THE WEEK AHEAD

Q2 results to dictate market trend

Q2 results, global macroeconomic data, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.

Investors will closely watch the ongoing Q2 results of India Inc. UltraTech Cement is scheduled to announce its Q2 September 2016 results on Monday, 17 October 2016. ACC will announce its Q3 September 2016 results on Friday, 21 October 2016. 

Hindustan Zinc unveils its Q2 September 2016 results on Wednesday, 19 October 2016. Reliance Industries and Yes Bank will declare its Q2 September 2016 results on Thursday, 20 October 2016. Wipro, HCL Technologies and Cairn India will announce its Q2 September 2016 results on Friday, 21 October 2016.

PSU OMCs will be in focus as these companies will undertake fuel price revision during the middle of this month. PSU OMCs undertake fuel price review during the middle and at the end of every month based on the trend in international oil market in the previous fortnight.

On the global front, the United States Industrial Production data for September will be declared on Monday, 17 October 2016. Industrial Production in the United States decreased by 1.1% on the year in August 2016, following an upwardly revised 0.6% drop in the previous month. On Wednesday, 19 October 2016, China will report third-quarter GDP data. National Bureau of Statistics is scheduled to report industrial production and retail sales for September on the same day. The Chinese economy advanced an annual 6.7% in the second quarter of 2016, the same pace as in the previous quarter. The Bank of England publishes a monthly report of its agents' summary of business conditions, providing insight into investment and hiring plans as well as consumer spending on the same day.

On Thursday, 20 October 2016, the European Central Bank's Governing Council meets to review interest rates and stimulus programs. The ECB left its benchmark refinancing rate unchanged at 0% for the fifth straight time in September, as widely expected. Policymakers reiterated they expect the key ECB interest rates to remain at present or lower levels for an extended period of time and confirmed that the monthly asset purchases of €80 billion are intended to run until the end of March 2017, or beyond, if necessary.

Meanwhile, the third and last US presidential debate of 2016 between Democrat Hillary Clinton and Republican Donald Trump takes place in Las Vegas at the University of Nevada on Wednesday, 19 October 2016.

THE WEEK THAT WAS

Market declines on negative global cues

Key benchmark indices dropped in the week ended Friday, 14 October 2016 weighed by weak global cues. The barometer index, the S&P BSE Sensex, dropped below the psychologically important 28,000 level during the week. Key indices edged lower in one out of three trading sessions during the truncated trading week ended Friday, 14 October 2016.

In the week ended Friday, 14 October 2016, the Sensex fell 387.54 points or 1.38% to settle at 27,673.60. The Nifty 50 index fell 114.20 points or 1.31% to settle at 8,583.40. The BSE Mid-Cap index lost 123 points or 0.91% to settle at 13,419.62. The BSE Small-Cap index fell 45.64 points or 0.35% to settle at 13,176.76. The fall in both these indices was lower than the Sensex's decline in percentage terms.

Trading for the week began on a positive note as the key benchmark indices eked out small gains on Monday, 10 October 2016 ahead of a two-day holiday. The Sensex rose 21.20 points or 0.08% to settle at 28,082.34, its highest closing level since 6 October 2016.

The stock market remained closed on Tuesday, 11 October 2016, on account of Dussehra. The market also remained closed on Wednesday, 12 October 2016, on account of Muharram.

Key benchmark indices suffered sharp losses on Thursday, 13 October 2016 on subdued index of industrial production (IIP) data for August 2016 and weak global stocks. The Sensex lost 439.23 points or 1.56% to settle at 27,643.11, its lowest closing level since 11 July 2016.

Key benchmark indices ended the volatile trading session with small gains on Friday, 14 October 2016. The Sensex rose 30.49 points or 0.11% to settle at 27,673.60, its highest closing level since 10 October 2016.

Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose in the week ended Friday, 14 October 2016.

ONGC (up 3.31%), Cipla (up 2.96%) and Asian Paints (up 1.88%) edged higher from the Sensex pack.

Adani Ports and Special Economic Zone (down 4.72%), Bharti Airtel (down 4.47%) and Reliance Industries (down 2.86%) edged lower from the Sensex pack.

Infosys rose 1.46% to Rs 1,027.40. Infosys' consolidated net profit rose 4.9% to Rs 3606 crore on 3.1% growth in revenue to Rs 17310 crore in Q2 September 2016 over Q1 June 2016. The results are as per International Financial Reporting Standards (IFRS). The result was announced during market hours on Friday, 14 October 2016. In constant currency terms, the company now expects revenue to grow by 8% to 9% for the year ending 31 March 2017 (FY 2017). The company had forecast 10.5%-12% growth in revenue for FY 2017 in constant currency terms at the time of announcing Q1 June 2016 results on 15 July 2016. The company had at the beginning of FY 2017 estimated its revenue growth at 11.5-13.5%.

IT major TCS shed 0.1% to Rs 2,365.90. The company reported a 4.3% growth in its consolidated net profit at Rs 6586 crore on 0.1% decline in revenue to Rs 29284 crore in Q2 September 2016 over Q1 June 2016. The result was announced after market hours on Thursday, 13 October 2016. Commenting on the company's Q2 performance, CEO and MD, N Chandrasekaran said it has been an unusual Q2 for TCS. Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in discretionary spending this quarter, he said. In addition, volatility in markets like India and Latin America also muted revenue growth, he said. It has been a good quarter from a profitability perspective where despite multiple headwinds the company's disciplined approach and focus on operations has helped it deliver a strong margin performance, Chandrasekaran said.

Hindustan Unilever (HUL) dropped 4.14%. The company's parent, Unilever Plc reported a disappointing revenue growth in Q3. Unilever posted an underlying sales growth of 3.2% in Q3 September 2016 over Q3 September 2015. Volumes declined 0.4% during this period. Sales increased by 3.4% at constant exchange rates while turnover, which is at current rates, declined 0.1% in Q3 September 2016 over Q3 September 2015. Consumer demand remained weak and in the markets in which Unilever operates volumes have slowed further and are flat in aggregate, the company said. This is particularly the case in Latin America where currency devaluation has pushed up the cost of living of its consumers, squeezing disposable incomes, it added. Unilever holds 58.32% stake in Hindustan Unilever (HUL) as per the shareholding pattern as on 30 September 2016.

Engineering and construction major Larsen & Toubro (L&T) rose 1.21%. The company said its construction division has secured a major order worth Rs 3799 crore from the Dedicated Freight Corridor Corporation of India. The latest order has been secured by a consortium of L&T and Sojitz Corp, Japan. The announcement was made during market hours on Friday, 14 October 2016.

Banks stocks edged lower. State Bank of India (down 2.46%), Axis Bank (down 2.38%) and HDFC Bank (down 1.29%), edged lower.

ICICI Bank declined 3.49%. The bank announced on Wednesday, 12 October 2016, that it has notified The Bank of New York Mellon (Trustee) that all outstanding 7.25% perpetual non-cumulative subordinated debt securities (Notes) of the bank will be redeemed in full on 31 October 2016 (redemption date) at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest to the redemption date. The amount of accrued and unpaid interest with respect to the Notes to the redemption date will be $36.25 on each $1,000 of Notes. The redemption price including the amount of accrued and unpaid interest with respect to the Notes for all outstanding Notes on the redemption date will be $1036.25 for each $1,000 of Notes. ICICI Bank acting through its Bahrain branch had issued a $340,000,000 7.25% perpetual non-cumulative subordinated debt securities on 24 August 2006 with an optional redemption by the bank on 31 October 2016, or on any subsequent interest payment date.

