Key indices bounce back after a near 1% slide in early trade

Banking and power sector stocks led a strong intraday rebound for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 0.56 points at 26,218.35, as per provisional closing. The 50-unit CNX Nifty fell 4.80 points or 0.06% at 7,977.10 as per provisional closing. The Sensex and the Nifty staged a recovery from a near 1% slide in early trade triggered by weakness in Asian stocks. The recovery on the domestic bourses materialized as European stocks edged higher. The Sensex reclaimed the psychological 26,000 mark after falling below that level in early trade.

The Sensex and the Nifty witnessed intraday volatility. The two key benchmark indices trimmed losses soon after a near 1% slide in early trade. Intraday recovery gathered steam with key benchmark indices erasing almost entire intraday losses in afternoon trade. Benchmark indices drifted lower shortly thereafter. The Sensex and the Nifty once again witnessed a recovery in late trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,599 shares rose and 1,033 shares fell. A total of 137 shares were unchanged. The BSE Mid-Cap index rose 0.43%. The BSE Small-Cap index rose 1.25%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 2190 crore, lower than turnover of Rs 4593.90 crore registered during the previous trading session.

Shares of index heavyweight Reliance Industries (RIL) lost 2.01% at 877.15. The stock hit a high of Rs 887.75 and a low of Rs 875.70 in intraday trade.

Index heavyweight and housing finance major HDFC lost 0.24% at 1,207.50. The stock hit a high of Rs 1,208.95 and a low of Rs 1,185.55 in intraday trade.

Index heavyweight and cigarette major ITC shed 1.22% at 314.60. The stock hit a high of Rs 318.80 and a low of Rs 313.55 in intraday trade.

Banks shares staged a recovery from initial losses. Among PSU banks, UCO Bank (up 6%), Andhra Bank (up 4.42%), Syndicate Bank (up 3.75%), United Bank of India (up 3.29%), Punjab and Sind Bank (up 2.63%), Canara Bank (up 2.42%), Allahabad Bank (up 2.41%), Indian Bank (up 2.14%), Bank of India (up 2.10%), Central Bank of India (up 1.95%), Union Bank of India (up 1.63%), Punjab National Bank (up 0.97%), State Bank of India (up 0.85%), Bank of Baroda (up 0.71%), Dena Bank (up 0.26%), Vijaya Bank (up 0.14%) and Corporation Bank (up 0.11%), edged higher. Bank of Maharashtra was down 1.14%.

IDBI Bank jumped 16.72% to Rs 69.45 after Finance Minister Arun Jaitley reportedly said in an interview to a television channel that the government is working out ways to give more operational freedom to state-run banks and hinted at IDBI Bank being one of the first test cases.

Among private sector banks, Federal Bank (up 3.64%), City Union Bank (up 3.33%), Axis Bank (up 2.17%), Kotak Mahindra Bank (up 1.20%), ICICI Bank (up 0.68%) and HDFC Bank (up 0.22%), edged higher. Yes Bank (down 0.28%) and IndusInd Bank (down 0.57%) edged lower.

Power generation shares edged higher. Torrent Power (up 8.71%), Jaiprakash Power Ventures (up 5.59%), Reliance Power (up 5.17%), Adani Power (up 5.08%), JSW Energy (up 4.83%), CESC (up 4.68%), GMR Infrastructure (up 4.15%), NHPC (up 0.90%) and Tata Power (up 0.86%), edged higher. NTPC (down 0.2%) and Reliance Infrastructure (down 0.83%), edged lower.

State-run Power Grid Corporation of India rose 2.36% to Rs 136.65. The stock hit a high of Rs 137 and a low of Rs 131.80 in intraday trade.

In overseas stock markets, European stocks reversed initial losses. Earlier during the global day, Asian stocks edged lower as the US Federal Reserve's decision last week to keep interest rates at record low raised fresh concerns about global economic growth. The US central bank cited concerns about the global economy and a lack of inflation growth in the United States as the reasons for its decision to leave interest rates at record low after the conclusion of a two-day monetary policy meeting on 17 September 2015.

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