Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 172.62 points or 0.54% at 32,054.78. The Nifty 50 index was up 51.70 points or 0.52% at 10,057.75. Positive leads from Asian markets and overnight rally on the Wall Street boosted investors' sentiment.
The Sensex was trading above the psychologically important 32,000 mark. The Nifty was trading above the psychologically important 10,000 mark. The Sensex and the Nifty, both, hit their highest levels in more than one month. The Sensex rose 183.14 points, or 0.57% at the day's high of 32,065.30 in mid-morning trade, its highest level since 8 August 2017. The index rose 68.08 points, or 0.21% at the day's low of 31,950.24 in morning trade. The Nifty rose 52 points, or 0.52% at the day's high of 10,058.05 in mid-morning trade, its highest level since 8 August 2017. The index rose 22 points, or 0.22% at the day's low of 10,028.05 in morning trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.75%. The BSE Small-Cap index was up 0.84%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1373 shares rose and 856 shares fell. A total of 125 shares were unchanged.
HDFC Bank (up 0.56%) pipped IT major TCS (down 0.15%) to become the second most valued company in terms of market capitalisation today, 12 September 2017. Reliance Industries (up 0.43%) with market capitalisation of Rs 534352.59 crore stood at the top of the list.
Tata Steel was up 3.42% to Rs 683.90. The company announced after market hours yesterday, 11 September 2017, that Tata Steel UK has received confirmation from The Pensions Regulator that it has approved a Regulated Apportionment Arrangement (RAA) in respect of the British Steel Pension Scheme (BSPS). The BSPS has now been separated from Tata Steel UK and a number of affiliated companies. As part of the RAA, a payment of 550 million pounds from Tata Steel UK has been made to the BSPS and shares in Tata Steel UK, equivalent to a 33% economic equity stake in the company, have been issued to the BSPS Trustee under the terms of a shareholders' agreement.
Tata Steel UK has also agreed to sponsor a proposed new pension scheme, subject to certain qualifying conditions being met. Now the RAA has completed, all members of the BSPS will be invited to transfer to the new scheme. If the qualifying conditions are met, members who choose to will transfer to the new scheme. The new scheme would have lower future annual increases for pensioners and deferred members than the British Steel Pension Scheme, giving it an improved funding position which would pose significantly less risk for Tata Steel UK. The BSPS Trustee will, in due course, communicate with all scheme members about the separation and the proposed new pension scheme.
Cement shares were in demand. ACC (up 2.29%), Ambuja Cements (up 0.82%) and UltraTech Cement (up 0.63%), edged higher.
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Grasim Industries was up 3.10%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Most FMCG shares rose. Hindustan Unilever (up 1.65%), Godrej Consumer Products (up 1.59%), Tata Global Beverages (up 1.15%), Marico (up 1.08%), Jyothy Laboratories (up 0.65%), Britannia Industries (up 0.43%), Procter & Gamble Hygiene & Health Care (up 0.24%) and Colgate Palmolive (India) (up 0.05%), edged higher. GlaxoSmithKline Consumer Healthcare (down 0.12%), Bajaj Corp (down 0.28%), Dabur India (down 0.48%) and Nestle India (down 0.5%), edged lower.
Speciality Restaurants lost 5.83% after the company reported net loss of Rs 15.82 crore in Q1 June 2017, higher than net loss of Rs 5.60 crore in Q1 June 2016. Net sales declined 8.1% to Rs 72.21 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 11 September 2017.
Strides Shasun rose 3.37% after the company said it has received approval from the United States Food and Drug Administration (USFDA) for Potassium Citrate Extended-Release Tablets USP, 5 mEq, 10 mEq and 15 mEq. The product, which is the first approval for an Extended Release tablet for the company, will be launched immediately. Strides Shasun will be the second generic player to commercialize the product. Potassium Citrate, a urinary alkalinizing agent, is used for preventing certain types of kidney stones. According to IMS data, the US market for Potassium Citrate is about $110 million. The announcement was made before market hours today, 12 September 2017.
Overseas, Asian stocks extended yesterday's gains, mirroring strength in the US equities overnight as concerns faded over the potential damage of Hurricane Irma and as Korean Peninsula tensions took a backseat.
US stocks closed sharply higher on Monday, as Hurricane Irma hit Florida with less force than expected and North Korea failed to conduct another nuclear missile test over the weekend, helping to lure investors into buying assets perceived as risky like equities. The Dow Jones Industrial Average closed about 259.58 points, or 1.2%, higher at 22,057.37, while the S&P 500 index climbed 1.1% at 2,488.11, marking a fresh record for the broad-market gauge. The Nasdaq Composite Index rallied 1.1% at 6,432.26, and ended within range of its all-time closing high.
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