Key benchmark indices held firm in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex was up 288.17 points or 1.01% at 28,820.28. The Nifty 50 index was currently up 83.45 points or 0.95% at 8,893.10. Positive Asian stocks underpinned sentiment. The latest rally on the bourses was triggered by outcome of a monthly survey showing that August saw a solid rebound in the rate of expansion in Indian service sector business activity also boosted sentiment.
Domestic stocks saw a gap-up opening, as trading resumed after a local holiday yesterday, 5 September 2016. The Sensex hit its highest level in over 16-1/2 months. The Nifty hit 18-month high. The Sensex jumped 305.77 points or 1.07% at the day's high of 28,837.88 in mid-morning trade, its highest level since 16 April 2015. The barometer index rose 99.16 points or 0.35% at the day's low of 28,631.27 in opening trade. The Nifty rose 89.10 points or 1.01% at the day's high of 8,898.75 in mid-morning trade, its highest level since 5 March 2015. The index rose 38.80 points or 0.44% at the day's low of 8,848.45 in early trade.
In overseas stock markets, Asian shares were trading higher as prospects for a US interest-rate increase this month remained subdued. US markets were closed yesterday, 5 September 2016 for Labour Day holiday. Meanwhile, the Group of 20 major economies (G20) wrapped up their annual summit, held in Hangzhou, China, yesterday, 5 September 2016 with a stronger commitment to coordinate policies to support growth and promote trade liberalization.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,561 shares rose and 758 shares declined. A total of 148 shares were unchanged. The BSE Mid-Cap index was currently up 1.29%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.82%, underperforming the Sensex.
Bank stocks gained. Among private bank stocks, HDFC Bank (up 0.98%), RBL Bank (up 0.28%), Kotak Mahindra Bank (up 0.5%), ICICI Bank (up 1.8%), IndusInd Bank (up 2.75%) and Yes Bank (up 2.86%) gained.
Axis Bank gained 3.3% to Rs 618.95. The stock hit a high of Rs 620 in intraday trade so far, which is 52-week high for the counter. The stock hit a low of Rs 600 so far during the day.
More From This Section
Among PSU bank stocks, Indian Bank (up 2.41%), State Bank of India (SBI) (up 1.57%), Punjab National Bank (up 2.5%), Bank of Baroda (up 1.8%), Canara Bank (up 1.05%), IDBI Bank (up 1.1%), Bank of India (up 1.67%) and Union Bank of India (up 1.82%) rose.
Realty stocks advanced. Prestige Estates Projects (up 3%), Indiabulls Real Estate (up 0.81%), Housing Development and Infrastructure (up 1.76%), Unitech (up 2.1%), Sobha (up 0.17%), Godrej Properties (up 0.05%), Prestige Estates Projects (up 3.29%), Oberoi Realty (up 1%) and Parsvnath Developers (up 0.89%) rose. DLF (down 0.07%) and D B Realty (down 0.3%) fell.
Meanwhile, Urjit Patel assumed charge as the 24th governor of Reserve Bank of India (RBI), succeeding Raghuram Rajan whose three-year controversy-ridden tenure ended on Sunday, 4 September 2016. Patel has assumed charge effective from Sunday after serving as deputy governor since January 2013, RBI said.
On the macro front, the outcome of a monthly survey showed that August saw a solid rebound in the rate of expansion in Indian service sector business activity. Data released yesterday, 5 September 2016 showed that the seasonally adjusted Nikkei India Services Business Activity Index rose to 54.7 in August, up from 51.9 in July, posting its highest level for over three-and-a-half years. The headline index has now signalled expansion in each of the past 14 months. With growth of manufacturing production also ticking higher, the seasonally adjusted Nikkei India Composite PMI Output Index climbed to a 42-month high of 54.6 in August, from 52.4 in July highlighting a stronger improvement in private sector economic activity.
Powered by Capital Market - Live News