Sensex gains 109 pts; banks lead, HCL Tech & TCS tank 9%

Equity benchmarks closed off day's high ahead of Maharashtra and Haryana state elections results that will be announced on Sunday. Indices were directionless since the opening trade but gained strength in last hour of trade to jump as high as 249 points on the Sensex (and to hit 7800 level intraday on positive European cues) before seeing some profit booking in late trade.

The 30-share BSE Sensex climbed 109.19 points to close at 26108.53 and the 50-share NSE Nifty rose 31.50 points to 7779.70 after losing over a percent in previous session.

Experts believe this upmove is not sustainable amid concerns over global growth and consistent selling pressure from foreign institutional investors (FIIs). They advise buying quality stocks on every dip.

Sanjeev Zarbade of Kotak Securities believes the performance of the Indian equities remains contingent on resumption of FII flows.

While Mehraboon Irani expects levels of 7400 to be breached by the market on the downside, he suggests investors to buy into stocks of their choice. He says the global factors will continue to have a significant impact on the market and any negative news may lead to lower rupee levels like 62 against the dollar.

However, reducing inflation, lower commodity prices and expected reforms push remain significant tailwinds for the markets, says Zarbade.

Banks topped the buying list today with the Bank Nifty rising 2.5 percent as top lenders State Bank of India, HDFC Bank and ICICI Bank rallied 2-3 percent while housing finance company HDFC gained 1.7 percent.

Axis Bank rose 2 percent ahead of results that announced post market hours. The private sector lender met street expectations with the second quarter net profit rising 18.3 percent Y-o-Y led by higher other income and net interest income but higher provisions limited profitability. NII jumped 20 percent with stable asset quality.

Two-wheeler maker Hero Motocorp rallied 3 percent on reporting a 58 percent growth in Q2 profits led by other income.

Zee Entertainment gained 3 percent after the company beat expectations on operational front. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 3.5 percent to Rs 321 crore and margin expanded by 50 basis points to 28.7 percent on lower operating cost. Analysts had expected both at Rs 320 crore and 27.5 percent, respectively.

Larsen and Toubro, BHEL, Mahindra and Mahindra, Bharti Airtel, Cipla and Tata Power were other prominent gainers with 2-3.4 percent upside.

However, technology stocks saw huge selling pressure with the CNX IT index falling 4 percent. It was a twin blow for the tech sector; TCS tanked nearly 9 percent after dollar revenue growth missed expectations. The company said softness in certain businesses may continue for two more quarters and that meeting FY14 growth will be difficult in FY15.

HCL Technologies too took a hard knock on similar growth worries, falling 9 percent. Dollar revenue for Q1 came in lower than estimate at USD 1,433 million.

Sesa Sterlite, Hindalco, Tata Motors, Wipro and Jindal Steel fell 1-2.8 percent.

About 1335 shares advanced while 1505 shares declined on the Bombay Stock Exchange.

Meanwhile, the Indian rupee recovered sharply, up 39 paise to close at 61.44 a dollar after falling to 7-month low of 61.83 in previous session. Fresh selling of dollars by exporters and banks supported the rupeerecovery.

On the global front, European markets gained more than a 1 percent while Asian markets like Japan and Taiwan Weighted fell another 1-1.5 percent after yesterday's blow. A comment from hawkish Federal Reserve official James Bullard on Thursday that the Fed should continue bond buying lifted sentiment and surprised many observers.
Source : Moneycontrol

Wall Street: US stocks drop amid global equity selloff

NEW YORK: US stocks dropped sharply in early trade Thursday, following international markets downward as anxiety over global growth continued to prompt selling.

About 30 minutes into trade, the Dow Jones Industrial Average stood at 16,062.34, down 79.40 points (0.49 per cent).

The broad-based S&P 500 fell 13.75 (0.74 per cent) to 1,848.74, while the tech-rich Nasdaq Composite Index tumbled 43.05 (1.02 per cent) to 4,172.27.

