Broad market shows strength

A range bound movement was witnessed as key indices moved near the flat line in afternoon trade. The broad market showed strength, with more than two gainers for every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 44.05 points or 0.17% at 26,670.37. The BSE Mid-Cap index was up 1.16%. The BSE Small-Cap index was up 1.74%. Both these indices outperformed the Sensex. Asian and European stocks were in red.

Most bank shares were trading lower. Cipla rose after the company said it aims to build a strong presence in Kenya. NTPC edged lower after signing a syndicated term loan facility of $250 million arranged by Mizuho Bank, Singapore Branch. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1133.64 crore during the previous trading session on Friday, 26 September 2014, as per provisional data.

Key indices have moved in a narrow range in positive zone so far during the day after seeing initial volatility.

Meanwhile, Prime Minister Narendra Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.

In overseas market, European stocks edged lower in early trade as investors awaited data on American personal spending and income, as well as pending home sales, to gauge the timing of any Federal Reserve interest-rate increases. Hong Kong led decline in Asian stocks after clashes between police and pro-democracy protesters in the Chinese city.

In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates in the world’s biggest economy.

Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar.

At 13:15 IST, the S&P BSE Sensex was up 44.05 points or 0.17% at 26,670.37. The index rose 82.83 points at the day’s high of 26,709.15 in morning trade. The index lost 86.63 points at the day’s low of 26,539.69 in early trade.

The CNX Nifty was up 9.70 points or 0.12% at 7,978.55. The index hit a high of 7,987.60 in intraday trade. The index hit a low of 7,937.80 in intraday trade.

The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 1,850 shares rose and 820 shares fell. A total of 82 shares were unchanged.

The BSE Mid-Cap index was up 109.35 points or 1.16% at 9,530.75. The BSE Small-Cap index was up 182.49 points or 1.74% at 10,693.48. Both these indices outperformed the Sensex.

Among the 30 Sensex shares, 19 fell and the remaining shares rose.

NTPC fell 0.25% to Rs 139. The company announced during trading hours today, 29 September 2014, that it has signed a syndicated term loan facility of $250 million arranged by Mizuho Bank, Singapore Branch. The loan carries a floating rate of interest linked to LIBOR and has a door to door maturity of 7 years. The proceeds of the facility will be utilized to finance capital expenditure on the company’s ongoing and new projects and renovation and modernization of stations.

Cipla rose 1.23% to Rs 619. The company announced during trading hours today, 29 September 2014, that it aims to build a strong presence in Kenya. In line with its global strategy, Cipla continues to retain ownership of its marketing authorisations and trademarks for its products in Kenya and will continue to invest further in developing the Kenya market. The products will be brought to Kenyan patients in partnership with Surgipharm, the company said in a statement. Over the years, Cipla has been working with various partners in Kenya and has been supplying a basket of products across various key therapies – anti-HIV, anti-malarial, anti-asthma, gastroenterology, anti-infectives, cardiovascular and oncology among others, Cipla said.

Zee Entertainment Enterprises fell 0.13% to Rs 301.90. The company announced during trading hours today, 29 September 2014, that its board has allotted 2.22 crore 6% non-cumulative redeemable non-convertible preference shares (Class A) of Re 1 each fully paid to the equity shareholders of Diligent Media Corporation (DMCL) as at the effective date i.e. 26 September 2014. The allotment was pursuant to the demerger of media business undertaking of DMCL and vesting it with the company from the appointed date i.e. 31 March 2014. Further the company has informed that, as per the terms of issuance, the preference shares allotted in pursuance of the said scheme are not proposed to be listed on any stock exchanges.

Most bank shares were trading lower. Among public sector banks, Union Bank of India (down 2.36%), Bank of India (down 2.25%), Punjab National Bank (down 1.09%) and Canara Bank (down 1.04%), edged lower. State Bank of India was up 0.43%.

Bank of Baroda rose 0.58% after the bank said that its board of directors at a meeting held on Saturday, 27 September 2014, accorded its in-principle nod for 5-for-1 stock split, subject to necessary approvals.

Among private sector banks, Kotak Mahindra Bank (down 1.4%), Yes Bank (down 0.82%), ICICI Bank (down 0.66%), Axis Bank (down 0.55%), HDFC Bank (down 0.49%), Federal Bank (down 0.32%) and IndusInd Bank (down 0.16%), edged lower.

In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar after US economic data bolstered the outlook for higher interest rates in the world’s biggest economy. The partially convertible rupee was hovering at 61.44, compared with its close of 61.15 during the previous trading session. An increase in borrowing costs by the Fed could reduce the allure of emerging-market assets.

Brent crude oil prices edged lower due to weak data from major buyer China and a stronger US dollar. Brent for November settlement was down 50 cents at $96.50 a barrel. The contract had settled unchanged at $97 a barrel on Friday, 26 September 2014.

Prime Minister, Narendra Modi, while addressing to Indian Community at Madison Square Garden, New York on Sunday, 28 September 2014, exhorted Indians to join in the development effort as a mass movement. The Prime Minister unveiled a series of facilitation initiatives aimed at making travel from America to India easier. He said one of his key initiatives was to remove redundant laws, and he would be happy if he could do so at a pace of one a day.

Modi will hold talks with US President Barack Obama at the White House tomorrow, 30 September 2014. Modi is on a five-day visit to US.

The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged after its fourth bi-monthly monetary policy review tomorrow, 30 September 2014. The central bank may reduce the statutory liquidity ratio (SLR) — the portion of deposits that banks are required to keep in government bonds — to support credit demand as the economy recovers from two years of tepid growth. The central bank’s policy stance after the review could provide cues on the direction of interest rates in the coming months. The central bank is targeting consumer price inflation at 8% by end January 2015 and 6% by end January 2016.

European stocks edged lower in early trade today, 29 September 2014, as investors awaited data on American personal spending and income, as well as pending home sales, to gauge the timing of any Federal Reserve interest-rate increases. Key benchmark indices in UK, France and Germany were off 0.06% to 0.16%.

Asian stocks declined today, 29 September 2014, after clashes between police and pro-democracy protesters in the Chinese city. Key benchmark indices in Singapore, Hong Kong, South Korea and Taiwan were off 0.04% to 1.93%. Key benchmark indices in Japan and China were up 0.43% to 0.50%.

The Hong Kong government reportedly said today, 29 September 2014, that it has withdrawn riot police from city streets after pro-democracy protests began to calm down. Hong Kong police used pepper spray, tear gas and baton charges in an attempt to disperse thousands of pro-democracy protesters in the centre of the global financial hub at the weekend, reports said.

Chinese industrial profits fell 0.6% in August from a year earlier, reversing from July’s 13.5% rise, the government said on Saturday, 27 September 2014, adding to problems such as unsteady exports, a housing downturn and cooling investment growth in the world’s second largest economy.

Trading in US index futures indicated that the Dow could fall 53 points at the opening bell on Monday, 29 September 2014. US stocks closed higher on Friday, 26 September 2014, after a read on second-quarter GDP showed that the economy grew at its fastest pace in 2-1/2 years. The US government on Friday raised the estimate of US Q2 June 2014 GDP growth rate to 4.6% from 4.2% reported earlier.