Shares of Mahindra & Mahindra (M&M) shed 1.22%. SsangYong Motor Company, part of the Mahindra group on Wednesday, 12 October 2016 announced that as a part of its effort to grow in China, the company signed a letter of intent with the Shaanxi Automobile Group for a joint venture that will establish a local production for CBU vehicles. The joint venture, which will become SsangYong's first overseas production base, in a 50/50 partnership with the Shaanxi Automobile Group, will construct production facilities for CBU vehicles and an engine plant. The first phase of construction will establish a plant with an annual capacity of 150,000 units per year by the end of 2019 and the second phase will involve an expansion of the facilities to 300,000 units annually. Further, SsangYong will establish an automotive cluster with its major suppliers that will also enter the market, to ensure product competitiveness, and start the production of SsangYong's current models and models under development, in the second half of 2019.

Tata Motors lost 1.81%. The company announced that it is desirous of offering the fifth series of its rated, listed, unsecured, redeemable, non convertible debentures (NCDs) aggregating to Rs 500 crore and in this regard is holding a meeting of its duly constituted committee of the board of directors on 18 October 2016. The issuance is pursuant to the approval of the shareholders passed vide special resolution at the 71th Annual General Meeting of the company held on 9 August 2016 and the board of directors resolution passed at its meeting held on 26 August 2016. The announcement was made on Wednesday, 12 October 2016.

HDFC lost 6.15%. The company announced that pursuant to the approval of the board of directors of the company at its meetings held previously, the company is contemplating, subject to market conditions, undertaking the fourth issuance of Rupee denominated bonds to overseas investors. The issue size of the bonds will be up to Rs 500 crore. The issue will open on 14 October 2016 and closes on the same day. The pricing and the tenure of the bonds to be issued pursuant to the said issue will be intimated in due course. The announcement was made before market hours on Thursday, 13 October 2016.

India's largest cigarette maker by sales ITC rose 0.27%. The corporate management committee of the company approved divestment of the company's entire shareholding (204 shares of common stock with no par value) in King Maker Marketing Inc, US, a wholly-owned subsidiary, along with assignment of certain trademarks owned by the company. The announcement was made on Sunday, 9 October 2016. The consideration to be received is estimated at around $24 million in terms of the share purchase agreement and subject to regulatory approvals and customary closing conditions, ITC said. The buyer in the transaction is Premier Manufacturing, Inc., USA, it added.

Dr Reddy's Laboratories slipped 0.82%. The company announced its entry into Columbia with its portfolio of high quality and affordable medicines for cancer patients. Ramana, Executive Vice President and Head, Branded Markets, Global Generics, Dr Reddy's Laboratories' (DRL) said that the company's initial focus would be to provide access to affordable cancer medicines to patients through its proven portfolio of oncology products. The announcement was made after market hours on Friday, 7 October 2016.

GAIL (India) rose 3.9%. GAIL (India) on Monday, 10 October 2016, announced that it has received intimation from the Ministry of Petroleum and Natural Gas that the Cabinet Committee on Economic Affairs (CCEA) approved 40% capital grant (limited to Rs 5176 crore) of the estimated capital cost of Rs 12940 crore to GAIL (India) for execution Jagdishpur-Haldia/Bokaro-Dhamra gas pipeline (JHBDPL) project by 2020.
On the economic front, India's industrial production declined 0.7% in August 2016 compared with a revised 2.5% decline in July 2016. The government unveiled the industrial production data for August 2016 after trading hours on Monday, 10 October 2016. Decline in production in metal and manufacturing sector led the decline in industrial production in August 2016. Production of the mining sector declined 5.6% and manufacturing production fell 0.3%. As per use-based classification, capital goods production declined sharply by 22.2% in August 2016. Consumer goods production rose 1.1%.

The all-India general CPI inflation dipped to 13-months low of 4.31% in September 2016, compared with 5.05% in August 2016. The core CPI inflation moved up to 4.77% in September 2016 from 4.59% in August 2016. The data was announced after market hours on Thursday, 13 October 2016.

Meanwhile, data released by the government during market hours on Friday, 14 October 2016 showed that the annual rate of inflation, based on monthly WPI, stood at 3.57% (provisional) in September 2016 compared to 3.74% (provisional) in August 2016 and minus 4.59% in September 2015.

On the global front, China's exports sank 10% year-on-year in September to $184.5 billion, while imports fell 1.9% to $142.5 billion. Meanwhile, minutes from the US Federal Reserve's September meeting raised expectations of a December interest rate hike and weak Chinese trade data for September 2016 weighed on investor sentiment. Meanwhile, China's producer price index edged up 0.1% in September from a year earlier, reversing a 0.8% on-year drop in August, the National Bureau of Statistics said. The number of Americans filing for unemployment benefits held at a 43-year low last week, pointing to sustained labor market strength that could pave the way for the Federal Reserve to raise interest rates in December. Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 246,000 for the week ended 8 October 2016, the lowest reading since November 1973, the Labor Department said.

THE END SESSION ( 06 - 10 - 2016 )

Market drops for second day in a row

Key benchmark indices dropped for the second day in a row today, 6 October 2016, led by losses in index heavyweights ITC and Infosys. The S&P BSE Sensex fell 114.77 points or 0.41% to settle at 28,106.21. The Nifty 50 index shed 34.40 points or 0.39% to settle at 8,709.55. The Sensex and the Nifty, both, hit their lowest closing level in almost a week. After remaining in positive terrain till afternoon trade, key indices slipped into the red following negative cues from European stocks.

The Sensex fell 114.77 points or 0.41% to settle at 28,106.21, its lowest closing level since 30 September 2016. The index shed 189.76 points or 0.67% at the day's low of 28,031.22. The index rose 107.58 points or 0.38% at the day's high of 28,328.56.

The Nifty shed 34.40 points or 0.39% to settle at 8,709.55, its lowest closing level since 30 September 2016. The index lost 59.30 points or 0.68% at the day's low of 8,684.65. The index rose 37.20 points or 0.42% at the day's high of 8,781.15.

Among sectoral indices on BSE, the S&P BSE Industrials index (down 0.47%), the S&P BSE Auto index (down 0.69%), the S&P BSE Power index (down 1.18%), the S&P BSE Healthcare index (down 0.99%), the S&P BSE Realty index (down 1.48%), the S&P BSE Utilities index (down 0.56%), the S&P BSE Basic Materials index (down 0.47%), the S&P BSE Teck index (down 0.78%), the S&P BSE Finance index (down 0.63%), the S&P BSE Bankex (down 0.7%), and the S&P BSE IT index (down 0.87%) underperformed the Sensex. The S&P BSE Consumer Discretionary Goods & Services index (down 0.3%), the S&P BSE Capital Goods index (down 0.18%), the S&P BSE Consumer Durables index (down 0.35%), the S&P BSE Metal index (up 0.07%), the S&P BSE Energy index (up 1.87%), the S&P BSE Oil & Gas index (up 2.64%), the S&P BSE Telecom index (up 0.45%), and the S&P BSE FMCG index (down 0.35%) outperformed the Sensex.