Equity markets in Britain and France were down more than 1.0 per cent. Asian markets also fell sharply, with Japan's Nikkei tumbling 2.22 per cent.

"Global risk aversion is persisting amid exacerbated global growth concerns, fueled by yesterday's surprising decline in US retail sales," said a market note from Charles Schwab.

"Moreover, a flare-up in Greek debt concerns, festering Ebola fears, and heightened geopolitical concerns are adding to the dampened global mood."

Thursday's declines move the market closer to a full-blown correction, normally considered a drop of 10-20 per cent. The S&P 500 has fallen about eight per cent since its mid-September all-time high.

Investors brushed off positive news, such as a drop in initial jobless claims to 264,000, the lowest level since April 2000, according to the Department of Labor.

Dow member Goldman Sachs fell 2.1 per cent despite reporting a 50 per cent increase in third-quarter earnings to $2.14 billion in results that bested Wall Street expectations by a wide margin.

Video-streaming company Netflix plummeted 22.7 per cent on disappointing subscriber growth figures. The video-streaming company said it gained just three million members in the past quarter, to boost its subscribers to 53.1 million worldwide.

Apple fell 1.5 per cent ahead of an event in California later Thursday at which it is expected to unveil new versions of the iPad.

Chesapeake Energy bolted 13.5 per cent higher following news it will sell shale oil and gas assets to Southwestern Energy for $5.4 billion. Southwestern lost 6.9 per cent.

EBay dropped 4.9 per cent as it projected fourth-quarter revenues of $4.85-$4.95 billion, below analyst forecasts for $5.16 billion. The profit outlook was also on the low end of expectations.

Bond prices were mixed. The yield on the 10-year US Treasury held steady at 2.09 per cent, the same level as Wednesday, while the 30-year stood at 2.87 per cent, down from 2.88 per cent. Bond prices and yields move inversely.

Oil prices briefly dipped below $80 a barrel for the US benchmark contract, before coming back to 80.75, off $1.03 from Wednesday's close.
Source : economictimes

Wall Street bounces after 3-day slump on earnings hope

NEW YORK: US stocks were higher on Tuesday, rebounding after the S&P 500's worst three-day drop since November 2011, as bullish investors hoped a solid earnings season would ease global growth concerns.

Citigroup, up 3.2 per cent to $51.48, was among the top boosts to the benchmark S&P index after the bank posted better-than-expected quarterly results and said it would pull out of consumer banking in 11 markets.

But JPMorgan Chase shares lost 1.1 per cent to $57.54, after the biggest US bank posted third-quarter earnings. Wells Fargo, the fourth largest US bank, lost 1.6 per cent to $49.39 after its results.

The S&P financial index gained 0.7 per cent.

Johnson & Johnson shares lost 1.3 per cent to $97.82 even after the diversified healthcare company reported better-than-expected quarterly earnings on the back of strong sales for a new hepatitis C drug.

The index closed below its 200-day moving average for the first time since Nov. 16, 2012, on Monday and is now down 6.1 per cent from its record closing high on September 18.

S&P 500 companies are expected to show earnings growth of 6.4 per cent in the third quarter, according to Thomson Reuters data, with revenue growth expected at 4 per cent. After the close, Dow component and chipmaker Intel is set to post results.

At 10:58am, the Dow Jones industrial average rose 84.83 points, or 0.52 per cent, to 16,405.9, the S&P 500 gained 12.45 points, or 0.66 per cent, to 1,887.19 and the Nasdaq Composite added 39.84 points, or 0.95 per cent, to 4,253.50.

The largest per centage gainer on the S&P 500 was Delta Air Lines, up 5.6 per cent, while the largest per centage decliner was ONEOK Inc, down 3.3 per cent.

The largest per centage gainer on the Nasdaq 100 was NXP Semiconductors, up 5.1 per cent, while the largest per centage decliner was Autodesk, down 2.1 per cent.

