Market gains on Fed's decision to hold interest rates steady

Banking stocks led gains for key benchmark indices. The barometer index, the S&P BSE Sensex, jumped 195.04 points or 0.75% at 26,159.01, as per provisional closing data. The 50-unit CNX Nifty rose 82.75 points or 1.05% at 7,981.90, as per provisional closing data. Market sentiment was boosted by the US Federal Reserve's decision to hold raising interest rates after the conclusion of a two-day monetary policy meeting yesterday, 17 September 2015. Key indices remained in positive zone throughout the trading session. Key indices, however, pared gains towards the latter part of the trading session. The Sensex provisionally settled above the psychological 26,000 level after surpassing that level in early trade. The Nifty provisionally settled below the psychological 8,000 level after surpassing that level earlier during the trading session. Earlier, the Sensex hit its highest level in more than 2-1/2 weeks when it jumped 507.85 points at the day's high of 26,471.82 in intraday trade. The Nifty hit its highest level in three weeks when it rose 155.85 points at the day's high of 8,055 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,698 shares rose and 931 shares declined. A total of 104 shares were unchanged. The BSE Mid-Cap index was up 0.89%. The BSE Small-Cap index was up 0.98%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 4555 crore, higher than turnover of Rs 2352.87 crore registered during the previous trading session.

In overseas markets, European stocks edged lower. Asian markets outside Japan edged higher. US stocks closed lower yesterday, 17 September 2015, after the Federal Reserve cited concerns about global economic growth in its decision to hold off on raising interest rates. At the end of the two-day monetary policy meeting yesterday, 17 September 2015, the US central bank held rates steady amid concerns about the global economic growth, financial market volatility and sluggish inflation at home, but it left open the possibility of a modest policy tightening later this year.

Closer home, the Reserve Bank of India (RBI) has granted in-principle approval to 10 applicants to set up small finance banks under the "Guidelines for Licensing of Small Finance Banks in the private sector" (Guidelines) issued on 27 November 2014. The in-principle approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfill other conditions as may be stipulated by the RBI.

Bank stocks gained. Among PSU banks, Union Bank of India (up 3.94%), Andhra Bank (up 5.37%), Canara Bank (up 3.82%), Bank of Baroda (up 5.07%), IDBI Bank (up 4.83%), State Bank of India (up 2.54%), Syndicate Bank (up 1.62%), Bank of India (up 1.12%), Punjab National Bank (up 1.8%) and United Bank of India (up 1.43%) edged higher. Corporation Bank (down 3.5%) and Vijaya Bank (down 3.37%) edged lower.

Among private sector banks, Axis Bank (up 4.53%), ICICI Bank (up 1.39%), HDFC Bank (up 1.92%), IndusInd Bank (up 2.15%), Yes Bank (up 1.28%) and Kotak Mahindra Bank (up 3.99%) edged higher.

Jubilant Life Sciences rose 2.56% at Rs 339 after the company said it has received abbreviated new drug application (ANDA) approval for Zolmitriptan ODT Tablets, 2.5 mg and 5 mg, the generic version of Zomig-ZMT, which is used for acute treatment of migraine headaches in adults. The announcement was made during market hours today, 18 September 2015.

Index heavyweight and housing finance firm HDFC was up 0.33% at Rs 1,200.40.

Index heavyweight Reliance Industries (RIL) rose 2.22% at Rs 891.50.

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