Post Session: Quick Review

After taking a breather in previous trading session, local equity markets resumed their northbound journey, ending higher with gains of half a percent, which took both Sensex and Nifty above psychologically crucial 26,850 and 8,000 levels respectively on Tuesday. Meanwhile, broader indices also participating into the rally went home with gains in the range of 0.10%-0.75%. Sentiments got a lift from 'World Bank’s twice yearly report on the Indian economy and its prospects' which pegged India’s economic growth rate at 5.6% in 2014-15, followed by further acceleration to 6.4% and 7.0% in the next two financial years respectively. However, prevailing caution ahead of F&O expiry and outcome of Fed’s two day meeting, which kept Asian peers on tenterhooks, limited further gains of local equities.

On the global front, Asia pacific shares ended mixed as investors looked ahead to this week's meeting of the U.S. Federal Reserve, for signs about a possible timeline for interest rate hikes. The Fed is winding down its $4 trillion bond-buying program, known as quantitative easing, which has been fanning concern about whether the U.S. economy is strong enough to sustain growth without that support. Meanwhile, European shares rose in early trade on Tuesday, reversing the previous session's dip as better-than-expected results from a number of blue-chips including pharma group Novartis and bank UBS helped lift sentiment.

Closer home, most of the sectoral indices on BSE concluded into positive territory, nevertheless, top gainers were the stocks from Healthcare, Power and Consumer Durables counters. Additionally, banking stocks also were in demand on rising hopes of an earlier-than-expected cut in interest rates by RBI after Finance Minister Arun Jaitley favoured interest rate cut. Meanwhile, state-run banks edged higher after reports suggested of government plans to draw up a new process to appoint top officials at lenders. Moreover, gains of healthcare counter were led by Generic drugmaker Ranbaxy Laboratories, which is in the process of being acquired by larger rival Sun Pharmaceutical Industries, reported a profit in its second quarter. Ranbaxy Lab, on consolidated basis, posted a net profit after taxes and minority interest of Rs 477.76 crore for the quarter as against a net loss of Rs 454.17 crore in the September quarter of previous fiscal. On the flip side, stocks from Oil & Gas, FMCG and Metal counters were among the weak links of trade. The market breadth on the BSE remained in the favour of advances; where advancing and declining stocks were in a ratio of 1510:1366, while 111 scrips remained unchanged. (Provisional)

The BSE Sensex ended higher at 26880.82, up by 127.92 points or 0.48% after trading in a range of 26764.15 and 26907.14. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.09%, while Small cap index up by 0.76%. (Provisional)

The gaining sectoral indices on the BSE were Healthcare up by 1.46%, Power up by 0.96%, Consumer Durables up by 0.75%, PSU up by 0.68% and Bankex up by 0.66%, while Oil & Gas down by 0.23%, FMCG down by 0.12% and Metal down by 0.03% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 4.64%, Cipla up by 3.31%, SBI up by 2.67%, Tata Power up by 2.60% and GAIL India up by 1.96%. On the flip side, Hero MotoCorp down by 1.58%, Bharti Airtel down by 1.23%, Dr. Reddys Lab down by 0.82%, Reliance Industries down by 0.82% and Hindustan Unilever down by 0.82% were the top losers. (Provisional)

Meanwhile, after the high profile arrest in August, the government scrapped the selection of six public sector banks’ chairman and managing directors (CMDs) during UPA regime following a high-level panel detected irregularities in the process followed for selection. Earlier, the probe into the selection process for banks like Bank of Baroda and Canara Bank followed arrest and termination of Syndicate Bank CMD S K Jain for alleged graft. Jain was arrested in August by the Central Bureau of Investigation (CBI) on charges of taking bribes to sanction a loan to Bhushan Steel, as also of enhancing the credit limits of some other companies in violation of procedures.

However, with the latest development, Finance Secretary decided that all future vacancies of chairman and managing directors (CMDs) as well as executive directors of PSU banks will now be filled through a new selection process.

Earlier, a panel headed by RBI Governor and including Financial Services Secretary, during the previous UPA regime had shortlisted Chairman and Managing Directors for Bank of Baroda, Canara Bank, Indian Overseas Bank (IOB), Oriental Bank of Commerce (OBC), United Bank and Vijaya Bank. The selection made by RBI panel was sent to the Finance Ministry for ratification by the Appointments Committee of the Cabinet (ACC).

However, Modi led government scrapped the entire selection process, filled up these vacancies as well as two others, including Syndicate Bank, through fresh selection process involving RBI Governor or his nominee, post the report of new Committee, which was set up by following the arrest of Jain and comprising of Expenditure Secretary, RBI Governor and Secretary School Education to examine the selections to six PSBs, submitted its reports detecting irregularities in the process.

India VIX, a gauge for markets short term expectation of volatility dropped 1.42% at 13.32 from its previous close of 13.51 on Monday. (Provisional)

The CNX Nifty ended higher at 8027.60, up by 35.90 points or 0.45% after trading in a range of 7995.05 and 8037.80. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sun Pharma up by 4.15%, Cipla up by 2.87%, Tata Power up by 2.37%, BPCL up by 2.29% and SBI up by 2.27%. On the flip side, Lupin down by 2.56%, Bharti Airtel down by 1.65%, Hero MotoCorp down by 1.55%, Jindal Steel & Power down by 1.31% and PNB down by 1.17% were the top losers. (Provisional)

European Markets were trading in the green; UK’s FTSE 100 was up 0.47%, France’s CAC was up by 0.48% and Germany’s DAX was up by 1.48%.

Asian markets ended mixed on Tuesday, with Japanese stocks closing in red as investors awaited central bank policy decisions. The BOJ will consider moderating its language on inflation in a report this week to take account of the impact of lower oil prices. The street expects that the bank will keep monetary policy unchanged at a meeting on October 31. It is also set to announce its semi-annual outlook on the economy and prices the same day. Singapore landlords are tapping the fourth-lowest local borrowing costs in Asia to fund record overseas purchases of hotels, office blocks and luxury apartments as property prices fall at home. Japanese retail sales growth accelerated for the third straight month in September in an encouraging sign that consumer spending could be strong enough to absorb a second sales tax increase scheduled for next year. The retail sales rose to a seasonally adjusted annual rate of 2.3%, from 1.2% in the preceding month. South Korean Consumer Confidence fell to 105, from 107 in the preceding month.