Market Live: Sensex, Nifty open flat as Street awaits cues from RBI MPC meet
Wed Oct 04 2017
Rajesh Sharma (2003 articles)

Market Live: Sensex, Nifty open flat as Street awaits cues from RBI MPC meet

10:21 am Buzzing Stock: Share price of Cyient gained 2.4 percent intraday Wednesday as the company has signed global software licensing agreement with Elpis Squared, a startup software company from Portland.

Cyient and Elpis will jointly pursue utility business opportunities, by leveraging their complementing solutions and technology respectively,” company said in press release.

The partnership will combine Cyient’s data governance management solution – Intelligent Data Management Solution (iDMS) with Elpis’ innovative RE|Grid platform to enhance the role of data in supporting electric utilities’ Advanced Distribution Management System (ADMS) and Asset Management programs, it added.

10:03 am Market Check: Benchmark indices extended gains from the opening tick, with the Nifty inching towards 9900-mark.

The Sensex was up 113.46 points at 31610.84, while the Nifty was up 32.20 points at 9891.70. The market breadth was positive as 1,281 shares advanced against a decline of 608 shares, while 69 shares were unchanged.

Midcaps were trading at high points of the day and outperformed the frontline indices. Energy, FMCG and pharmaceutical stocks gained during the hour.

Sun Pharmaceuticals, Dr Reddy’s Laboratories, HPCL and Indiabulls Housing Finance gained the most, while Bharti Airtel, Tata Motors DVR and Coal India were the top losers.

9:45 am Godrej Agrovet IPO opens: The initial public offering of Godrej Agrovet opened on Wednesday. The company raised a little over Rs 341 crore from anchor investors ahead of its initial public offer on Tuesday.

Over 74.17 lakh shares would be alloted to 25 anchor investors at Rs 460 apiece, which is the upper end of the price band, the company informed stock exchanges.

At this price, the total amount works out to be Rs 341.19 crore.

Reliance Capital Trustee Company, SBI Life Insurance Company, Nomura, Goldman Sachs, Government of Singapore and Birla Sunlife Trustee Company are among the anchor investors.

9:30 am Buzzing Stocks: Shares of major oil marketing companies (OMCs) opened positively in the opening tick on Wednesday after the government reduced the basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 a litre with effect from October 4, 2017.
Hindustan Petroleum Corporation (HPCL) jumped 3.42 percent at opening on Wednesday, while Bharat Petroleum Corporation (BPCL) jumped 1.76 percent. Indian Oil Corporation (IOC) also gained 2.26 percent.

Late on Tuesday, the finance ministry said that the decision was taken in a bid to cushion the impact of the rise in global crude oil prices and to protect the interests of the common man.

“(The) government has reduced the basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 a litre with effect from October 4, 2017. The revenue loss on account of these reductions will be about Rs 26,000 crore in a full year and Rs 13,000 crore in the remaining part of the current financial year,” the finance ministry announced on Twitter.

9:15 am Market Check: Equity benchmark indices opened on a mildly positive note as the Street is seen waiting for the Reserve Bank of India’s MPC meet outcome later in the day.

The Sensex was up 23.25 points at 31520.63, while the Nifty was up 12.45 points at 9871.95. The market breadth was positive as 555 shares advanced against a decline of 186 shares, while 37 shares were unchanged.

Midcaps outperformed the frontline indices, while on the sectoral front, metals took a hit. Positive moves were seen in auto, FMCG and energy stocks.

ITC, Hero MotoCorp, HPCL and IOC were the top gainers, while Bajaj Auto, Tata Motors DVR and Coal India lost the most.

The Indian rupee opened higher by 14 paise at 65.36 per dollar on Wednesday versus previous close 65.50.

Pramit Brahmbhatt of Veracity said, “After consolidation, the rupee will trade with a neutral to negative bias. I expect the USD-INR pair to trade in a range of 65.20-65.80.”

Dollar eased in trade as the rally triggered by strong US data fizzled on speculation that US president Donald Trump’s choice for the next Fed chair may be a less hawkish candidate than previously thought.

In global markets, Asia is set for a mixed trading day on Wednesday, even after US equities closed higher overnight.

In Japan, the Nikkei 225 was up 0.23 percent at 20,662.48 in early trade and the Topix index advanced 0.1 percent.

US stocks closed higher on Tuesday, building on strong gains from their previous session.

The Dow Jones industrial average rose 84.07 points to 22,641.67, setting intraday and closing records, with 3M contributing the most to the gains. The 30-stock index also posted a five-day winning streak.

The S&P 500 finished 0.2 percent higher at 2,534.58 and notched a record close; it also rose for the sixth straight session. Airline stocks Delta and United Continental were the best performers in the S&P, advancing 6.6 percent and 6.1 percent, respectively.
The Nasdaq composite advanced 0.2 percent to close at 6,531.71, and also hit a record high.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.

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