The market breadth indicating the overall health of the market was negative. On BSE, 1,529 shares declined and 1,345 shares rose. A total of 129 shares were unchanged. The BSE Mid-Cap index fell 0.56%. The BSE Small-Cap index dropped 0.48%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3662.48 crore, lower than turnover of Rs 3914.82 crore registered during the previous trading session.

In overseas stock markets, European shares retreated in choppy trade hit by worries that the European Central Bank might wind down the pace of bond-buying before the end of its asset-purchase programme. Asian stocks rose as a healthy US economic report and rising oil prices overnight bolstered investor optimism. Markets in mainland China were closed for a weeklong holiday. US stocks closed with decent gains yesterday, 5 October 2016 on positive economic data. Activity at US service companies expanded in September at the fastest pace in nearly a year, according to a private report. The Institute for Supply Management's services index jumped to 57.1 last month, its highest since October last year, adding to evidence that the world's biggest economy is strengthening and raising expectations the Federal Reserve will soon raise rates from ultralow levels.

Shares of oil production and exploration firms rose as global crude oil prices gained in the previous session. Cairn India (up 2.83%) and Reliance Industries (RIL) (up 2%) gained. Higher crude oil prices would result in increase in realizations from crude sales for oil exploration firms.

ONGC rose 0.73% after the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, yesterday, 5 October 2016 gave its approval to an acquisition by ONGC Videsh (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia). Rosneft operates Vankor fields, with Vankorneft, its wholly owned subsidiary. OVL will be paying an amount of $930 million for acquiring 11% stake in Vankorneft. OVL is an investment arm of ONGC.

The acquisition of stake in Vankorneft will provide 3.2 million metric ton of oil equivalent (MMTOE) to OVL by 2017. It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC's stated objective of adding high quality international assets to India's Exploration and Production (E&P) portfolio and thereby augmenting India's energy security.

Oil India gained 0.34%. An Indian consortium led by Oil India including Indian Oil Corporation (IOCL) and Bharat PetroResources (BPRL), a 100% subsidiary of BPCL, have successfully completed two landmark acquisitions of producing upstream assets in Russia. The consortium acquired 29.9% stake in LLC Taas-Yuryakh Neftegazodobycha (Taas Yuryakh) and 23.9% stake in JSC Vankorneft (Vankorneft) from Rosneft Oil Company, the national oil company of Russia.

Shares of public sector oil marketing companies also spurted. Shares of BPCL surged 3.87%.

Indian Oil Corporation jumped 5.44% after the company fixed 19 October 2016 as the record date for 1:1 bonus issue. The announcement was made after market hours yesterday, 5 October 2016.

Shares of HPCL gained 3.9%.

In the global commodities markets, Brent for December settlement currently unchanged at $51.86 a barrel. The contract had risen 99 cents or 1.94% to settle at $51.86 a barrel during the previous trading session.

Index heavyweight and cigarette major ITC lost 0.87% to Rs 238.20. The stock hit a high of Rs 242 and low of Rs 236.20 in intraday trade.

Index heavyweight and software major Infosys lost 1.39% to Rs 1,026.65. The stock hit high of Rs 1,041.15 and low of Rs 1,025 in intraday trade.

Most realty stocks edged lower. Omaxe (down 2.28%), Godrej Properties (down 0.37%), Housing Development and Infrastructure (down 3.2%), Unitech (down 0.83%), and Parsvnath Developers (down 2.26%) rose. DLF (down 1.7%) and Indiabulls Real Estate (down 5.89%) fell. Oberoi Realty (up 3.34%), D B Realty (up 4.48%), Sobha (up 1.97%), Prestige Estates Projects (up 0.65%) rose.

Bank stocks also declined. Among public sector banks, UCO Bank (down 1.06%), Bank of Baroda (down 2.86%), Syndicate Bank (down 2.36%), Punjab National Bank (down 1.7%), Corporation Bank (down 1.48%), Allahabad Bank (down 3.04%), State Bank of India (SBI) (down 1.42%), Bank of India (down 2.25%), Union Bank of India (down 1.81%), and United Bank of India (down 0.23%) edged lower.

Among private sector banks, Axis Bank (down 0.89%), HDFC Bank (down 0.13%), Federal Bank (down 1.62%), and ICICI Bank (down 1.58%) edged lower. Kotak Mahindra Bank (up 0.08%) and IndusInd Bank (up 0.59%) gained.

RBL Bank rose 2.96% to Rs 304.30 on reports a foreign brokerage has initiated coverage on the stock with a buy rating with a target price of Rs 350. The brokerage reportedly said that RBL Bank is ready for a take-off in growth. The brokerage expects more than 35% compound annual growth rate (CAGR) loan growth for the bank in next 3 years.

Yes Bank rose 0.1%. According to reports, initial investigations by the stock market regulator Securities & Exchange Board of India (Sebi) found that Yes Bank had violated key norms of the listing obligations and disclosure rules (LODR) relating to misrepresentation of facts and adequate disclosure before it proceeded with the qualified institutional placement (QIP) last month. It may be recalled that Yes Bank had announced on 8 September 2016 its decision to defer the earlier planned QIP of shares citing extreme volatility during trading day on 8 September 2016 because of misinterpretation of new QIP guidelines. The bank had on 7 September 2016 announced opening of QIP of equity shares of face value Rs 10 each to raise up to $1 billion. Yes Bank had fixed Rs 1,371.84 per share as the floor price at that time.
Meanwhile, in its clarification issued to the stock exchanges during market hours today, 6 October 2016, Yes Bank said that as a matter of policy, it does not comment on such speculative stories.

Key indices fell for the second day in a row today, 6 October 2016. The Sensex has declined 228.34 points or 0.8% in two sessions, from a close of 28,334.55 on 4 October 2016. The Sensex has risen 240.25 points or 0.86% in October 2016 so far (till 6 October 2016). The Sensex has risen 1,988.67 points or 7.61% in calendar year 2016 so far (till 6 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,611.60 points or 24.94%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 971.07 points or 3.33%. The Sensex is off 1,918.53 points or 6.38% from a record high of 30,024.74 hit on 4 March 2015.

THE END SESSION ( 05 - 10 - 2016 )

Market snaps three-day winning streak

Key benchmark indices snapped three-day winning streak as weakness in global stocks weighed on sentiment. The S&P BSE Sensex fell 113.57 points or 0.4% to settle at 28,220.98. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty shed 25.20 points or 0.29% to settle at 8,743.95. The market breadth indicating the overall health of the market was strong. On BSE, 1,745 shares gained and 1,135 shares fell. A total of 124 shares were unchanged. The BSE Mid-Cap index rose 0.5%. The BSE Small-Cap index gained 0.62%. Both these indices outperformed the Sensex. A private survey showing easing activity in services sector in September also marred sentiment.

Key indices traded in red since morning trade after hitting over one-week high at the onset of the trading session triggered by the International Monetary Fund (IMF) raising India's growth forecast slightly.

