Key benchmark indices strengthened and hit fresh intraday high in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 377.72 points or 1.46% at 26,237.89. The gains of the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty was currently up 125.85 points or 1.58% at 8,091.35. IT and pharma stocks hogged limelight on recent weakness in rupee.
The Sensex was currently hovering well above the psychological 26,000 mark after regaining that mark earlier in the day. The Nifty also was hovering decently above the psychological 8,000 level after reclaiming that mark earlier in the day. Bargain hunting emerged after the recent heavy selling on the bourses as emerging markets witnessed selling pressure on worries that US president elect Donald Trump's likely expansionary policies could result in hike in interest rates there which will spark capital outflows from the emerging equity markets.
After opening higher, key indices continued to build on their gains. The Sensex gained 394.39 points or 1.52% at the day's high of 26,254.56 in mid-afternoon trade, its highest level since 21 November 2016. The barometer index rose 14.28 points or 0.05% at the day's low of 25,874.45 in early trade. The Nifty gained 132.80 points or 1.66% at the day's high of 8,098.30 in mid-afternoon trade, its highest level since 21 November 2016. The index rose 11.25 points or 0.14% at the day's low of 7,976.75 in early trade.
In overseas stock markets, European stocks edged lower amid initial volatility. Asian stocks gained as the Thanksgiving break in the United States pegged the dollar's relentless surge that had sucked capital out of most emerging markets. US markets remained closed yesterday, 24 November 2016, on Thanksgiving holiday and trading will end early today, 25 November 2016 there.
Closer home, the broad market depicted strength. There were more than three gainers against every loser on BSE. 1,944 shares rose and 539 shares fell. A total of 162 shares were unchanged. The BSE Mid-Cap index was currently up 1.25%, underperforming the Sensex. The BSE Small-Cap index was currently up 1.74%, outperforming the Sensex.
Shares of pharma companies rose following the recent sharp slide of the rupee against the dollar. Aurobindo Pharma (up 4.45%), Lupin (up 3.66%), Sun Pharmaceutical Industries (up 3.13%), Cipla (up 2.29%), Glenmark Pharmaceuticals (up 1.94%), Cadila Healthcare (up 2.22%), Piramal Enterprises (up 1.47%), Strides Shasun (up 1.03%), Wockhardt (up 0.71%), Divi's Laboratories (up 0.69%) and IPCA Laboratories (up 0.16%) edged higher. Alkem Laboratories (down 1.02%) and GlaxoSmithKline Pharmaceuticals (down 1.03%) edged lower. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
Dr Reddy's Laboratories gained 2.37% after the Central Government yesterday, 24 November 2016, based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 241st meeting held on 27 October 2016, approved foreign direct investment (FDI) proposal of the company to acquire Imperial Credit, an Indian non banking financial company (NBFC) for Rs 36 crore.
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IT stocks jumped after the recent weakness in rupee against the dollar. Tech Mahindra (up 5.92%), HCL Technologies (up 4.73%), Hexaware Technologies (up 7.35%), TCS (up 4.54%), and Infosys (up 4.69%) jumped.
Wipro gained 3.25% after the company announced that it completed the acquisition of Appirio on 23 November 2016. As mentioned in the media presentation submitted as part of results for Q2 September 2016, impact of the Appirio acquisition is expected to reflect in the financials of Wipro for Q3 December 2016, the company said. The announcement was made after market hours yesterday, 24 November 2016.
Rupee had witnessed selling pressure recently. Meanwhile, today, 25 November 2016, in the foreign exchange market, the rupee edged higher against the dollar after hitting record low in the previous session. The partially convertible rupee was hovering at 68.4775, compared with its close of 68.745 during the previous trading session.
Maruti Suzuki India rose 1% after the company announced the launch of limited edition "Wagon R Felicity". The announcement was made during market hours today, 25 November 2016. The vehicle is available in the price range of Rs 4.40 lakh for Lxi and Rs 5.37 lakh for Vxi-AMT (O) variants.
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