Key benchmark indices extended gains in mid-morning trade. At 11:15 IST, the Sensex was up 20.11 points or 0.08% at 24,705.53. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently up 18.10 points or 0.24% at 7,564.55. The Sensex rose 50.61 points or 0.2% at the day's high of 24,736.03 in mid-morning trade. The barometer index hit its lowest level in more than three weeks when it lost 76.91 points or 0.31% at the day's low of 24,608.51 in early trade. The Nifty rose 22.90 points or 0.3% at the day's high of 7,569.35 in mid-morning trade. The index hit three-week low when it lost 19.75 points or 0.26% at the day's low of 7,526.70 in early trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,230 shares rose and 705 shares fell. A total of 127 shares were unchanged. The BSE Mid-Cap index was currently up 0.5%. The BSE Small-Cap index was currently up 0.57%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks edged lower after overnight decline on Wall Street. US stocks closed lower yesterday, 7 April 2016, with financials leading declines on profit-taking in an overall risk-off environment ahead of earnings season.
Bank stocks edged higher after the Reserve Bank of India issued guidelines allowing trading of priority sector lending certificates(PSLCs). Among public sector banks, Indian Bank (up 1.31%), Andhra Bank (up 1.08%), Punjab National Bank (up 1.05%), Union Bank of India (up 0.8%), State Bank of India (up 0.74%) and Bank of Baroda (up 0.14%) edged higher. Central Bank of India (down 0.67%), Bank of India (down 0.16%) and IDBI Bank (down 0.15%) edged lower.
Among private sector banks, ICICI Bank (up 1.23%), Yes Bank (up 1.17%), HDFC Bank (up 0.37%), Kotak Mahindra Bank (up 0.2%) and IndusInd Bank (up 0.07%) edged higher. Axis Bank (down 0.81%) edged lower.
Trading in PSLCs will allow market mechanism to drive priority sector lending by leveraging the comparative strength of different banks. The RBI said that all scheduled commercial banks (including regional rural banks), urban co-operative banks, small finance banks (when they become operational) and local area banks are eligible to participate in the trading of PSLC. The certificates will have a standard lot size of 25 lakh and multiples thereof. There will be no transfer of credit risk on the underlying and the settlement of funds will be done through the e-Kuber portal, a platform to enable trading in the certificates through the central bank's core banking solution (CBS).
Aviation stocks edged higher on renewed buying. SpiceJet (up 3.16%), Jet Airways (India) (up 1.47%) and InterGlobe Aviation (up 1.29%) rose.
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Bajaj Auto rose 0.22% at Rs 2,380 after the company announced that an agreement has been reached between the company and KTM AG, which already have an intense and fruitful partnership, that will see Bajaj Auto extend its distribution network to embrace Indonesia, the biggest motorcycle market in South East Asia. The arrangement involves KTM branded Duke and RC motorcycles up to a displacement of 400 cc, which are developed and assembled by the successful Austrian-Indian joint venture. The motorcycles will be distributed through a chain of KTM dealerships, to be managed by Bajaj Auto in Indonesia. The announcement was made during market hours today, 8 April 2016.
Meanwhile, Bajaj Auto's existing business partnership with Indonesia's P.T. Jaya Selaras Sejahtera will now focus on motorcycles above 400 cc.
Cairn India fell 0.92% at Rs 145.50 after London-listed Cairn Energy PLC called an annual general meeting on 12 May 2016 to seek shareholder approval to sell or reduce its stake in the Indian firm through open market transactions. Cairn Energy holds 9.82% stake in Cairn India as per the shareholding pattern as on 31 December 2015.
Religare Enterprises rose 3.87% at Rs 290 after the company said that it has completed its exit from its asset management joint venture Religare Invesco Asset Management Company (RIAMC) and Religare Invesco Trustee Company (RITC). It sold its 51% stake in the joint venture to the joint venture partner Invesco, which will now hold 100% in RIAMC. The consideration received for the sale is Rs 531.15 crore. Invesco is a leading independent global investment management firm. The transaction was completed on 7 April 2016, following the receipt of all required regulatory approvals. RIAMC reported a turnover of Rs 78.55 crore, translating to approximately 1.88% of Religare Enterprises' consolidated revenue for the year ended 31 March 2015 (FY 2015). RITC reported revenue of Rs 0.35 crore, translating to approximately 0.008% of Religare Enterprises' consolidated revenue for FY 2015. The agreement for sale with Invesco was entered into by the company on 18 November 2015. The consideration received for the sale is Rs 531.15 crore. The announcement was made after market hours yesterday, 7 April 2016.
Meanwhile, as per the monthly data released by Association of Mutual Funds In India (AMFI), investors withdrew a net Rs 1370 crore from equity mutual funds in March 2016. This compares with a net inflow of Rs 2522 crore into equity mutual funds in February 2016. There was a net inflow of Rs 78 crore in balanced funds in March 2016, which was lower than inflow of Rs 941 crore in February 2016. Balanced funds invest the money in a combination of equity and debt, with majority of the investment going into equity. The funds' investments range from 65% to 80% in equity and the rest in debt.
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