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Last Updated : Sep 06 2016 | 2:47 PM IST

Key benchmark indices held firm in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex was up 291.73 points or 1.02% at 28,823.84. The Nifty 50 index was currently up 90.10 points or 1.02% at 8,899.75. 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 mid-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 mid-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, 1,597 shares rose and 1,015 shares declined. A total of 183 shares were unchanged. The BSE Mid-Cap index was currently up 1.42%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.94%, underperforming the Sensex.

FMCG stocks gained. Britannia Industries (up 2.26%), Colgate-Palmolive (India) (up 2.03%), Dabur India (up 0.74%), Godrej Consumer Products (up 3.3%), Hindustan Unilever (up 1.45%), Marico (up 1.98%), Nestle India (up 1.26%), Tata Global Beverages (up 0.35%), Procter & Gamble Hygiene and Health Care (up 1.67%) and Bajaj Corp (up 0.39%) rose.

Jyothy Laboratories (down 0.21%) and GlaxoSmithkline Consumer Healthcare (down 0.95%) fell.

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IT stocks saw mixed trend. TCS (down 1.17%), Wipro (down 0.14%), HCL Technologies (down 0.52%), Oracle Financial Services Software (down 0.2%), MindTree (down 7.46%) fell. Tech Mahindra (up 1.44%), Hexaware Technologies (up 0.53%) and MphasiS (up 0.06%) rose.

Infosys rose 1.39% after the company announced that it has entered into a joint venture (JV) agreement with Saudi Prerogative Company (SPC) in the Kingdom of Saudi Arabia to conduct IT services for customers located in the Kingdom of Saudi Arabia. Infosys holds 70% while the rest 30% will he held by SPC in this JV. Infosys' 70% in this JV is at a cash investment of $312,671 (SAR 1,172,501) by the company in the equity share capital of the proposed JV company. The agreement is subject to the approval of Saudi Arabian General Investment Authority (SAGIA). The announcement was made after market hours on Friday, 2 September 2016.

Ramco Systems rose 4.53% after the company announced that it has won an order from L-3 MAS for the Ramco Aviation Suite to support the Canadian CC-150 Polaris fleet. L-3 MAS, a division of L-3's Aerospace Systems business segment, is Canada's leading In-Service Support (ISS) integrator. The announcement was made during trading hours today, 6 September 2016.

Jubilant FoodWorks slumped 9.24% after net profit declined 31.1% to Rs 19 crore on 6.7% growth in net sales to Rs 608.76 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Saturday, 3 September 2016. The stock market was closed yesterday, 5 September 2016 on account of Ganesh Chaturthi.

Jubilant FoodWorks' Chairman Shyam S. Bhartia and Co-Chairman Hari S. Bhartia said that a contrained consumption environment had an effect on the company's overall performance in Q1 June 2016. The management expects Q2 September 2016 to see improved performance and positive same store growth.

In its outlook, Jubilant FoodWorks said that the company has a target of around 130-140 new Domino's Pizza and around 15 new Dunkin' Donuts restaurants for the current financial year (FY 2017) of which it had successfully opened 36 Domino's Pizza and 8 Dunkin' Donuts restaurants so far.

Triveni Turbine rose 1.2% after two foreign funds bought shares of the company via bulk deals on the BSE on Friday, 2 September 2016. Promoter Rati Sawhney sold 75 lakh shares of Triveni Turbine at an average price of Rs 125 per share in bulk deals on the BSE on Friday, 2 September 2016. Franklin Templeton Mutual Fund Franklin India Smaller Companies Fund bought 20.96 lakh shares. Natwest Bank Plc as Trustee of the Jupiter India Fund bought 37.60 lakh shares. Rati Sawhney held 4.15% stake in Triveni Turbine as per the shareholding pattern as on 30 June 2016.

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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First Published: Sep 06 2016 | 2:24 PM IST

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