Sensex hits 26,000 level in early trade

Key benchmark indices edged higher in early trade tracking firmness in Asian markets and on US Fed's decision to hold interest rates steady. At 9:17 IST, the barometer index, the S&P BSE Sensex, was up 232.37 points or 0.89% at 26,196.34. The index surpassed the psychological 26,000 level after closing below that level in the earlier trading session. The 50-unit CNX Nifty was up 66.25 points or 0.84% at 7,965.40.

The market breadth indicating the overall health of the market was strong. On BSE,744 shares rose and 136 shares declined. A total of 29 shares were unchanged. The BSE Mid-Cap index was up 0.86%. The BSE Small-Cap index was up 0.69%. Both these indices underperformed the Sensex.

In overseas markets, Asian markets outside 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.

Higher US interest rates will reduce the attraction of riskier emerging-markets assets like India.

Closer home, Infosys was up 0.93% at Rs 1,111.75. 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 0.99% at Rs 947.70. 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 0.61% at Rs 2,566.75. 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.

Tata Steel was up 1.3% at Rs 233.20. Tata Motors was down 2.74% at Rs 328.65. Tata Steel before market hours today, 18 September 2015 said that the company based on the review of its portfolio, is proposing to sell equity shares of face value of Rs 2 each of Tata Motors to institutional investors over the stock exchange for a value not exceeding Rs 1250 crore. The price will be discovered through a book building process. Tata Steel also proposes 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.

On the macro front, 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.

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