The BSE Sensex and NSE Nifty rallied on Friday on expectations the Reserve Bank of India (RBI) will have scope to cut its key lending rate later this month after the US Federal Reserve kept its interest rates unchanged. Nifty closed 82.75 points, or 1.05 per cent, up at 7,981.90. Sensex advanced 254.94 points at 26,218.91.
In the 50-share index, Axis Bank, ONGC, NMDC, Kotak Mahindra Bank and Bank of Baroda gained between 3.90 per cent and 5.20 per cent. On the other hand, Bajaj Auto, Hindalco, Cipla, Tata Motors and ITC declined between 1.5 per cent and 3.30 per cent.
Rate-sensitive stocks remained in focus on Friday on rate cut hopes. CNX Realty index, CNX Auto index and Bank Nifty jumped 2.36 per cent, 0.56 per cent and 2.62 per cent at 171.10, 7,842.55 and 17,409.15, respectively.
Gaurav Jain, director, Hem Securities, said, “Markets shines on US Fed holding rate hike decision with Nifty crossing 8,000 level. Sharp appreciation in rupee and a rate cut by the RBI in its monetary policy next week also boosted the sentiment of the street.”
Dhananjay Sinha, head of research, economist & strategist, Emkay Global Financial Services, said, “The unchanged Fed rate provides scope for RBI to reduce rates which we expect to be lowered by 25 basis points on September 29,2015.”
SKS Microfinance closed 15.55 per cent down at Rs 380.65 on NSE after the company failed to bag the small bank license from the Reserve Bank of India.
Tata Steel on Friday sold 1.33 per cent stake in group firm Tata Motors to institutional investors for Rs 1,250.69 crore. The company said it will also sell similar stake in Tata Motors to its promoter firm Tata Sons for an amount not exceeding Rs 1,250 crore as part of portfolio restructuring. The share price of Tata Motors declined 1.69 per cent to Rs 332.35.
The FIIs were net sellers in the cash market segment on 16 September 2015, Wednesday sold shares worth Rs 337.27 crore. But the DIIs on the other hand were net buyers on 16 September, bought shares worth Rs 423.81 crore in the capital markets segment.
Asian peers, Hang Seng and Shanghai closed 0.30 per cent and 0.38 per cent up at 21,920 and 3,098 while Nikkei closed 1.96 per cent down at 18,070.
The European markets slipped as the decision of the Federal Reserve to hold its interest rates steady fuelled the concerns on the global growth.
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Markets through the day
3.30 pm: Sensex gained 254.94 points at 26,218.91 while Nifty jumped 82.75 points at 7,981.90. The 30-share index opened at 26,130.36 and touched a high and low of 26,471.82 and 26,130.36 in trade.
S&P BSE Sensex
3.15 pm: Sensex was up 248.60 points while Nifty was up 86 points at 7,986. Bank of America-Merrill Lynch in a research report said, “We expect RBI governor Rajan to cut 25 basis points on September 29 and another 25 basis points in February.”
2.39 pm: Infosys shares were trading higher after Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys announced that Qantas Credit Union, a top Australian Credit Union, has chosen Infosys Finacle to improve its customer digital experience, as part of their business transformation strategy. Infosys was trading 0.91 per cent up at Rs 1,111.50 on BSE. Sensex was up 1.23 per cent at 26,283.
2.35 pm: Sensex slid 150 points and Nifty nearly 50 points from their day’s high. Benchmark indices were up over 1.25 per cent in the afternoon trade. Tata Motors, HUL and GAIL were down 2.8 per cent, 1.3 per cent and 1.25 per cent, respectively.
1.56 pm: Sensex was up 459 points at 26,423. The BSE Realty index was up 4.18 per cent at 1350.11. Mahindra Lifespace Developers and HDIL were trading 7.84 per cent and 7.08 per cent higher at Rs 491.95 and Rs 64.30, respectively.
12.51 pm: Jubilant Life Sciences shares were up 2.84 per cent at Rs 339.95 apiece on BSE. The scrip jumped after it informed stock exchanges that it has received Abbreviated New Drug Application (ANDA) final approval from the US Food and Drug Administration (US FDA) for Zolmitriptan Orally Disintegrating Tablets, 2.5 mg and 5 mg, the generic version of Zomig-ZMT® (of Astra Zeneca), which is used for acute treatment of migraine headaches in adults. Sensex was up 436 points at 26400. Nifty was up 135 points at 8,034.