Among the most active stocks on the NYSE were Bank Of America, up 0.67 per cent to $16.51; Petrobras, up 0.23 per cent to $17.31; and Advanced Micro Devices, down 1.09 per cent to $2.71.

On the Nasdaq, APPLE, up 0.3 per cent to $100.08, and Facebook, up 0.5 per cent to $73.34, were among the most actively traded.

Advancing issues were outnumbering declining ones on the NYSE by 2,020 to 953, for a 2.12-to-1 ratio on the upside; on the Nasdaq, 1,862 issues were rising and 690 falling for a 2.70-to-1 ratio favoring advancers.

The benchmark S&P 500 index was posting 6 new 52-week highs and 23 new lows; the Nasdaq Composite was recording 16 new highs and 121 new lows.

Sensex slumps as recession fears loom over Euro Zone

Foreign institutional investors stepped up selling of Indian stocks on Friday, causing benchmark indices to fall 1.3% on growing concern that the slowdown in the euro zone is far from over.
Investors were also influenced by the heavy sell-off on Wall Street on Thursday after senior US Fed officials said they expect interest rates to rise by mid-2015. Even a sharp decline in oil prices failed to cushion the fall on Friday.

The sell-off resulted in the stock market giving up the previous day's gains, which were sparked by contents of the US Federal Reserve's minutes of September meeting suggesting that the US central bank is not in a hurry to hike interest rates.

"There is total confusion about the direction of the developed economies, which is worrying the markets. In the absence of any domestic triggers, the focus will remain on global events," said Tirthankar Patnaik, director, institutional research, Religare Capital.

BSE's Sensex fell 339.90 points, or 1.28%, to close at 26,297.38. NSE's Nifty dropped 100.60 points, or 1.26%, to close at 7,859.95. Out of the 3,023 stocks traded on the BSE, 1,910 declined, while 998 gained, showing the market breadth was weak.

Metals, consumer goods and auto shares led the sell-off, while technology shares bucked the weak trend after Infosys' second quarter earnings surprised the market. Foreign institutional investors net sold shares worth almost Rs 720 crore on Friday, extending their selling spree to the third straight week worth Rs 3,800 crore. So far in 2014, these investors have net bought shares worth Rs 90,000 crore.

Most Asian markets fell 1-2% on Friday after euro zone's largest economy, Germany, saw a slump in exports, reviving fears that the region may slip into a recession. International Monetary Fund managing director Christine Lagarde warned that the euro zone could fall back into recession if fresh steps are not taken to prevent it. She also said the euro zone is showing the symptoms of Japan's protracted economic slump.

Wall Street had slumped 2% on Thursday after Fed vice chairman Stanley Fisher and San Francisco Fed president John Williams both said they expect higher interest rates by mid-2015. Oil prices fell on worries a slowdown in the global economy would hit demand. Brent crude fell $1.65 to $88.40, levels last seen in November 2010.
Source : economictimes

Wall Street falls, Dow in negative territory for 2014

NEW YORK: US stocks fell on Friday, with the Dow ending in negative territory for the year and the S&P 500 and Nasdaq posting their worst weeks since May 2012.

Technology shares led the day's decline after a chipmaker warned of a major pullback in the industry.

Based on the latest available data, the Dow Jones industrial average fell 115.15 points, or 0.69 per cent, to 16,544.1, the S&P 500 lost 22.08 points, or 1.15 per cent, to 1,906.13 and the Nasdaq Composite dropped 102.10 points, or 2.33 per cent, to 4,276.24.

Source : economictimes

Sensex ends 390 points up

The Nifty bounced back after three days of decline and closed above 7,950 as sentiment turned bullish in global markets as the US Federal Reserve's indicated interest rates will not be hiked earlier than expected.

The Sensex ended the day at 26,637.28; up 390.49 points.

The Nifty shut shop at 7,960.55; up 117.85 points.

The S&P BSE Midcap Index rallied 1.82 per cent and the S&P BSE Smallcap Index surged 1.54 per cent.