The Sensex fell 113.57 points or 0.4% to settle at 28,220.98, its lowest level since 30 September 2016. The index rose 143.10 points or 0.51% at the day's high of 28,477.65, its highest level since 26 September 2016. The index lost 145.65 points or 0.51% at the day's low of 28,188.90.

The Nifty shed 25.20 points or 0.29% to settle at 8,743.95, its lowest level since 3 October 2016. The index rose 37.80 points or 0.43% at the day's high of 8,806.95, its highest level since 26 September 2016. The index lost 37.75 points or 0.43% at the day's low of 8,731.40.

Among sectoral indices on BSE, the S&P BSE Industrials index (up 0.62%), the S&P BSE Auto index (up 0.35%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.5%), the S&P BSE Capital Goods index (up 0.19%), the S&P BSE Power index (up 0.28%), the S&P BSE Healthcare index (down 0.34%), the S&P BSE Consumer Durables index (down 0.22%), the S&P BSE Realty index (up 1.69%), the S&P BSE Metal index (up 0.69%), the S&P BSE Energy index (down 0.26%), the S&P BSE Utilities index (up 0.18%), the S&P BSE Basic Materials index (up 0.82%), the S&P BSE Oil & Gas index (down 0.33%), the S&P BSE Telecom index (up 0.45%), the S&P BSE Teck index (down 0.38%), and the S&P BSE FMCG index (up 0.29%) outperformed the Sensex. The S&P BSE Finance index (down 0.46%), the S&P BSE Bankex (down 0.78%), and the S&P BSE IT index (down 0.56%) underperformed the Sensex.

The total turnover on BSE amounted to Rs 3170.22 crore, lower than turnover of Rs 4258.42 crore registered during the previous trading session.

In overseas stock markets, European stocks declined as markets digest hawkish comments from US Federal Reserve officials. Most Asian stocks dropped as concern shifted to the likelihood of a US Federal Reserve rate increase by the year's end. Mainland Chinese markets remained closed for the National Day holiday. US stocks closed lower yesterday, 4 October 2016 as investors digested data from the International Monetary Fund and remarks from a Federal Reserve official. Federal Reserve Bank of Richmond President Jeffrey Lacker stating that the central bank should pre-emptively raise short-term interest rates to stave off accelerating inflation.
Private bank stocks fell. HDFC Bank (down 0.29%), Kotak Mahindra Bank (down 1.26%), Federal Bank (down 1.46%), RBL Bank (down 0.81%), IndusInd Bank (down 0.76%), ICICI Bank (down 0.99%), Axis Bank (down 2.03%) declined.

Yes Bank declined 0.34%. The bank announced after market hours yesterday, 4 October 2016 that it has successfully raised Rs 2135 crore through senior long term infrastructure bonds. The issue was closed on 30 September 2016 and witnessed strong demand from leading domestic investors resulting in a total subscription of the issue. The issue was subscribed 2.13 times. The bonds will be listed on BSE and were raised at a coupon rate of 8% per annum with a tenor of 10 years. The proceeds will be used to finance long term projects in infrastructure and its allied sub-sectors.
PSU bank stocks were mixed. State Bank of India (SBI) (up 0.5%), Andhra Bank (up 0.34%), Canara Bank (up 0.91%), Bank of India (up 0.8%) and Union Bank of India (up 0.13%) rose. IDBI Bank (down 1.04%), Punjab National Bank (down 1.06%), and Bank of Baroda (down 0.18%) dropped.

UCO Bank rose 0.66% after the bank said its board is considering a proposal for issue of 7.17 crore equity shares on preferential basis to Life Insurance Corporation of India. The proposal for fund raising is placed before the board for approval by circulation. The issue price for preferential allotment will be determined later. The announcement was made after market hours yesterday, 4 October 2016.

Index heavyweight and housing finance major HDFC lost 0.61% after the company announced that the profit on sale of investments declined 60.41% to Rs 19 crore in Q2 September 2016 over Q2 September 2015. Income from dividend rose 7.29% to Rs 456 crore in Q2 September 2016 over Q2 September 2015. The company, under the loan assignment route sold loans amounting to Rs 1939 crore in Q2 September 2016 to HDFC Bank. HDFC sold loans amounting to Rs 13086 crore in the preceding twelve months. The company is scheduled to announce its Q2 September 2016 results on 26 October 2016. The announcement was made after market hours yesterday, 4 October 2016.

Realty stocks gained. DLF (up 2.96%), Indiabulls Real Estate (up 0.27%), Housing Development and Infrastructure (up 0.66%), D B Realty (up 0.76%), Sobha (up 1.28%), Parsvnath Developers (up 0.79%), Godrej Properties (up 0.11%), Prestige Estates Projects (up 2.19%), Oberoi Realty (up 2.33%) rose. Unitech (down 1.15%) fell.
IT stocks fell. Wipro (down 0.53%), HCL Technologies (down 0.28%), Hexaware Technologies (down 1.51%), TCS (down 0.77%), Infosys (down 0.73%), Oracle Financial Services Software (down 0.95%), Tech Mahindra (down 0.78%) slipped. MphasiS (up 0.47%) rose.

Key indices snapped three-day winning streak today, 5 October 2016. The Sensex had risen 507.02 points or 1.82% in three sessions to settle at 28,334.55 on 4 October 2016, from a close of 27,827.53 on 29 September 2016. The Sensex has risen 355.02 points or 1.27% in October 2016 so far (till 5 October 2016). The Sensex has risen 2,103.44 points or 8.05% in calendar year 2016 so far (till 5 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,726.37 points or 25.45%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 856.30 points or 2.94%. The Sensex is off 1,803.76 points or 6% from a record high of 30,024.74 hit on 4 March 2015.

On macro front, data showed today, 5 October 2016, that the health of the Indian private sector economy improved in September, but to a lesser extent than in August. Output and new business increased at softer rates in both the manufacturing and service sectors. Meanwhile, prices charged were raised in line with higher cost burdens. Reflecting softer expansions in activity at both service providers and manufacturers, the seasonally adjusted Nikkei India Composite PMI Output Index fell from August's 42-month high of 54.6 to 52.4 in September. Nonetheless, the latest above-50 reading was the fifteenth in as many months, highlighting ongoing growth in the country. The headline seasonally adjusted Nikkei India Services Business Activity Index registered 52 in September down from August's 43-month high of 54.7, thus the latest reading pointing to a slower rate of expansion that was moderate overall.

Global economic growth will remain subdued this year following a slowdown in the United States and Britain's vote to leave the European Union, the IMF said in its October 2016 World Economic Outlook yesterday, 4 October 2016. The world economy will expand 3.1% this year, the IMF said, unchanged from its July projection
Meanwhile, the International Monetary Fund (IMF) has raised India's growth forecast a tad, citing the resilience of its economy and robust growth momentum. The IMF now expects the economy to expand 7.6% in 2016-17, up from its earlier projection of 7.4%.

NIFTY P / E TABLE ( SEPTEMBER,2016 )

THE WEEK AHEAD

RBI's policy outcome, macroeconomic data to dictate market trend

RBI's policy outcome, macro economic data, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.

