Initial rally on the bourses fizzles out

An initial rally on the domestic bourses triggered by gains in global stocks fizzled out. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 73.46 points or 0.27% at 26,919.27. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently up 13.20 points or 0.16% at 8,142.55. The Sensex failed to retain the psychological 27,000 mark after crossing that level in intraday trade. The current small gains for the Sensex and the Nifty is a far cry from initial strong gains. The Sensex jumped 354.63 points or 1.32% at the day's high of 27,200.44 in morning trade, a seven-week high. The Nifty also hit seven-week high when it jumped 102.85 points or 1.25% at the day's high of 8,232.20 in morning trade.

Key benchmark indices trim gains as index heavyweight Reliance Industries extended slipped into the red from green and as another index heavyweight HDFC erased intraday gains.

The market breadth indicating the overall health of the market was positive. On BSE, 1,383 shares rose and 1,180 shares declined. A total of 123 shares were unchanged. The BSE Mid-Cap index was off 0.31%. The BSE Small-Cap index was off 0.02%. Both these indices underperformed the Sensex.

Index heavyweight Reliance Industries (RIL) fell 0.6% to Rs 883.50. The stock hit a high of Rs 904.90 and low of Rs 882.10 so far during the day.

Index heavyweight and housing finance major HDFC was trading almost unchanged for the day at Rs 1,278. The stock hit high of Rs 1,298 and low of Rs 1,275 so far during the day.

State-run mining giant Coal India dropped 2.37% to Rs 338. The stock hit high of Rs 348.50 and low of Rs 337.45 so far during the day.

FMCG stocks were mixed. Britannia Industries (down 1.09%), Hindustan Unilever (down 1.22%), GlaxoSmithkline Consumer Healthcare (down 0.25%), Godrej Consumer Products (down 0.29%), Marico (down 0.75%), Bajaj Corp (down 2.39%) declined. Nestle India (up 0.42%), Tata Global Beverages (up 0.98%), Procter & Gamble Hygiene and Health Care (up 0.47%), Jyothy Laboratories (up 1.21%), Colgate-Palmolive (India) (up 0.28%), Dabur India (up 0.23%) rose.

Tyre stocks declined. Apollo Tyres (down 3.31%), CEAT (down 3.57%), JK Tyre & Industries (down 0.59%), MRF (down 1.23%) and Balkrishana Industries (down 0.13%) declined. Goodyear India (up 0.31%) and TVS Srichakra (up 0.98%) rose.

Tree House Education & Accessories rose 3.12% after credit ratings firm Credit Analysis & Research (CARE) upgraded its rating on the company's long term bank facilities to CARE A from CARE A - (minus). The announcement was made during trading hours today, 9 October 2015.

Transport Corporation of India (TCI) surged 12.6% after the company said its board of directors approved a scheme of demerger of its wholly-owned subsidiary TCI Express. As per the scheme, the equity shareholders of TCI will receive one equity share of Rs 2 each of TCI Express for every two equity shares of TCI held on the record date. TCI Express will subsequently seek listing on the stock exchanges after necessary approvals.

In overseas stock markets, European and Asian shares edged higher after the minutes of the Federal Reserve's latest meeting damped down expectations of an imminent Fed rate hike. US stocks edged higher yesterday, 8 October 2015, after the Fed minutes showed that Fed officials were largely hesitant to hike rates for the first time in nearly a decade due to worries about global risk. Riskier asset markets, which had risen when the Fed held off raising rates in September, got a further boost on confirmation policy makers won't rush to tighten rates at a time of slackening global growth.

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