IT, cement stocks edge higher

A bout of volatility was witnessed as key benchmark indices once again regained positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex was currently up 20.56 points or 0.08% at 25,717. The market breadth indicating the overall health of the market was positive.

IT stocks edged higher. Cement stocks edged higher.

At 12:23 IST, the S&P BSE Sensex was up 20.56 points or 0.08% at 25,717. The index jumped 242.93 points at the day's high of 25,939.37 in early trade. The index fell 85.87 points at the day's low of 25,610.57 in mid-morning trade.

The CNX Nifty was up 7.40 points or 0.1% at 7,793.25. The index hit a high of 7,862.55 in intraday trade. The index hit a low of 7,760.75 in intraday trade.

The BSE Mid-Cap index was up 14.81 points or 0.14% at 10,538.64. The BSE Small-Cap index was up 69.63 points or 0.65% at 10,803.01. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,262 shares rose and 1,068 shares declined. A total of 90 shares were unchanged.

IT stocks edged higher. Tech Mahindra (up 3.76%), MindTree (up 1.99%), HCL Technologies (up 2.11%), Infosys (up 2.01%) and Wipro (up 0.33%) edged higher. Oracle Financial Services Software (down 0.43%) edged lower.

TCS was up 2.9%. The company during market hours today, 2 September 2015, announced the Bombay High Court has approved the proposal for merger of CMC with TCS.

Cement stocks edged higher. Ambuja Cements (up 2.24%), ACC (up 1.9%), UltraTech Cement (up 1.2%) and Shree Cement (up 0.51%) gained.

Grasim Industries was off 0.24%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

IndusInd Bank was down 1.54% at Rs 817.60. The stock hit a high of Rs 838 and a low of Rs 809.30 so far during the day. IndusInd Bank during market hours today, 2 September 2015 said it has inaugurated a new branch in Chennai. With this, IndusInd Bank now has 16 branches in Chennai and 41 in Tamil Nadu. The bank plans to further strengthen its presence and customer reach in Tamil Nadu with more branches in the coming quarters.

Bharti Airtel was off 0.61% at Rs 343.25. The stock hit a high of Rs 350 and a low of Rs 340 so far during the day. Bharti Airtel and IHS Holdings (IHS) said that IHS has completed the sale and lease back of 949 towers in Zambia from Airtel Zambia (Airtel) under long term renewable contracts announced on 15 December 2014. Outsourcing tower infrastructure to IHS allows Airtel to focus on its core business and customers and enables it to deleverage through debt reduction. It will also significantly reduce its ongoing capital expenditure on passive infrastructure, IHS and Bharti Airtel said in a joint statement issued during market hours today, 2 September 2015.

Meanwhile, the government has announced that it has accepted the recommendation of the Justice A.P. Shah Committee not to levy minimum alternative tax (MAT) on stock market transactions of foreign institutional investors (FIIs) for the period prior to 1 April 2015. The latest announcement comes after the government in its February 2015 Budget announced that MAT will not be applicable for FIIs from 1 April 2015.

On the macro front, lower crude oil prices augur well for India. The country India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. A recovery in the rupee against the dollar after a recent steep slide has also eased concerns about higher crude import costs. Gains in local currency will reduce the cost of imports.

In the global commodities markets, Brent for October settlement was currently off $1.13 a barrel at $48.43 a barrel. The contract had tumbled $4.59 a barrel or 8.47% to settle at $49.56 a barrel during the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 66.195, compared with closing of 66.215 during the previous trading session.

In overseas markets, Asian stocks were mixed. Key benchmark indices in Taiwan, Singapore, South Korea and Indonesia were up 0.05% to 0.22%. Key benchmark indices in Japan, China and Hong Kong were off 0.39% to 1.27%.

Trading in US index futures indicated that the Dow could surge 131.50 points at the opening bell today, 2 September 2015. US stocks tumbled yesterday, 1 September 2015, as part of a global rout sparked by a new round of weak Chinese economic data.

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