Key benchmark indices held firm after hitting fresh intraday high in afternoon trade. At 13:20 IST, the S&P BSE Sensex was up 90.41 points or 0.32% at 28,311.39. The Nifty 50 index was currently up 29.05 points or 0.33% at 8,773. Positive global stocks boosted sentiment on domestic bourses.
The Sensex remained in positive terrain so far during the day after opening higher. The Sensex rose 107.58 points or 0.38% at the day's high of 28,328.56 in afternoon trade. The barometer index gained 17.11 points or 0.06% at the day's low of 28,238.09 at onset of the day's trading session. The Nifty rose 37.20 points or 0.42% at the day's high of 8,781.15 in afternoon trade. The index lost 2.60 points or 0.03% at the day's low of 8,741.35 at onset of the day's trading session.
The market breadth indicating the overall health of the market was strong. On BSE, 1,731 shares gained and 929 shares fell. A total of 126 shares were unchanged. The BSE Mid-Cap index was up 0.53%. The BSE Small-Cap index was up 0.58%. Both these indices outperformed the Sensex.
In overseas stock markets, European and Asian stocks rose as a healthy US economic report and rising oil prices overnight bolstered investor optimism. Markets in mainland China were closed for a weeklong holiday. US stocks closed with decent gains yesterday, 5 October 2016 on positive economic data. Activity at US service companies expanded in September at the fastest pace in nearly a year, according to a private report. The Institute for Supply Management's services index jumped to 57.1 last month, its highest since October last year, adding to evidence that the world's biggest economy is strengthening and raising expectations the Federal Reserve will soon raise rates from ultralow levels.
Cement stocks were mixed. ACC (down 0.7%) and Ambuja Cements (down 0.78%) declined. Shree Cement rose 0.25%. UltraTech Cement shed 0.92%.
Grasim Industries advanced 1.74%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
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Shares of oil production and exploration firms rose as global crude oil prices gained in the previous session. Cairn India (up 3.46%) and Reliance Industries (RIL) (up 2.93%) gained. Higher crude oil prices would result in increase in realizations from crude sales for oil exploration firms.
ONGC rose 1.93% after the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, yesterday, 5 October 2016 gave its approval to an acquisition by ONGC Videsh (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia). Rosneft operates Vankor fields, with Vankorneft, its wholly owned subsidiary. OVL will be paying an amount of $930 million for acquiring 11% stake in Vankorneft. OVL is an investment arm of ONGC.
The acquisition of stake in Vankorneft will provide 3.2 million metric ton of oil equivalent (MMTOE) to OVL by 2017. It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC's stated objective of adding high quality international assets to India's Exploration and Production (E&P) portfolio and thereby augmenting India's energy security.
Oil India gained 2.15%. An Indian consortium led by Oil India including Indian Oil Corporation (IOCL) and Bharat PetroResources (BPRL), a 100% subsidiary of BPCL, have successfully completed two landmark acquisitions of producing upstream assets in Russia. The consortium acquired 29.9% stake in LLC Taas-Yuryakh Neftegazodobycha (Taas Yuryakh) and 23.9% stake in JSC Vankorneft (Vankorneft) from Rosneft Oil Company, the national oil company of Russia.
Shares of public sector oil marketing companies also spurted. Shares of BPCL surged 4.93%.
Indian Oil Corporation jumped 6.66% after the company fixed 19 October 2016 as the record date for 1:1 bonus issue. The announcement was made after market hours yesterday, 5 October 2016.
Shares of HPCL gained 5.53%.
In the global commodities markets, Brent for December settlement was currently down 25 cents at $51.61 a barrel. The contract had risen 99 cents or 1.94% to settle at $51.86 a barrel during the previous trading session.
Mahindra & Mahindra (M&M) declined 0.64%. The company announced that it has launched eSupro-India's first all electric cargo and passenger van. The company has priced cargo van at Rs 8.45 lakhs and passenger variant at Rs 8.75 lakhs ex-showroom Delhi. The announcement was made during market hours today, 6 October 2016. The eSupro platform will cater primarily to the B2B segment and would be available across Mahindra dealerships pan India with immediate effect.
Cadila Healthcare gained 0.8% after the company said it has entered into an in-licensing agreement with Neovii to launch a drug in India. The announcement was made during market hours today, 6 October 2016. Cadila Healthcare announced that it has entered into an in-licensing agreement with Switzerland-based global biopharmaceutical company Neovii to launch Grafalon, an immunosuppresant extensively used in solid organ transplants and stem cell transplant in India. Neovii has been dedicated for over three decades to improve the outcomes in transplantation medicine, hemato-oncological and immune disorders.
Caplin Point Laboratories rose 1.39% after the company fixed 20 October 2016 as record date for 5-for-1 stock split. The announcement was made after market hours yesterday, 5 October 2016.
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