The major domestic event in the upcoming week is the Reserve Bank of India's (RBI) fourth bi-monthly monetary policy meeting scheduled on Tuesday, 4 October 2016. The RBI after the third bi-monthly monetary policy on 9 August 2016, decided to keep the policy repo rate unchanged at 6.5%. Consequently, the reverse repo rate remained unchanged at 6%. RBI also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4%. Shares of interest rate sensitive sectors may remain in focus on the eve of the Reserve Bank of India (RBI)'s monetary policy meeting.
Stocks of auto companies will be in focus as companies start unveiling monthly sales volume data for September 2016 from Saturday, 1 October 2016.

Stocks of public sector oil marketing companies (PSU OMCs) will be in focus as a fuel price review is due at the end of the month. PSU OMCs undertake fuel price review twice during the month based on the trend in international oil market. The first price review takes place during the middle of the month and the second on the last day of the month. Aviation stocks will be in focus as a monthly review of jet fuel prices is due at the end of the month. PSU OMCs review jet fuel prices on the last day every month based on the average imported crude oil price for the month. Prices of jet fuel are directly linked to crude oil prices.

In the primary market, the initial public offer (IPO) of auto parts manufacturer Endurance Technologies will open for bidding on 5 October 2016. The IPO closes on 7 October 2016. The price band for the IPO is Rs 467 to Rs 472 per share.

Investors will continue to track the progress of monsoon rains. The India Meteorological Department (IMD) in its weekly monsoon update issued on 29 September 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon season so far from 1 June to 28 September was 3% below the long period average (LPA).

Among domestic macro economic data, Markit Economics will announce the India Manufacturing PMI data for September 2016 on Monday, 3 October 2016. 
Manufacturing PMI in India came in at 52.6 in August of 2016 from 51.8 in July.
On Wednesday, 5 October 2016, Markit Economics will announce the India Services PMI data for September 2016. Services PMI in India rose to 54.7 in August of 2016 from 51.9 in July.

On the global front, the National Bureau of Statistics will declare the China Non Manufacturing Purchasing Managers Index (PMI) data for September 2016 will be unveiled on Saturday, 1 October 2016. Non Manufacturing PMI in China came in at 53.5 in August of 2016, compared to 53.9 in July.

Markit Economics will announce the Manufacturing PMI for September 2016 in the United States. The flash Markit manufacturing PMI for the United States declined to 51.4 in September of 2016 from 52 in August.

On Friday, 7 October 2016, the US Bureau of Labor Statistics will announce the non farm payrolls report for September 2016. Total nonfarm payroll employment in the United States increased by 151,000 in August of 2016, lower than a upwardly revised 275,000 in July.

THE WEEK THAT WAS

Market drops on weak global cues, geopolitical concerns

Key benchmark indices dropped in the week ended Friday, 30 September 2016 weighed by weak global cues and geopolitical concerns. The barometer index, the S&P BSE Sensex, dropped below the psychologically important 28,000 level during the week. Key indices edged lower in three out of five trading sessions during the week ended 30 September 2016.

The Indian Army conducted surgical strikes on terror launch pads on 28 September 2016 night across the Line of Control (LoC) in Pakistan, killing several terrorists and causing significant casualties to their hideouts. The press conference was jointly conducted by the Ministry of External Affairs and the Ministry of Defence. The operations were focused to ensure that these terrorists do not succeed in endangering lives of citizens in India.

In the week ended Friday, 30 September 2016, the Sensex fell 802.26 points or 2.79% to settle at 27,865.96. The Nifty 50 index fell 220.40 points or 2.49% to settle at 8,611.15. The BSE Mid-Cap index lost 165.29 points or 1.23% to settle at 13,166.68. The BSE Small-Cap index fell 178.10 points or 1.37% to settle at 12,780.80. The fall in both these indices was lower than the Sensex's decline in percentage terms.

Trading for the week began on a weak note on Monday, 26 September 2016 as the key benchmark indices dropped on weak global stocks. The Sensex dropped 373.94 points or 1.3% to settle at 28,294.28, its lowest closing level since 29 August 2016.
Key benchmark indices ended lower in a volatile session of trade on Tuesday, 27 September 2016. The Sensex fell 70.58 points or 0.25% to settle at 28,223.70, its lowest closing level since 29 August 2016

Key benchmark indices snapped three-day losing streak on Wednesday, 28 September 2016 to settle with small gains as firmness in European stocks boosted sentiment. The Sensex rose 69.11 points or 0.24% to settle at 28,292.81, its highest closing level since 26 September 2016.

Key benchmark indices suffered steep losses on Thursday, 29 September 2016 on geopolitical concerns after Indian Army revealed that India conducted surgical strikes against terror launchpads inside Pakistan occupied Kashmir on Wednesday, 28 September 2016. The Sensex slumped 465.28 points or 1.64% to settle at 27,827.53, its lowest closing level since 26 August 2016.

Key benchmark indices settled with small gains on Friday, 30 September 2016 on bargain hunting after a rangebound trade and amid volatility. The Sensex rose 38.43 points or 0.14% to settle at 27,865.96, its highest closing level since 28 September 2016.

Among the 30-share Sensex pack, 27 stocks fell and only three of them rose in the week ended Friday, 30 September 2016.

Adani Ports and Special Economic Zone (down 6.72%), NTPC (down 5.32%) and Hindustan Unilever (down 4.66%) edged lower from the Sensex pack.

Index heavyweight and housing finance major HDFC lost 2.21% to Rs 1,393.05.

Index heavyweight and cigarette maker ITC declined 4.84% to Rs 241.55.

Index heavyweight Reliance Industries lost 1.89% to Rs 1,082.10.

Bank stocks dropped. Axis Bank (down 2.78%), ICICI Bank (down 7.17%) and HDFC Bank (down 3.15%) declined.

State Bank of India (SBI) fell 1.45%. The bank said that on 27 September 2016 it issued and allotted 25,000 AT1 Basel III compliant non-convertible, perpetual, subordinated, unsecured debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon of 8.75% per annum payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in second tranche. The announcement was made after market hours on 27 September 2016.

Auto stocks declined. Maruti Suzuki India (down 2.19%), Bajaj Auto (down 3.22%) and Tata Motors (down 3.36%) fell.

Hero MotoCorp declined 3.32%. The company said that it has augmented premium portfolio with the next-gen 'Achiever - 150' aiming to expand its presence in the premium segment. The motorcycle is competitively priced at Rs 62,800 ex-showroom Delhi for the disc variant and Rs 61,800 for the drum variant. The company has launched limited edition Achiever 150 to commemorate the 7 crore milestone of cumulative production. The announcement was made after market hours on 26 September 2016.

Mahindra & Mahindra (M&M) slipped 0.25%. M&M said that the company has agreed to acquire 1.49 crore shares or 100% of the share capital of Mahindra Two Wheelers Europe Holdings S.ar.l. from Mahindra Two Wheelers, a subsidiary of the company for Euro 26.3 million. The announcement was made after market hours on 27 September 2016. The indicative time period for completion of the acquisition is 30 days. MTWL-Europe is a special purpose vehicle to hold the investment in Peugeot Motorcycles S.A.S.