Among the sectoral indices, the S&P BSE Capital goods Index gained 3.01 per cent, the S&P BSE Bankex was 2.41 per cent higher, the S&P BSE Power Index advanced 2.25 per cent and the S&P BSE Metal Index advanced 1.76 per cent.

BHEL (up 8.16 per cent), Hindalco (up 5.51 per cent), Zee Entertainment (up 5.10 per cent), Ambuja Cements (up 3.89 per cent) and Punjab National Bank (up 3.33 per cent) were among the Nifty gainers.

Tech Mahindra (2.55 per cent), Jindal Steel (0.60 per cent), NMDC (0.56 per cent), NTPC (0.49 per cent) and Wipro (0.48 per cent) were among the top losers.

The market breadth was positive on the NSE with 923 gainers against 217 losers.
Source : economictimes

Wall Street dips on growth concerns after massive rally

US stocks edged lower on Thursday as concerns over global growth spurred investors to take profits following a massive advance in the previous session.

While domestic news - including job data and corporate earnings - was encouraging, investors continued taking their trading cues from abroad.

German exports dropped by 5.8 per cent in August, their biggest fall since January 2009. The data was the latest indication, following bearish reads on industrial output and industrial orders, that Europe's largest economy was faltering amid broader weakness in the euro zone. Separately, data this week showed growth in the Chinese services sector weakened slightly in September.

The third-quarter earnings season got off to a strong start, with both Alcoa Inc and PepsiCo Inc rallying after results topped expectations.

Alcoa rose 0.8 per cent to $16.19 while PepsiCo was up 0.9 per cent at $94.79.

On the downside, Gap Inc plunged 12 per cent to $36.94 as the S&P 500's biggest decliner a day after it reported weaker-than-expected same-store sales for September and said its chief executive would retire in February.

Jobless claims dropped 1,000 to a seasonally adjusted 287,000 in the latest week. The report supported September jobs data, which also pointed to improving conditions in the labor market.

Wall Street soared on Wednesday, with major indexes posting their biggest one-day jump of the year after the Federal Reserve reassured investors its first rate hike would come when economic data pointed to an economy that could grow without Fed stimulus, rather than on a specific schedule. With the day's advance, the S&P 500 jumped back above its 100-day moving average, a sign of improving near-term momentum.

The Dow Jones industrial average fell 45.98 points, or 0.27 per cent, to 16,948.24, the S&P 500 lost 5.75 points, or 0.29 per cent, to 1,963.14 and the Nasdaq Composite

dropped 13.41 points, or 0.3 per cent, to 4,455.19.

Declining issues outnumbered advancing ones on the NYSE by 1,801 to 888, for a 2.03-to-1 ratio; on the Nasdaq, 1,616 issues were fell and 573 advanced for a 2.82-to-1 ratio favoring decliners.

The benchmark S&P 500 index posted 18 new 52-week highs and no new lows; the Nasdaq Composite recorded 14 new highs and 33 new lows.
Source : economictimes

RBI to cut rates by 75 basis points in 2015, starting February

The Reserve Bank is likely to cut rates beginning February as inflation is expected to reach the targetted 8 per cent by next January, says a Bank of America Merrill Lynch report.

RBI Governor Raghuram Rajan is expected to cut 75 basis points in 2015, beginning February, according to the global financial services major.

RBI would get the comfort of meeting its 8 per cent January Consumer Price Index-based inflation target, BofA-ML said, adding that "we expect the RBI to cut 75 bp in 2015 from February with inflation on course to 6 per cent in January 2016". The central bank is likely to be on hold on its next policy meet on December 2.

The factors that are likely to lead to a rate cut early next year include bottoming of inflation, late rains and US Federal Reserve's rate hike expectations, it said.

Late rains would likely water reasonable winter sowing to douse agflation and finally, US Fed rate hike expectations should hold oil prices in check, it added.

In the recent past inflation has seen some moderation falling from double-digit figures in 2013 to 7.8 per cent, year-on-year, in August.

