Key benchmark indices further extended gains, with the barometer index, the S&P BSE Sensex, and 50-unit Nifty 50 index, both, hitting two-week high. At 14:16 IST, the Sensex was up 313.32 points or 1.28% at 24,782.89. Nifty's gains were higher in percentage terms than those for the Sensex. The Nifty was currently up 109.20 points or 1.47% at 7,533.85. Gains in global stocks aided the rally on the domestic bourses. World stocks rose after the Bank of Japan surprised investors by introducing a negative interest-rate policy.
The Sensex jumped 332.20 points or 1.35% at the day's high of 24,801.77 in mid-afternoon trade, its highest level since 15 January 2016. The barometer index fell 129.51 points or 0.52% at the day's low of 24,340.06 at the onset of the trading session, its lowest level since 22 January 2016. The Nifty rose 114.50 points or 1.54% at the day's high of 7,539.15 in mid-afternoon trade, its highest level since 15 January 2016. The index shed 21.85 points or 0.29% at the day's low of 7,402.80 at the onset of the trading session, its lowest level since 22 January 2016.
The market breadth indicating the overall health of the market was strong. On BSE, 1,531 shares gained and 921 shares fell. A total of 164 shares were unchanged. The BSE Mid-Cap index was currently up 1.42%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.92%, underperforming the Sensex.
In overseas stock markets, Japanese and Chinese stocks led gains in Asian markets after the Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. In mainland China, the Shanghai Composite index settled 3.09% higher. In Hong Kong, the Hang Seng index settled 2.51% higher.
In Japan, the Nikkei 225 Average ended 2.8% higher. The BOJ said after the conclusion of a two-day monetary policy review that it has cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.
European stocks edged higher, joining in a global rally after the BOJ said it would adopt a negative interest rate policy for the first time. US stock futures indicated further gains for US stocks. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 122 points at the opening bell today, 29 January 2016. US stocks finished higher yesterday, 28 January 2016, boosted by a jump in oil prices along with an earnings-driven surge in the shares of Facebook Inc. and Under Armour Inc.
Auto stocks gained. Mahindra & Mahindra (M&M) (up 2.58%), Ashok Leyland (up 0.51%), Eicher Motors (up 1.61%), Bajaj Auto (up 1.96%), Hero MotoCorp (up 3.66%) and Tata Motors (up 0.9%) gained.
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Maruti Suzuki India lost 0.84% on concerns that high base of sales volume in Q4 March 2015 would result in muted year-on-year growth in Q4 March 2016. Maruti Suzuki India's net profit rose 27.06% to Rs 1019.30 crore on 18.95% growth in total income to Rs 15113.40 crore in Q3 December 2015 over Q3 December 2014. Higher volumes, material cost reduction initiatives and favorable foreign exchange contributed to growth in bottom line on year-on-year basis in Q3 December 2015, Maruti Suzuki India said. The result was announced market hours yesterday, 28 January2016.
Maruti Suzuki India said that going forward it could experience uncertainty on foreign exchange front and in commodity prices. On the flip side, interest rates and fuel prices remain benign. Maruti will continue launching new models, Maruti said. The company had witnessed higher sales volume in Q4 March 2015 which would result in muted year-on-year growth in Q4 March 2016.
TVS Motor Company lost 0.91%. The company's net profit rose 19.4% to Rs 107.70 crore on 11% growth in revenue to Rs 2940 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 29 January 2016. During the quarter, the company has provided for a provision for one off expense of Rs 7.5 crore consequent to floods in Chennai and a further sum of Rs 10.6 crore was provided on account of retrospective amendment to Bonus Act. Out of this amount, a sum of Rs 5.7 crore relating to the previous financial year (FY 2015) has been shown as exceptional item, TVS Motor said.
TVS Motor Company's board of directors at a meeting held today, 29 January 2016, approved in-principle, an investment of a sum not exceeding 10 million Hongkong dollars for establishment of a wholly owned subsidiary of the company in Hongkong, mainly to widen the potential in the export market and strengthen the supply chain management in the overseas countries. Details of the proposed subsidiary will be finalized and submitted for ratification by the board of directors in course of time, TVS Motor said.
Dr Reddy's Laboratories gained 3.14% after the company received approval from United States Food & Drug Administration (USFDA) approval for ZEMBRACESymTouch (sumatriptan succinate) injection for the acute treatment of migraines in adults. ZEMBRACESymTouch will be marketed in the United States by Promius Pharma, a wholly owned subsidiary of Dr Reddy's.
IT stocks advanced. Tech Mahindra (up 0.1%), HCL Technologies (up 1.85%), TCS (up 1.67%), Infosys (up 1.91%), and Wipro (up 1.75%) edged higher.
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