Separately, M&M said that Merakisan (MKPL), a wholly owned subsidiary of Mahindra Univeg (MUPL), a subsidiary of Mahindra Agri Solutions (MASL), which in turn is a wholly owned subsidiary of M&M, allotted equity shares on preferential basis to Prashanth Patil. As a result of this allotment, the holding of MUPL in MKPL has reduced from 100% to 33.17%. Hence, MKPL has ceased to be a subsidiary of MUPL and as such of MASL and in turn of M&M. MUPL, a 60:40 joint venture between MAPL and Univeg announced a minority shareholding in MKPL. Prasanth Patil from the founding family of Merakisan is now the majority stakeholder of Merakisan and will be the CEO of the company. Merakisan shall operate in sourcing fruits, vegetables and other agricultural products directly from farmers ad sell to customers. The announcement was made during market hours on 28 September 2016.

Bharti Airtel declined 4.09%. The company announced the launch of its new International Roaming (IR) packs that redefine the value proposition for customers traveling abroad. With the new IR packs, customers will have the convenience of carrying their India mobile number wherever they go and stay connected 24x7 without having to worry about high call and data charges. The packs will be available to both postpaid and prepaid customers. The announcement was made during market hours on 28 September 2016. The IR packs, which are available for all popular global destinations, come with validity of one day and 30 days, giving customers greater flexibility to plan their communication budgets when traveling overseas.
Airtel's new IR packs offer free incoming calls, free texts to India and ample data benefits along with free India calling minutes across all popular destinations. Charges for calls to India and local in-country calls have been reduced to as low as Rs 3 per minute across popular destinations. Airtel also announced that post the exhaustion of pack data benefits, international roaming data will now be charged at just Rs 3 per megabyte (MB), a reduction of 99% from Rs 650 per MB, so that customers can enjoy uninterrupted data usage without having to worry about bill charges.

Pharma shares declined. Cipla (down 5.05%), Dr Reddy's Laboratories (down 2.27%), Sun Pharmaceutical Industries (down 4.79%) fell.

Lupin shed 0.22%. The company announced that it has received final approval for its Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg. Lupin's Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are the AB rated generic equivalent of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg. Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are indicated for treatment of moderate to severe dementia of the Alzheimer's type. Namenda XR Capsules had annual sales of $1.22 billion in US as per IMS MAT June 2016.The announcement was made during market hours on 29 September 2016.

L&T fell 4.35%. The company said its construction arm won orders worth Rs 2046 crore across various business segments. The announcement was made during trading hours on 29 September 2016.

Meanwhile, the Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalized framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth and notified on 29 September 2016. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. A Committee-based approach for determining the Monetary Policy will add lot of value and transparency to monetary policy decisions. The meetings of the Monetary Policy Committee shall be held at least 4 times a year and it shall publish its decisions after each such meeting. The factors constituting failure to meet inflation target under the Monetary Policy Committee Framework have also been notified. The Government, in consultation with RBI, has notified the inflation target in the Gazette of India Extraordinary dated 5 August 2016 for the period beginning from the date of publication of this notification and ending on the 31 March 2021, with inflation target of 4% with upper and lower tolerance level of 2%.

As per the provisions of the RBI Act, out of the six members of Monetary Policy Committee, three members will be from the RBI and the other three members of MPC will be appointed by the Central Government. The members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four years, with immediate effect or until further orders, whichever is earlier.

Meanwhile, the Asian Development Bank kept its growth estimates for developing Asia for this year and next at 5.7%, saying sustained expansion in China and India can steady the region but warned of risks from a looming US interest rate hike. The Manila-based lender increased its growth forecast this year for China to 6.6% from 6.5% and for 2017 to 6.4% from 6.3%, citing fiscal and monetary stimulus measures in the world's second-largest economy. The projections for India were kept at 7.4% for this year and 7.8% for 2017, driven by strong consumption and an investment revival, the ADB said.

The Organization of the Petroleum Exporting Countries (OPEC) took an important step toward a cap on crude-oil output, which helped in lifting oil prices. OPEC said on 28 September 2016 that it would reduce output to a range of 32.5-33.0 million barrels per day (bpd), a reduction of 0.7-2.2% from OPEC estimates of its current output at 33.24 million bpd.

Revised data suggest that the US economy's performance in the spring was slightly better than expected, as business investment wasn't nearly as weak as previously reported. The gross domestic product grew a 1.4% pace in the second quarter. 

Philadelphia Federal Reserve President Patrick Harker said he backs a December rate increase if the economy continues to grow as expected, while Atlanta Fed President Dennis Lockhart said he expects the Fed to be in a position to raise rates soon. Fed Gov. Jerome Powell on the other hand said the Fed can afford to be patient in gradually raising rates as the economy slowly improves.

Additionally, US consumer confidence rose to 104.1 in September, the highest level since August 2007. The Case-Shiller home price index rose 5% for the year in July, while house prices rose 0.6%. The Markit flash services purchasing managers index for September rose to 51.9 in September from 51 in August.

THE END SESSION ( 30 - 09 - 2016 )

Mid-Cap, Small-Cap indices outshine Sensex

Key benchmark indices settled with small gains on bargain hunting after a rangebound trade and amid volatility on the last session of the week. The barometer index, the S&P BSE Sensex rose 38.43 points or 0.14% to settle at 27,865.96. The gains for the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty gained 19.90 points or 0.23% to settle at 8,611.15. Except BSE FMCG index all the other sectoral indices on BSE were in the green. Heavy buying was witnessed in small-cap and mid-cap stocks after these stocks witnessed a sell-off in the previous session.

Key indices rose on bargain hunting after suffering steep losses yesterday, 29 September 2016 triggered by flare up in India-Pakistan tension after Indian Army in a press conference yesterday, 29 September 2016 revealed that it conducted surgical strikes against terror launchpads inside Pakistan occupied Kashmir. However, gains were capped by weakness in global stocks.

The Sensex rose 38.43 points or 0.14% to settle at 27,865.96, its highest closing level since 28 September 2016. The index gained 127.68 points or 0.45% at the day's high of 27,955.21. The index dropped 110.75 points or 0.39% at the day's low of 27,716.78, its lowest level since 29 August 2016.

The Nifty gained 19.90 points or 0.23% to settle at 8,611.15, its highest closing level since 28 September 2016. The index gained 45.90 points or 0.53% at the day's high of 8,637.15. The index dropped 36.05 points or 0.41% at the day's low of 8,555.20, its lowest level since 29 August 2016.

The broad market depicted strength. There were more than three gainers against every loser on BSE, 2,058 shares rose and 631 shares fell. A total of 187 shares were unchanged. The BSE Mid-Cap rose 1.95%. The BSE Small-Cap index gained 2.13%. Both these indices outperformed the Sensex.

In overseas stock markets, European stocks were sharply lower as shares of Deutsche Bank AG traded at the weakest level on record, triggering losses across the financial sector. Asian stocks fell tracking lower finish for US stocks yesterday, 29 September 2016 as Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender. The cause of Deutsche's crisis is a fine, disputed by Deutsche, of up to $14 billion by the US Department of Justice over its sale of mortgage-backed securities.
Meanwhile, revised data suggest that the US economy's performance in the spring was slightly better than expected, as business investment wasn't nearly as weak as previously reported. The gross domestic product grew a 1.4% pace in the second quarter. Philadelphia Federal Reserve President Patrick Harker said he backs a December rate increase if the economy continues to grow as expected, while Atlanta Fed President Dennis Lockhart said he expects the Fed to be in a position to raise rates soon. Fed Gov. Jerome Powell on the other hand said the Fed can afford to be patient in gradually raising rates as the economy slowly improves.

