Key benchmark indices held firm in positive zone in morning trade after a firm start triggered by strong Asian markets and overnight rally on Wall Street. At 10:15 IST, the barometer index, the S&P Sensex, was up 215.17 points or 0.82% at 26,370. The 50-unit CNX Nifty was trading below the psychological 8,000 level after crossing that level in early trade. The Nifty was up 44.50 points or 0.56% at 7,993.40.
Broad market depicted strength. There were more than two gainers against every loser on BSE. 1,305 shares rose and 517 shares declined. A total of 66 shares were unchanged. The BSE Mid-Cap index was up 0.55%, underperforming the Sensex. The BSE Small-Cap index was up 0.84%, outperforming the Sensex.
In overseas stock markets, Asian stocks edged higher today, 1 October 2015, taking heart from an overnight rally on Wall Street. Latest readings of China's mammoth manufacturing sector painted a deteriorating picture in the world's second-biggest economy that suggests the need for further stimulus. The Bank of Japan's quarterly tankan survey, released before the market open in Tokyo, showed Japan's large manufacturers less optimistic than expected. US stocks closed sharply higher yesterday, 30 September 2015, as investors sought bargains among beaten-down stocks.
Back home, latest data showed that the eight core industries, comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP), has shown an output growth of 2.6% in August 2015 over August 2014. Its cumulative output growth during April to August 2015-16 was 2.2% compared with 5.6% growth in the corresponding period of last year.
Another data showed that India's external debt at end-June 2015 witnessed an increase of 1.8% over its level at end-March 2015, primarily on account of a rise in outstanding NRI deposits and commercial borrowings. Furthermore, the increase in the magnitude of external debt was partly offset by the valuation gains resulting from the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies. The external debt/GDP ratio stood at 24% at end-June 2015, recording an increase over its level of 23.7% at end-March 2015.
Back to the market, pharma stocks gained. Lupin (up 2.54%), Strides Arcolab (up 1.44%), Sun Pharmaceutical Industries (up 2.37%), Glenmark Pharmaceuticals (up 1.17%), Cipla (up 1.51%), Dr Reddy's Laboratories (up 1.32%), Ipca Laboratories (up 0.83%), Wockhardt (up 0.55%) and GlaxoSmithkline Pharmaceuticals (up 0.56%) edged higher.
Cement stocks edged higher. UltraTech Cement (up 2.56%), Ambuja Cements (up 2.31%) and ACC (up 1.55%) edged higher. Shree Cement (down 0.66%) edged lower.
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Grasim Industries was up 1.79%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Mahindra & Mahindra (M&M) rose 1.05% at Rs 1,274 after the company before market hours today, 1 October 2015, announced that it has completed the transaction with Mitsubishi Agricultural Machinery Co., (MAM) which was announced on 21 May 2015, as per schedule. The two companies entered into a capital tie-up through a third-party allocation of new shares. As a result of the capital infusion, Mitsubishi Heavy Industries (MHI) now owns 66.7% and M&M 33.3%. Starting from 1 October 2015, the name of the company has been changed to Mitsubishi Mahindra Agricultural Machinery Co., and the new organisation has been announced, M&M and MAM said in a combined statement. With the latest developments, Mitsubishi Mahindra Agricultural Machinery will be in a position to execute business strategies for global expansion, along with a continued focus in the market in Japan, the statement said.
Axis Bank rose 0.58% at Rs 498.40. The bank announced after market hours yesterday, 30 September 2015, that the board of directors has allotted 15,000 Unsecured Redeemable Non Convertible Subordinated Debentures (Basel - III Compliant Tier II Debentures) (Series - 23) of the face value of Rs 10 lakh each for cash at par aggregating to Rs 1500 crore on a private placement basis. The debentures will be listed on the Wholesale Debt Market segment of the BSE and National Stock Exchange of India. The debentures are rated "AAA" by CRISIL, CARE and ICRA.
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