the previous trading session.

Brent crude futures held steady above $91 a barrel today, 9 October 2014 after rebounding from a 27-month low hit in the previous session as the US dollar weakened. Brent for November settlement was up 19 cents at $91.57 a barrel. The contract had declined 73 cents to settle at $91.38 a barrel yesterday, 8 October 2014. It had dropped to $90.57 yesterday, the lowest since June 2012.

Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.

Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 8 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1440.99 crore on that day.

Asian stocks rose today, 9 October 2014 as US Federal Reserve concerns over a global economic slowdown spurred bets that US interest rates will remain low. Key benchmark indices in Singapore, Taiwan, China, Hong Kong and Indonesia rose by 0.13% to 1.1%. Japan's Nikkei 225 index shed 0.75% Markets in South Korea were closed for holiday.

Japanese core machinery orders rose for the third straight month in August, the government said today, 9 October 2014. The 4.7% rise in August follows monthly gains of 3.5% in July and 8.8% in June, after a record 19.5% drop in May.

Trading in US index futures indicated that the Dow could fall 6 points at the opening bell on Thursday, 9 October 2014. US stocks scored their biggest one-day gains of the year yesterday, 8 October 2014 after minutes of September Federal Open Market Committee meeting reaffirmed the central bank's intent to be prudent in raising interest rates.

Slowing global growth and a stronger dollar pose potential risks to the US outlook, Fed policy makers said at their Sept. 16-17 meeting, according to the minutes released yesterday, 8 October 2014.

The Federal Open Market Committee (FOMC) last month retained a pledge to keep interest rates near zero for a considerable time after it concludes an asset purchase program that's due to end after its October meeting. Policy makers next begin their two-day meeting on 28 October 2014.

The influential US monthly non-farms payroll data is due tomorrow, 10 October 2014. The data pertains to September 2014.

Meanwhile, finance ministers and central bankers from the Group of 20 nations are scheduled to meet today, 9 October 2014 and tomorrow, 10 October 2014 in Washington will discuss the outlook for inflation and the economy.

The IMF and World Bank begin their annual meetings in Washington tomorrow, 10 October 2014 as finance ministers and central bankers from around the world discuss ways to bolster the global economic recovery, weather the latest bout of geopolitical instability and lift incomes in poor countries.

The Bank of England (BOE) will announce its latest policy decision today, 9 October 2014. Reports indicated that interest rates are expected to remain on hold today, 9 October 2014 as signs of slowing economic growth and a cooling housing market ease pressure on the Bank of England for an imminent hike. The BOE has held the main rate at a historic low of 0.5% since March 2009.

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