The total turnover on BSE amounted to Rs 3583.39 crore, lower than turnover of Rs 5428.13 crore registered during the previous trading session.

Realty stocks rose on bargain hunting after witnessing a sharp drop yesterday, 29 September 2016 in a sharp fall in indices. DLF (up 4.35%), Sobha (up 1.19%), Indiabulls Real Estate (up 8.41%), Unitech (up 2.78%), Godrej Properties (up 2.92%), Housing Development & Infrastructure (HDIL) (up 3.04%), and Oberoi Realty (up 0.64%) edged higher.

Auto stocks also gained. Mahindra & Mahindra (M&M) (up 2.77%), Ashok Leyland (up 4.17%), Maruti Suzuki India (up 1.27%), Eicher Motors (up 0.52%), Bajaj Auto (up 0.1%), Tata Motors (up 1.67%) and TVS Motor Company (up 5.41%) gained. Hero MotoCorp fell 0.37%.

Bank stocks gained. Among public sector banks, UCO Bank (up 0.41%), Syndicate Bank (up 0.76%), Punjab National Bank (up 2.81%), Allahabad Bank (up 1.25%), Bank of Baroda (up 3.43%), State Bank of India (SBI) (up 1.44%), Union Bank of India (up 1.44%), Canara Bank (up 3.65%), Bank of India (up 2.18%) and United Bank of India (up 3.7%) edged higher.

Corporation Bank rose 1.68% after the bank announced lending rates based on marginal cost of funds to be effective from 1 October 2016. The announcement was made after market hours yesterday, 29 September 2016. Corporation Bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.05%, for one month will be 9.15% and for three months will be 9.30%. The MCLR on 6-month loans will be 9.40% and for one-year loans the rate would be 9.50%, the bank said.

Among private sector banks, Axis Bank (up 0.58%), ICICI Bank (up 0.52%), Kotak Mahindra Bank (up 1.03%), Federal Bank (up 2.27%), IndusInd Bank (up 0.23%) and Yes Bank (up 1.93%) gained. HDFC Bank dropped 0.42%.

Jubilant Life Sciences rose 4.94% after the company said its wholly-owned subsidiary successfully raised $300 million through a sale of unsecured bonds. The announcement was made after market hours yesterday, 29 September 2016. Jubilant Life Sciences said that its wholly-owned subsidiary, Jubilant Pharma (JPL), has successfully completed the pricing of its rated unsecured high yield bonds (the notes) at a yield of 4.875% per annum, issued at par for $300 million and maturing in September 2021. The net proceeds of the notes shall be used to prepay the existing debts of JPL and its subsidiaries; for upstreaming upto $50 million to Jubilant Life Sciences for prepayment of its existing debts; and for general corporate purposes, the company said in a statement.

The Sensex has declined 586.21 points or 2.06% in September. The Sensex has risen 1,748.42 points or 6.69% in calendar year 2016 so far (till 30 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,371.35 points or 23.87%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 1,211.32 points or 4.16%. The Sensex is off 2,158.78 points or 7.19% from a record high of 30,024.74 hit on 4 March 2015.

Meanwhile, the Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalized framework for a Monetary Policy Committee, for maintaining price stability, while keeping in mind the objective of growth and notified yesterday, 29 September 2016. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. A Committee-based approach for determining the Monetary Policy will add lot of value and transparency to monetary policy decisions. The meetings of the Monetary Policy Committee shall be held at least 4 times a year and it shall publish its decisions after each such meeting. The factors constituting failure to meet inflation target under the Monetary Policy Committee Framework have also been notified. The Government, in consultation with RBI, has notified the inflation target in the Gazette of India Extraordinary dated 5 August 2016 for the period beginning from the date of publication of this notification and ending on the 31 March 2021, with inflation target of 4% with upper and lower tolerance level of 2%.

As per the provisions of the RBI Act, out of the six members of Monetary Policy Committee, three members will be from the RBI and the other three members of MPC will be appointed by the Central Government. The members of the Monetary Policy Committee appointed by the Central Government shall hold office for a period of four years, with immediate effect or until further orders, whichever is earlier.

NIFTY AND BANK NIFTY DAILY PRICES - SEPT., 2016

THE END SESSION ( 29 - 09 - 2016 )

Sensex settles at almost 5-week low below 28,000 mark

Key benchmark indices suffered steep losses on geopolitical concerns after Indian Army in a press conference today, 29 September 2016 revealed that India conducted surgical strikes against terror launchpads inside Pakistan occupied Kashmir late last night. The barometer index, the S&P BSE Sensex slumped 465.28 points or 1.64% to settle at 27,827.53. The Nifty 50 index lost 153.90 points or 1.76% to settle at 8,591.25. The Sensex settled below the psychological 28,000 mark after falling below that mark in afternoon trade. The Sensex and the Nifty, both, settled at their lowest level in almost five weeks. All the nineteen sectoral indices on BSE were in the red.

The Indian Army conducted surgical strikes on terror launch pads yesterday, 28 September 2016 night across the Line of Control (LoC) in Pakistan, killing several terrorists and causing significant casualties to their hideouts. The press conference was jointly conducted by the Ministry of External Affairs and the Ministry of Defence. Based on very specific and credible information which Army received yesterday that some terrorist teams had positioned itself along the line of control, the Army carried out surgical strikes last night at these launch pads. The operations were focused to ensure that these terrorists do not succeed in endangering lives of citizens in India. The Pakistani military reportedly said no such strike had taken place but that there had been an exchange of firing at the frontier.

The Sensex slumped 465.28 points or 1.64% to settle at 27,827.53, its lowest closing level since 26 August 2016. The Sensex slumped 572.89 points or 2.02% at the day's low of 27,719.92. The barometer index gained 182.76 points or 0.64% at the day's high of 28,475.57.

The Nifty 50 index lost 153.90 points or 1.76% to settle at 8,591.25, its lowest closing level since 26 August 2016. The Nifty dropped 186.90 points or 2.13% at the day's low of 8,558.25. The index gained 55.50 points or 0.63% at the day's high of 8,800.65.

The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,297 shares fell and 442 shares rose. A total of 192 shares were unchanged. The BSE Mid-Cap index fell 3.6%. The BSE Small-Cap index lost 4.02%. The fall in both these indices was higher than Sensex's decline in percentage terms.
In overseas stock markets, global stocks rose after the Organization of the Petroleum Exporting Countries (OPEC) took an important step toward a cap on crude-oil output, which helped in lifting oil prices. OPEC said yesterday, 28 September 2016 that it would reduce output to a range of 32.5-33.0 million barrels per day (bpd), a reduction of 0.7-2.2% from OPEC estimates of its current output at 33.24 million bpd. In economic data, US orders for durable or long-lasting goods flattened out in August after a sizable gain in the prior month, pointing to ongoing difficulties for American manufacturers.

