Benchmarks turn rangebound; IT stocks rise for 2nd day

Key indices traded with modest gains in mid-morning trade. IT, auto and realty shares advanced while PSU banks, metal and pharma stocks witnessed some bit of profit taking.

At 11:23 IST, the barometer index, the S&P BSE Sensex, was up 201.76 points or 0.53% at 37,935.84. The Nifty 50 index added 61.75 points or 0.55% at 11,215.40.

In the broader market, the S&P BSE Mid-Cap index rose 0.51% while the S&P BSE Small-Cap index gained 0.86%.

The market breadth was strong. On the BSE, 1389 shares rose and 842 shares fell. A total of 126 shares were unchanged.

Primary Market:

The initial public offer (IPO) of Computer Age Management Services (CAMS) received bids for 5.22 crore shares on Wednesday, 23 September 2020, as against 1.28 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 11:15 IST. The issue was subscribed 4.07 times.

The issue opened for bidding on Monday, 21 September 2020 and will close today, 23 September 2020. The price band for the IPO is set at Rs 1229-1230 per share.

The initial public offer (IPO) of Chemcon Speciality Chemicals received bids for 11.12 crore shares on Wednesday, 23 September 2020, as against 65.59 lakh shares on offer, as per the National Stock Exchange of India (NSE) website data at 11:15 IST. The issue was subscribed 16.96 times.

The issue opened for bidding on Monday, 21 September 2020 and will close today, 23 September 2020. The price band for the IPO is set at Rs 338-340 per share.

The initial public offer (IPO) of Angel Broking received bids for 1.25 crore shares on Wednesday, 23 September 2020, as against 1.37 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 11:15 IST. The issue was subscribed 0.91 times.

The issue opened for bidding on Tuesday, 22 September 2020 and it will close on Thursday, 24 September 2020. The price band for the IPO is set at Rs 305-306 per share.

Buzzing Index:

The Nifty IT index rose 1.06%, extending gains for second day. The index has added 1.76% in two days.

Coforge (up 2.79%), Info Edge India (up 2.66%), Mphasis (up 2.36%), Infosys (up 2.26%), HCL Tech (up 1.94%), Wipro (up 1.62%) and Larsen & Toubro Infotech (up 1.60%) advanced.

Meanwhile, TCS (down 1.27%) and MindTree (down 0.98%) lagged behind.

Global Markets:

Asian markets mostly advanced on Wednesday as investors react to recent comments from Federal Reserve Chairman Jerome Powell.

In a prepared testimony, the Federal Reserve Chairman Jerome Powell reportedly said the central bank remains committed to supporting the economy through its tools for as long as it takes. He also noted that many economic indicators show marked improvement, though the path forward continues to be highly uncertain.

In Europe, U.K. Prime Minister Boris Johnson announced new restrictions that are likely to last six months and told people to work from home, if possible. The announcement comes after a surge in coronavirus cases in the country, with a further 4,368 daily cases reported on Monday.

The US stock market finished higher on Tuesday, 22 September 2020, with two of the three major averages snapping four days of losing streak, as the recent market pullbacks triggered a bargain buying opportunity for growth companies in the US. However, market gains capped as a likely delay in new fiscal stimulus by the United States Congress and concerns about faster economic recovery after an increase in the number of coronavirus cases.

Seven of the 11 major S&P 500 sector indexes closed higher, led by information technology and consumer discretionary. Shares of megacap technology stocks which have suffered brunt of declines in September all closed in positive territory on Tuesday. Microsoft Corp, Apple Inc, Alphabet Inc, and Facebook Inc all rose more than 1.6%. They had carried the brunt of recent declines.

US existing home sales jumped 2.4% to an annual rate of 6.000 million in August after skyrocketing by 24.7% to a rate of 5.860 million in July, according to a report released by the National Association of Realtors on Tuesday. With the sharp increase, existing home sales reached their highest level since December of 2006.

Chicago Federal Reserve Bank President Charles Evans, in remarks at a forum, reportedly warned that it's important for Congress to pass more spending or risk a downward economic spiral.

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