Benchmark share indices ended marginally higher, amid a volatile trading session, following the expiry of September derivative contracts. Meanwhile, expectation that the Reserve Bank of India (RBI) might go in for another rate-cut, its fourth for the year, at its policy meet next week also aided sentiment.
The Sensex closed up by 40 points at 25,863 and the Nifty gained 22 points to end at 7,868
The broader the BSE MidCap and Small Cap indices were up 0.2-0.6% each. Market breadth was strong with 1,442 gainers and 1,245 losers on the BSE.
The markets will be closed tomorrow on account of Bakri-id.
SEPT F&O EXPIRY
Nifty future has seen Rollover of around 59% from September to October series, rollover are comparatively low from averages which indicates that bulls and bears both have not taken their position aggressively as market stuck in a broader range and yet not given any decisive sign of movement on either side even after making a short term bottom near to 7550 zones.
According to Chandan Taparia, Derivative Analyst, Anand Rathi, “Index had consolidated in the September series with the volatile swing, it also made a panic bottom near to 7550 zones but failed to surpass crucial hurdle of 8050 zones and stuck in between the trading range. Now it has to hold above 7850 zone to witness an up move towards its strong supply zone of 8050-8090 mark and holding above the same only would change the immediate negative trend to start a fresh leg of rally in the market. While on the downside immediate support exist at around 7770 and 7665 zones. Participants would keenly watch on the announcement of RBI policy and which may decide the next market trend.”
According to Sanjeev Zarbade, Vice President, Private Client Group Research, Kotak Securities.“Global equity markets have been largely negative during the week. In a truncated week, the Sensex closed in the red. China released its Caixin PMI data which signaled level of weakness not seen in past six years.
He further added, “President Xi’s comments that China is not contemplating further devaluation gave some relief to investors as they pondered over the extent of slowdown in the country. Going into the next week, the RBI meet on Sep 29 is an important event.”
The Indian currency extended its slide for the fourth consecutive session on the back of sustained month-end demand for the greenback overseas. The rupee is quoting at 66.11, weaker by 11 paise.
Brent crude prices inched closer to $50/barrel on the back of a mixed US stockpiles report.
World shares fell for the fifth day running on Thursday, sliding back towards two-year lows on growing unease about global growth, while emerging markets continued to gnaw at investor confidence.
Japan’s Nikkei ended down by 2.8% while Shanghai Composite showed strength by ending at 0.9% up. Hang Seng also closed down by 0.8%
In European equities, major indices are trading down by 0.5-1.5% each.
SECTORS & STOCKS
Sectorally, BSE IT and Consumer Durables indices rallied around 2% while BSE Metal and Capital Goods indices took a hit and ended 1.1% down each.
On the back of a weak rupee, shares of information technology companies gained significantly across the bourses. Infosys, TCS and Wipro gained between 0.8-2.3% each.
Credit ratings agency ICRA has downgraded L&T Halol Shamlaji Tollways, a special purpose vehicle promoted by L&T Infrastructure Development, from BB++ to ICRA D. L&T ended 2.2% down.
Bajaj Auto has secured the certification from Europe to export its RE60 to those countries. Bajaj Auto finished up by nearly 2%
After credit ratings agency Credit Suisse upgraded Lupin’s ratings to ‘outperform’ from ‘neutral’ the stock gained 3.5%
Maruti Suzuki announced that the sales of its vehicles equipped with auto gear shift (AGS) have crossed 50,000 units. AGS vehicles are popular across the country particularly in metros like Delhi NCR, Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad and Kochi. The stock ended with 1.5% gains.
Vedanta announced that it slashed nearly 4,000 direct and indirect jobs since January 2015. The stock lost over 2% intra-day but recovered in late trades to end at 0.6% gains
Reliance Industries slipped 1.6% after the Supreme Court on Tuesday dismissed the petition of the central government, seeking removal of arbitrator Peter Lever in its dispute with Reliance Industries Ltd in the Panna-Mukta-Tapti basin
NTPC has pre-closed its Rs 700 crore public issue of tax-free bonds as it was oversubscribed by 11.04 times on the opening day yesterday. The stock gained 0.5%