Key benchmark indices regained positive zone in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was up 20.46 points or 0.07% at 28,998.48. The Nifty 50 index was currently up 2.75 points or 0.03% at 8,945.75. The Sensex was currently trading a tad below the psychologically important 29,000 mark. The barometer index has alternately moved above and below that level in intraday trade so far.
The Sensex gained 89.82 points or 0.31% at the day's high of 29,067.84 in early trade, its highest level since 15 April 2015. The barometer index fell 49.92 points or 0.17% at the day's low of 28,928.10 in morning trade. The Nifty rose 25.70 points or 0.29% at the day's high of 8,968.70 in early trade, its highest level since 4 March 2015. The Nifty fell 23.40 points or 0.26% at the day's low of 8,919.60 in morning trade.
Meanwhile, data released by the stock exchanges showed that foreign funds made substantial purchases of Indian stocks yesterday, 6 September 2016. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1438.72 crore yesterday, 6 September 2016, as per provisional data released by the stock exchanges.
In overseas stock markets, most Asian stocks were trading higher on reduced likelihood of an imminent interest-rate increase by the Federal Reserve, after data showed that US service-sector activity fell to a six-year low in August. US stocks closed higher yesterday, 6 September 2016, after surprisingly weak US services sector activity data lowered the chances the Federal Reserve will hike rates this month. The Institute for Supply Management (ISM) yesterday, 6 September 2016, said its non-manufacturing purchasers manager index (PMI) index fell to 51.4 in August from 55.5 in July.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,284 shares rose and 963 shares declined. A total of 116 shares were unchanged. The BSE Mid-Cap index was currently up 0.12%. The BSE Small-Cap index was currently up 0.62%. Both these indices outperformed the Sensex.
IT stocks rose. HCL Technologies (up 1.97%), TCS (up 0.14%), Infosys (up 0.64%), Tech Mahindra (up 0.47%), Hexaware Technologies (up 3.83%) and MphasiS (up 0.69%) rose. Oracle Financial Services Software (down 0.32%) and MindTree (down 0.55%) fell.
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Wipro rose 0.86% after the company announced that it has won an IT contract from Norway's NSB Group, one of Norway's largest transportation groups. Headquartered in Oslo, NSB has extensive passenger transportation operations by way of the rail and bus, freight by rail, property management and development and train maintenance segments. As part of the three-year agreement, Wipro will implement its Boundaryless Datacenter (BLDC) and LiVE Workspace solutions and utilize its next-generation delivery framework ServiceNXT to deliver services which will help NSB variablise their IT operations. The proposed government-backed reforms in the Norwegian railway sector are expected to provide a fillip to the efficiency of the railways. The Wipro-enabled back-bone of IT infrastructure services will enable NSB to achieve greater flexibility, scalability, cost efficiency and offer an enhanced end-user experience.
Bharat Heavy Electricals (Bhel) lost 2.1% after the company said India Ratings and Research has downgraded its Long-Term Issuer rating on the company to 'IND AA+' from 'IND AAA'. The announcement was made during trading hours today, 7 September 2016. Bhel said that India Ratings and Research has, simultaneously, removed all ratings from Rating Watch Negative (RWN) and a Negative Outlook has been assigned to all Long-term ratings. The removal of RWN follows the completion of the ongoing evaluation of Bhel's key business parameters. According to statement issued by India Ratings and Research, decline in Bhel's revenue for the period from FY 2013 to FY 2016, slow moving projects in the company's order book, EBITDA (earnings before interest, taxes, depreciation and amortization) margins turning negative and high debtors days led to downgrade of the company's ratings.
NBCC (India) rose 1.94% after the company said it secured contract worth approximately Rs 270 crore from University Grants Commission (UGC) for construction of new UGC building complex at JNU Campus, New Delhi. The announcement was made after market hours yesterday, 6 September 2016.
Realty stocks gained. DLF (up 1.43%), Indiabulls Real Estate (up 1.31%), Housing Development and Infrastructure (up 1.73%), D B Realty (up 1.32%), Unitech (up 14.53%), Godrej Properties (up 0.37%), Sunteck Realty (up 4.16%), Hubtown (up 1.14%) and Parsvnath Developers (up 1.19%) gained. Oberoi Realty (down 0.64%), Sobha (down 0.09%) and Prestige Estates Projects (down 1.38%) fell.
Jindal Poly Films lost 4.13% after consolidated net profit fell 39.3% to Rs 98.84 crore on 7.9% decline in net sales to Rs 1777.03 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 6 September 2016.
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