Shares rose for a second straight session, tracking positive global stocks. The barometer index, the S&P BSE Sensex, rose 303.60 points or 0.89% to 34,445.75, as per the provisional closing data. The Nifty 50 index rose 91.55 points or 0.87% to 10,582.60, as per the provisional closing data. Healthy buying in automobiles, banks and capital goods stocks led to the rise.
The market opened on a positive note and extended gains as the session progressed. After some profit booking in early afternoon trade, key indices resumed upward trend in mid-afternoon trade. The Sensex rose 341.24 points, or 1% at the day's high of 34,483.39 in late trade, its highest level since 16 February 2018. The index rose 83.57 points, or 0.24% at the day's low of 34,225.72 in early trade. The Nifty rose 101.90 points, or 0.97% at the day's high of 10,592.95 in late trade, its highest level since 16 February 2018. The index rose 29.15 points, or 0.28% at the day's low of 10,520.20 in early trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,595 shares rose and 1,153 shares fell. A total of 194 shares were unchanged.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.74%. The BSE Small-Cap index provisionally rose 0.88%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3452.36 crore, compared with the turnover of Rs 3979.95 crore registered in the previous trading session on Friday, 23 February 2018.
Auto stocks rose. Tata Motors (up 3.33%), Maruti Suzuki India (up 3.28%), Mahindra & Mahindra (up 2.32%), Ashok Leyland (up 2.01%), Eicher Motors (up 1.79%), TVS Motor Company (up 1.63%), Hero MotoCorp (up 1.14%), Bajaj Auto (up 0.89%) and Escorts (up 0.83%), edged higher.
Most capital goods shares rose. Reliance Defence and Engineering (up 6.22%), Lakshmi Machine Works (up 2.98%), Bharat Electronics (up 2.78%), Jindal Saw (up 2.57%), BEML (up 1.81%), Havells India (up 1.17%), Thermax (up 1.01%), Bharat Heavy Electricals (up 0.59%), Siemens (up 0.36%) and SKF India (up 0.07%), edged higher. Crompton Greaves (down 0.06%), GE T&D India (down 0.21%), ABB India (down 0.42%), Punj Lloyd (down 0.49%), Praj Industries (down 0.66%) and GE Power India (down 1.42%), edged lower.
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Engineering and constructon major Larsen & Toubro (L&T) rose 3.38%.
Reliance Infrastructure gained 3.04% after the company said that it has won an arbitration award of Rs 292 crore against Government of Goa. The announcement was made during market hours today, 26 February 2018.
The arbitration tribunal, in its award on 16 February 2018, has ordered Government of Goa to pay Rs 292 crore to Reliance Infrastructure by 15 April 2018. The tribunal has also ordered payment of interest at 15% per annum on the total award amount if Government of Goa fails to pay the entire award amount by the deadline. Joint Electricity Regulatory Commission had constituted the tribunal under the new rules laid down in 2015. Starting in January 2016, the proceedings of the tribunal were held for about two years and all pleadings and arguments by both the parties were completed in 12 sittings.
The need for arbitration arose due to prolonged non-payment of dues by the Goa Government towards supply of electricity by Reliance Infrastructure from its 48 megawatts (MW) Goa Power Plant in Sancoale. The total outstanding dues along with interest as on 31 October 2017 amount to Rs 278 crore. The tribunal has also awarded Reliance Infrastructure interest from October 2017 till the date of the award, which amounts to Rs 14 crore.
The contention of Reliance Infrastructure that the rate of energy for the period from June 2013 to August 2014 was based on the varying prices of fuel and dollar exchange rate as was agreed to by the Goa Government, was upheld by the Tribunal. The contention of Goa Government that the rated capacity of the plant was to be downrated, right from the second year of operation, for calculation of fixed charges since the parties had already agreed against downrating in 2007, was rejected by the tribunal.
Drug major Lupin was up 1.83%. The company announced during trading hours today, 26 February 2018, the launch of its Testosterone Topical Solution, 30 mg per actuation having received an approval from the United States Food and Drug Administration (FDA) earlier. The product is the generic equivalent of Eli Lilly and Company's Axiron Topical Solution, 30 mg per actuation. It is indicated for replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone. Testosterone Topical Solution, 30 mg per actuation had annual sales of approximately $179 million in the US (IQVIA MAT December 2017).
Overseas, European markets were trading higher as investors prepared for an event-packed week of economic data. Asian shares ended higher after US stock indices jumped on Friday, 23 February 2018.
US stocks rallied on Friday, 23 February 2018, to end a bumpy week with slight gains, as falling bond yields provided a reprieve for investors concerned about rising inflation.
The focus this week is on the US Federal Reserve chairman Jerome Powell's congressional testimony on monetary policy and the economy. Powell will testify on the central bank's semi-annual report on monetary policy and the economy on Tuesday, 27 February 2018, before the US House of Representatives' Financial Services Committee.
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