Market sees range bound movement

A range bound movement was witnessed as key benchmark indices hovered in green in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 103.21 points or 0.37% at 28,108.58. The Nifty 50 index was up 32.90 points or 0.38% at 8,656.95. The market sentiment was positive after the minutes of the latest US Federal Reserve meeting showed policymakers were in no rush to raise interest rates.

The Sensex rose 165.46 points, or 0.59% at the day's high of 28,170.83 in early trade. The index rose 71.63 points, or 0.26% at the day's low of 28,077 in early trade. The Nifty rose 46.45 points, or 0.54% at the day's high of 8,670.50 in early trade, its highest level since 16 August 2016. The index rose 21 points, or 0.24% at the day's low of 8,645.05 in early trade.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,318 shares rose and 588 shares fell. A total of 111 shares were unchanged. The BSE Mid-Cap index was currently up 0.45%. The BSE Small-Cap index was currently up 0.77%. Both these indices outperformed the Sensex.

In overseas stock markets, most Asian stocks rose after minutes of the US Federal Reserve's latest meeting showed policymakers were in no rush to raise interest rates. US stocks closed slightly higher yesterday, 17 August 2016, sharply paring earlier losses, as minutes from the Federal Reserve's July meeting showed policy makers remain divided on prospects for a near-term rate increase. Stocks bounced off session lows after St. Louis Federal Reserve President James Bullard said that with US growth trending below 2%, interest rates can stay low.

Metal shares edged higher. Hindustan Copper (up 1.80%), Hindustan Zinc (up 1.08%), Jindal Steel & Power (up 0.91%), JSW Steel (up 0.18%), National Aluminium Company (up 0.63%), NMDC (up 2.61%), Steel Authority of India (up 0.73%) and Vedanta (up 0.59%), edged higher. Tata Steel was down 0.92%.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2016 delivery was currently up 0.79% at $2.169 per pound on the COMEX.

Hindalco Industries (Hindalco) rose after the company announced that its wholly owned US subsidiary Novelis Inc has completed refinancing of its $1.15 billion senior notes due 2024. The stock was up 0.38% to Rs 156.50. It hit a high of Rs 157 in early trade, which is also a 52-week high for the counter. The notes were priced at par value and will bear an interest rate of 6.25% per annum. Novelis intends to use the net proceeds of the offering to retire its outstanding 8.375% senior notes due 2017. The announcement was made after market hours yesterday, 17 August 2016.

Most IT stocks edged higher. TCS (up 0.99%), Hexaware Technologies (up 0.88%), MphasiS (up 0.67%), Tech Mahindra (up 0.59%), MindTree (up 0.47%), Persistent Systems (up 0.38%), HCL Technologies (up 0.24%) and Infosys (up 0.14%), edged higher. Wipro was down 0.71%.

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