The total turnover on BSE amounted to Rs 5413.86 crore, higher than turnover of Rs 2932.59 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Realty index (down 6.31%), the S&P BSE Power index (down 4.11%), the S&P BSE Utilities index (down 3.49%), the S&P BSE Basic Materials index (down 3.48%), the S&P BSE Industrials index (down 3.29%), the S&P BSE Healthcare index (down 3.26%), the S&P BSE Metal index (down 3.17%), the S&P BSE Consumer Durables index (down 2.84%), the S&P BSE Finance index (down 2.66%), the S&P BSE Capital Goods index (down 2.5%), the S&P BSE Consumer Discretionary Goods & Services index (down 2.46%), the S&P BSE Bankex (down 2.43%), the S&P BSE Telecom index (down 2.17%), the S&P BSE Auto index (down 2.16%), the S&P BSE Oil & Gas index (down 1.9%) and the S&P BSE Energy index (down 1.7%), underperformed the Sensex. The S&P BSE FMCG index (down 1.54%), the S&P BSE Teck index (down 1.04%) and the S&P BSE IT index (down 0.96%), outperformed the Sensex.

IT major TCS was the lone gainer in the 30-share Sensex pack. TCS rose 0.46% to Rs 2,434.60.

Index heavyweight and housing finance major HDFC lost 1.61% to Rs 1,400.10. The stock hit high of Rs 1,432.45 and low of Rs 1,392.55 in intraday trade.

Index heavyweight Reliance Industries lost 1.57% to Rs 1,072.55. The stock hit high of Rs 1,110 and low of Rs 1,067.50 in intraday trade.

Pharma shares declined. Aurobindo Pharma (down 4.98%), Cadila Healthcare (down 3.18%), Cipla (down 0.73%), Dr Reddy's Laboratories (down 2.12%), Glenmark Pharmaceuticals (down 4.19%), Sun Pharmaceutical Industries (down 3.84%), Alkem Laboratories (down 2.05%), GlaxoSmithKline Pharmaceuticals (down 0.9%) declined.
Wockhardt lost 4.68%. The company announced that inspection of the company's manufacturing unit at L-1, Chikalthana, Aurangabad, Maharashtra by UK Medicines and Healthcare products Regulatory Agency (MHRA) has since been completed without any critical observations and the approval status of the said unit continues. The announcement was made during trading hours today, 29 September 2016.

Bank stocks declined. Among private sector banks, Axis Bank (down 1.89%), HDFC Bank (down 1.39%), ICICI Bank (down 3.76%), Yes Bank (down 2.99%), RBL Bank (down 4.2%), Federal Bank (down 6.82%), Kotak Mahindra Bank (down 1.32%), and IndusInd Bank (down 1.72%) edged lower.

Among public sector banks, Bank of India (down 8.08%), Bank of Baroda (down 4.01%), Syndicate Bank (down 5.03%), Punjab National Bank (down 6.59%), Corporation Bank (down 7.49%), Allahabad Bank (down 6.81%), State Bank of India (SBI) (down 2.5%), UCO Bank (down 5.83%), Union Bank of India (down 6.83%), and United Bank of India (down 5.81%) edged lower.

Metal and mining stocks fell. Steel Authority of India (Sail) (down 7.08%), National Aluminium Company (down 3.99%), Vedanta (down 3.32%), JSW Steel (down 5.26%), Tata Steel (down 3.63%), Hindustan Zinc (down 1.67%), Jindal Steel & Power (down 8.4%), Hindalco Industries (down 3.91%) and NMDC (down 6.24%) edged lower.

Hindustan Copper fell 5.28% to Rs 61.90 as the offer for sale by the Government of India through the stock exchanges mechanism began today, 29 September 2016. The government is offering a 7% stake in the company through a two-day offer for sale (OFS) which ends tomorrow, 30 September 2016. The government has set a floor price of Rs 62 per share, a 5.12% discount to the stock's Wednesday's closing share price of Rs 65.35 on BSE. While the trading window is open for non-institutional investors today, 29 September 2016, retail investors can subscribe tomorrow, 30 September 2016. Retail investors will be allocated shares at a 5% discount to the cut-off price, the company said. The OFS, comprising 6.47 crore shares, will help the government raise Rs 401.54 crore. The government's stake will decline to 82.95% following the sale. The Government of India holds 89.95% stake in Hindustan Copper (as per shareholding pattern as on 30 June 2016). The announcement was made after market hours yesterday, 28 September 2016.

L&T fell 1.29%. The company said its construction arm won orders worth Rs 2046 crore across various business segments. The announcement was made during trading hours today, 29 September 2016.

Realty stocks slumped. DLF (down 8.97%), Indiabulls Real Estate (down 8.27%), Unitech (down 4.9%), Godrej Properties (down 0.65%), Housing Development & Infrastructure (HDIL) (down 8.35%), Sobha (down 4.53%), and Omaxe (down 1.39%) edged lower.

Marathon Nextgen Realty lost 10.35% to Rs 236.35. The company's were listed and admitted to dealings on the National Stock Exchange of India with effect from today, 29 September 2016. Shares of Marathon Nextgen Realty had gained 10.06% to settle at Rs 263.65 yesterday, 28 September 2016 after the company said that shares of the company will be listed and admitted to dealings on the National Stock Exchange of India with effect from 29 September 2016. The announcement was made during market hours on 28 September 2016.

Lupin declined 3.2%. The company announced that it has received final approval for its Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg.
Lupin's Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are the AB rated generic equivalent of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg. Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are indicated for treatment of moderate to severe dementia of the Alzheimer's type. Namenda XR Capsules had annual sales of $1.22 billion in US as per IMS MAT June 2016.The announcement was made during market hours today, 29 September 2016.

Shares of ICICI Prudential Life Insurance Company settled at Rs 297.65 on BSE, a discount of 10.88% over the initial public offer price of Rs 334. The stock debuted at Rs 329, a discount of 1.5% to the initial public offer (IPO) price. So far the stock hit a high of Rs 333.90 and low of Rs 295.50. On BSE, 1.27 crore shares were traded on the counter. ICICI Prudential Life Insurance Company had priced the IPO at the top end of the Rs 300 to Rs 334 price band. The bidding for the IPO concluded on 21 September 2016. The issue received bids for 138.77 crore shares and it was subscribed 10.48 times. ICICI Prudential is the largest private sector life insurer in India by total premium and assets under management at 31 March 2016. ICICI Prudential is a joint venture between ICICI Bank and Prudential Corporation Holdings, a part of the Prudential Group, an international financial services group. The company is one of the first private sector life insurance companies in India. It commenced operations in October 2000 and offers a range of life insurance, health insurance and pension products and services.

Eros International Media fell 2.55%. The company said it tied up with UAE's Phars Film for co-production and distribution of Malayalam movies. The company announced its association with UAE's largest film distribution and exhibition network (Hollywood & Bollywood), Phars Film. The partnership will entail the two companies jointly co-producing Malayalam films along with exploration of theatrical rights between the two entities. The deal licenses Eros to exploit the distribution of all Malayalam movies produced jointly in India, while Phars Films would present the same overseas where it enjoys a dominant market share. The announcement was made after market hours yesterday, 28 September 2016.

CEAT fell 2.28%. Amansa Holding Pte bought 4.75 lakh shares or 1.17% stake in CEAT through secondary market purchase. After the latest stake buy, Amansa Holding Pte's stake in CEAT rose to 5.19%. The company made the announcement after trading hours yesterday, 28 September 2016.