Broad market shows strength

A range bound movement was witnessed as key benchmark indices hovered in positive zone in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was up 175.93 points or 0.68% at 25,954.59. The 50-unit CNX Nifty was up 45.20 points or 0.58% at 7,888.50. The Sensex was currently trading below the psychological 26,000 mark. Earlier, the Sensex pierced the psychological 26,000 mark in intraday trade. Gains in Asian stocks underpinned sentiment on the domestic bourses.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,443 shares gained and 665 shares declined. A total of 90 shares were unchanged. The BSE Mid-Cap index was up 0.85%. The BSE Small-Cap index was up 0.88%. Both these indices outperformed the Sensex.

In overseas markets, Japanese and Chinese stocks led gains in Asian markets amid expectations for more monetary and fiscal stimulus from Japan after the latest data showed that Japanese industrial output fell unexpectedly for the second straight month in August. Trading in US index futures indicated that the Dow could gain 118 points at the opening bell today, 30 September 2015. US stocks finished mostly higher yesterday, 29 Septemebr 2015, as a stronger-than-expected reading on consumer confidence and rising house prices pointed to a stronger US economy.

Closer home, bank stocks slipped. Among PSU bank stocks, IDBI Bank (down 3.44%), Canara Bank (down 0.2%), Andhra Bank (down 1.41%), Union Bank of India (down 0.58%), Allahabad Bank (down 0.71%), Punjab National Bank (down 0.96%) edged lower.

State Bank of India (SBI) fell 0.74% to Rs 240.20. The bank said that the committee of directors for capital raising in its meeting held yesterday, 29 September 2015 considered and accorded approval to allot 19.65 crore equity shares on preferential basis to Government of India, at an issue price of Rs 274.37 per share for a consideration of Rs 5392.99 crore.

Meanwhile, SBI has reportedly cut its base rate by 40 basis points to 9.3% from 9.7% effective from 5 October 2015. The bank has also announced reduction in fixed deposit rates by 25 basis points across various maturities from 5 October 2015, reports indicated.

Bank of Baroda fell 1.07% to Rs 184.90. The bank said it has allotted 9.26 crore equity shares at an issue price of Rs 192.74 per share, aggregating to Rs 1786 crore to the Government of India on preferential allotment basis. The bank made the announcement before market hours today, 30 September 2015.

Bank of India slipped 0.25%. The bank said that it has decided to cut its base rate by 25 basis points to 9.7% from the earlier 9.95% effective from 5 October 2015. The bank made announcement about the reduction in base rate after market hours yesterday, 29 September 2015.

State Bank of Travancore gained 1.13% after the bank said that it has reduced the base rate by 20 basis points from 10.15% to 9.95% effective from 5 October 2015. State Bank of Travancore said that the benchmark prime lending rate (BPLR) will remain at the same level at 15.15%. The bank made announcement about the reduction in base rate after market hours yesterday, 29 September 2015.

Oriental Bank of Commerce fell 1.43%. The bank has reduced base rate by 20 basis points to 9.70% from 9.90% with effect from 30 September 2015. The bank made the announcement about the reduction in base rate during market hours today, 30 September 2015.

The reduction of base rate by some of these state-run banks comes after the Reserve Bank of India (RBI) surprised financial markets by announcing a steeper-than-expected 50 basis points reduction in repo rate after a regular monetary policy review yesterday, 29 September 2015.

Among private bank stocks, Yes Bank (down 1.06%), Kotak Mahindra Bank (down 0.98%), Federal Bank (down 0.39%) and Axis Bank (down 1.08%) edged lower. IndusInd Bank (up 0.2%), HDFC Bank (up 0.19%) and ICICI Bank (up 0.2%) edged higher.

Index heavyweight and engineering and construction major L&T advanced 0.48%. L&T during market hours today, 30 September 2015 said that the power transmission and distribution business of L&T Construction won orders worth Rs 1376 crore in both domestic and international markets in September 2015.

Telecom stocks were in demand on renewed buying. Bharti Airtel (up 2.91%), Idea Cellular (up 4.81%), MTNL (up 0.94%), Tata Teleservices (Maharashtra) (up 0.98%) and Reliance Communications (up 2.74%) gained.

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