Sensex, Nifty regain positive zone amid volatility

After reversing intraday gains in afternoon trade, the S&P BSE Sensex, and the 50-unit CNX Nifty soon regained positive zone. At 13:22 IST, the Sensex was up 33.62 points or 0.13% at 25,655.79. The Nifty was up 5.60 points or 0.07% at 7,793.70. Earlier, the Sensex and the Nifty surged to their highest level in more than a week. The Sensex jumped 253.79 or 0.99% to 25,875.96 in early trade and the Nifty rose 76.75 points or 0.98% at 7,864.85 at the onset of the trading session.

In overseas stock markets, European stocks reversed direction after a positive start. There was no big move on either side for key Asian markets. There is uncertainty in global market on whether the US Federal Reserve's first interest rate hike in a decade will come at Fed's monetary policy meeting next week. Mixed US economic data overnight offered no clarity on whether the Federal Reserve will raise interest rates next week. A hike in interest rate in the US is likely to drain liquidity from emerging markets like India and redirect it to developed economies. The Fed's policy-making committee holds a two-day meeting on 16 and 17 September 2015.

The market breadth indicating the overall health of the market was strong. On BSE, 1,483 shares rose and 911 shares fell. A total of 117 shares were unchanged. The BSE Mid-Cap index was up 0.05%, underperforming the Sensex. The BSE Small-Cap index was up 0.58%, outperforming the Sensex.

Metal and mining stocks depicted a mixed trend. Tata Steel (down 2%), JSW Steel (down 0.63%), Steel Authority of India (Sail) (down 1.53%) and Hindustan Zinc (down 1.17%) edged lower. Jindal Steel & Power (up 1.15%), Hindalco Industries (up 1.24%), NMDC (up 0.15%), Hindustan Copper (up 0.58%) and Vedanta (up 0.09%) rose.

National Aluminium Company (Nalco) shed 0.14%. Nalco's CMD T K Chand said at an event in Bhubaneswar early this week that the company is in a position to invest to the tune of Rs 30000 crore in Odisha. He did not elaborate as to which projects of the company the expenditure will be made. He also did not mention the period over which the company will invest the large sum of money in the state.

Most capital goods stocks edged lower. Bharat Heavy Electricals (Bhel) (down 2.36%), ABB India (down 0.28%), BEML (down 0.19%) and Crompton Greaves (down 1.76%), L&T (down 0.69%) declined. Bharat Electronics (up 0.82%), Siemens (up 1.55%) and Thermax (up 2.74%) rose.

Sobha (up 9.53%), Gati (up 7.94%), Atul (up 6.48%), Manappuram Finance (up 4.1%) and SRF (up 3.97%) were the top gainers among the BSE's 'A' group stocks. Monsanto India (down 4.45%), Cox & Kings (down 4.3%), Indian Hotels Company (down 2.26%), South Indian Bank (down 2.16%), Apollo Hospitals Enterprise (down 2.13%) and Engineers India (down 2.2%) were the top losers among the BSE's 'A' group stocks.

Amtek Auto rose 8.06% to Rs 32.85 after the company said it raised Rs 74.99 crore through preferential allotment of 44.37 lakh equity shares to the promoter group companies. The announcement was made after trading hours yesterday, 10 September 2015.

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