Key benchmark indices extended initial gains . At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 157.54 points or 0.63% at 25,110.28. The 50-unit Nifty 50 index was up 45.55 points or 0.6% at 7,649.90 The Sensex was currently trading above the psychological 25,000 mark after regaining that level in opening trade. The Sensex and the Nifty, both, hit 10-1/2 week high.
Sensex rose 172.67 points or 0.69% at the day's high of 25,125.41 in morning trade, its highest level since 7 January 2016. The barometer index rose 35.53 points or 0.14% at the day's low of 24,988.27 in early trade. The Nifty rose 49.25 points or 0.64% at the day's high of 7,653.60 in morning trade, its highest level since 7 January 2016. The index rose 13.35 points or 0.17% at the day's low of 7,617.70 in early trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,291 shares rose and 624 shares fell. A total of 109 shares were unchanged. The BSE Mid-Cap index was currently up 0.63%. The gains for the index matched the Sensex's gains in percentage terms. The BSE Small-Cap index was currently up 0.94%, outperforming the Sensex.
In overseas markets, Chinese stocks edged higher after authorities signaled a loosening stance toward margin trading, the practice of using borrowed money to buy shares. In mainland China, the Shanghai Composite was currently up 1.79%. In Hong Kong, the Hang Seng index was currently up 0.23%. US stocks closed higher during the previous trading session on Friday, 18 March 2016, extending the rally that followed the Federal Reserve's accommodative policy decision during the week.
Index heavyweight and cigarette major ITC edged higher after a foreign brokerage reportedly maintained its 'outperform' rating on the stock saying that most states have not hiked value added tax (VAT) on cigarettes in their Budget for the year ending 31 March 2017 (FY 2017). The stock rose 2.92% to Rs 334.50. The stock hit a high of Rs 336.10 and low of Rs 326.10 so far during the day. According to the brokerage firm, FY 2017 is likely to see one of the lowest VAT hikes on cigarettes in the past five years.
Meanwhile, ITC's executive director Sanjiv Puri was quoted as saying that the sales of the company's instant noodles brand Yippee have been recovering and its market share has risen to between 30% and 40% from 20% in the aftermath of Maggi noodles controversy.
FMCG stocks were mixed. Britannia Industries (up 1.1%), Dabur India (up 1.02%), Godrej Consumer Products (up 0.96%), Hindustan Unilever (up 1.13%), Nestle India (up 0.3%) and Tata Global Beverages (up 0.46%) rose. Procter & Gamble Hygiene and Health Care (down 0.32%), Jyothy Laboratories (down 0.71%), Bajaj Corp (down 0.49%), GlaxoSmithkline Consumer Healthcare (down 0.26%), Colgate-Palmolive (India) (down 0.22%) and Marico (down 0.1%) fell.
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Bank stocks rose after the government cut interest rates on various small savings schemes for Q1 June 2016 based on the prevailing G-Sec (government securities) yields. Among PSU bank stocks, State Bank of India (SBI) (up 1.65%), Punjab National Bank (up 2.43%), Canara Bank (up 1.16%), IDBI Bank (up 4.91%), Bank of India (up 1.92%) and Union Bank of India (up 0.82%) rose.
Bank of Baroda (BoB) rose 1.7%. The bank said on Saturday, 19 March 2016, that credit rating agency Brickwork Ratings India has cut the outlook on its ratings on the bank's upper Tier II bonds of Rs 1000 crore issued in two tranches of Rs 500 crore each to negative from stable.
Among private bank stocks, HDFC Bank (up 0.62%), ICICI Bank (up 1.06%), Axis Bank (up 1.16%), Federal Bank (up 1%) and Yes Bank (up 0.47%) declined. IndusInd Bank shed 0.1%.
Kotak Mahindra Bank slipped 0.11% to Rs 657 after a large bulk deal of 24.88 lakh shares was executed on the scrip at Rs 659.75 per share in opening bell on BSE today, 21 March 2016.
The interest rate on Public Provident Fund (PPF) was slashed to 8.1% from 8.7%. The interest rate on Sukanya Samriddhi Account Scheme was slashed to 8.6% from 9.2%. The interest rate on 5 Year Senior Citizens Savings Scheme was cut to 8.6% from 9.3%. The government had recently announced that it would revise interest rates on small saving schemes on quarterly basis against the earlier practice of annual revision. The quarterly revision of interest rates will ensure that interest rates under small savings schemes are more dynamically related to the current market rates, thereby enabling commercial banks to move their interest rates in line with current money market rates, the finance ministry said in a statement. The additional interest rate spreads ranging from 25 basis points to 100 basis points over the G-Sec yields which the Government allows on PPF, Senior Citizen Savings Scheme, Sukanya Samridhi Scheme, National Savings Certificate, five year time deposit and Monthly Income Scheme have been continued.
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