Nifty moves into positive zone

A recovery in banking and auto stocks led recovery for key benchmark indices, with the 50-unit CNX Nifty moving into the green from red in early afternoon trade. At 12:17 IST, the Nifty was up 4.75 points or 0.06% at 7,850.70. The barometer index, the S&P BSE Sensex, was off 8.09 points or 0.03% at 25,814.90.

The market breadth indicating the overall health of the market was strong. On BSE, 1,436 shares rose and 880 shares fell. A total of 96 shares were unchanged. The BSE Mid-Cap index was up 0.64%. The BSE Small-Cap index was up 0.89%. Both these indices outperformed the Sensex.

There was absence of clear direction from Asian markets which witnessed a mixed trend. Japanese stocks fell as trading resumed after a three-day holiday. US stocks fell yesterday, 23 September 2015, dragged down by economic reports portraying US factory growth as tepid and China in its worst manufacturing contraction since the global financial crisis.

Bank stocks were mixed after trimming initial losses. Among PSU banks, Indian Bank (up 1.55%), United Bank of India (up 1.35%), IDBI Bank (up 1.23%), Punjab and Sind Bank (up 1.22%), Dena Bank (up 0.86%), Bank of Maharashtra (up 0.73%), Union Bank of India (up 0.39%), Central Bank of India (up 0.25%), UCO Bank (up 0.11%), State Bank of India (up 0.10%) and Andhra Bank (up 0.07%), edged higher. Syndicate Bank (down 0.12%), Vijaya Bank (down 0.29%), Bank of Baroda (down 0.32%), Canara Bank (down 0.38%), Punjab National Bank (down 0.44%), Allahabad Bank (down 0.9%), Bank of India (down 1.14%) and Corporation Bank (down 1.44%), edged lower.

Among private sector banks, Kotak Mahindra Bank (down 1.34%), HDFC Bank (down 1.14%), ICICI Bank (down 1.13%), Federal Bank (down 0.31%) and Yes Bank (down 0.18%), edged lower. IndusInd Bank (up 0.03%), Axis Bank (up 0.09%) and City Union Bank (up 0.38%) edged higher.

A monetary policy review from the Reserve Bank of India (RBI) is scheduled early next week. The RBI announces the fourth bi-monthly monetary policy review on 29 September 2015. The RBI kept its benchmark lending rate viz. the repo rate unchanged at 7.25% after a monetary policy review on 4 August 2015. RBI Governor Dr. Raghuram G. Rajan had at that time indicated in his written monetary policy statement that going ahead RBI will monitor developments for emerging room for further reduction in the policy rate. The RBI has cut the repo rate by 75 basis points since January 2015.

Godrej Properties rose 1.48% to Rs 319.50 after a bulk deal of 25.19 lakh shares was executed on the scrip at Rs 320 per share at 09:21 IST on BSE today, 24 September 2015.

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