Key benchmark indices snapped three-day losing streak today, 28 September 2016 to settle with small gains as firmness in European stocks boosted sentiment. The barometer index, the S&P BSE Sensex rose 69.11 points or 0.24% to settle at 28,292.81. The gains for the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty gained 38.75 points or 0.45% to settle at 8,745.15. Key indices hovered within a narrow range near the flat line throughout the session.
Private bank stocks saw mixed trend. PSU bank stocks rose. Auto stocks gained. Metal & mining stocks gained as copper prices rose in global commodity markets. Realty stocks rose.
The Sensex rose 69.11 points or 0.24% to settle at 28,292.81, its highest closing level since 26 September 2016. The Sensex gained 154.86 points or 0.54% at the day's high of 28,378.56. The barometer index fell 25.40 points or 0.08% at the day's low of 28,198.30.
The Nifty gained 38.75 points or 0.45% to settle at 8,745.15, its highest closing level since 23 September 2016. The Nifty gained 60.65 points or 0.69% at the day's high of 8,767.05. The index shed 3.25 points or 0.03% at the day's low of 8,703.15.
In overseas stock markets, European stocks rose with investor sentiment buoyed by a rally in the banking sector easing concerns over Germany's financial sector. Investors track developments ahead of a meeting of members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) today, 28 September 2016. Most Asian stocks dropped led by losses in Japanese stocks. Japan's Nikkei Average settled 1.31% lower.
US stocks rose yesterday, 27 September 2016 after the first presidential debate between Democratic candidate Hillary Clinton and Republican contender Donald Trump and a number of stronger-than-expected economic reports. Stocks are rising on the prospect of a Clinton presidency because the Democrat is viewed as a known quantity while some view Trump as being more unpredictable, a bad thing for stock investors. Additionally, US consumer confidence rose to 104.1 in September, the highest level since August 2007. The Case-Shiller home price index rose 5% for the year in July, while house prices rose 0.6%. The Markit flash services purchasing managers index for September rose to 51.9 in September from 51 in August.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,641 shares rose and 1,007 shares fell. A total of 227 shares were unchanged. The BSE Mid-Cap index rose 0.91%. The BSE Small-Cap index gained 1.04%. Both these indices outperformed the Sensex.
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The total turnover on BSE amounted to Rs 2919.53 crore, higher than turnover of Rs 2890.15 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (up 2.33%), the S&P BSE Metal index (up 1.92%), the S&P BSE Basic Materials index (up 1.46%), the S&P BSE Realty index (up 1.42%), the S&P BSE Auto index (up 1.24%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.23%), the S&P BSE Industrials index (up 1.05%), the S&P BSE Capital Goods index (up 1.02%), the S&P BSE Consumer Durables index (up 0.97%), the S&P BSE Finance index (up 0.77%), the S&P BSE Bankex (up 0.74%), the S&P BSE Power index (up 0.70%), the S&P BSE Utilities index (up 0.68%), the S&P BSE Oil & Gas index (up 0.38%) and the S&P BSE Teck index (up 0.27%), outperformed the Sensex. The S&P BSE Healthcare index (up 0.12%), the S&P BSE FMCG index (up 0.06%), the S&P BSE IT index (down 0.26%) and the S&P BSE Energy index (down 0.46%), underperformed the Sensex.
Private bank stocks saw mixed trend. Axis Bank (up 1.49%), IndusInd Bank (up 0.84%), and Yes Bank (up 1.79%) rose. HDFC Bank (down 0.03%), Kotak Mahindra Bank (down 0.13%) fell. ICICI Bank settled unchanged at Rs 260.80.
RBL Bank fell 0.35%. The bank said it raised Rs 330 crore from the UK-based development finance institution, CDC Group Plc, through Basel III compliant Tier II capital. The announcement was made after market hours yesterday, 27 September 2016. RBL Bank said that the Tier II debt will strengthen the capital base of the bank, which in turn will support its businesses such as SME lending, agribusiness financing and financial inclusion. The infusion will also help the bank expand to new regions within India, the bank said.
Federal Bank rose 4.21% to Rs 75.50 after a large bulk deal of 69.18 lakh shares was executed on the scrip at Rs 73.25 per share in opening trade on BSE.
PSU bank stocks rose. Punjab National Bank (up 4.79%), Bank of Baroda (up 2.65%), Canara Bank (up 3.17%), Indian Bank (up 10.81%), Syndicate Bank (up 3.03%), IDBI Bank (up 2.69%), Bank of India (up 3%) and Union Bank of India (up 3.5%) gained.
State Bank of India (SBI) rose 1.83%. The bank said that on 27 September 2016 it issued and allotted 25,000 AT1 Basel III compliant non-convertible, perpetual, subordinated, unsecured debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon of 8.75% per annum payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in second tranche. The announcement was made after market hours yesterday, 27 September 2016.
Auto stocks gained. Ashok Leyland (up 0.92%), Maruti Suzuki India (up 0.16%), Eicher Motors (up 5.62%), Bajaj Auto (up 1.29%), Tata Motors (up 1.67%) and TVS Motor Company (up 0.93%) gained. Hero MotoCorp fell 0.22%.
