Key benchmark indices extended gains and hit fresh intraday high in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 284.11 points or 1.02% at 28,143.71. The Nifty 50 index was up 81.10 points or 0.94% at 8,673.25. The Sensex was currently trading above the psychologically important 28,000 mark after surpassing that level in early trade. Positive cues from global markets aided the upmove on the domestic bourses.
The Sensex jumped 291.16 points or 1.05% at the day's high of 28,150.76 in morning trade, its highest level since 9 August 2016. The barometer index gained 41.31 points or 0.15% at the day's low of 27,900.91 at onset of the trading session. The Nifty surged 83.05 points or 0.97% at the day's high of 8,675.20 in morning trade, its highest level since 10 August 2016. The index rose 12.30 points or 0.14% at the day's low of 8,604.45 at onset of the trading session.
In overseas stock markets, most Asia stocks rose after all the three main indices in the US attained record closing high overnight. US stocks edged higher yesterday, 11 August 2016, with the three major indices -the Dow Jones Industrial Average, the Nasdaq Composite index and the S&P 500 index, closing at record highs, amid sharp gains in crude oil prices and strong quarterly results from retailers.
Closer home, the broad market depicted strength. There were nearly two gainers against every loser on BSE. 1,228 shares rose and 640 shares fell. A total of 98 shares were unchanged. The BSE Mid-Cap index was currently up 0.88%. The BSE Small-Cap index was currently up 0.65%. Both these indices underperformed the Sensex.
Capital goods stocks gained. L&T (up 1.61%), Bharat Heavy Electricals (Bhel) (up 1.39%), BEML (up 1.02%), Bharat Electronics (up 0.93%), ABB India (up 1.08%) and Crompton Greaves (up 1.09%), gained. Thermax fell 1.09%.
Siemens fell 0.81% to Rs 1,304 after the stock turned ex-dividend today, 12 August 2016 for interim dividend of Rs 27.50 per share for the year ending 30 September 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 2.09% based on its closing price of Rs 1,314.65 on the BSE yesterday, 11 August 2016.
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Cement stocks rose. Ambuja Cements (up 0.98%), ACC (up 1.06%), UltraTech Cement (up 0.2%) and Shree Cement (up 2.37%) gained.
Shares of Grasim Industries and Aditya Birla Nuvo dropped in volatile trade after the board of the directors of these two firms announced the merger of Aditya Birla Nuvo with Grasim as part of a composite Scheme of Arrangement. Grasim was down 1.96% at Rs 4,450. The stock hit a high of Rs 4,484 and a low of Rs 4,160 so far during the day. Shares of Aditya Birla Nuvo (ABNL) were down sharply by 19.21% to Rs 1,265. The stock hit a high of Rs 1,409.15 and a low of Rs 1,180 so far during the day.
After the completion of the merger of Aditya Birla Nuvo (ABNL) with Grasim, the financial services business of ABNL carried under Aditya Birla Financial Services (ABFSL) will be demerged into a separate company. ABFSL will be separately listed on the bourses in due course. For merger of ABNL with Grasim, each shareholder of ABNL will get 3 equity shares of Grasim for every 10 equity shares held in ABNL. For demerger of financial services business into ABFSL, each shareholder of Grasim (post-merger) will receive 7 equity shares in ABFSL for every 1 equity share held in Grasim. After the completion of the two-stage transaction, Grasim will hold 57% stake and Grasim shareholders will own the remaining stake in ABFSL. The transaction is expected to be completed by Q4 March 2017 or Q1 June 2017.
Both Grasim and ABNL also announced Q1 results after trading hours yesterday, 11 August 2016. Grasim's consolidated net profit surged 64% to Rs 830 crore on 9% growth in net revenue to Rs 9089 crore in Q1 June 2016 over Q1 June 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 36% to Rs 2214 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 11 August 2016.
ABNL's consolidated reported net profit declined 56.79% to Rs 305 crore on 0.18% growth in revenue to Rs 3194 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 11 August 2016.
ABNL's net profit on like-to-like basis declined 13.1% to Rs 305 crore in Q1 June 2016 over Q1 June 2015 due to reduction of ABNL's share in Idea Cellular's net profit by Rs 148 crore.
Meanwhile, the India Meteorological Department (IMD) in its weekly monsoon update issued yesterday, 11 August 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon season so far from 1 June to 10 August was 3% above the long period average (LPA).
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