Banking, auto and IT stocks led gains for key benchmark indices. The barometer index, the S&P BSE Sensex, jumped 254.94 points or 0.98% to settle at 26,218.91. The 50-unit CNX Nifty rose 82.75 points or 1.05% to settle at 7,981.90. The market breadth indicating the overall health of the market was strong on BSE. Market sentiment was boosted by the US Federal Reserve's decision to hold raising interest rates after the conclusion of a two-day monetary policy meeting yesterday, 17 September 2015. Key indices remained in positive zone throughout the trading session. Key indices, however, pared gains towards the latter part of the trading session. The Sensex settled above the psychological 26,000 level after surpassing that level in early trade. The Nifty settled below the psychological 8,000 level after surpassing that level earlier during the trading session. The Sensex hit its highest closing level in more than 2-1/2 weeks. The Nifty hit its highest closing level in 3 weeks. Sensex and Nifty gained for the second straight trading session today, 18 September 2015.
In overseas markets, European stocks edged lower. 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.
The Sensex jumped 254.94 points or 0.98% to settle at 26,218.91, its highest closing level since 31 August 2015. The index jumped 507.85 points at the day's high of 26,471.82 in early afternoon trade. The index rose 166.39 points at the day's low of 26,130.36 in early trade.
The CNX Nifty rose 82.75 points or 1.05% to settle at 7,981.90, its highest closing level since 28 August 2015. The index surged 155.85 points at the day's high of 8,055 in intraday trade. The index rose 56.70 points at the day's low of 7,955.85 in intraday trade.
The BSE Mid-Cap index rose 0.89%, underperforming the Sensex. The BSE Small-Cap index gained 1.11%, outperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,712 shares rose and 917 shares declined. A total of 104 shares were unchanged.
The total turnover on BSE amounted to Rs 4555 crore, higher than turnover of Rs 2352.87 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 1.19%), BSE Bankex index (up 2.66%) and BSE Realty index (up 3.16%) outperformed the Sensex. The S&P BSE FMCG index (down 0.6%), BSE Oil & Gas index (up 0.93%), BSE IT index (up 0.7%), BSE Auto index (up 0.43%), BSE Capital Goods index (down 0.19%), BSE Consumer Durables index (down 0.21%), BSE Metal index (up 0.64%), BSE Power index (up 0.89%) and BSE Teck index (up 0.68%) underperformed the Sensex.
Auto stocks gained. Mahindra & Mahindra (up 1.24%), Hero MotoCorp (up 2.2%), Maruti Suzuki India (up 1.14%), Ashok Leyland (up 1.03%), Eicher Motors (up 1.28%) and TVS Motor Company (up 1.48%) edged higher. Bajaj Auto (down 2.94%) edged lower.
Shares of Tata Motors declined 2.71% at Rs 328.75.
Shares of Tata Steel dropped 0.52% at Rs 229. Tata Steel said during market hours today, 18 September 2015, that Bombay High Court vide its order dated 21 August 2015 approved the scheme of amalgamation between Tata Steel and Tata Metaliks and Tata Metaliks Dl Pipes (formerly known as Tata Metaliks Kubota Pipes) and their respective shareholders and creditors. The scheme of amalgamation is still pending before the Calcutta High Court and the same will be effective only upon sanction by the Calcutta High Court.
Separately, Tata Steel during market hours today, 18 September 2015 said that the company as part of its portfolio restructuring has today, 18 September 2015, sold 3.85 crore shares of Tata Motors to institutional investors over the stock exchange for a total consideration of Rs 1250.69 crore.
Tata Steel has also proposed 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.
As on 30 June 2015, Tata Steel held 5.54% stake in Tata Motors. Tata Sons held 25.67% stake in Tata Motors.
IT stocks edged higher. Tech Mahindra (up 2.73%), Wipro (up 2.24%), MindTree (up 1.97%) and Oracle Financial Services Software (up 0.27%) gained.
TCS declined 0.05% at Rs 2,550. 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.
Infosys rose 0.56% at Rs 1,107.65. 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 1.2% at Rs 949.75. 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.
Bank stocks gained. Among PSU banks, Union Bank of India (up 3.27%), Andhra Bank (up 5.53%), Canara Bank (up 3.59%), Bank of Baroda (up 3.94%), IDBI Bank (up 4.83%), State Bank of India (up 1.9%), Syndicate Bank (up 1.62%), Bank of India (up 1.01%), Punjab National Bank (up 1.5%) and United Bank of India (up 1.19%) edged higher. Corporation Bank (down 5.09%) and Vijaya Bank (down 1.69%) edged lower.
Among private sector banks, Axis Bank (up 5.14%), ICICI Bank (up 0.99%), HDFC Bank (up 2.29%), IndusInd Bank (up 2.15%), Yes Bank (up 1.87%) and Kotak Mahindra Bank (up 3.76%) edged higher.
Index heavyweight and housing finance firm HDFC rose 0.3% at Rs 1,200.
Index heavyweight Reliance Industries (RIL) rose 2.64% at Rs 895.10.
Key indices gained for the second straight trading session today, 18 September 2015. The Sensex has risen 512.98 points or 1.99% in preceding two trading sessions from a recent low of 25,705.93 on 15 September 2015. The Sensex has lost 64.18 points or 0.24% in this month so far (till 18 September 2015). The Sensex has fallen 1,280.51 points or 4.65% in this calendar year so far (till 18 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,385.37 points or 5.57%. The Sensex is off 3,805.83 points or 12.67% from a record high of 30,024.74 hit on 4 March 2015.
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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