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Wednesday, September 16, 2015

Asia Pacific Market: Stocks up ahead of US Fed decision

Asia Pacific share market ended higher on Wednesday, 16 September 2015, as risk sentiment boosted by gains in European and U.S. stocks overnight. But markets gains were limited as many investors remained reluctant to take uneven positions ahead of the Federal Reserve policy-setting meeting. 
 
The U.S. Federal Reserve will start its two-day policy meeting later in the day. The US Federal Reserve will decide on Thursday whether to lift interest rates which have been close to zero for the last seven years. 

Investors around the world are guessing that the Federal Open Market Committee (FOMC) will signal an initial a measured tightening soon, but hold off a September rate hike. Speculation in recent months about when the Fed will lift interest rates has caused uncertainty among stock markets around the world. 

Among Asian bourses
 
Australian market rallies ahead of Fed
 
The Australian share market recouped all losses of the previous day session, on broad-based gains across all sectors with the major banks, financials and the big miners leading the way on expectations for a delay in the Fed's policy tightening timeline. The benchmark S&P/ASX 200 index rose 80.50 points, or 1.6%, to 5098.90 points. The broader All Ordinaries index ended up 77 points, or 1.53%, at 5123.60.

Japan stocks up on upbeat offshore lead
 
The Japanese share market advanced, as risk sentiment boosted by gains in European and U.S. stocks overnight and a weakened yen against the U.S. dollar. Total 18 out of Topix's 33 industry groups ended higher, with Rubber Products, Air Transportation, Transportation Equipment, and Machinery issues led gainers. The Nikkei Stock Average advanced 145.12 points, or 0.81%, to end at 18171.60 points. The broader Topix index jumped 0.71%, or 10.36 points, to 1472.60 at the close in Tokyo. 

China market rallies 4.9% on speculation of state-led buying
 
The Mainland China's stock market posted a strong gain, as investors chased for bottom fishing across the board late afternoon on tracking overnight rally on Wall Street overnight and speculation of intervention from Beijing. The Shanghai Composite Index rebounded 4.89%, or 147.09 points, to 3152.26 points, halting a two-day, 6.1% loss. The Shenzhen Composite Index, which tracks stocks on China's second exchange, jumped 6.52%, or 103.10 points, to 1683.56. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, jumped 7.6%, or 128.69 points, to close at 1926.24. 

Hong Kong market up ahead of US Fed decision
 
Hong Kong stock market ended higher, as investor optimism mounted ahead of a highly anticipated Federal Reserve policy meeting. The Hang Seng Index added 511.43 points, or 2.38%, at 21966.66 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, grew 200.44 points, or 2.07%, to 9904.71 points. Turnover increased to HK$83.3 billion from HK$63.7 billion on Tuesday. 

Sensex, Nifty reaches highest closing level in more than 2 weeks
 
Positive lead from global markets aided decent gains for key equity benchmark indices. The barometer index, the S&P Sensex, rose 258.04 points or 1% to settle at 25,963.97. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty gained 70.05 points or 0.89% to settle at 7,899.15. The Sensex and the Nifty, both, attained their highest closing level in more than two weeks. 

Higher crude oil prices along with a weakness in rupee will increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. A weak rupee will increase cost of crude oil imports. The government has already freed pricing of petrol and diesel. 

Elsewhere in the Asia Pacific region: Taiwan's Taiex index added 0.9% to 8333.29. South Korea's KOPSI rose 2% to 1975.45. New Zealand's NZX50 rose 0.3% to 5668. Singapore's Straits Times index gained 0.9% at 2868.74. Indonesia's Jakarta Composite index dropped 0.3% to 4332.51. 

Mutual funds in buying mode

Net inflow of Rs 371.30 crore on 14 September 2015

Mutual funds bought shares worth a net Rs 371.30 crore on Monday, 14 September 2015, compared with net inflow of Rs 184.10 crore on Friday, 11 September 2015. 

The net inflow of Rs 371.30 crore on 14 September 2015 was a result of gross purchases of Rs 696.30 crore and gross sales of Rs 325 crore. The Sensex jumped 246.49 points or 0.96% to settle at 25,856.70 on that day, its highest closing level since 31 August 2015. 

Mutual funds have purchased shares worth a net Rs 4682.40 crore in this month so far (till 14 September 2015). They have bought shares worth a net Rs 10533 crore last month. 

FPIs turn net buyers in equities

Net outflow of Rs 871.43 crore on 15 September 2015 


Foreign portfolio investors (FPIs) sold shares worth a net Rs 871.43 crore into the secondary equity market yesterday, 15 September 2015. This compares with their buying of stocks totaling Rs 105.90 crore during the preceding trading session on 14 September 2015. 

The net outflow of Rs 871.43 crore on 15 September 2015 was a result of gross purchases of Rs 2843.60 crore and gross sales of Rs 3715.03 crore. The barometer index, the S&P BSE Sensex, dropped 150.77 points or 0.58% to settle at 25,705.93 on that day. 

There was an inflow of Rs 3995.04 crore into FPIs from the category 'primary markets & others' on 15 September 2015. 

FPIs have offloaded stocks worth a net Rs 7574.46 crore in this month so far (till 15 September 2015). They sold shares worth a net Rs 16842.54 crore into the secondary equity markets last month. 

FPIs have bought shares worth a net Rs 3794.15 crore from the secondary equity markets in calendar year 2015 so far (till 15 September 2015). They bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

The inflow of FPIs into the category 'primary markets & others' has totaled Rs 4227.28 crore in this month so far (15 September 2015). This compares with net outflow of Rs 34.73 crore from this category in August 2015. 

The inflow of FPIs into the category 'primary markets & others' has totaled Rs 20381.02 crore in calendar year 2015 so far (till 15 September 2015). The inflow of FPIs into the category 'primary markets & others' stood at Rs 12615 crore in the calendar year 2014. 

Tuesday, September 15, 2015

Bond yield rises

10-year G-sec Paper yield closes at 7.76% 

The yield on 10-year benchmark federal paper, 7.72% GS 2025, increased by 01 basis point (bp) to 7.76% compared with 7.75% at close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 20,755 crore. 

The bond yield increased tracking fall in Rupee amid outflows from local stocks ahead of the Federal Reserve's rate-setting meeting. However, the fall was restricted on rate cut expectations as two main inflation gauges showed continued easing. 

The weighted average rate in the overnight call money eased to 7.15% compared with 7.18% in previous session. The call money rate hovered in the range of 5.70% to 7.35% with the volume of Rs 12,789.44 crore. 

Rupee slumps

At 66.3625/3725 per dollar 


Rupee closed lower at 66.3625/3725 per dollar on Tuesday (15 September 2015), versus its previous close of 66.3250/3350 per dollar.

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