A toy bull figurine sits on a financial trader’s desk (Photographer: Martin Leissl/Bloomberg) 

Sensex Gains Most In 3-Weeks, Nifty Above 8,850 On Fed Status Quo; IT Drops On Strong Rupee

Closing Bell

Indian shares gained most in three-weeks after U.S. Federal Reserve held back on an interest rate hike triggering a global equity market rally.

The S&P BSE Sensex climbed 0.9 percent to 28,773; while the NSE Nifty advanced 1 percent to 8,867, its biggest-single day jump since September 6. The market breadth was skewed in favour of the bulls at 1,050 advances, 548 declines and 267 stocks remaining unchanged.

The mid- and smallcaps outperformed their larger counterparts. According to Hemen Kapadia, senior vice president (institutional equity) at KR Choksey Securities, it is more of a scrip-specific market.

“Some of the largecaps have moved up ahead of the fundamentals, which par for the course in a bull market. However, it is also true that these same stocks will fall the hardest if we see a correction going forward,” he told BloombergQuint by phone.

The S&P BSE Information Technology index was the sole loser among the 19 sectoral gauges on the exchange. The rupee climbed the most in two weeks, adding to the woes of the software services providers already facing client uncertainty.

The picture still looks quite dicey for the IT names, said Kapadia though adding the downside seems limited from a short to medium-term perspective. “We could see a sympathy rally coming in,” he said.

All said and done, Kapadia advises investors to “do their own research” before buying any stock or to invest in equities through SIPs. More importantly, he said stay away from leveraged products like futures and options.“There is nothing wrong with the market but a lot of it is fuelled by the quantitative easing and the money printing across the globe,” he said.

Sebi May Allow FPIs to Directly Trade in Capital Markets

With an aim to make it easier for overseas investors, regulator Sebi is considering allowing some categories of Foreign Portfolio Investors (FPIs) to directly trade in Indian markets, starting with debt segment.

Besides, the markets regulator plans asking companies to seek minority shareholders’ approval before granting special powers relating to operations of the firms to non-promoters such as private equity investors.

(From PTI)

Sadbhav Infrastructure Jumps 16%

Shares of the infra firm gained as much as 16.1 percent to Rs 118. Earlier, its NCDs worth Rs 300 crore were assigned ‘CARE A+’ rating by CARE Ratings.

This is the biggest one-day jump for the stock since making its debt on September 16.

Opening Bell

Indian shares made a gap up opening after the U.S. Federal Reserve refrained from raising interest rates, removing at least for six weeks an obstacle for equities that rekindled volatility this month.

The S&P BSE Sensex jumped as much as 1.1 percent to 28,871; while the NSE Nifty climbed 1.1 percent as well to 8,893. The market breadth was firmly in favour of the bulls at 1245 advances, 200 declines and 404 stocks remaining unchanged on the NSE.

Market Movers: ICICI Bank, Mahindra & Mahindra, Indian Oil and More

Stocks to Watch

  • Godrej Properties: Adds a new residential project in Bengaluru of approximately 92,900 sq.mt.
  • InterGlobe Aviation: Biggest Airbus A320neo Buyer IndiGo Switches to 20 Larger A321s
  • Union Bank of India: Acquires 49 percent stake in Union KBC Asset Management Company Pvt. Ltd. and Union KBC Trustee Company Pvt. Ltd.
  • Syngene: Closes deal with Strand Life Sciences to Purchase Systems Biology and Pharma Services Practice.
  • INOX Leisure: Gets RBI approval for increasing RFPI stake to 49 percent from current 24 percent.
  • New futures contracts for IDFC Bank, DCB, Torrent Power (NSE)
  • Nestle: To launch premium chocolates to challenge Ferrero and Mondelez. (Economic Times)
  • Jet Airways: Plans to resume U.S. flights, stopped since March (Business Standard)
  • Tata Motors: Jaguar Land Rover (JLR) launched all new Jaguar XF priced between Rs 49.50-62.10 lakh (PTI)

For a complete list of stocks to watch, click HERE

IPO Watch

  • HPL Electric to sell shares at Rs 175-202 each in IPO starting today, closes on September 26
  • ICICI Bank’s offer for ICICI Prudential IPO gets 10.5 times demand for shares offered

Events/Data to Watch

  • 9:30am: Finance Minister at BRICS seminar in New Delhi
  • 10am: IT Minister at medical electronics summit in Mumbai
  • 2pm: Farm Minister to release first advance estimate in New Delhi

Talking Points

  • Pakistan High Commissioner to India summoned over Uri attack
  • India current account unexpectedly in deficit in blow to rupee

*April-June current-account gap $0.3 billion; estimate $2.7 billion surplus

  • India seeks rating upgrade by Moody’s: Official
  • India approves 3 FDI proposals based on August 30 FIPB clearance
  • India 2016-17 cooking oil imports estimate 15.48 million tonne: GGN Res
  • India looking to fill 50 percent of Mangalore SPR on commercial basis
  • Billionaire Anil Ambani’s Aircel merger math fails to woo bondholders (Read Why HERE)
  • Vodafone likely to convert its $3 billion loan to equity soon (ET Now)
  • Blackstone buys South India mall for Rs 450 crore (Business Standard)
  • India’s BSNL plans better offers than Reliance Jio (Times of India)
  • Walmart plans India food retail foray after FDI rule change (Financial Express)
  • Global funds buy Rs 184 crore of local stocks; domestic funds sell Rs 231 crore yesterday: Provisional data

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, climbed 0.8 percent to 8,880.

U.S. shares rallied Wednesday after the Federal Reserve kept interest rates steady despite the economy showed signs of improving, removing at least for six weeks an obstacle for equities that rekindled volatility this month.

While agreeing that the case for a rate rise had strengthened, Yellen argued that it made sense to put off a move for now amid signs that discouraged Americans who dropped out of the labour market are returning and looking for work.

The latest from the Fed came after the Bank of Japan adjustments on Wednesday that give it scope to keep loosening policy to revive the economy and inflation, while limiting the negative impact on bank earnings. Based on fed funds futures trading, odds for rate increase in December were 59 percent, unchanged from levels before the FOMC’s statement.

This morning Asian stocks rallied for a sixth day, following the Fed’s decision on rates, while crude oil gained due to an unexpected slide in U.S. stockpiles. Markets in Japan are shut on account of a holiday.

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