Gains in index heavyweights Infosys and ITC, a strong intraday rebound in another index heavyweight HDFC and recovery in banking and pharma stocks aided a strong intraday rebound for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 131.31 points or 0.53% to settle at 24,682.48. The Nifty rose 38.15 points or 0.51% to settle at 7,498.75. After languishing in red until mid-afternoon trade, key indices reversed direction later.
In overseas stock markets, main European markets edged higher ahead of the US Federal Reserve's policy decision due later in the global day. Earlier during the global day, Asian stocks ended on a mixed note. Most US stocks edged lower yesterday, 15 March 2016, weighed by a fall in oil prices and a string of lackluster economic data.
The Federal Reserve's two-day monetary policy meeting ends today, 16 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
The Sensex rose 131.31 points or 0.53% to settle at 24,682.48, its highest closing level since 14 March 2016. The index rose 155.68 points or 0.63% at the day's high of 24,706.85. The barometer index dropped 196.62 points or 0.8% at the day's low of 24,354.55.
The Nifty 50 index rose 38.15 points or 0.51% to settle at 7,498.75, its highest closing level since 14 March 2016. The index rose 47.40 points or 0.63% at the day's high of 7,508. The index shed 55.45 points or 0.74% at the day's low of 7,405.15.
The BSE Mid-Cap index fell 0.41%. The BSE Small-Cap index fell 0.17%. Both these indices underperformed the Sensex.
More From This Section
The market breadth indicating the overall health of the market was negative. On BSE, 1,406 shares fell and 1,166 shares rose. A total of 164 shares were unchanged.
The total turnover on BSE amounted to Rs 2240 crore, lower than turnover of Rs 2369.49 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (down 3.61%), the S&P BSE Telecom index (down 1.1%), the S&P BSE Metal index (down 0.77%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.69%), the S&P BSE Auto index (down 0.51%), the S&P BSE Basic Materials index (down 0.41%), the S&P BSE Oil & Gas index (down 0.22%), the S&P BSE Realty index (down 0.11%), the S&P BSE Industrials index (down 0.09%), the S&P BSE Capital Goods index (down 0.07%), the S&P BSE Energy index (down 0.07%), the S&P BSE Power index (down 0.07%), the S&P BSE Utilities index (up 0.10%) and the S&P BSE Healthcare index (up 0.30%), underperformed the Sensex. The S&P BSE Teck index (up 0.55%), the S&P BSE Finance index (up 0.59%), the S&P BSE FMCG index (up 0.81%), the S&P BSE IT index (up 0.86%) and the S&P BSE Bankex (up 0.88%), underperformed the Sensex.
Index heavyweight and housing finance major HDFC rose 1.06% to Rs 1,125.95. The stock hit a high of Rs 1,129.50 and a low of Rs 1,096.15 in intraday trade.
Index heavyweight Reliance Industries (RIL) rose 0.13% to Rs 1,021.75. The stock hit a high of Rs 1,025.70 and a low of Rs 1,005.40 in intraday trade.
Index heavyweight and cigarette major ITC rose 1.66% to Rs 322.10. TThe stock hit a high of Rs 323 and a low of Rs 317 in intraday trade.
Index heavyweight and IT major Infosys rose 1.56% to Rs 1,152. The stock hit a high of Rs 1,154.90 and a low of Rs 1,132.05 in intraday trade.
Asian Paints edged lower on reports that a foreign brokerage has downgraded the stock to "neutral" from "buy", citing expensive valuation. The stock dropped 2.17% to Rs 866.85. The brokerage reckons that there is not much earnings visibility for the company once crude oil price stabilises. The brokerage has reportedly trimmed its revenue growth forecast for the company. The brokerage expects improvement in the company's EBITDA (earnings before interest, taxation, depreciation and amortization) margin from FY 2016. It, however, does not expect a significant expansion in profit margins.
Metal and mining stocks dropped on fall in global commodity prices. Jindal Steel & Power (down 3.29%), Hindalco Industries (down 2.92%), National Aluminium Company (down 2.71%), Bhushan Steel (down 2.54%), Hindustan Zinc (down 1.9%), Vedanta (down 1.88%), Steel Authority of India (down 1.85%), Hindustan Copper (down 1.15%), NMDC (down 1.06%) and Tata Steel (down 0.2%), edged lower. JSW Steel rose 0.31%.
High Grade Copper for May 2016 delivery was currently down 0.31% at $2.2405 per pound on the COMEX.
Most private sector banks edged higher. ICICI Bank (up 2.30%), Kotak Mahindra Bank (up 1.85%), Federal Bank (up 1.58%), Axis Bank (up 1.22%) and HDFC Bank (up 0.44%), edged higher. IndusInd Bank (down 0.32%), Yes Bank (down 0.83%) and City Union Bank (down 1.98%), edged lower.
