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Sensex hits 26,000 level amid volatility in late trade

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Last Updated : Nov 26 2015 | 5:28 PM IST

Index heavyweights ITC, Reliance Industries (RIL) and Infosys led the upmove for key benchmark indices. The barometer index, the S&P BSE Sensex, gained 209.33 points or 0.81% at 25,985.07, as per the provisional closing data. The gains for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty rose 52.20 points or 0.67% at 7,883.80, as per the provisional closing data. A bout of volatility was witnessed towards the fag end of the trading session as the Sensex fell below the psychological 26,000 mark soon after surpassing that level. Volatility at the fag end of the trading session materialized as the near month November 2015 contracts expired in the futures & options (F&O) segment.

The market breadth indicating the overall health of the market was strong. On BSE, 1,615 shares rose and 1,056 shares fell. A total of 229 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.26%. The BSE Small-Cap index was provisionally up 0.45%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 2763 crore, higher than turnover of Rs 2738.01 crore registered during the previous trading session.

In overseas stock markets, European stocks edged higher on growing bets that the European Central Bank (ECB) will roll out more stimulus at its monetary policy meeting next week. The ECB has signaled its readiness to expand its bond purchase program to combat weak inflation. The next monetary policy review from the ECB is scheduled on 3 December 2015. Asian stocks witnessed a mixed trend. US stocks ended little changed in a thinly traded preholiday session yesterday, 25 November 2015.

Index heavyweight Reliance Industries (RIL) rose 2.27% to Rs 990 after the company said it has repaid the third installment of redemption proceeds on the outstanding debentures. On 24 November 2015, RIL repaid the third installment of redemption proceeds on the outstanding debentures. After the payment of the third installment of redemption, the face value of the debentures has been reduced from Rs 6.66 lakh to Rs 5 lakh per debenture effective 24 November 2015, RIL said. It may be recalled that RIL had issued 8,000 secured redeemable non-convertible debentures of Rs 10 lakh each aggregating Rs 800 crore in November 2003. The debentures carry a coupon of 6.25%. As per the terms of issue of the debentures, the debentures shall be redeemed in six equal annual installments starting from the end of the tenth year from the date of allotment i.e. 24 November 2003.

Auto stocks were mixed. Bajaj Auto (down 1.12%), Ashok Leyland (down 0.9%) and Eicher Motors (down 1.18%) fell. TVS Motor Company gained 2.87%.

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Tata Motors advanced 5.21% after the company's British luxury car unit Jaguar Land Rover (JLR) announced that it will spend 450 million to double the size of its engine manufacturing centre (EMC) in the UK. The EMC supplies engines to the three vehicle plants of JLR located in the UK. JLR said that the decision to expand the size of the EMC was driven by global demand for current and future car models of JLR. Tata Motors released the press release on JLR EMC expansion after trading hours on Tuesday, 24 November 2015.

Mahindra & Mahindra (M&M) rose 2.2% after the company announced the launch of the automatic transmission variant in its XUV500 sports utility vehicle (SUV). The automatic transmission option will be available on three variants of XUV500. The automatic transmission option starts at a price of Rs 15.36 lakh (ex-showroom Navi Mumbai) for the W8 FWD variant and will be available across M&M dealerships 5 December 2015 onwards.

Hero MotoCorp rose 1.52% to Rs 2,686.05 in volatile trade after media reports suggested that US private equity firm Bain Capital has launched a deal to sell its entire holding of 29.8 lakh shares of Hero MotoCorp. The stock hit high of Rs 2,698 and low of Rs 2,610 in intraday trade. The stock witnessed a surge in volumes. On BSE, 6.90 lakh shares were traded in the counter as against average daily volume of 24,474 shares in the past one quarter. On NSE, 13.98 lakh shares were traded in the counter as against average daily volume of 3.37 lakh shares in the past one quarter.

Bain launched the deal to sell Hero MotoCorp shares in the indicative price band of between Rs 2,570 and Rs 2,600 per share, according to reports. Bain's holding in Hero MotoCorp is through its unit BC India Private Investors II.

Maruti Suzuki India slipped 0.2%. The company announced after market hours on Tuesday, 24 November 2015, that it will offer dual airbags and anti-lock braking system (ABS) as an option in all variants of Swift and DZire, including the base variant. In the fiscal year ended March 2015, Swift and DZire maintained an average sale of over 17,000 units each per month.

Dr Reddy's Laboratories (DRL) tumbled 7.96% after the US Food and Drug Administration (USFDA) put up the warning letter issued to the company dated 5 November 2015 on its web site. The USFDA has identified significant deviations from current good manufacturing practice (CGMP) at DRL's two pharmaceutical manufacturing facilities in Andhra Pradesh and a unit in Telangana. The warning letter states that several violations are recurrent or represent long-standing failures to adequately resolve significant manufacturing quality problems at these three units. The warning letter states that the USFDA may withhold approval of any new applications for drugs manufactured by the company unless and until the three units conform to CGMP. The USFDA may also refuse exports of products into the US manufactured at these three units until the company takes remedial measures.

DRL in a press release issued during market hours today, 26 November 2015 said that it is in the process of preparing a response to USFDA's warning letter. The USFDA has granted an extension until 7 December 2015 for the submission of the company's response to the warning letter, Dr Reddy's Laboratories said in a statement.

Realty stocks edged higher. DLF (up 6.82%), Indiabulls Real Estate (up 4.17%), Housing Development and Infrastructure (up 4.47%), D B Realty (up 1.23%), Unitech (up 0.28%), Oberoi Realty (up 0.76%) and Parsvnath Developers (up 0.54%) gained.

Godrej Properties gained 2.69% after the company announced the launch of its flagship project, The Trees which is a mixed-use development project at Vikhroli, Mumbai. Godrej Properties said that with an area of 34 acres, this is one of the largest real estate projects in Mumbai and is the first step towards the greater development opportunity that will unfold in Vikhroli.

Meanwhile, according to a monthly survey, business confidence among India's largest companies dropped this month despite it being the festive month of Diwali. The MNI India Business Sentiment Indicator, a gauge of sentiment among BSE-listed companies, fell to 60.9 in November 2015 from 62.3 in October 2015. The fall in sentiment was observed across both manufacturing and construction companies. On the flip side, sentiment among service sector companies rose for the first time in five months. According to the survey, Indian companies are less optimistic about the outlook for the next three months with the future expectations indicator falling to 72.2 in November 2015 from 75.1 in October 2015.

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First Published: Nov 26 2015 | 3:45 PM IST

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