In the last monetary policy, Rajan left all key rates unchanged citing continued risks to inflation and difficult external situation especially on the geopolitical front.

For the fourth consecutive time RBI had kept key interest rates unaltered. The short-term lending rate (repo) rate remained at 8 per cent, and the cash reserve requirement of banks at 4 per cent.

The report said: "Supply concerns are expectedly proving overdone. Second, the Rs 1,28,400 crore surplus with the RBI and coal fines or auctions should buffer the Rs 4,67,300 crore net borrowing programme from fiscal slippage."

BofA-ML expects the government to raise overseas investors investment limit in government bonds to raise the country's foreign exchange reserves.

"It should hike on-auction G-Sec limits by $5 billion to $30 billion, doing away with the separate limit for sovereign wealth funds (SWFs), within the overall $81 billion FII debt limit," the report said.

FIIs have almost entirely utilised their $25 billion limit.

BofA-ML said separate SWF limits are not utilised as many SWFs invest in emerging market/India paper through FIIs. The report sees the rupee at Rs 62 in December with the US dollar settling at 1.25/euro.

It does not expect RBI to fight a rising US dollar beyond 1.25/euro, although dollar/rupee accounts for 85 per cent of the country's trade.

"After all, it is simply not possible for it to offset cross-currency pressures from the greenback given limited forex reserves," the report said.

The American brokerage expects RBI to buy $35-40 billion by March 2016 to maintain 8-month import cover that is key to rupee stability.
Source : economictimes

Sensex ends in red on weak global cues : tech, pharma down

The S&P BSE Sensex ended a volatile session on flat-to-negative note as global markets remained under pressure on concerns of global economic growth. Outflows of dollars from emerging markets including India also added to the woes.

The International Monetary Fund has cut global growth forecast and that for emerging market economies as a whole. The IMF expects global economy to grow by 3.8 per cent next year, lower than its July forecast of 4 per cent.

The 30-share index ended at 26,246.79, down 25.18 points or 0.10 per cent. It touched a high of 26,338.31 and a low of 26,150.09 in trade today.

The Nifty closed at 7,842.70, down 9.70 points or 0.12 per cent. It touched a high of 7,869.90 and a low of 7,815.75 in trade today.

The S&P BSE Midcap Index was slipped 0.23 per cent and the S&P BSE Smallcap Index gained 0.06 per cent.

The S&P BSE Capital goods Index gained 1.61 per cent, the S&P BSE Auto Index was 0.58 per cent higher and S&P BSE Bankex advanced 1.09 per cent.

The S&P BSE IT Index fell 3.44 per cent and the S&P BSE Healthcare Index was down 3.27 per cent.

Infosys (4.70 per cent), Dr Reddy's Laboratories (4.37 per cent), Sun Pharma (4.31 per cent), Wipro (4.03 per cent) and Cipla (2.51 per cent) were among the top losers.

Tata Steel (up 3.52 per cent), L&T (up 2.32 per cent), ONGC (up 2.30 per cent), NTPC (up 2.24 per cent) and BHEL (up 2.10 per cent) were among the Sensex gainers.

The market breadth was negative on the BSE with 1343 gainers against 1562 losers.
Source : economictimes

Wall Street gains, S&P edges above 50-day moving average

NEW YORK: US stocks rose on Monday, extending a rally from the previous session as investors grew more confident in the economy's strength and Federal Reserve policy.

Merger activity and corporate restructuring also boosted equities, with the S&P 500 advancing above its 50-day moving average for the first time since Sept. 29, a sign that near-term momentum is improving.

Tech shares were among the strongest of the day after Hewlett-Packard Co said it would split into two public companies, sending shares up 4.2 per cent to $36.68 on heavy volume.

Separately, Becton Dickinson & Co agreed to buy CareFusion Corp for $12.2 billion in cash and stock.

Becton jumped 6.8 per cent to $123.52 while CareFusion was up 23 per cent to $56.96 as the S&P 500's biggest gainer.

