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Sensex, Nifty attain highest closing level in almost a week

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Capital Market
Last Updated : Oct 15 2015 | 6:48 PM IST

Positive lead from global markets helped Indian stocks clock decent gains, with the barometer index, the S&P BSE Sensex, regaining the psychological 27,000 level. The Sensex gained 230.48 points or 0.86% to settle at 27,010.14. The 50-unit CNX Nifty rose 71.60 points or 0.88% to settle at 8,179.50. The Sensex and the Nifty, both, attained their highest closing level in almost a week. The two key benchmark indices traded in the positive zone throughout the trading session. Gains in stocks of public sector companies, auto shares and index heavyweights ITC and L&T led the upmove for the two key benchmark indices.

Shares of all the three public sector oil marketing companies (PSU OMCs) nudged higher as global crude oil prices fell. Metal and mining stocks witnessed a mixed trend. IT stocks dropped on firm rupee. Bank stocks edged higher on renewed buying.

Zee Entertainment Enterprises (Zee) surged, with the stock bouncing back from a post result slide witnessed yesterday, 14 October 2015. Hindustan Unilever (HUL) dropped, with the stock extending losses registered yesterday, 14 October 2015, triggered by the company reporting flat bottom line after adjusting for exceptional items in Q2 September 2015.

In overseas markets, Asian and European stocks edged higher as expectations build that the Federal Reserve will delay raising interest rates soon after disappointing US economic data and that the Fed's delay in raising interest rates will slow capital flight from emerging markets. Chinese stocks led gains in Asian markets amid fresh signs of reform for Chinese state-owned firms. Trading in US stock index futures indicated a recovery for US stocks after weaker-than-expected economic reports and gloomy earnings forecast from Wal-Mart Stores, the world's biggest retailer, pulled the market lower yesterday, 14 October 2015.

The Sensex gained 230.48 points or 0.86% to settle at 27,010.14, its highest closing level since 9 October 2015. The barometer index gained 258.29 points or 0.96% at the day's high of 27,037.95. The barometer index rose 57.11 points or 0.21% at the day's low of 26,836.77.

The Nifty rose 71.60 points or 0.88% to settle at 8,179.50, its highest closing level since 9 October 2015. The index gained 82.65 points or 1.01% at the day's high of 8,190.55. The Nifty rose 21.90 points or 0.27% at the day's low of 8,129.80.

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The market breadth indicating the overall health of the market was positive. On BSE, 1,534 shares rose and 1,191 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index rose 0.79%. The BSE Small-Cap index gained 0.48%. Both these indices underperformed the Sensex.

Among the sectoral indices on BSE, the S&P BSE Bankex (up 0.89%), the S&P BSE Oil & Gas index (up 1.51%), the S&P BSE Realty index (up 0.89%), the S&P BSE Metal index (up 1.4%), the S&P BSE Auto index (up 2.33%), the S&P BSE Capital Goods index (up 1.22%). and the S&P BSE Power index (up 1.18%) outperformed the Sensex. The S&P BSE Consumer Durables index (up 0.79%), the S&P BSE FMCG index (up 0.52%), the S&P BSE Healthcare index (up 0.16%), the S&P BSE IT index (down 0.14%), and the S&P BSE Teck index (up 0.22%) underperformed the Sensex.

Shares of public sector companies gained. Neyveli Lignite Corporation (up 3.91%), Coal India (up 2.14%), Bharat Heavy Electricals (up 3.02%), Power Grid Corporation of India (up 2.11%), GAIL (India) (up 2.16%) and ONGC (up 2.04%) edged higher.

Shares of all the three public sector oil marketing companies (PSU OMCs) nudged higher as global crude oil prices fell. BPCL (up 3.38%), HPCL (up 2.86%), Indian Oil Corporation (up 0.86%) rose. Decline in crude oil prices will reduce the under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.

In global commodities markets, Brent for November settlement was currently off 25 cents at $48.90 a barrel. The contract had declined 9 cents or 0.18% to settle at $49.15 a barrel during the previous trading session. The Brent November contract expires today, 15 October 2015. Brent for December settlement was currently off 18 cents at $49.51 a barrel.

Bank stocks edged higher on renewed buying. Among PSU banks, Syndicate Bank (up 2.33%), State Bank of India (up 1.92%), Canara Bank (up 2.72%), Bank of India (up 1.03%), IDBI Bank (up 2.18%), Bank of Baroda (up 3.43%), Punjab National Bank (up 1.29%), Andhra Bank (up 0.72%), United Bank of India (up 0.22%) and Corporation Bank (up 0.34%) edged higher.

Among private sector banks, Yes Bank (up 2.78%), IndusInd Bank (up 0.83%), Axis Bank (up 0.7%), Kotak Mahindra Bank (up 0.08%), HDFC Bank (up 0.03%) and ICICI Bank (up 1.17%) gained.

Telecom stocks edged higher. Idea Cellular (up 0.89%) and Reliance Communications (up 0.58%) edged higher.

