Increase in global commodity prices lifted share prices of metal and mining sector companies and oil exploration and production (E&P) firms which along with gains for index heavyweights ITC and HDFC aided modest upmove for the barometer index, the S&P BSE Sensex. The index rose 102.97 points or 0.38% to settle at 27,035.85. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty gained 24.50 points or 0.3% to settle at 8,177.40. The Sensex regained the psychological 27,000 mark. The Sensex and the Nifty edged higher for the sixth day in a row and both these key benchmark indices attained their highest closing level in almost seven weeks.
The latest gains on the domestic bourses materialized as global stocks edged higher. Global stocks have been rallying in recent days after a string of disappointing data in the US and Europe fueled expectations that monetary policy there will stay loose for longer.
Metal and mining shares surged as prices of most metals rose in global commodities markets. Shares of oil E&P firms edged higher as global crude oil prices rose on hopes for falling supply in both the US and global markets. IT stocks declined as the rupee strengthened against dollar. Sugar stocks rallied on expectations of improved demand during the festival season.
Intraday volatility was witnessed on the domestic bourses for the second day in a row. The Sensex rose 102.97 points or 0.38% to settle at 27,035.85, its highest closing level since 21 August 2015. The index rose 149.40 points or 0.55% at the day's high of 27,082.28 in late trade. The index lost 55.37 points or 0.2% to the day's low of 26,877.51 in afternoon trade.
The Nifty gained 24.50 points or 0.30% to settle at 8,177.40, its highest closing level since 21 August 2015. The Nifty rose 36 points or 0.44% at the day's high of 8,188.90 in late trade. The index lost 20 points or 0.24% at the day's low of 8,132.90 in afternoon trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,691 shares rose and 1,061 shares declined. A total of 108 shares were unchanged. The BSE Mid-Cap index rose 0.09%, underperforming the Sensex. The BSE Small-Cap index rose 0.4%, outperforming the Sensex.
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The total turnover on BSE amounted to Rs 3219 crore, lower than turnover of Rs 3357.34 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Oil & Gas index (up 1.28%), the S&P BSE Power index (up 1.30%), the S&P BSE Auto index (up 1.37%), the S&P BSE Realty index (up 1.90%) and the S&P BSE Metal index (up 2.76%), outperformed the Sensex. The S&P BSE IT index (down 1.63%), the S&P BSE Teck index (down 1.38%), the S&P BSE Bankex (up 0.01%), the S&P BSE Capital Goods index (up 0.08%), the S&P BSE Consumer Durables index (up 0.16%), the S&P BSE Healthcare index (up 0.17%) and the S&P BSE FMCG index (up 0.25%), underperformed the Sensex.
Index heavyweight and cigarette major ITC rose 1.25% to Rs 347.20. The stock hit a high of Rs 348.20 and low of Rs 342.60.
Index heavyweight and housing finance major HDFC advanced 0.93% to Rs 1,273.90. The stock hit high of Rs 1,280 and low of Rs 1,256.75.
Shares of oil exploration firms gained along with rise in crude oil prices. ONGC (up 5.04%), Cairn India (up 5.57%), Oil India (up 3.15%) and Reliance Industries (RIL) (up 2.08%) gained. Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Shares of public sector oil marketing companies fell as global crude oil prices rose. Indian Oil Corporation (down 1.2%), BPCL (down 1.4%) and HPCL (down 2.13%) declined. Higher crude oil prices could increase under-recovery of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already freed pricing of petrol and diesel.
Global crude oil prices rose on hopes for falling supply in both the United States and global markets. In the global commodities markets, Brent for November settlement was currently up 71 cents at $52.3 a barrel. The contract had surged $2.67 a barrel or 5.42% to settle at $51.92 a barrel during the previous trading session.
IT stocks declined as the rupee strengthened against dollar. HCL Technologies (down 3.89%), TCS (down 1.32%), Oracle Financial Services Software (down 0.1%) and MphasiS (down 1%) declined. Tech Mahindra rose 0.45%. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
In the foreign exchange market, the partially convertible rupee was currently hovering at 65.015, compared with its close of 65.415 during the previous trading session.
Wipro dropped 2.13% on reports the company has been sued for Rs 120 crore in a sexual harassment case filed by a former employee who was based in London.
Infosys slipped 1.36%. The company is scheduled to announce its Q2 September 2015 results on 12 October 2015.
Metal and mining shares surged as prices of most metals rose in global commodities markets. JSW Steel (up 1.29%), Bhushan Steel (up 3.69%), Hindustan Copper (up 0.61%), Vedanta (up 5.83%), Hindalco Industries (up 9.64%), Hindustan Zinc (up 3.21%), Steel Authority of India (Sail) (up 4.06%), and National Aluminum Company (up 1.4%) gained. Jindal Steel & Power declined 5.14%.
High Grade Copper for December 2015 delivery was currently up 0.76% at $2.373 per pound on the COMEX.