12.28 pm: Rate sensitives banking, auto and realty sectors were trading higher in the afternoon trade. BSE Realty index, BSE Bankex and BSE Auto index were up 4.24 per cent, 3.68 per cent and 1.75 per cent at 1350, 20149 and 17,801. “Fed no action stance opens up space for RBI to cut rates at least by 25 bps on or before Sept 29, 2015 as the big risk of run down on currency is abated while inflation data is very much in favour of rate cuts. On the hopes of rate cut we expect rate sensitive stocks to rally in short term,” said IndiaNivesh Securities in a research note.
Source: BSE
12.11 pm: Sensex climbed 500.79 points at 26,464.76. Nifty was up 154.70 points at 8,053.85. In the 30-share index, Axis Bank, ICICI Bank and State Bank of India were trading 5 per cent, 4.16 per cent and 3.82 per cent higher at Rs 518.65, Rs 284.14 and Rs 245.70, respectively.
11.48 am: Mindtree shares were trading higher after the company announced a strategic partnership with Dubai-based flydubai to shape the full digital experience of the connected traveller. Share price was up 1.53 per cent at Rs 1,398. Sensex was up 470 points at 26,434. Nifty was up 147 points at 8,046.
11.12 am: SKS Microfinance fell over 12 per cent on BSE after the company failed to bag the small bank license from the Reserve Bank of India. The scrip was trading 12.52 per cent down at Rs 393.90. Sensex was up 1.66 per cent at 26,395.
Religare Institutional Research in a research report said, “In a surprise move, the RBI has not granted small bank licenses to any listed microfinance players, including SKS Micorfinance (SKSM). We think conversion of nine microfinance players into banks would change the face of the microfinance industry (MFI), with around 60 per cent of MFI credit shifting to banks (incl. Bandhan). With multiple concerns plaguing the microfinance sector, we restate ‘SELL’ on SKSM, cut our FY16/FY17 earnings by 5-8 per cent and lower our Sep’16 target price to Rs 320 (from Rs 400).”
10.13 am: Sensex jumped 424 points at 26388. State Bank of India, ICICI Bank and Axis Bank were up over 3 per cent.
10.09 am: National Buildings Construction Corporation shares jumped as much as 2.50 per cent in the morning trade after the company said it is foraying into e-commerce business. The scrip was trading 2.24 per cent higher at Rs 940.50. Sensex was up 399.35 points at 26,363.32. Nifty was up 120 points at 8,019.25.
Meanwhile, Economic Affairs Secretary Shaktikanta Das on Friday said that US Fed decision to hold rates gives more room to emerging markets for policy adjustment.
9.48 am: Nifty was up 103 points at 8,002. Tata Motors was down over 2 per cent at Rs 330.35. Tata Steel before market hours today on Friday 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 1,250 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 1,250 crore.
9.38 am: The rupee strengthened by 32 paise to 66.14 against the US dollar in early trade today at the Interbank Foreign Exchange after the American currency tumbled against major world currencies as the Federal Reserve decided again not to increase interest rates. Sensex was up 320 points at 26,284. Nifty was up 93 points at 7,992.
9.21 am: The BSE Midcap and Smallcap index were up 0.99 per cent and 0.88 per cent at 10,657 and 10,779. Sensex was up 321 points at 26,285. Meanwhile, Finance Minister Arun Jaitley said, inflation and deficit are under control and rupee has been more stable than other currencies.
9.19 am: Sensex was up 243 points at 26207 while Nifty was trading 66 points higher at 7965. Axis Bank and State Bank were trading over 2 per cent higher at Rs 507 and Rs 241 in the early trade.
Domestic equity markets opened on a positive note on Friday after the US Federal Reserve decision to leave interest rates unchanged. Sensex opened 166.39 points higher at 26,130.36.
Shares of banking and realty sector opened 1 per cent higher than their previous close. The BSE Bankex and BSE Realty index were up 1.36 per cent and 1.31 per cent at 19,699.70 and 1,312.
Domestic equity markets were closed on Thursday on account of Ganesh Chaturthi. On Wednesday, the BSE Sensex and NSE Nifty gained 1 per cent and 0.89 per cent at 25963.97 and 7899.15.
Global Markets
New York: Major Wall Street indices gave up a 1-per cent rally to end lower on Thursday after the Federal Reserve cited concerns about global economic growth in its decision to hold off on raising interest rates.
London: Britain’s share market on Thursday gave up some of its gains from the previous session, with engineering companies such as Smiths Group and Weir Group falling on concerns about peer Rotork’s outlook.
Tokyo: Japan’s Nikkei snapped a three-day winning streak on Friday after the US Federal Reserve kept interest rates unchanged on worries about the global economy, while investors refrained from taking large positions before long holidays in Japan.
Hong Kong: The Hang Seng index was up 0.31 per cent.