Bharti Airtel gained 1.41% to settle at Rs 351.45. According to media reports, a special Central Bureau of Investigation (CBI) court today, 15 October 2015, discharged all accused, including Bharti Airtel in the 2002 additional telecom spectrum scam. Bharti Airtel after trading hours confirmed in a statement that the Special CBI court has discharged Bharti Airtel and the other accused persons in the case because the court found no incriminating material on record against the accused.

Metal and mining stocks witnessed a mixed trend. JSW Steel (up 0.77%), Vedanta (up 1.11%), Jindal Steel & Power (up 1.76%), Tata Steel (up 2.94%), (up 0.09%), and NMDC (up 1.88%) gained. Hindustan Copper (down 0.08%), Bhushan Steel (down 1.67%), Hindalco Industries (down 0.85%), Hindustan Zinc (down 2.28%) and National Aluminum Company (down 1.11%) declined. Steel Authority of India (Sail) was unchanged.

High Grade Copper for December 2015 delivery was currently up 0.46% at $2.4265 per pound on the COMEX.

Index heavyweight L&T rose 1.31% to Rs 1,560.50. The stock hit a high of Rs 1,563 and a low of Rs 1,545.35 in intraday trade.

Index heavyweight and cigarette major ITC rose 1.35% at Rs 349. The stock hit a high of Rs 352.50 and a low of Rs 344 in intraday trade.

Another index heavyweight and housing finance firm HDFC was up 0.15% at Rs 1,293. The stock hit a high of Rs 1,304 and a low of Rs 1,287.90 in intraday trade.

Auto stocks gained on renewed buying. Maruti Suzuki India (up 3.01%), Hero MotoCorp (up 2.88%), Eicher Motors (up 0.93%), Bajaj Auto (up 0.26%), TVS Motor Company (up 0.12%) and Ashok Leyland (up 0.21%) edged higher. Mahindra & Mahindra (down 0.81%) edged lower.

Tata Motors surged 8.03% at Rs 380.60. The company announced after market hours yesterday, 14 October 2015, that its UK based luxury car unit Jaguar Land Rover's (JLR) retail sales rose 3% to 47,634 vehicles in September 2015 over September 2014. Sales of the Jaguar brand jumped 22% to 10,394 vehicles in September 2015 over September 2014. The increase reflects strong sales of the all-new Jaguar XE sports saloon in markets in which it has gone on sale since May, with China sales starting in September. Sales of the Land Rover brand fell 1% to 37,240 units in September 2015 over September 2014.

JLR's retail sales fell 1% to 1.10 lakh units in Q2 September 2015 over Q2 September 2014. JRL said that there will be a one-time exceptional write off in the company's profit and loss statement for Q2 September 2015 pertaining to its vehicles which were destroyed or damaged due to the explosion at Tianjin port in China in August 2015.

Meanwhile, Tata Motors announced after market hours today, 15 October 2015, that its global wholesales, including Jaguar Land Rover rose 21% at 97,102 units in September 2015 over September 2014.

IT stocks declined on firm rupee. Tech Mahindra (down 0.62%), TCS (down 0.59%), Infosys (down 0.04%) and Wipro (down 0.86%) edged lower. HCL Technologies rose 0.33%. A firm rupee adversely affects the operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.

In the foreign exchange market, the partially convertible rupee settled at 64.825, compared with its close of 65.035 during the previous trading session.

Zee Entertainment Enterprises (Zee) surged, with the stock bouncing back from a post result slide witnessed yesterday, 14 October 2015. The stock jumped 8.53% to settle at Rs 418.50.

Hindustan Unilever (HUL) dropped 0.93% at Rs 790, with the stock extending losses registered yesterday, 14 October 2015, triggered by the company reporting flat bottom line after adjusting for exceptional items in Q2 September 2015. The stock had lost 1.85% to settle at Rs 797.40 yesterday, 14 October 2015. HUL said that the phasing out of excise duty incentives and fall in product prices adversely impacted the company's performance in Q2 September 2015. The company reduced product prices in a bid to pass on the benefit of lower commodity costs to consumers.

Shares of Adani Enterprises jumped 14.26% at Rs 96.95 after Australia's environment ministry gave its go ahead to the company's Carmichael coal mine and rail project in Australia, subject to 36 strict conditions. The Carmichael coal, railway and port project includes building Australia's largest thermal coal mine in the north Galilee Basin approximately 160 km north-west of Clermont in Central Queensland, linked by a new 388 km standard gauge rail line to a new terminal at Abbot Point Port near Bowen. Adani Enterprises' wholly-owned step down subsidiaries in Australia are implementing the Carmichael coal, railway and port project.

Key indices snapped three-day losing streak today, 15 October 2015. The Sensex had declined 299.85 points or 1.1% in the preceding three trading sessions to settle at 26,779.66 yesterday, 14 October 2015, from a recent high of 27,079.51 on 9 October 2015. The Sensex has risen 855.31 points or 3.27% in this month so far (till 15 October 2015). The Sensex has fallen 489.28 points or 1.77% in this calendar year so far (till 15 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,176.60 points or 8.76%. The Sensex is off 3,014.60 points or 10.04% from a record high of 30,024.74 hit on 4 March 2015.

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First Published: Oct 15 2015 | 4:59 PM IST

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