Tata Steel gained 4.25%. Tata Steel after market hours today, 7 October 2015, announced that as a result of measures agreed between the trustee of the British Steel Pension Scheme (the Scheme) and Tata Steel UK (TSUK) and benefit changes implemented following consultation between TSUK, its employees and their representatives, the on-going residual deficit at TSUK has been reduced sharply from around 550 million pounds as at 31 March 2011 to 90 million pounds as at 31 March 2014. Accounting impacts arising from the changes to the pension plan will be recorded in the company's accounts in due course, Tata Steel said. TSUK is an indirect subsidiary of Tata Steel.
NMDC rose 0.53%. The company said during market hours today, 7 October 2015, that the company has incorporated a wholly owned subsidiary company by the name "Jharkhand Kolhan Steel" on 24 September 2015 for development of steel plant in Jharkhand through special purpose vehicle (SPV) route.
Auto stocks gained. Mahindra & Mahindra (M&M) (up 2.13%), Maruti Suzuki India (up 0.33%), Eicher Motors (up 1.23%), Hero MotoCorp (up 0.85%), Bajaj Auto (up 3.76%) and TVS Motor Company (up 4.69%) gained. Ashok Leyland fell 1.48%.
Tata Motors gained 2.82%, with the stock extending two-day rally. Jaguar Land Rover North America announced on 1 October 2015 that its US sales rose 61% to 6,850 units in September 2015 over September 2014.
Private sector bank stocks were mixed. HDFC Bank (up 0.15%), Kotak Mahindra Bank (up 0.85%) and ICICI Bank (up 0.02%) rose. Axis Bank (down 1.57%), IndusInd Bank (down 0.48%) and Yes Bank (down 0.88%) declined.
PSU bank stocks rose. State Bank of India (SBI) (up 1.29%), Punjab National Bank (up 1.57%), Bank of Baroda (up 0.95%), Canara Bank (up 1.23%) and Bank of India (up 2.96%) gained. IDBI Bank (down 1.3%) and Union Bank of India (down 0.3%) fell.
Power finance companies dropped. REC (down 3.31%) and Power Finance Corporation (down 2.53%) fell.
Realty stocks gained. Unitech (up 15.31%), D B Realty (up 3.46%), Godrej Properties (up 4.25%), Oberoi Realty (up 1.34%), DLF (up 2.47%), Indiabulls Real Estate (up 0.36%) and Housing Development & Infrastructure (HDIL) (up 0.8%) edged higher.
Phoenix Mills rose 1.92% after the company said it has acquired entire 19.38% equity stake held by MTX Hotels, Amitabh Tayal and Priyank Tayal in Gangetic Hotels. The company made the announcement after market hours yesterday, 6 October 2015. Post acquisition, Gangetic Hotels (GHPL) has become a subsidiary of Phoenix Mills.
Sugar stocks rallied on expectations of improved demand during the festival season. Bajaj Hindusthan (up 10.25%), Balrampur Chini Mills (up 2.7%) and Shree Renuka Sugars (up 17.5%) surged.
Tata Global Beverages rose 1.84% after Coffee Day Enterprises (CDEL), the holding company of the Cafe Coffee Day (CCD) chain of restaurants, announced the launch of a Rs 1150 crore initial public offer (IPO). The IPO will open for bidding on 14 October 2015. The price band for the IPO has been fixed at Rs 316 to Rs 328 per share. The IPO will close on 16 October 2015. Shares of Tata Global Beverages had a rub-off effect as it runs a coffee chain in India in joint venture with US-based Starbucks.
KEC International rose 1.08% after the company said it has secured new orders worth Rs 668 crore in its transmission & distribution, cables and renewables (solar) businesses. The company announced the new orders during market hours today, 7 October 2015.
Punj Lloyd rose 5.77% after the company said it received Rs 488 crore worth of projects in the power sector including its first two wins in the transmission and distribution segment. The announcement was made during trading hours today, 7 October 2015. The group's order backlog stands at Rs 21466 crore. The order backlog is the value of unexecuted orders on 30 June 2015 plus new orders received after that date, the company said.
Redington (India) rose 3.45% after the company's step-down subsidiary Redington Gulf FZE entered into a definitive agreement to acquire 70% of Linkplus Bilgisayar Sistemleri Sanayi ve Ticaret A.S, Turkey (Linkplus). The balance 30% will be acquired over a 3 year period, Redington (India) said. Established in 1995, Linkplus is a leading ORACLE Distributor in Turkey.
Key benchmark indices edged higher for the sixth consecutive session. The Sensex has garnered 1,419.01 points or 5.53% in the preceding six trading sessions from its close of 25,616.84 on 28 September 2015. The Sensex has risen 881.02 points or 3.36% in this month so far (till 7 October 2015). The Sensex has fallen 463.57 points or 1.68% in this calendar year so far (till 7 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,202.31 points or 8.86%. The Sensex is off 2,988.89 points or 9.95% from a record high of 30,024.74 hit on 4 March 2015.
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