Mid-Session: Sensex, Nifty inch up post RBI policy; rate sensitive stocks up Analysis for Sep 29, 2015

Posted By: Religare
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The Indian equities rebounded smartly, from early morning's steep losses, in the late morning deals on Tuesday after the Reserve Bank of India surprisingly cut interest rates, paving the way for relaxed norms for home loan seekers. However, the upmove were capped by sharp fall in Asian market as concerns over the China deepened before the start of the week-long trading holiday in mainland China.

At 12:20 hours, the BSE SENSEX was trading at 25626.1, up by 9.26 points or by 0.04 per cent, and the NSE Nifty was quoting 10.8 points lower at 7784.9.

In the choppy trade so far, the BSE Sensex touched an intraday high of 25703.38 and intraday low of 25287.33, while the NSE Nifty touched high and low of 7817.75 and 7691.2, respectively.

In a partial blow to market, the central bank cut the GDP forecast to 7.4 per cent for the current fiscal to 7.6 per cent while projecting retail inflation at 5.8 per cent for January. However, weakness the Asian markets restricted gains in the domestic markets.

On the sectoral front, rate sensitive realty and bankex indices emerged as top gainers, adding 0.61 per cent and 0.37 per cent, respectively.

Leading the rally on the D-Street were Mahindra & Mahindra Ltd. (Rs. 1250.40,+2.37%), Housing Development Finance Corporation Ltd. (Rs. 1190.75,+1.52%), State Bank of India (Rs. 242.25,+1.13%), Bharat Heavy Electricals Ltd. (Rs. 196.80,+0.90%), Coal India Ltd. (Rs. 312.40,+0.89%), among others.

However, some selling were witnessed in blue chip stocks, such as Vedanta Ltd. (Rs. 86.30,-5.37%), Tata Steel Ltd. (Rs. 201.90,-3.60%), Hindalco Industries Ltd. (Rs. 68.30,-3.33%), Dr. Reddy's Laboratories Ltd. (Rs. 4053.90,-3.29%), Bharti Airtel Ltd. (Rs. 319.80,-2.31%), among others.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2302, shares advanced were 913 while 1284 shares declined and 105 were unchanged.

On the global front, the Asian equities were bleeding in red as concerns over the China deepened before the start of the week-long trading holiday in mainland China. China"s industrial profits shrank the most in at least four years, down 8.8 per cent, year on year in August 2015 while Thursday"s manufacturing data is set to show a contraction. China"s Shanghai Composite slid over 1.9 per cent, Hang Seng tumbled over 3 per cent as it re-opened following Monday"s holiday and Japan"s Nikkei 225 shed 1.4per cent as a stronger yen curbed the appeal of exporter stocks.

Story first published: Tuesday, September 29, 2015, 13:12 [IST]
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