Benchmark indices extend gains

A recovery in banking stocks and gains in index heavyweights Reliance Industries (RIL) and Infosys helped key benchmark indices extend gains in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was up 98.37 points or 0.36% at 27,312.97. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently up 18.15 points or 0.22% at 8,256.30. RIL surged after stronger-than-expected Q2 September 2015 results. The market breadth indicating the overall health of the market was strong. On BSE, 1,470 shares rose and 943 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index was up 0.32%, underperforming the Sensex. The BSE Small-Cap index was up 0.51%, outperforming the Sensex.

The trigger for the Sensex and the Nifty extending gains in early afternoon trade was an announcement from the finance ministry that it will seek the views of foreign portfolio investors (FPIs) on measures to simplify the procedures and documentation for registration of FPIs in India and deepening of corporate bond market. The Department of Economic Affairs has organized a meeting with the representatives of the FPIs tomorrow, 20 October 2015. Separately, the Department of Economic Affairs will hold a meeting with domestic financial market participants on 21 October 2015 to seek their views on integration of various segments of the market, increasing retail participation and deepening of corporate bond market.

Most pharmaceutical shares were trading higher. Divi's Laboratories (up 2.32%), Sun Pharmaceutical Industries (up 2.16%), Strides Arcolab (up 1.88%), Piramal Enterprises (up 0.97%), Lupin (up 0.89%), Cipla (up 0.87%), Glenmark Pharmaceuticals (up 0.65%), Cadila Healthcare (up 0.63%) and Aurobindo Pharma (up 0.04%), edged higher. GlaxoSmithKline Pharmaceuticals (down 0.06%), Wockhardt (down 0.23%), Dr. Reddy's Laboratories (down 0.27%) and IPCA Laboratories (down 0.55%), edged lower.

Steel shares declined after weak Chinese economic data. Tata Steel (down 1.48%), JSW Steel (down 0.89%), Steel Authority of India (down 0.81%) and Jindal Steel & Power (down 0.07%), edged lower. However, Bhushan Steel was up 0.96%. China is the world's largest consumer of steel, copper and aluminum.

China's economy grew 6.9% in Q3 September 2015 from a year ago, lower than 7% growth registered in Q2 June 2015. China's industrial production rose lower-than-expected 5.7% in September 2015 over September 2014. Fixed-asset investment (FAI), a key driver of the economy, also registered a lower-than-expected 10.3% growth in the first nine months of the year. Retail spending alone bucked the trend, growing at an annual rate of 10.9%.

Sunil Hitech Engineers jumped 7.28% to Rs 296.30 after the company's joint venture was awarded two orders worth Rs 474 crore in Bihar. The announcement was made during market hours today, 19 October 2015. Sunil Hitech Engineers was awarded two orders worth Rs 474 crore in Bihar from Ministry of Road Transport and Highways, Government of India on engineering, procurement and construction (EPC) mode. The orders have been won by Sunil Hitech-RCM joint venture and are part of national highways interconnectivity improvement project which is funded by World Bank, Sunil Hitech Engineers said.

Meanwhile, Reserve Bank of India Governor Raghuram Rajan reportedly said at an event in Mumbai today, 19 October 2015, that the government needs to put in place conditions for sustainable growth of the economy without resorting to populist policies.

In overseas stock markets, Asian shares edged lower after the latest data showed that China's GDP growth slowed to 6.9% in Q3 September 2015, slipping below 7% for the first time since 2009. China's industrial production rose lower-than-expected 5.7% in September 2015 over September 2014. Fixed-asset investment (FAI), a key driver of the economy, also registered a lower-than-expected 10.3% growth in the first nine months of the year. Retail spending alone bucked the trend, growing at an annual rate of 10.9%. Chinese economic data is closely watched amid fears that a China-led slowdown in global growth could prompt the Fed to delay hiking rates for longer. US stocks edged higher during the previous trading session on Friday, 16 October 2015, as investors appeared to shrug off lackluster corporate earnings and mixed economic data.

Powered by Capital Market - Live News