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Last Updated : Sep 07 2016 | 3:47 PM IST

Key benchmark indices were trading in a small range in early afternoon trade. At 12:21 IST, the barometer index, the S&P BSE Sensex, was up 28.12 points or 0.1% at 29,006.14. The Nifty 50 index was currently up 0.25 points at 8,943.25. The Sensex was currently trading slightly above the psychologically important 29,000 mark. The barometer index has alternately moved above and below that level in intraday trade so far.

The market breadth indicating the overall health of the market was positive. On BSE, 1,375 shares rose and 1,084 shares declined. A total of 141 shares were unchanged. The BSE Mid-Cap index was currently up 0.04%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.65%, outperforming the Sensex.

Meanwhile, data released by the stock exchanges showed that foreign funds made substantial purchases of Indian stocks yesterday, 6 September 2016. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1438.72 crore yesterday, 6 September 2016, as per provisional data released by the stock exchanges.

In overseas stock markets, most Asian stocks were trading higher on reduced likelihood of an imminent interest-rate increase by the US Federal Reserve, after data showed that US service-sector activity fell to a six-year low in August. US stocks closed higher yesterday, 6 September 2016, after surprisingly weak US services sector activity data lowered the chances a Federal Reserve will hike rates this month. The Institute for Supply Management (ISM) yesterday, 6 September 2016, said its non-manufacturing purchasers manager index (PMI) index fell to 51.4 in August from 55.5 in July.

Shares of index heavyweight and housing finance major HDFC dropped on profit booking. The stock lost 1.7% to Rs 1,430.15. The stock hit a high of Rs 1,463.25 in intraday trade so far, which is a record high for the counter. The stock hit low of Rs 1,429.05 so far during the day. The stock had gained 7.17% in the preceding seven trading sessions to settle at Rs 1,454.90 yesterday, 6 September 2016, from its close of Rs 1,357.60 on 25 August 2016.

PSU bank stocks logged gains across the board. Punjab National Bank (up 5.95%), dena Bank (up 3.44%), Andhra Bank (up 3.4%), Syndicate Bank (up 3.14), Bank of Baroda (up 3.04%), Canara Bank (up 5.57%), IDBI Bank (up 1.77%), Bank of India (up 3.81%) and Union Bank of India (up 4.19%) gained.

State Bank of India (SBI) advanced 3.3% to Rs 268. The stock hit a high of Rs 268.10 in intraday trade so far, which is 52-week high for the counter. The stock hit a low of Rs 260.40 so far during the day. SBI has raised Rs 2100 crore from issue of AT1 Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt instrument in the nature of debentures to Yes Bank on private placement basis. The coupon rate on the debentures is 9% per annum payable annually with call option after 5 years or any coupon payment date thereafter. The announcement was made after market hours yesterday, 6 September 2016.

Private bank stocks were mixed. Federal Bank (up 4.18%), ICICI Bank (up 1.49%) and IndusInd Bank (up 1.34%) rose. Yes Bank (down 1.9%), HDFC Bank (down 0.13%), Kotak Mahindra Bank (down 1.15%) fell.

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Axis Bank slipped 0.61% to Rs 632.05. The stock hit a high of Rs 638 in intraday trade so far, which is 52-week high for the counter. The stock hit a low of Rs 628.25 so far during the day.

Shares of Tata Motors rose after the company said it has secured orders for supply of over 5,000 buses from 25 state/city transport undertakings across the country. The stock was up 0.23% at Rs 590.70. The stock hit a high of Rs 598.60 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 584.50 so far during the day.

Tata Motors in a press release issued after market hours yesterday, 6 September 2016 said the order win is a healthy growth of over 80% compared to last year in the order book position of the company. Ravi Pisharody, Executive Director, Commercial Vehicle Business Unit, Tata Motors said that the company plans to execute these orders in the current financial year (FY 2017). The orders will definitely enable the company to further strengthen its leadership position in the commercial vehicles (CV) passenger space, Pisharody added.

Meanwhile, Jaguar Land Rover (JLR)'s retail sales rose 26% to 36,926 vehicles in August 2016 compared to August 2015. The performance in August 2016 was driven by strong sales of the Land Rover Discovery Sport, the Jaguar F-PACE and XE, JLR said. Jaguar sales surged 104% to 10,868 vehicles in August 2016 over August 2015. Land Rover sales rose 9% to 26,058 vehicles in August 2016 over August 2015. JLR is Tata Motors' British luxury car unit.

Capital goods stocks saw mixed trend. L&T (up 1.1%), ABB India (up 1.18%), BEML (up 0.06%), Crompton Greaves (up 0.97%), and Thermax (up 1.21%) rose. Bharat Electronics (down 0.26%) and Siemens (down 0.05%) fell.

Bharat Heavy Electricals (Bhel) lost 1.84% after the company said India Ratings and Research has downgraded its Long-Term Issuer rating on the company to 'IND AA+' from 'IND AAA'. The announcement was made during trading hours today, 7 September 2016. Bhel said that India Ratings and Research has, simultaneously, removed all ratings from Rating Watch Negative (RWN) and a Negative Outlook has been assigned to all Long-term ratings. The removal of RWN follows the completion of the ongoing evaluation of Bhel's key business parameters. According to statement issued by India Ratings and Research, decline in Bhel's revenue for the period from FY 2013 to FY 2016, slow moving projects in the company's order book, EBITDA (earnings before interest, taxes, depreciation and amortization) margins turning negative and high debtors days led to downgrade of the company's ratings.

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First Published: Sep 07 2016 | 12:19 PM IST

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