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Key benchmarks firm up in broad-based rally

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Capital Market
Last Updated : Oct 10 2017 | 11:47 AM IST

Key indices hit fresh intraday high in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 136.04 points or 0.43% at 31,982.93. The Nifty 50 index was up 39.30 points or 0.39% at 10,028.05. Power generation stocks were in demand.

The Sensex and the Nifty, both, hit their highest intraday levels in more than two weeks in mid-morning trade. The Nifty was trading above the psychologically important 10,000 mark in early trade after breaching that level in opening trade.

The Sensex rose 138.13 points, or 0.43% at the day's high of 31,985.02 in mid-morning trade, its highest level since 25 September 2017. The index rose 51.31 points, or 0.16% at the day's low of 31,898.20 in morning trade. The Nifty rose 39.50 points, or 0.40% at the day's high of 10,028.25 in mid-morning trade, its highest level since 22 September 2017. The index rose 13.80 points, or 0.14% at the day's low of 10,002.55 in morning trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.74%. The BSE Small-Cap index was up 0.93%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were two gainers against every loser on BSE. 1,563 shares rose and 779 shares fell. A total of 95 shares were unchanged.

Power generation stocks were in demand. JSW Energy (up 3.75%), Jaiprakash Power Ventures (up 1.18%), Adani Power (up 1%), GMR Infrastructure (up 0.92%), NHPC (up 0.73%), Reliance Power (up 0.49%), NTPC (up 0.37%), Tata Power (up 0.37%), CESC (up 0.35%) and Torrent Power (up 0.09%), edged higher.

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State-run Power Grid Corporation of India was up 0.57%. State-run Coal India was up 1.05%.

Reliance Infrastructure (RInfra) was up 1.26% to Rs 483.10. Adani Transmission was up 10% to Rs 193.25. RInfra announced during trading hours today, 10 October 2017, that it has entered into a period of exclusivity until 15 January 2018 in relation to discussions for the proposed sale of its integrated business of generation, transmission and distribution of power for Mumbai City to Adani Transmission (ATL). The proposed transaction is subject to confirmatory diligence, definitive documentation, and customary approvals. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage. RInfra intends to utilize the proceeds of the proposed transaction entirely to reduce its debt, and further strengthen its financial position to tap mega growth opportunities in Defence and EPC for the infrastructure sector.

Most FMCG shares rose. Godrej Consumer Products (up 1.22%), Tata Global Beverages (up 1.13%), Bajaj Corp (up 1.03%), Dabur India (up 0.71%), Nestle India (up 0.38%), Colgate Palmolive (India) (up 0.18%), Britannia Industries (up 0.17%), Jyothy Laboratories (up 0.14%) and Hindustan Unilever (up 0.07%), edged higher. Marico (down 0.19%), GlaxoSmithKline Consumer Healthcare (down 0.33%) and Procter & Gamble Hygiene & Health Care (down 0.46%), edged lower.

Ujjivan Financial Services fell 1.10% after the company announced that Hiren Shah resigned from the company from the post of chief financial officer on personal grounds from 9 October 2017. The announcement was made after market hours yesterday, 9 October 2017.

Separately, Ujjivan Financial Services said that the Reserve Bank of India (RBI) has communicated its approval for the conversion of the company from NBFC-MFI to NBFC-non deposit taking systematically important core investment company. The announcement was made after market hours yesterday, 9 October 2017. The conversion was done pursuant to the conditions prescribed by the RBI in their license letter dated 11 November 2016 for setting up a small finance bank.

Overseas, most Asian stocks were trading higher as Japan and South Korea reopened for trading after holiday. Taiwan was shut for public holiday.

US equities were lower at the close on Monday, as losses in the healthcare, consumer services and consumer goods sectors dragged shares lower. The Dow Jones Industrial Average declined 0.06%, while the S&P 500 index declined 0.18%, and the Nasdaq Composite index lost 0.16%.

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First Published: Oct 10 2017 | 11:18 AM IST

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