The S&P 500 index had posted its best day since August on Friday, lifted by a stronger-than-expected jobs report that boosted optimism about the economy, while the Federal Reserve was not seen as speeding up its timeline for raising interest rates. 

Market volatility has been higher of late, with equities notching big swings amid unrest in Hong Kong and concerns about Ebola in the United States. Those issues could continue to drive trading. The CBOE Volatility index fell 1.6 per cent to 14.32, well below its long-term average of 20.

The Dow Jones industrial average was rising 76.01 points, or 0.45 per cent, to 17,085.7, the S&P 500 was gaining 8.18 points, or 0.42 per cent, to 1,976.08 and the Nasdaq Composite was adding 13.42 points, or 0.3 per cent, to 4,489.05.

Advancing issues were outnumbering declining ones on the NYSE by 2,066 to 674, for a 3.07-to-1 ratio on the upside; on the Nasdaq, 1,356 issues were rising and 899 falling for a 1.51-to-1 ratio favoring advancers.

The benchmark S&P 500 index was posting 15 new 52-week highs and no new lows; the Nasdaq Composite was recording 16 new highs and 21 new lows.
Source : economictimes

Top ten stocks for 13% to 15% return in next 4-5 days

Top ten stocks for 13% to 15% return in next 4-5 days

1. Dena Bank: BUY in NSE cash above 59.75 with stop loss of 57.40, Target of 62.10,64 .

2. REC: BUY in NSE cash above 257 with stop loss of 244 and a target of 270,280.

3. Jyoti Structures: BUY in NSE cash above 42.15 with stop loss of 40.15 and a target of 44.15, 46.15 .

4. Dish TV: BUY in NSE cash above 55.50 with the stop loss of 53 and a target of 58, 60 .

5. Mahindra & Mahindra: (CMP - 1390, Target - 1450) .

6. HOV Services: (CMP - 153, Target - 170)

7. Yes Bank: (CMP - 557, Target - 585)

8. Jet Airways: (CMP - 212, Target - 225)

9. Apollo Hospitals: (CMP - 1116, Target - 1175)

Strong US jobs data boosts dollar and world stocks

The dollar climbed to a more than four-year peak and global equity markets surged on Friday after data showed U.S. employers stepped up hiring in September and the jobless rate fell to a six-year low, further signs of a relatively strong economy.

The strong dollar pushed gold below USD 1,200 an ounce for the first time this year after the Labor Department reported that US nonfarm payrolls rose by 248,000 last month and the jobless rate fell two-tenths of a point to 5.9 percent.

The better-than-expected report knocked the euro to a more than two-year low against the dollar, which hit a 15-month high against the Swiss franc. The dollar index, a measure of the greenback against six major currencies, headed toward its biggest yearly gain in nine years, up 8 percent so far in 2014.

Stocks on Wall Street rose more than 1 percent, and European shares finished with a gain just under that level.

The dollar index hit a high of 86.746, its strongest level since June 2010, and was last up 1.24 percent at 86.663.

Against the yen, the greenback jumped 1.31 percent to 109.83 yen, while the euro slid 1.23 percent to USD 1.2512.

MSCI's all-country world index of stock performance in 45 countries rose 0.51 percent.

The FTSEurofirst 300 index of top European shares closed up 0.9 percent at 1,347.14. Shares of European airlines rallied as the price of oil dropped, and exporters suchas Airbus got a lift from the euro's renewed slide.

On Wall Street, the Dow Jones industrial average rose 214.3 points, or 1.28 percent, to 17,015.35. The S&P 500 gained 23.56 points, or 1.21 percent, to 1,969.73 and the Nasdaq Composite added 54.83 points, or 1.24 percent, to 4,485.03.

German Bund yields rose a day after the European Central Bank showed little willingness to stimulate the economy through the purchase of sovereign debt. Markets could be in for a rough fourth quarter as investors anticipate tighter Fed monetary policy and if the ECB stands pat.

Bund yields rose 2 basis points to 0.93 percent. Treasuries prices fell. The 10-year Treasury note fell 3/32 in price to yield 2.4466 percent.