Shares of state-run banks were mixed. Bank of Maharashtra (down 1.37%), Indian Bank (down 1.35%), Corporation Bank (down 1.09%), Vijaya Bank (down 0.94%), Andhra Bank (down 0.87%), United Bank of India (down 0.77%), Punjab National Bank (down 0.66%), Punjab and Sind Bank (down 0.58%), Bank of Baroda (down 0.14%), UCO Bank (down 0.13%) and State Bank of India (down 0.08%) edged lower. Allahabad Bank (up 0.29%), Dena Bank (up 0.53%), Canara Bank (up 0.62%), Bank of India (up 0.63%), Union Bank of India (up 0.68%), IDBI Bank (up 0.77%) and Syndicate Bank (up 0.88%) edged higher.
Telecom stocks edged lower. Reliance Communications (down 2.69%), Bharti Airtel (down 1.16%) and Idea Cellular (down 0.86%), edged lower. MTNL rose 0.58%.
Tata Teleservices (Maharashtra) ended flat at Rs 6.05.
Pharma stocks were mixed. Wockhardt (down 1.97%), Sun Pharmaceutical Industries (down 0.86%), IPCA Laboratories (down 0.79%), Cadila Healthcare (down 0.12%), Piramal Enterprises (down 0.1%) and Alkem Laboratories (down 0.09%), edged lower. Dr Reddy's Laboratories (up 0.53%), Strides Shasun (up 1.15%), Glenmark Pharmaceuticals (up 1.29%), GlaxoSmithKline Pharmaceuticals (up 1.63%), Divi's Laboratories (up 1.95%) and Aurobindo Pharma (up 2.32%), edged higher.
Lupin rose 1.27% to Rs 1,748.50. The stock was volatile. The stock hit high of Rs 1,753.25 and low of Rs 1,698.75 in intraday trade. The stock had tumbled 7.59% to settle at Rs 1,726.60 yesterday, 15 March 2016, after the company's clarification that the United States Food and Drug Administration (USFDA) inspected its Goa facility last week and cited 9 observations. The USFDA's observations are on aspects such as inadequacy and adherence to Standard Operating Procedures (SOPs). Lupin said that it is in the midst of putting together a response to address the USFDA's observations. The company issued the clarification after media reports suggested that the USFDA cited nine observations in its inspection of the company's Goa facility last week.
Cipla gained 1.52% to Rs 532.65. The stock hit high of Rs 534.75 and low of Rs 516.80 in intraday trade. The company before market hours today, 16 March 2016, announced that its wholly owned subsidiary Cipla (EU) Limited, UK (Cipla UK) has made an additional investment of $3 million in Chase Pharmaceuticals Corporation Inc., US (Chase) towards full settlement of its obligation under the agreed arrangement for investment in Chase. Consequently, Cipla UK's total investment in Chase would aggregate to approximately $5.12 million for a 16.7% stake on a fully diluted basis. Chase is an early stage drug development company developing novel approaches to improve treatments for Alzhemimer's disease.
Indian Oil Corporation (IOCL) declined 0.98%. Oil India (OIL) declined 1.48%. BPCL rose 0.71%. IOCL and BPCL in separate announcements said that IOCL, Oil India and Bharat PetroResources (BPRL), acting jointly as the Indian consortium, signed definitive agreements on 16 March 2016 to acquire participatory shares representing 29.9% of the charter capital of LLC "TYNGD", a company organized under the law of Russian Federation, from LLC RN Upstream, a wholly-owned subsidiary of Rosneft Oil Company, the National Oil Company (NOC) of Russia. The acquisition is subject to relevant board, government and regulatory approvals and is expected to close by September 2016. The announcement was made during market hours today, 16 March 2016. BPRL is a wholly owned subsidiary and an exploration and production arm of BPCL.
Rosneft Oil Company holds 80% stake while BP PLC (UK) holds 20% shares in TYNGD through their respective subsidiaries. TYNGD is currently producing 20,000 barrels of oil per day (bopd) with expected peak production of 1 lakh bopd by 2021.
Additionally, a Heads of Agreement was signed for evaluation of acquisition of 23.9% in the CJSC Vankorneft by the consortium of IOCL, OIL and BRPL with Rosneft Oil Company. CJSC Vankorneft is the owner of Vankor field and North Vankor license. A memorandum of association (MoU) was also signed between Rosneft and the Indian consortium for joint evaluation of certain other assets of Rosneft in Russia.
Meanwhile, as per data announced by the government after market hours yesterday, 15 March 2016, India's merchandise exports fell 5.66% in dollar terms in February 2016 over February 2015. Non-petroleum exports fell 2.69%. The trend of falling exports is in tandem with other major world economies, according to a statement from the Ministry of Commerce & Industry. Imports fell 5.03% in dollar terms in February 2016 over February 2015.
The Sensex has risen 1,683.48 points or 7.32% in this month so far (till 16 March 2016). The Sensex has fallen 1,431.06 points or 5.48% in calendar year 2016 so far (till 16 March 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,189.87 points or 9.74%. The Sensex is off 4,411.13 points or 15.16% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 5,342.26 points or 17.79% from a record high of 30,024.74 hit on 4 March 2015.
Powered by Capital Market - Live News