Market turns range-bound

Key benchmark indices hovered in a small range in mid-afternoon trade. At 14:18 IST, the S&P BSE Sensex was up 16.47 points or 0.06% at 28,259.76. The Nifty 50 index was currently up 7.90 points or 0.09% at 8,746. Caution prevailed ahead of the Reserve Bank of India (RBI)'s fourth bi-monthly monetary policy meeting scheduled at 14:30 IST today, 4 October 2016.

The major event today, 4 October 2016 is the Reserve Bank of India's (RBI) fourth bi-monthly monetary policy meeting. The RBI after the third bi-monthly monetary policy on 9 August 2016, decided to keep the policy repo rate unchanged at 6.5%. Consequently, the reverse repo rate remained unchanged at 6%. RBI also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4%. The latest monetary policy meeting will be the first meet where the interest rate decision is taken by a panel. Urjit Patel, the RBI governor, will be one among the six-member Monetary Policy Committee (MPC) recently notified by the government.

The Sensex rose 159.36 points or 0.56% at the day's high of 28,402.65 in early trade, its highest level since 29 September 2016. The barometer index fell 1.04 points at the day's low of 28,242.25 in mid-afternoon trade. The Nifty rose 40.20 points or 0.46% at the day's high of 8,778.30 in early trade, its highest level since 29 September 2016. The index rose 1.10 points or 0.01% at the day's low of 8,739.20 in early afternoon trade.

In overseas stock markets, global stocks rose after data showing expansion in US manufacturing boosted optimism over the health of the world's largest economy. China's stock exchange remained closed as part of a five-day National Holiday break. US stocks closed lower yesterday, 3 October 2016 as investors digested key economic news and kept an eye on oil prices.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,473 shares gained and 1,265 shares fell. A total of 134 shares were unchanged. The BSE Mid-Cap index was off 0.05%, underperforming the Sensex. The BSE Small-Cap index was up 0.2%, outperforming the Sensex.

Most private bank stocks rose ahead of the Reserve Bank of India's (RBI) monetary policy meeting today, 4 October 2016. Kotak Mahindra Bank (up 0.39%), HDFC Bank (up 0.09%), RBL Bank (up 0.29%), ICICI Bank (up 0.8%), and Yes Bank (up 0.94%) rose. Axis Bank (down 0.54%), IndusInd Bank (down 1.02%) fell.

PSU bank stocks saw mixed trend ahead of the Reserve Bank of India's (RBI) monetary policy meeting today, 4 October 2016. Dena Bank (up 1.87%), State Bank of India (SBI) (up 0.53%), Canara Bank (up 1.08%), IDBI Bank (up 0.42%), Bank of India (up 0.43%) rose. Punjab National Bank (down 0.38%), Indian Bank (down 0.87%), Bank of Baroda (down 0.89%), and Union Bank of India (up 0.87%) fell.

FMCG stocks saw mixed trend. Dabur India (up 1.52%), Marico (up 0.28%), Nestle India (up 0.14%), Procter & Gamble Hygiene and Health Care (up 1.07%) and Colgate-Palmolive (India) (up 0.16%) rose.

Godrej Consumer Products (down 0.19%), Hindustan Unilever (down 0.32%), Britannia Industries (down 0.65%), GlaxoSmithkline Consumer Healthcare (down 0.18%), Tata Global Beverages (down 0.88%), Jyothy Laboratories (down 0.67%), Bajaj Corp (down 0.27%) fell.

Shares of HPL Electric & Power were trading at Rs 185.55, a discount of 8.14% compared with initial public offer price of Rs 202. The stock debuted at Rs 190.05, a discount of 5.92% to the initial public offer (IPO) price. So far the stock hit a high of Rs 198 and low of Rs 184.30. On BSE, so far 27.31 lakh shares were traded on the counter. The initial public offer (IPO) of HPL Electric and Power ended on 26 September 2016. The IPO received bids for 11.64 crore shares and it was subscribed 8.06 times. The price band for the IPO was fixed at Rs 175 to Rs 202 per share. The company manufactures electrical appliances, switch-gears, electronic energy meters and electrical protection equipment.

Elantas Beck India rose 1.18% after the company said its board of directors granted in-principle approval for the sale of company's property in Pune. The announcement was made during market hours today, 4 October 2016. Elantas Beck India's board of directors at its meeting held today, 4 October 2016, granted its in-principle approval for the sale of company's property at Beck House in Pune admeasuring about 2,238.25 sq. mts to Ajay Pitre including his family members or legal entities nominated by him, at a lumpsum consideration of not less than Rs 24 crore. The approval is subject to the terms and conditions to be agreed vide Memorandum of Understanding to be executed between the company and Ajay Pitre, Pune and also subject to the compliance of the regulatory requirements and due diligence. The proposal will be finally approved at the forthcoming meeting of the board of directors scheduled to be held on 25 October 2016.

Dhampur Sugar Mills rose 1.77% after the company said it has acquired 51% stake in DETS. The announcement was made after market hours yesterday, 3 October 2016. Dhampur Sugar Mills announced that its finance sub committee of directors has approved acquisition of 4.28 lakh equity shares, or 51% stake, of DETS at Rs 33 per equity share. Consequently, DETS has become subsidiary of Dhampur Sugar Mills with effect from 3 October 2016. DETS is in the business of engineering and technical services and fabrication and supplying engineering goods in India and abroad.

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