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Last Updated : Sep 21, 2016 10:13 AM IST | Source: Moneycontrol.com

Sensex, Nifty tepid; Bank of Japan to supply 800 bn yen

Adani Ports, GAIL, BHEL, Hero MotoCorp, tata Motors are top gainers in the Sensex while HDFC, TCS, Coal India, ITC and ONGC is loser in the Sensex.


Moneycontrol Bureau

9:50 am Bank of Japan's monetary policy:
Japan's central bank issued a plethora of fresh changes to its policy approach after its meeting on Wednesday, but kept rates steady, indicating its comprehensive review of its negative interest rate policy and asset purchases was fruitful.


Among the changes, the Bank of Japan (BOJ) said it would make yield curve control a centerpiece of its new policy framework, by a seven-to-two vote, Reuters reported. It eliminated the maturity range for its Japan government bond purchases and it abandoned its target to increase the monetary base by 80 trillion yen a year, according to Reuters.

It said it would buy 10-year JGBs so that the yield would hover around zero percent, Reuters reported.


It kept its deposit rate unchanged at negative 0.1 percent, Reuters reported.

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9:40 am Breaking: Bank of Japan offers to supply 800 billion yen funds at a fixed rate

9:30 am FII ciew:
Ajay Kapur of Bank of America Merrill Lynch says the brokerage house has re-iterated tactically neutral view established last month and remained structurally bullish.


"There are many central bank meetings and we will wait to see lower levels of 'Risk-Love' before we get tactically bullish again," he says.


He feels after over-predicting US/global bond yields for the past 15 years, consensus is finally capitulating to a lower interest rate world.


"We were concerned that the then consensus bond-bullishness could reverse if we see coordinated fiscal policy or hawkish central banks. In that scenario, bond proxies, high dividend stocks, utilities, staples and EM debt would come under pressure. That seems to be happening recently," Kapur says.


Don't miss: Buy, sell or hold: 8 handpicked stocks by analysts for the day


The market has made a tepid opening waiting for outcome of the Bank of Japan policy meeting. The BOJ is expected to make negative interest rates the centrepiece of a new policy framework - widely seen as a desperate attempt to show it still has the firepower to lift Japan out of years of stagnation.

The Sensex is up 37.43 points or 0.1 percent at 28560.63, and the Nifty is up 13.30 points or 0.1 percent at 8789.20. About 354 shares have advanced, 124 shares declined, and 35 shares are unchanged.


Adani Ports, GAIL, BHEL, Hero MotoCorp, tata Motors are top gainers in the Sensex while HDFC, TCS, Coal India, ITC and ONGC is loser in the Sensex.


The Indian rupee opened marginally higher at 66.99 per dollar versus 67.01 Tuesday.


Pramit Brahmbhatt of Veracity said, "The rupee will trade with a negative bias today due to global concerns, but it can find some support at 67.20/dollar. The trading range for the day is seen between 66.80-67.20/dollar."

Asian shares got off to a tentative start, while the yen was steady as investors braced for the outcome of the Bank of Japan's policy meeting amid heightened speculation the central bank will make crucial changes to its massive easing programme.

Ahead of the decision, MSCI's broadest index of Asia-Pacific shares outside Japan added 0.15 percent, perched at its highest levels since September 12. Markets in New Zealand and Australia were flat.


Markets are also watching out for the US Federal Reserve policy decision, due later in the global day. Both hawkish and dovish comments from Fed officials recently have stoked volatility in financial markets, although consensus is now centred on a US rate hike by year-end.


US stocks ended little changed, with healthcare gains offsetting declines in energy


The Dow Jones industrial average added 0.05 percent, the S&P 500 gained 0.03 percent, and the Nasdaq Composite rose 0.12 percent. US Treasury yields were supported in early trade as investors bought longer-dated bonds on uncertainty over the outcome of the BOJ meeting.


Among asset classes, crude oil prices recovered from six-week lows, with US crude rising as much as 1 percent, as the market weighed up OPEC comments that a possible production freeze agreement could last longer than expected.


Gold rose for a second straight session as the dollar dropped ahead of a two-day US Federal Reserve meeting that investors are betting will leave interest rates unchanged.



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First Published on Sep 21, 2016 09:15 am
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