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Sensex reclaims 27000; BSE Midcap, Smallcap gain over 2%

10:00

The News International Team

10:58am Market Check

The market saw some profit booking at higher levels as the Sensex trimmed gains from 396 points to 237.10 points to trade at 26947.23. The Nifty rose 69.45 points to 8099.25.

The broader markets remained strong with the BSE Midcap and Smallcap indices gaining 2-2.5 percent. About 1800 shares have advanced, 403 shares declined, and 66 shares are unchanged on the Bombay Stock Exchange.

10:45am Interview

The first tranche of Rs 1000 crore investment by Canada Pension Plan Investment Board (CPPIB) into L&T Infra Development Project will come in twelve months time said the company CEO and MD, K Venkatesh.

He said as of now the agreement has been signed for Rs 2000 crore and it could go higher depending on business prospects and market conditions.

Investment will be done via preference shares of L&T IDPL and the shares will be compulsorily convertible into equity shares by 2018.

When asked if the company had any plans of listing IDPL, he confirmed that they had no immediate plans of listing in the short to medium term.

10:30am FII View

Manishi Raychaudhuri, BNP Paribas says the brokerage believes the main investment drivers in 2015 will be USD appreciation, commodity price moderation, policy divergence, and reform and restructuring across Asia.

“The main beneficiaries are likely to be North Asia, India and Thailand. Apart from the well-understood economic risks, ‘black swan’ events in 2015 could arise from geopolitical conflicts. We take comfort from the fact that, in the past, the impact on equities of such events has been relatively short lived. HDFC Bank, Infosys are among our top picks,” he adds.

10:15am Fed comments

The Federal Reserve on Wednesday offered a strong signal that it was on track to raise interest rates sometime next year, dropping a pledge to keep them near zero for a “considerable time” in a show of confidence in the US economy.

Closing out a two-day meeting against a backdrop of solid domestic growth but trouble overseas, the US central bank ditched its long-standing vow and instead said it would take a “patient” approach in deciding when to bump borrowing costs higher.

In doing so, it looked beyond economic difficulties in the euro zone, Japan and Russia and offered a mostly upbeat assessment of the US economy’s prospects.

“Based on its current assessment, the committee judges that it can be patient in beginning to normalize the stance of monetary policy,” the Fed said in a statement. Significantly, the Fed said it viewed that statement as “consistent” with its previous language that it would be a considerable time before it hiked rates.

While the growth outlook remained solid, Fed policymakers indicated that they would take a slower approach to the pace of future rate hikes, a nod to the still-weak inflation picture, reports Reuters.

10:00am Market Check

Equity benchmarks saw sharp rebound today after falling for the last five consecutive sessions. The Sensex climbed 316.70 points or 1.19 percent to 27026.83 and the Nifty rose 97.05 points or 1.21 percent to 8126.85 after Fed meet outcome.

The BSE Midcap and Smallcap indices jumped 2.3 percent and 2.7 percent, respectively. More than five shares advanced for every share declining on the Bombay Stock Exchange.

Major lenders like State Bank of India, ICICI Bank and Axis Bank gained 2-3 percent while state-run power equipment maker BHEL topped the buying list on Sensex, up 4 percent.

Cigarette major ITC rebounded with a percent gain after seeing a marginal fall in early trade. Engineering and construction major L&T gained 1.7 percent after Canada Pension Plan Investment Board through its subsidiary made initial investment of Rs 1,000 crore in L&T IDPL (the subsidiary of L&T).

Tata Steel climbed 3 percent after sources said the steel maker restarted iron ore production from two Odisha mines. Odisha government on Tuesday allowed Tata Steel to operate 4 iron ore mines.

Among others, Hindalco Industries and Tata Power surged 3 percent each followed by Tata Motors, ONGC, Maruti, Bajaj Auot, Cipla, NTPC, Bharti Airtel, Gail and Sesa Sterlite with 1-2 percent gain. 

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