Share market updates and analysis for September 17: Developments on coronavirus front, US Fed policy outcome and Happiest Minds listing will be in focus in Thursday's trade
Indian benchmark indices, Sensex and Nifty, ended higher for the second consecutive session on Wednesday, tracking firm global cues. The 30-scrip BSE benchmark Sensex closed 258 points higher at 39,302 and the NSE Nifty 50 ended at 11,604, up 82 points. On Tuesday, the BSE benchmark Sensex settled 287 points higher at 39,044 and NSE Nifty up 81 points at 11,521.
Among the index heavyweights, Dr Reddy's, M&M, Hindalco, Bajaj Auto, Maruti, L&T, Tata Steel, UltraTech Cement and Nestle India were among top gainers. On the flip side, HCL Tech, Axis Bank, ICICI Bank, Bajaj Finance, and SBI were among top losers. On the sectoral front, all the indices ended in green, barring media and PSU indices, with over 2 per cent gain registered in pharma and realty stocks.
"Benchmark indices ended the day with gains, with most sectoral indices contributing to the gains. However, the continued border tensions and unabated virus infections limited the gains. Global cues were also positive as participants awaited policy statement from US FOMC meeting," said Vinod Nair, Head of Research at Geojit Financial Services.
"Any indication of increased bond-buying will be a positive trigger for the markets. Markets are expected to be in sync with global cues tomorrow. Upsides seem to be limited, considering the lack of fresh domestic triggers for the market," Nair added.
Here's what you need to know before share market opens on September 17.
Happiest Minds Technologies listing
Shares of Happiest Minds Technologies, which completed its initial public offering (IPO) last week, will make its stock market debut on Thursday. The Happiest Minds IPO, has joined the coveted club of most successful public offering since 2008 which crossed a subscription ratio of 100 times, ranking itself as the eighth biggest IPO of the last decade. The IT firm that earns almost 97 per cent of its revenue from digital services opened its share sale on September 7. Price band for the IPO was fixed at Rs 165 to Rs 166 per equity share.
Globally, European markets ended on mixed notes, while the US stocks extended rally for the third straight session on Wednesday. Investors reacted to the US retail sales numbers in August and remained bullish ahead of a policy update from the Federal Reserve due later in the session.
US Fed Policy outcome
Indian stock market will react to US Federal Reserve's view on the economy at its policy announcement. The US central bank is likely to keep the benchmark rate at nearly zero for some time to help businesses recover from the coronavirus pandemic. It may make some announcement related to its bond buying programme to support the market.
Rising coronavirus cases continue to impact stock market. India's coronavirus caseload has surged to 50 lakh with a spike of 90,123 cases in one day. So far, 39,42,361 people have recuperated, pushing the national recovery rate to 78.5 per cent, according to Health Ministry data. As of Wednesday, India's active case count has jumped to 9,95,933, while the death toll has climbed to 82,066.
Analysts bullish stance on equities
A BofA September Global Fund Manager Survey indicates that most fund managers still remain bullish on equities despite strong rally in the market since record low level touched in March. About 58 per cent of respondents believe the market is in a bull-phase, which is much higher compared to 25 per cent who said so in May.
Tracking firm cues from equity market, the Indian rupee settled 12 paise higher at 73.52 against the US dollar on Wednesday. The local currency opened at 75.70 and touched an intra-day high of 73.48 and a low of 73.78 against the greenback.
Stock specific movement
Shares of Tata Group will remain in focus after the Tata Projects won the bid to construct a new Parliament building at a cost of Rs 861.90 crore. The new Parliament building will be constructed close to the existing one under the Central Vista redevelopment project, and it is expected to be completed in 21 months.
Banking stocks will be also eyed as Lok Sabha passed an amendment to the Banking Regulation Act to bring cooperative banks under the supervision of the RBI. Urban cooperative banks and multi-state cooperative banks will be brought under the RBI's supervision process applicable to commercial banks.