Indices turn range bound; Nifty hovers above 17,850

The frontline equity benchmarks traded in a narrow range with strong gains in the mid-morning trade. Positive global cues boosted the sentiments. The Nifty hovered above the 17,850 mark. All the sectoral indices on the NSE traded in the green.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 716.4 points or 1.28% to 59,857.63. The Nifty 50 index added 234.50 points or 1.33% to 17,856.75.

In the broader market, the S&P BSE Mid-Cap index rose 1.89% while the S&P BSE Small-Cap index increased 1.43%

The market breadth was strong. On the BSE, 2,413 shares rose and 900 shares fell. A total of 136 shares were unchanged.

Buzzing Index:

The Nifty Metal index rose 2.03% to 6,234.05. The index declined 2.47% in past two trading sessions.

Jindal Stainless (up 3.08%), Welspun Corp (up 3.06%), Steel Authority of India (up 2.98%), Hindalco Industries (up 2.85%), National Aluminium Company (up 2.82%), Hindustan Copper (up 2.48%), Jindal Steel & Power (up 2.42%), Tata Steel (up 2.23%), JSW Steel (up 1.93%) and Vedanta (up 1.51%) edged higer.

Stocks in Spotlight:

IFCI rose 2.92% after the company said its board will meet on 27 September 2022 to consider the preferential issue of equity shares to the Government of India. The preferential issue is subject to the approval of shareholders and stock exchanges, the company said.

Advanced Enzyme Technologies rose 13.90% after Nalanda India Equity Fund acquired additional 2.6% stake in the company via bulk deal on Monday, 19 September 2022. As per the bulk deal data on the NSE, Nalanda India Equity Fund acquired additional 29,11,630 equity shares (2.6% equity) of Advanced Enzyme Technologies at an average price of Rs 270.03 per share.

Welspun Corp advanced 2.87% after the company announced the acquisition of entire share capital of Nauyaan Shipyard at a fair value consideration of Rs 1 lakh from a related party (promoter and promoter group of the company). Nauyaan Shipyard is a company with objects of ship building, shippers, ship-owners, repairers, re-fitters, fabricators etc. Nauyaan presently does not have any material assets or liabilities.

Global markets:

Asian stocks advanced across the board Tuesday as Japan`s inflation accelerated and China kept its loan prime rate on hold.

Core consumer prices in Japan rose 2.8% in August from a year ago, government data showed. That`s the fastest growth in nearly eight years, and the fifth consecutive month where inflation has exceeded the central bank`s target of 2%.

The People`s Bank of China kept its one-year and five-year loan prime rates (LPR) unchanged, in line with predictions. The one-year loan prime rate remains at 3.65%, and the five-year rate closely tied to home mortgages stands at 4.3%.

US stocks ended higher on Monday, as investors turned their attention to this week`s policy meeting at the Federal Reserve and how aggressively it will hike interest rates.

Investors prepared for an important week, lined up with 13 central bank meetings, with expectations of interest rates rising globally and an ultra-hawkish monetary tightening by the US Fed`s meeting on Wednesday, followed by the Bank of Japan and Bank of England on the next day.

Traders are anticipating another sharp rate hike, third consecutive, from the US central bank to tame the rising inflation. The Bank of Japan is expected to keep rates on hold at ultra-low levels, as per reports.

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