Market regains strength

Banking and metal stocks led rally for key benchmark indices in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 180.27 points or 0.72% at 25,074.08. The gains for the 50-unit CNX Nifty were higher in percentage terms compared to the gains for the Sensex. The Nifty was currently up 66 points or 0.87% at 7,624.80. The Sensex was currently trading above the psychological 25,000 level, having alternatively moved above and below that level so far during the trading session. A further decline took the index below the psychological 25,000 level yesterday, 7 September 2015.

It has been a volatile trading session so far. The Sensex hit its lowest level in more than 15 months when it lost 60.27 points at the day's low of 24,833.54 hit in mid-morning trade. The Nifty hit its lowest level in almost 14 months when it dropped 19.30 points at the day's low of 7,539.50 in mid-morning trade.

The market breadth indicating the overall health of the market was weak. On BSE, 1,466 shares fell and 881 shares rose. A total of 102 shares were unchanged. The BSE Mid-Cap index was up 0.08%. The BSE Small-Cap index was down 0.51%. Both these indices underperformed the Sensex.

In overseas markets, Asian stocks were mixed. Chinese stocks edged higher in volatile trade after Beijing introduced fresh measures - including tax cuts and a proposed "circuit breaker" system - to discourage speculation and stem further slide in share prices. Trading in US index futures indicated that the Dow could gain 167 points at the opening bell.

GAIL (India) (up 4.13%), ICICI Bank (up 3.29%) and NTPC (up 2.62%) were the top gainers from the Sensex pack.

In sector trends, realty stocks were mixed. Sobha (down 3.95%), Indiabulls Real Estate (down 1.32%), Godrej Properties (down 3.75%) and Anant Raj (down 1.57%) edged lower. Unitech (up 0.52%), Oberoi Realty (up 0.74%), DLF (up 1.07%), and Omaxe (up 0.08%) edged higher.

Telecom stocks declined. Bharti Airtel (down 2.02%), MTNL (down 0.34%), Tata Teleservices (Maharashtra) (down 1.91%) and Reliance Communications (down 7.73%) dropped. Idea Cellular rose 0.28%.

IT stocks advanced. Tech Mahindra (up 0.36%), HCL Technologies (up 1.36%), Infosys (up 1.12%), Wipro (up 1.83%) and TCS (up 0.01%) edged higher.

Tata Consultancy Services (TCS) rose 0.01%. With respect to news article titled "TCS close to country's 'largest' office space deal", TCS clarified after market hours yesterday, 7 September 2015, that the company does not have any specific comment to offer with regard to the news item. The news report had suggested that the company is set to pick up over 2 million square feet of built-to-suit space at Hiranandani Estate in Thane on lease. TCS in the ordinary course buys or leases office space on regular basis either for expansion or consolidation of existing offices, the IT major said in its clarification.

JSW Energy rose 6.27% on reports the company may acquire Jaypee Group's 500 megawatt Bina thermal power project in Madhya Pradesh for about Rs 3500 crore. The power plant has an installed capacity of 500 megawatt and sufficient infrastructure to ramp it up to 1,500 megawatt (MW) with marginal investment. JSW Energy and Jaypee Group agreed on the broad contours of an agreement yesterday, 7 September 2015, reports added.

Reports suggested that the Jaypee Group had acquired the Bina unit in Madhya Pradesh from the Aditya Birla Group. The unit supplies most of its output to the MP State Electricity Board under a long-term power purchase agreement. Around 30% is sold in the spot market.

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