More than three gainers against every loser on BSE

After a strong opening triggered by gains in overseas markets, key benchmark indices trimmed gains in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 282.99 points or 0.99% at 28,790.41. The Nifty 50 index was currently up 88.10 points or 1% at 8,865.25. The broad market depicted strength. There were more than three gainers against every loser on BSE. 1,510 shares rose and 430 shares declined. A total of 111 shares were unchanged. The BSE Mid-Cap index was currently up 0.84%. The BSE Small-Cap index was currently up 0.89%. Both these indices underperformed the Sensex.

 

The Sensex surged 364.50 points or 1.27% at the day's high of 28,871.92 in early trade, its highest level since 9 September 2016. The barometer index rose 259.52 points or 0.91% at the day's low of 28,766.94 in opening trade. The Nifty jumped 116.20 points or 1.32% at the day's high of 8,893.35 in early trade, its highest level since 9 September 2016. The index rose 84.40 points or 0.96% at the day's low of 8,861.55 in morning trade.

In overseas stock markets, Asian stocks edged higher tracking gains in US markets overnight. US stocks registered strong gains yesterday, 21 September 2016, after the Federal Reserve kept interest rates unchanged but hinted at the possibility of a rate hike later this year. Concluding a two-day meeting, the Federal Open Market Committee (FOMC) announced that the federal funds rate will remain at 0.25% to 0.5%. The Fed also said risks to the economy have diminished since its last meeting in July. The Fed last raised rates in December 2015, the first hike in almost a decade.

Back home, bank stocks edged higher. Among public sector banks, Punjab National Bank (up 2.8%), Bank of India (up 2.41%), Bank of Baroda (up 2.22%), State Bank of India (up 2.03%), Canara Bank (up 1.99%), Indian Bank (up 1.8%) and United Bank of India (up 0.69%) rose.

IDBI Bank rose 2.95% at Rs 74.95 after the bank sold 6.75 lakh shares constituting 1.5% of the paid-up capital of National Stock Exchange of India to TIMF Holdings. The announcement was made after market hours yesterday, 21 September 2016.

Union Bank of India rose 2.09% at Rs 144.35 after the bank said that it has completed the acquisition of 49% shareholding of Union KBC Asset Management Company and Union KBC Trustee Company from KBC Participations Renta S.A. and its affiliates (KBC Asset Management NV) on 20 September 2016. Accordingly, Union KBC Asset Management Company and Union KBC Trustee Company have become wholly owned subsidiaries of Union Bank of India. The announcement was made after market hours yesterday, 21 September 2016.

Last year, the board of Union Bank of India approved purchase of 49% stake in Union KBC Asset Management and Union KBC Trustee Company from KBC Participations Renta. KBC Participations Renta is a group company of Luxembourg-based KBC Asset Management NV. Union Bank of India and KBC Asset Management NV had formed two joint ventures - Union KBC Asset Management Company and Union KBC Trustee Company - in 2009 with 51% and 49% holding, respectively.

Among private sector banks, ICICI Bank (up 2.43%), Yes Bank (up 2.08%), IndusInd Bank (up 1.84%), Axis Bank (up 1.39%), RBL Bank (up 1.09%) and Kotak Mahindra Bank (up 0.84%) edged higher.

Index heavyweight HDFC Bank was up 1.33% at Rs 1,309.95. The stock hit a high of Rs 1,315.55 and a low of Rs 1,306.75 so far during the day.

Cement stocks gained. Ambuja Cements (up 1.15%), ACC (up 0.79%), UltraTech Cement (up 0.65%) and Shree Cement (up 0.75%) edged higher.

Grasim Industries was up 0.47%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Index heavyweight and housing finance major HDFC rose 1.42% at Rs 1,411.95 after the company announced that it intends to raise Rs 1340 crore through issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.67% per annum and will have a tenor of 1 year 2 months. The issue will open and close on the same day tomorrow, 23 September 2016. The announcement was made after market hours yesterday, 21 September 2016.

On the macro front, data released by the Reserve Bank of India (RBI) after trading hours yesterday, 21 September 2016, showed that India's current account deficit (CAD) narrowed to $0.3 billion or 0.1% of GDP in Q1 June 2016, which was significantly lower than CAD of $6.1 billion or 1.2% of GDP in Q1 June 2015. The contraction in the CAD was primarily on account of a lower trade deficit.

Powered by Capital Market - Live News