Key indices retract from day's high

Key benchmark indices pared gains after hitting fresh intraday high in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was up 187.78 points or 0.73% at 26,029.70. The Nifty 50 index was up 57.55 points or 0.73% at 7,900.30. The BSE Sensex was trading above the psychologically important 26,000 mark.

The BSE Sensex rose 216.84 points, or 0.84% at the day's high of 26,058.76 in early afternoon trade, its highest level since 10 November 2015. The Nifty 50 index rose 63.55 points, or 0.81% at the day's high of 7,906.30 in early afternoon trade, its highest level since 9 November 2015. Earlier, the BSE Sensex fell 72.11 points, or 0.28% at the day's low of 25,769.81 in morning trade. The Nifty 50 index fell 24.95 points, or 0.32% at the day's low of 7,817.80 in morning trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,490 shares rose and 818 shares fell. A total of 220 shares were unchanged. The BSE Mid-Cap index and the BSE Small-Cap index were up 0.91% each. Both these indices outperformed the Sensex.

In overseas markets, most Asian markets turned positive after a negative start. The main US stock indexes finished barely changed yesterday, 19 November 2015, after weakness in the health-care and energy sectors stunted gains.

State-run banks edged higher. State Bank of India (up 1.62%), Bank of Baroda (up 1.28%), UCO Bank (up 1.07%), Andhra Bank (up 0.90%), IDBI Bank (up 0.89%), Union Bank of India (up 0.81%), Vijaya Bank (up 0.74%), Bank of India (up 0.66%), Syndicate Bank (up 0.55%), Punjab and Sind Bank (up 0.53%), Corporation Bank (up 0.48%), Punjab National Bank (up 0.47%), United Bank of India (up 0.47%), Canara Bank (up 0.33%), Dena Bank (up 0.24%), Indian Bank (up 0.16%) and Allahabad Bank (up 0.13%), edged higher. Bank of Maharashtra (down 0.16%) and Central Bank of India down 0.58%), edged lower.

Private sector banks were in demand. City Union Bank (up 2.05%), IndusInd Bank (up 1.82%), Kotak Mahindra Bank (up 1.47%), ICICI Bank (up 1.07%), Yes Bank (up 0.99%), HDFC Bank (up 0.82%) and Axis Bank (up 0.46%), edged higher.

The Reserve Bank of India yesterday, 19 November 2015, issued revised directions necessitating prior approval for acquisition of shares or voting rights in private sector banks. These Directions contain two major changes with a person intending to acquire shares or compulsorily convertible debentures/bonds or voting rights or convert optionally convertible debentures/bonds of 5% or more in a private sector bank, he/she will have to apply to the Reserve Bank for obtaining its prior approval. The major shareholders that is, shareholders having 5% or more of the paid-up share capital of the bank as indicated above, would have to give an annual declaration to the concerned bank on their 'fit and proper' status and if in the bank's assessment any major shareholder is not 'fit and proper', it will have to immediately furnish the requisite information to the Reserve Bank.

Simplex Castings was locked in 20% upper circuit at Rs 61.95 after the company received an order from Diesel Locomotive Works worth Rs 54 crore. The announcement was made after market hours yesterday, 19 November 2015.

RPP Infra Projects gained 2.06% after the company said it won order from National Highway Authority of India worth Rs 25.60 crore. The company announced during market hours today, 20 November 2015. RPP Infra Projects said that the order is for improving & widening road on NH-17 & NH-48 in identified stretches of New Mangalore Port Road Connectivity Project. The work is to be completed within 9 months.

On the economic front, the Seventh Central Pay Commission has proposed a hefty 23.55% hike in salary, allowances and pension for 4.8 million government employees and 5.5 million pensioners. If accepted, the recommendations of the commission, headed by retired judge A K Mathur, would be effective from January 2016, the Ministry of Finance said in a statement yesterday, 19 November 2015.

The financial impact of the report would be Rs 1.02 lakh crore during 2016-17. Of the total financial impact of Rs 1.02 lakh crore, Rs 73650 crore will be borne by the General Budget and Rs 28450 crore by the Railway Budget, the statement said.

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