Mahindra & Mahindra (M&M) gained 0.93% after the company said that it has agreed to acquire 1.49 crore shares or 100% of the share capital of Mahindra Two Wheelers Europe Holdings S.ar.l. from Mahindra Two Wheelers, a subsidiary of the company for Euro 26.3 million. The announcement was made after market hours yesterday, 27 September 2016. The indicative time period for completion of the acquisition is 30 days. MTWL-Europe is a special purpose vehicle to hold the investment in Peugeot Motorcycles S.A.S.
Separately, M&M said that Merakisan (MKPL), a wholly owned subsidiary of Mahindra Univeg (MUPL), a subsidiary of Mahindra Agri Solutions (MASL), which in turn is a wholly owned subsidiary of M&M, allotted equity shares on preferential basis to Prashanth Patil. As a result of this allotment, the holding of MUPL in MKPL has reduced from 100% to 33.17%. Hence, MKPL has ceased to be a subsidiary of MUPL and as such of MASL and in turn of M&M. MUPL, a 60:40 joint venture between MAPL and Univeg announced a minority shareholding in MKPL. Prasanth Patil from the founding family of Merakisan is now the majority stakeholder of Merakisan and will be the CEO of the company. Merakisan shall operate in sourcing fruits, vegetables and other agricultural products directly from farmers ad sell to customers. The announcement was made during market hours today, 28 September 2016.
Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 1.02%), Bhushan Steel (up 1.71%), Hindustan Copper (up 0.62%), Vedanta (up 5.23%), Hindalco Industries (up 4.67%), Hindustan Zinc (up 0.04%), Jindal Steel & Power (up 1.62%), Tata Steel (up 3.37%), Steel Authority of India (Sail) (up 2.53%), National Aluminum Company (up 1.2%) and NMDC (up 3.15%) gained.
High Grade Copper for December 2016 delivery was currently up 0.62% at $2.1845 per pound on the COMEX.
Jindal Stainless rose 8.89% after the company said it received approval from Orissa Industrial and Infrastructure Development Corporation (IDCO) vide its letter dated 24 September 2016 conveying its no objection for effecting the transfer or right to use of the land on which the hot strip mill and the coke plant of the company are located, to Jindal United Steel (JUSL) and Jindal Coke (JCL), respectively. The announcement was made after market hours yesterday, 27 September 2016. Last year, JSL demerged its operations into three separate entities -- listed Jindal Stainless (Hisar) (JSHL) as well as private companies JUSL and JCL.
Bharti Airtel rose 2.42% after the company announced the launch of its new International Roaming (IR) packs that redefine the value proposition for customers traveling abroad. With the new IR packs, customers will have the convenience of carrying their India mobile number wherever they go and stay connected 24x7 without having to worry about high call and data charges. The packs will be available to both postpaid and prepaid customers. The announcement was made during market hours today, 28 September 2016. The IR packs, which are available for all popular global destinations, come with validity of one day and 30 days, giving customers greater flexibility to plan their communication budgets when traveling overseas.
Airtel's new IR packs offer free incoming calls, free texts to India and ample data benefits along with free India calling minutes across all popular destinations. Charges for calls to India and local in-country calls have been reduced to as low as Rs 3 per minute across popular destinations. Airtel also announced that post the exhaustion of pack data benefits, international roaming data will now be charged at just Rs 3 per megabyte (MB), a reduction of 99% from Rs 650 per MB, so that customers can enjoy uninterrupted data usage without having to worry about bill charges.
Realty stocks rose. DLF (up 1.66%), D B Realty (up 1.83%), Sobha (up 0.49%), Indiabulls Real Estate (up 5.81%), Unitech (up 3.03%), Godrej Properties (up 1.98%), Housing Development & Infrastructure (HDIL) (up 2.3%), and Omaxe (up 0.2%) edged higher.
Motherson Sumi Systems rose 0.76% after the Reserve Bank of India allowed foreign investors to hike their stake in the company to upto 30% from 24% earlier. The Reserve Bank of India (RBI) made the announcement after market hours yesterday, 27 September 2016. RBI notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can under the portfolio investment scheme (PIS) now invest upto 30% of the paid up capital of Motherson Sumi Systems. The purchases could be made through primary market and stock exchanges. RBI stated that the company's board of directors and its shareholders approved enhancing the limit for the purchase of its equity shares by FIIs/RFPIs.
Mangalore Chemicals and Fertilisers rose 6.52% after the company said its shareholders rejected the proposed transaction with Zuari Agro Chemicals. Shareholders, however, approved appointment of Suresh Krishnan as managing director of Mangalore Chemicals and Fertilisers. Zuari Fertilisers and Chemicals, the wholly-owned subsidiary of Zuari Agro Chemicals, held 53.03% stake in Mangalore Chemicals and Fertilisers as of 30 June 2016. Its shareholding increased from 16.47% to 53.03% in 2015 after acquisition of shares through open offer.
Marathon Nextgen Realty gained 10.64% after the company said that shares of the company will be listed and admitted to dealings on the National Stock Exchange of India with effect from tomorrow, 29 September 2016. The announcement was made during market hours today, 28 September 2016.
Vivimed Labs jumped 9.74% to Rs 112.65 after high-net-worth individual (HNI) investor Ashish Kacholia bought 13.73 lakh shares of the company at Rs 90.50 per share in a bulk deal. Shares of Vivimed Labs had gained by its maximum permissible daily limit of 20% to settle at Rs 102.65 yesterday, 27 September 2016.
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