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Last Updated : Mar 03 2016 | 3:15 PM IST

Metal stocks and index heavyweights Infosys and HDFC led the rally for the two key benchmark indices. At 14:16 IST, the barometer index, the S&P BSE Sensex, was up 306.10 points or 1.26% at 24,549.08. The 50-unit Nifty 50 index was currently up 88.25 points or 1.2% at 7,457.10. In overseas stock markets, most Asian stocks rose after favourable US economic data overnight. The Sensex and the Nifty have remained in positive zone so far during the trading session after opening with an upward gap.

Data showing substantial purchases of Indian stocks by foreign portfolio investors (FPIs) during the previous trading session boosted sentiment on the domestic bourses. FPIs bought stocks worth a net Rs 1437.50 crore yesterday 2 March 2016, as per provisional data released by the stock exchanges. The Sensex had risen almost 2% yesterday, 2 March 2016, mirroring a rally in Asian stocks.

The Sensex jumped 356.02 points or 1.46% at the day's high of 24,599 in afternoon trade, its highest level since 8 February 2016. The barometer index rose 140.30 points or 0.57% at the day's low of 24,383.28 in morning trade. The Nifty rose 103.55 points or 1.4% at the day's high of 7,472.40 in afternoon trade, its highest level since 8 February 2016. The index rose 37.20 points or 0.5% at the day's low of 7,406.05 in morning trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,518 shares rose and 945 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index was currently up 0.19%. The BSE Small-Cap index was currently up 0.96%. Both these indices underperformed the Sensex.

In overseas stock markets, European stocks edged lower in volatile trade. Most Asian stocks were in green on favourable US economic data overnight. US stocks closed slightly higher yesterday, 2 March 2016, helped by gains in energy stocks on rise in oil prices. A monthly employment report showed acceleration in US private sector job addition last month.

FMCG stocks were mixed. Nestle India (up 2.65%), Marico (up 1.27%), Dabur India (up 1.03%), Procter & Gamble Hygiene and Health Care (up 0.58%), Bajaj Corp (up 0.15%) and Hindustan Unilever (up 0.15%) edged higher. Tata Global Beverages (down 0.82%), Britannia Industries (down 0.97%), Godrej Consumer Products (down 1.01%), Jyothy Laboratories (down 0.84%), Emami (down 0.04%), Colgate-Palmolive (India) (down 0.12%) and GlaxoSmithkline Consumer Healthcare (down 0.13%) edged lower.

The FMCG industry will benefit by way of increase in rural demand following the government's thrust on agriculture and rural sectors in the Union Budget 2016-17. The government has provided Rs 47912 crore for agriculture, farmers' welfare and irrigation for 2016-17, which is nearly twice the allocation of the current year. The allocation for the rural sector is Rs 87765 crore and a highest ever sum of Rs 38500 crore has been allocated for MGNREGS.

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Realty stocks gained. Oberoi Realty (up 2.22%), Godrej Properties (up 1.74%), Sobha (up 1.39%), Unitech (up 1.32%), Indiabulls Real Estate (up 0.39%), Housing Development & Infrastructure (up 0.37%) and Prestige Estates Projects (up 0.13%) rose. DLF (down 1.54%) and D B Realty (down 1.89%) edged lower.

Finance minister Arun Jaitley in the Union Budget 2016-17 proposed for rationalization in case of Real Estate Investment Trusts (REITs), measures to boost affordable housing and incentive for first home buyers with additional interest deduction.

Dr Reddy's Laboratories surged 5.43% at Rs 3,178 on media reports that the company has received approval from the United States Food and Drug Administration (FDA) to start selling generic version of anti-nausea injection called Aloxi from 2018.

Yes Bank rose 0.1% at Rs 755 after the bank announced that it has acquired 5 lakh equity shares of Institutional Investor Advisory Services (liAS) equivalent to 5.006% of the paid-up capital of IiAS from BSE Limited. The announcement was made during market hours today, 3 March 2016. IiAS is a proxy advisory firm, dedicated to providing participants in the Indian market with independent opinion, research and data on corporate governance issues as well as voting recommendations on shareholder resolutions.

Meanwhile, the outcome of a monthly survey showed that the rate of growth in India's services sector eased last month. The seasonally adjusted Nikkei India Services Purchasing Managers' Index (PMI) fell to a three-month low of 51.4 in February 2016, from January's reading of 54.3. Service providers' confidence with regards to the 12-month outlook for business activity remained positive, with panellists indicating that improved marketing campaigns are likely to drive sales. However, the sentiment waned since January 2016.

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First Published: Mar 03 2016 | 2:16 PM IST

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