Market moves into positive zone

Key benchmark indices moved into the green from red in mid-afternoon trade as European stocks moved higher on expectations that the European Central Bank (ECB) will announce further easing of the monetary policy. At 14:23 IST, the barometer index, the S&P BSE Sensex, was up 34.07 points or 0.14% at 24,693.30. The 50-unit Nifty 50 index was currently up 12.75 points or 0.17% at 7,498.05.

The Sensex rose 63.27 points or 0.26% at the day's high of 24,722.50 in mid-afternoon trade. The index fell 207.63 points, or 0.84% at the day's low of 24,451.60 in early trade, its lowest level since 3 March 2016. The Nifty 50 index rose 28.25 points or 0.38% at the day's high of 7,513.55 in mid-afternoon trade. The index fell 61 points, or 0.81% at the day's low of 7,424.30 in early trade, its lowest level since 3 March 2016.

The market breadth indicating the overall health of the market was negative. On BSE, 1,274 shares fell and 1,163 shares rose. A total of 127 shares were unchanged. The BSE Mid-Cap index was currently up 0.43%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.21%, underperforming the Sensex.

In overseas stock markets, European stocks edged higher on expectations that the European Central Bank (ECB) will announce further easing at a monetary policy meeting tomorrow, 10 March 2016, in a bid to boost low inflation and support economic recovery in the euro zone. Expectations are that the ECB will cut its deposit rate further into negative zone from current minus 0.3% and increase its bond-purchase program by euro 10 billion to euro 70 billion a month.

Asian stocks witnessed a mixed trend as investors awaited the outcome of ECB's monetary policy meeting. Chinese stocks lost ground in the aftermath of a disappointing trade data announced during the previous trading session. In mainland China, the Shanghai Composite closed 1.34% lower. Hong Kong's Hang Seng index ended 0.08% lower. US stocks snapped five-day winning streak to close lower yesterday, 8 March 2016, as supply woes weighed on oil prices and worries about a prolonged slowdown in China resurfaced.

Shares of public sector banks were mixed. Indian Bank (up 2.30%), Corporation Bank (up 2.26%), Allahabad Bank (up 1.97%), Bank of India (up 1.89%), Andhra Bank (up 1.42%), UCO Bank (up 1.25%), Punjab National Bank (up 0.92%), Bank of Baroda (up 0.63%), Union Bank of India (up 0.52%) and Dena Bank (up 0.18%), edged higher. Canara Bank (down 0.36%), State Bank of India (down 0.49%), Central Bank of India (down 0.6%), Punjab and Sind Bank (down 0.73%), United Bank of India (down 1.01%), IDBI Bank (down 1.16%), Bank of Maharashtra (down 1.18%) and Vijaya Bank (down 1.4%), edged lower.

Syndicate Bank was down 1.07% at Rs 59.90 after the Central Bureau of Investigation (CBI) initiated a probe into a Rs 1000-crore fraud at two branches of the state-run bank in Jaipur and Udaipur. The Syndicate Bank stock had lost 2.02% to settle at Rs 60.55 yesterday, 8 March 2016, after media reports of CBI probe. CBI said in its statement that the accused persons in connivance with past official of the bank resorted to discounting of fake cheques and bills against fake LCs and arranging over-draft limit against non-existent LIC policies. The amount involved in individual transactions ranged from Rs 40 lakh to Rs 5 crore, with a majority of the transactions being in the range of Rs 2.50 crore to Rs 4 crore.

Stocks of private sector banks edged higher. Yes Bank (up 3.50%), Kotak Mahindra Bank (up 1.63%), Axis Bank (up 1.41%), HDFC Bank (up 1.07%), City Union Bank (up 0.97%), IndusInd Bank (up 0.96%) and ICICI Bank (up 0.12%), edged higher. Federal Bank was down 0.30%.

Shares of public sector oil marketing companies (PSU OMCs) edged lower. BPCL (down 2.27%), HPCL (down 1.61%) and Indian Oil Corporation (down 1.61%) edged lower.

Shares of oil exploration and production companies were mixed. Cairn India (down 1.90%) and Oil India (down 0.59%), edged lower. Reliance Industries (RIL) (up 1.15%) and ONGC (up 1.46%) edged higher.

In the global commodities markets, Brent for May settlement was currently up 9 cents at $39.74 a barrel. The contract had fallen $1.19 a barrel or 2.91% to settle at $39.65 a barrel during the previous trading session.

Powered by Capital Market - Live News