After trimming gains in afternoon trade, key benchmark indices surged in mid-afternoon trade as European stocks extended gains. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 423.43 points or 1.68% at 25,651.93. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 121.95 points or 1.58% at 7,855.40. The Sensex and the Nifty 50 index, both, hit their highest level in almost a week. In overseas stock markets, European stocks extended initial gains after the latest data showed German manufacturing orders rebounded sharply in March 2016.
The Sensex jumped 427.69 points or 1.69% at the day's high of 25,656.19 in mid-afternoon trade, its highest level since 3 May 2016. The barometer index rose 74.36 points or 0.29% at the day's low of 25,302.86 at the onset of the trading session. The Nifty gained 126.65 points or 1.63% at the day's high of 7,860.10 in mid-afternoon trade, its highest level since 3 May 2016. The index rose 20.10 points or 0.25% at the day's low of 7,753.55 at the onset of the trading session.
In overseas stock markets, European stocks extended initial gains after the latest data showed German manufacturing orders rebounded sharply in March 2016. Total orders for Germany's important manufacturing sector--adjusted for seasonal swings and calendar effects--jumped 1.9% in March from the month before. Increase in foreign orders led the gains. Domestic orders, however, dropped 1.2% in March from the preceding month. The German economy is Europe's biggest economy.
Asian stocks witnessed a mixed trend. Stocks fell in mainland China after the latest data showed that China's exports and imports fell more than expected in April, underlining weak demand at home and abroad. The Shanghai Composite ended 2.79% lower. In Hong Kong, the Hang Seng index settled 0.23% higher. China's exports declined 1.8% in April in dollar terms, reversing an increase of 11.5% the previous month, the General Administration of Customs said yesterday, 8 May 2016. Imports in April fell by a sharper-than-expected 10.9% from a year earlier, compared with a 7.6% drop in March.
US stocks posted modest gains on Friday, 6 May 2016, as a weaker-than-expected April job report fanned expectations that the Federal Reserve will delay raising interest rates. US non-farm payrolls increased by 160,000 in April, the smallest gain since September, and below market expectations. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,586 shares rose and 917 shares fell. A total of 168 shares were unchanged. The BSE Mid-Cap index was currently up 1.12%. The BSE Small-Cap index was currently up 1.07%. Both these indices underperformed the Sensex.
Also Read
Cement stocks gained. ACC (up 1.12%), Shree Cement (up 2.1%) and Ambuja Cements (up 0.14%) gained.
UltraTech Cement gained after the company announced that its board of directors approved a proposal for increase in investment limits by registered foreign portfolio investors (RFPIs) including foreign institutional investors (FIIs) from the existing 24% of the paid-up equity share capital to 30%. The stock rose 1.37%. The increase in the limits is subject to the approval of the shareholders at the ensuing Annual General Meeting of the company to be held in July 2016, the date of which will be intimated separately. The announcement was made during market hours today, 9 May 2016.
Grasim Industries rose after the company announced strong Q4 results. The stock rose 0.7%. The company's consolidated net profit rose 37.38% to Rs 696.09 crore on 13.69% rise in net sales to Rs 9896.43 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 7 May 2016. Grasim Industries' earnings before interest, taxes, depreciation and amortization (EBITDA) rose 24.19% to Rs 2059 crore in Q4 March 2016 over Q4 March 2015. Grasim Industries said it has posted impressive results led by robust volume growth in all its businesses viz. viscose staple fibre (VSF), chemical and cement. During the year, under a court approved scheme of amalgamation, Aditya Birla Chemicals (India) (ABCIL), has been amalgamated with the company from the appointed date of 1 April 2015. In view of amalgamation of ABCIL with the company, the results for the quarter and the year ended 31 March 2016 are not strictly comparable with corresponding periods of the previous year.
With regard to the future outlook for the VSF business, Grasim said that VSF capacity addition has slowed down globally. Further, cotton production is projected to be lower than the consumption in the 2015-16 season with reduced acreage and unfavorable climate. As a result, the price volatility of VSF is expected to reduce. The company will continue to focus on expanding VSF market in India by partnering with the textile value chain and better customer connect through its Liva brand. Enhancing product mix through larger share of specialty fibre will be yet another focus area.
With regard to the future business outlook for the caustic soda business, Grasim said that the caustic soda demand in India is expected to grow with increase in demand from the end user industry. To meet the growing demand, Grasim is expanding its caustic soda capacity by 100,000 tonnes per annum through debottlenecking at different units. With regard to the future business outlook for the cement business, Grasim said that cement demand is expected to grow at 7%-8% in the year ending 31 March 2017, driven by the government's focus on infrastructure development, housing, smart cities etc. The company is well positioned across the country to cater the growth in demand.
Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Shares of oil exploration and production companies rose as global crude oil prices gained. Oil India (up 0.94%) and ONGC (up 0.98%) gained. Cairn India declined 0.61%. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries (RIL) rose 1.34% to Rs 982.10. The stock hit high of Rs 986 and low of Rs 972.50 so far during the day.
In global commodities markets, Brent crude oil futures edged higher as the ongoing wildfire near the hub of Canada's oil sands triggered expectations that the disaster could help ease the global oil supply glut. Brent for July settlement was currently up 50 cents at $45.87 a barrel. The contract had risen 36 cents or 0.79% to settle at $45.37 a barrel during the previous trading session.
Stocks of public sector oil marketing companies (PSU OMCs) also gained. BPCL (up 0.12%) and Indian Oil Corporation (up 0.49%) edged higher. HPCL declined 1.01%.
Tasty Bite Eatables hit upper circuit limit of 20% at Rs 2024.25 after net profit rose 85.22% to Rs 5.89 crore on 35.64% rise in net sales to Rs 58.61 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 7 May 2016.
Powered by Capital Market - Live News