Market drifts higher in early trade

Key indices are trading higher in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 157.72 points or 0.43% at 36,638.81. The Nifty 50 index was up 44.75 points or 0.41% at 10,862.35. Mostly positive Asian stocks boosted sentiment.

The S&P BSE Mid-Cap index was up 0.41%. The S&P BSE Small-Cap index was up 0.59%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 870 shares rose and 263 shares fell. A total of 46 shares were unchanged.

Overseas, most Asian markets are trading higher as investors await US Federal Reserve's interest rate decision.

US stocks ended higher on Tuesday as the impact of weekend attacks on Saudi Arabia's biggest oil refinery faded.

Investors are looking forward to a meeting of the Federal Reserve's interest-rate setting committee concluding Wednesday, after which Chairman Jerome Powell will announce the central bank's latest policy decision. Expectations are that the Fed will cut interest rates a second time this year.

On the data front, U.S. industrial production rose 0.6% in August, the Fed said Tuesday. Capacity utilization increased by 0.4 percentage point to 77.9%. Separately, the National Association of Home Builders' monthly confidence index increased one point to 68 in September, matching the highest reading in a year, the trade group said Tuesday.

Back home, Bajaj Finance gained 2.37%. The company's board of directors approved raising of capital through a Qualified Institutions Placement (QIP) for an aggregate amount not exceeding Rs 8500 crore by issue of equity shares and/or eligible securities. The announcement was made after market hours yesterday, 17 September 2019.

Coffee Day Enterprises advanced 3.99%. Coffee Day Enterprises informed that the board has approved and the company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks, a wholly owned subsidiary of Tanglin Development (TDL). The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark. The transaction is at an Enterprise Value of Rs 2700 crore. This transaction will substantially bring down the debt level of the group which was earlier disclosed on 17 August 2019 as Rs 4970 crore. The announcement was made after market hours yesterday, 17 September 2019.

Dewan Housing Finance Corporation fell 1.49%. The company has been unable to meet its payment obligation of $20.17 million falling due on 16 and 17 September 2019 as per its existing schedule towards interest and principal amount on certain external commercial borrowings availed by the company. The announcement was made after market hours yesterday, 17 September 2019.

Sunteck Realty rose 2%. The company has acquired a prime project near Mumbai's Lokhandwala, Off New Link Road, Andheri (West) with the potential for development of approx. 1.1 mn sq.ft in saleable area and a revenue of over Rs 2500 crore in the next 4-5 years. The announcement was made after market hours yesterday, 17 September 2019.

Balmer Lawrie & Company dropped 6.22%. The company's board has deferred recommendation of bonus shares. The announcement was made after market hours yesterday, 17 September 2019.

Ahluwalia Contracts (India) rose 1.71%. Ahluwalia Contracts (India) has secured new order of Rs 407 crore for construction of medical college (civil works) at Village Koriyawas in Mohindergarh Distt. Rewari (Haryana) and other orders aggregating to Rs 90.36 crore (approx.). The total order inflow during the FY 2019- 20 stands at Rs 927.59 crore. The announcement was made after market hours yesterday, 17 September 2019.

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