Markets rally after delay in Rate hike by FED

by Ankit Jaiswal on Market Analysis

US Federal Reserve – Still Waiting For The Right Time

Market rejoiced today after the US Federal Reserve declined to change its interest rates yet again. They have kept their rates in the range of 0 to 0.25%. Nifty gained 1.05% by the end of the today’s trading session to close at 7982. The rise was accompanied with moderate volumes of 2,997,000,000. The market breadth was positive today with 29 advances and 21 declines in Nifty. The stocks which gained the highest today are AXISBANK(+5.13%), ONGC(+4.16%), NMDC(+4.04%), KOTAKBANK(+3.98%) and BANKBARODA(+3.94%). The biggest losing stocks today are BAJAJ-AUTO(-3.26%), HINDALCO(-2.27%), CIPLA(-1.75%), TATAMOTORS(-1.69%) and ITC(-1.6%)

Bank Nifty gains the highest amongst the sectors

Amongst the prominent sectors, CNX FMCG(-1.16%) was the only sector that ended in negative today. The stocks which gained the most today are BANK NIFTY(+2.62%), CNX PSU BANK(+2.57%), CNX REALTY(+2.36%), CNX FINANCE(+2.13%). Bank Nifty was trading over 3% higher at 17,530 level and touched day-high at 17,602. With the US Federal Reserve keeping the rates unchanged, prospects of easing monetary policy in India has increased. The investors are optimistic about rate cut by the Reserve Bank of India (RBI) in its upcoming monetary policy review on September 29. Also,  the banks are cheering the reports that the government is considering a hike in the foreign direct investment (FDI) limit in private banks to 100%, from the existing 74%. The Department of Industrial Policy and Promotion (DIPP) has sent a proposal to hike the FDI limit in private banking industry to the Department of Financial Services for its comments. According to some government officials, the finance ministry, DIPP and the RBI are discussing the FDI in banks.

Granules India gets USFDA nod for painkiller drug

The stock rallied more than 6 % in today’s trade  on getting approval from the US Food and Drug Administration (USFDA) for its painkiller drug. The US FDA has approved Granules’ abbreviated new drug application for Ibuprofen tablets USP, 400 mg, 600 mg and 800 mg.

Jubilant Life gets USFDA nod for anti-migraine tablets

The company has received nod from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for zolmitriptan orally disintegrating tablets in strengths of 2.5 mg and 5 mg, . The company’s drug is a generic version of AstraZeneca’s Zomig-ZMT tablets, which is used for acute treatment of migraine headaches in adults. As on June 30, Jubilant Life Sciences had a total of 815 filings for formulations of which 389 have been approved in various regions globally. This includes 72 ANDAs filed in the US, of which 38 have been approved and 46 dossier filings in Europe.The stock was up more than 3% in today’s trade.

Tata Motors falls 4%

Shares of Tata Motors  fell 4% on a intraday basis after promoter Tata Steel  may have offloaded some stake in the company through block deals. Traded volume on the Bombay Stock Exchange was higher by 4500% to 4.15 crore shares against five-day average of 9 lakh shares today. In the morning, Tata Steel said based on the review of its portfolio, it was proposing to sell equity shares of Tata Motors to institutional investors over the stock exchange for a value not exceeding Rs 1,250 crore. Analysts feel the dilution by Tata Steel may be for reduction in its huge debt of more than Rs 70,000 crore. In FY15, its interest cost was Rs 4,847.75 crore, 11.7% higher compared to previous year

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