Key benchmark indices extended gains and hit fresh intraday high in afternoon trade. At 13:21 IST, the barometer index, the S&P BSE Sensex was up 311.26 points or 1.09% at 28,843.37. The Nifty 50 index was currently up 93.90 points or 1.07% at 8,903.55. Positive global stocks underpinned sentiment. The latest rally on the bourses was also triggered by outcome of a monthly survey showing that August saw a solid rebound in the rate of expansion in Indian service sector business activity.
Domestic stocks saw a gap-up opening, as trading resumed after a local holiday yesterday, 5 September 2016. The Sensex hit its highest level in over 16-1/2 months. The Nifty hit 18-month high. The Sensex jumped 333.97 points or 1.17% at the day's high of 28,866.08 in afternoon trade, its highest level since 16 April 2015. The barometer index rose 99.16 points or 0.35% at the day's low of 28,631.27 in opening trade. The Nifty surged 100.70 points or 1.14% at the day's high of 8,910.35 in afternoon trade, its highest level since 5 March 2015. The index rose 38.80 points or 0.44% at the day's low of 8,848.45 in early trade.
In overseas stock markets, European stock markets rose following gains in Asian equities. Asian shares gained as prospects for a US interest-rate increase this month remained subdued. Low US interest rates could support demand for emerging-market assets. Data on Friday, 2 September 2016 showed US employment growth slowed more than expected in August after two straight months of robust gains. US markets were closed yesterday, 5 September 2016 for Labour Day holiday. Meanwhile, the Group of 20 major economies (G20) wrapped up their annual summit, held in Hangzhou, China, yesterday, 5 September 2016 with a stronger commitment to coordinate policies to support growth and promote trade liberalization.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,601 shares rose and 941 shares declined. A total of 182 shares were unchanged. The BSE Mid-Cap index was currently up 1.4%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.88%, underperforming the Sensex.
Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 2.06%), Bhushan Steel (up 0.48%), Vedanta (up 1.57%), Hindalco Industries (up 1.08%), Hindustan Zinc (up 1.41%), Jindal Steel & Power (up 2.51%), Tata Steel (up 3.254%), Steel Authority of India (Sail) (up 1.75%), and National Aluminum Company (up 1.04%) gained. NMDC (down 0.37%) and Hindustan Copper (down 0.75%) declined.
High Grade Copper for December 2016 delivery was currently up 0.67% at $2.092 per pound on the COMEX.
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Shares of power generation and power distribution companies gained. NTPC (up 2.28%), Torrent Power (up 2.14%), Tata Power Company (up 0.32%), Adani Power (up 1.29%), Power Grid Corporation of India (up 0.85%), Reliance Infrastructure (up 1.09%) and Reliance Power (up 0.97%) gained. NHPC fell 0.72%.
Shares of state run coal mining major Coal India declined 1.97%.
Lupin gained 0.92% after the company announced that its US subsidiary, Gavis Pharmaceuticals LLC, USA received tentative approval for its Moxifloxacin Hydrochloride Tablets, 400 mg from the United States Food & Drug Administration (USFDA) to market a generic version of Bayer Healthcare Pharmaceuticals Inc.'s Avelox Tablets, 400 mg (base). It is a fluoroquinolone antibacterial indicated for the infections in adults 18 years of age and older caused by designated susceptible bacteria in certain conditions. Avelox has annual US sales of $30.1 million as per IMS MAT June 2016. The announcement was made during market hours today, 6 September 2016.
Ahluwalia Contracts (India) rose 7.87% after the company said it secured new orders worth approximately Rs 244.13 crore. The announcement was made during trading hours today, 6 September 2016. The company said the new orders are for construction of hospital building, including electrical, plumbing and firefighting services for Chittaranjan National Cancer Institute at Kolkata. The total order inflow during the financial year ending March 2017 stands at Rs 1209.59 crore.
Meanwhile, Urjit Patel assumed charge as the 24th governor of Reserve Bank of India (RBI), succeeding Raghuram Rajan whose three-year controversy-ridden tenure ended on Sunday, 4 September 2016. Patel has assumed charge effective from Sunday after serving as deputy governor since January 2013, RBI said.
On the macro front, the outcome of a monthly survey showed that August saw a solid rebound in the rate of expansion in Indian service sector business activity. Data released yesterday, 5 September 2016 showed that the seasonally adjusted Nikkei India Services Business Activity Index rose to 54.7 in August, up from 51.9 in July, posting its highest level for over three-and-a-half years. The headline index has now signalled expansion in each of the past 14 months. With growth of manufacturing production also ticking higher, the seasonally adjusted Nikkei India Composite PMI Output Index climbed to a 42-month high of 54.6 in August, from 52.4 in July highlighting a stronger improvement in private sector economic activity.
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