Market trims gains

Key benchmark indices trimmed intraday gains in afternoon trade after European stocks edged lower in early trade there. At 13:17 IST, the barometer index, the S&P BSE Sensex, was up 437.05 points or 1.68% at 26,401.02. The 50-unit CNX Nifty was up 131.95 points or 1.67% at 8,031.10. The Sensex was currently trading above the psychological 26,000 level after surpassing that level in early trade. The Nifty was currently trading above the psychological 8,000 level. 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. Eleven out of twelve sectoral indices on BSE were in the green.

Broad market depicted strength. There were more than two gainers against every loser. On BSE, 1,725 shares rose and 659 shares declined. A total of 97 shares were unchanged. The BSE Mid-Cap index was up 1.48%. The BSE Small-Cap index was up 1.29%. Both these indices underperformed the Sensex.

In overseas markets, European stocks edged lower in early trade. Asian markets outside China and 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.

In sectoral stocks, IT stocks advanced. Tech Mahindra (up 1.98%), Oracle Financial Services Software (up 1.32%) and MphasiS (up 0.3%) edged higher.

Infosys was up 1.28%. The company announced after market hours on Wednesday, 16 September 2015 that Qantas Credit Union, a top Australian Credit Union, has chosen Infosys Finacle to improve its customer's digital experience, as part of their business transformation strategy. Infosys Fiancle is a part of EdgeVerve Systems, a product subsidiary of Infosys.

HCL Technologies rose 1.14%. The company announced at the fag end of the trading session on Wednesday, 16 September 2015, that it is collaborating with IBM to jointly develop Internet of Things (IoT) solutions to help customers on their IoT journey. The two companies will initially focus on specific verticals including industrial & manufacturing and smart facilities to co-develop innovative solutions such as remote monitoring, smart inventory management, smart building and facilities management. The two companies will also set up an incubation centre at Noida, India to develop these solutions for the chosen industries.

TCS rose 1.29%. The company announced after market hours on Wednesday, 16 September 2015, that its Digital Software & Solutions (DS&S) group has launched a new TCS 'Customer Insights & Intelligence' (CI&I) software solution for retail banks.

Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.02%), Havells India (up 0.65%), ABB India (up 2.73%), Bharat Electronics (up 2.29%), L&T (up 1.92%), Thermax (up 0.48%), and Siemens (up 2.08%) gained.

Hindustan Unilever (HUL) (down 1.07%), GAIL (India) (down 0.7%) and Bharti Airtel (down 0.5%) were amongst the major losers from the Sensex pack.

Tata Steel rose 0.89%. The company said during market hours today, 18 September 2015, that Bombay High Court vide its order dated 21 August 2015 approved the scheme of amalgamation between Tata Steel and Tata Metaliks and Tata Metaliks Dl Pipes (formerly known as Tata Metaliks Kubota Pipes) and their respective shareholders and creditors. The scheme of amalgamation is still pending before the Calcutta High Court and the same will be effective only upon sanction by the Calcutta High Court.

Separately, Tata Steel during market hours today, 18 September 2015 said that the company as part of its portfolio restructuring has today, 18 September 2015, sold 3.85 crore shares of Tata Motors to institutional investors over the stock exchange for a total consideration of Rs 1250.69 crore. Tata Motors dropped 2.5% and was the biggest loser from the Sensex pack.

Tata Steel has also proposed to sell equity shares of face value of Rs. 2 each of Tata Motors to Tata Sons around the market price through an off-market transaction for a total value not exceeding Rs 1250 crore.

As on 30 June 2015, Tata Steel held 16 crore shares, or 5.54% stake, in Tata Motors. Tata Sons held 74.10 crore shares, or 25.67% stake, in Tata Motors.

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