Brent crude oil futures fell below $92 a barrel at one point, down for a fourth consecutive day in a slide that has pushed prices to their lowest levels since 2012. Abundant supplies and a strong dollar continue to weigh on the market.

Brent for November delivery settled down USD 1.11 at USD 92.31 a barrel. US November crude slipped USD 1.27 to settle at USD 89.74.
Source : Moneycontrol

Government option merging FMC with Sebi to better monitor futures market

The government is considering a proposal to merge the Forward Markets Commission (FMC) with capital market regulator Sebi to ensure better monitoring of the commodity futures market.

"One of the options being considered by the government is merging FMC with Sebi," said a senior Finance Ministry official.

Alternatively, the official said, the government may also pursue the long-pending proposal to give more powers to FMC by amending the Forward Contract Regulation Act (FCRA) Amendment Bill.

While FMC is the regulator for commodities trading, while the Sebi regulates the capital markets.

The move would also help in improving the regulatory architecture for the futures commodity trading.

Earlier the Financial Sector Legislative Reforms Commission (FSLRC) had recommended that Sebi, IRDA, PFRDA and FMC should be merged into a single entity into a unified financial agency (UFA).

Last year in September the government had brought FMC under the ambit of the Finance Ministry in the aftermath of a Rs 5,600-crore payment crisis broke out at National Spot Exchange Ltd (NSEL). FMC was earlier under the Consumer Affairs Ministry.

Turnover of interest rate futures hits Rs 1.5 lakh crore in April-September

The turnover of interest rate futures on bourses nearly hit Rs 1.5 lakh crore in the first half 2014-15, even as trading value in September slipped by nearly 32 percent from the previous month level.

Trading of interest rate futures (IRF) on BSE, NSE and MCX-SX cumulatively stood at about Rs 1.48 lakh crore during April-September period.

In September, however, the total trading value on the three stock exchanges dipped by 31.8 per cent to Rs 19,516 crore over the preceding month.

Turnover of IRF cumulatively stood at Rs 28,644.62 crore in August, as per the data available with the bourses.

An IRF, generally a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds, was launched on the three exchanges in January this year.

Individually, NSE accounted for the highest share (93.7 per cent) in turnover among the bourses, during the first six months of the current fiscal. The bourse recorded a turnover of Rs 1.38 lakh crore on its platform for IRF.

At the same time, the IRF value stood at about Rs 7,831 crore on BSE followed by Rs 1,413.16 crore on MCX-SX.

For September, NSE saw a IRF turnover at Rs 17,926.62 crore, down 33 per cent from the preceding month. However, the exchange is much above BSE and MCX-SX both in terms of trading value and volume in IRF.

Trading value on the BSE, last month, dropped by 9.65 per cent to Rs 1,568.41 crore.

Besides, trading in IRF on MCX-SX also saw a sharp dip at about Rs 21 crore in September from Rs 92.18 crore in August. Trading of IRFs on this exchange was above the Rs 100 crore level in the first four months of 2014-15 where in July it had recorded highest value for the fiscal at Rs 536 crore.

In terms of volume, the exchanges together traded 73.69 lakh contracts on their platforms during the first half of 2014-15, with as many as 9.78 lakh trades in the last month.

The number of trades recorded last month were 31.7 per cent lower than in August.

NSE registered trading of 69 lakh contracts, while BSE IRF volumes stood at 3.90 lakh, for April-September period.

Besides, as many as 70,473 IRF contracts have been traded on MCX-SX for period under review.

Last month, the IRF contracts traded on NSE stood at 8.98 lakh, BSE (78,484) and MCX-SX (1047).

The cash-settled IRFs provides market participants with a better option to hedge risks arising from fluctuations in interest rates, which depend on various factors including RBI policy, demand for liquidity and flow of overseas funds.

Banks, primary dealers, mutual funds, insurance firms, FIIs, corporates and brokers, as well as retail investors can trade in this product.