Gains in metal, auto sector stocks and index heavyweights ITC, Reliance Industries, Infosys, HDFC and HDFC Bank lifted key benchmark indices. The barometer index, the S&P BSE Sensex, surged 457.41 points or 1.74% to settle at 26,694.28. The Nifty 50 index jumped 144.80 points or 1.79% to settle at 8,246.85. Strong global cues boosted investors' sentiment. Both the Sensex and the Nifty hit their highest closing levels in nearly 4 weeks.
Bank stocks edged higher. Tata Motors rose after the company said that Jaguar Land Rover (JLR), the UK's leading manufacturer of premium luxury vehicles, reported its best ever November retail sales. Escorts advanced after the company announced the completion of the divestment of its auto products business to Badve Engineering, Pune. Tata Steel rose as Tata Steel UK reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business.
Overseas, European stocks and Asian stocks edged higher on expectations the European Central Bank (ECB) would extend its asset buying campaign at a policy meeting later in the session. In mainland China, the Shanghai Composite ended 0.21% lower. In Hong Kong, the Hang Seng ended 0.27% higher. China's trade balance fell more-than-expected last month, official data showed today, 8 December 2016. In a report, National Bureau of Statistics of China said that Chinese Trade Balance fell to $44.61 billion in November 2016, from $49.06 billion in the preceding month.
US stocks registered strong gains yesterday, 7 December 2016, with the Dow and S&P 500 notching new records. Investors are bracing for the ECB's policy-setting meeting today, 8 December 2016.
The Sensex surged 457.41 points or 1.74% to settle at 26,694.28, its highest closing level since 11 November 2016. The index rose 497 points, or 1.89% at the day's high of 26,733.87. It rose 120.48 points, or 0.46% at the day's low of 26,357.35.
The Nifty jumped 144.80 points or 1.79% to settle at 8,246.85, its highest closing level since 11 November 2016. The index rose 154.20 points, or 1.9% at the day's high of 8,256.25. It rose 49.70 points, or 0.61% at the day's low of 8,151.75.
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The BSE Mid-Cap rose 1.49%. The BSE Small-Cap index surged 1.28%. Both these indices underperformed the Sensex.
The broad market depicted strength. There were more than two gainers against every loser on the BSE. 1,827 shares rose and 814 shares fell. A total of 167 shares were unchanged.
The total turnover on BSE amounted to Rs 2445.148 crore, lower than turnover of Rs 2549.47 crore registered during the previous trading session.
Among the sectoral indices on the BSE, the BSE Auto index (up 2.63%) and the BSE Metal index (up 2.93%) outperformed the Sensex. The BSE Bankex index (up 1.54%), the BSE Capital Goods index (up 1.26%) and the BSE Oil & Gas index (up 1.2%) underperformed the Sensex.
Index heavyweight and cigarette major ITC gained 2.4% at Rs 233.
Index heavyweight and housing finance major HDFC rose 1.71% at Rs 1,287.15.
Software major Infosys gained 1.88% at Rs 984.75.
Bank stocks edged higher. Among public sector banks, Indian Bank (up 1.73%), State Bank of India (up 1.72%), IDBI Bank (up 1.55%), Punjab National Bank (up 1.03%), Bank of Baroda (up 0.41%) and Bank of India (up 0.26%) gained.
Among private sector banks, RBL Bank (up 2.36%), Kotak Mahindra Bank (up 2.21%), Yes Bank (up 1.97%), HDFC Bank (up 1.59%), ICICI Bank (up 1.45%) and Axis Bank (up 0.44%) edged higher.
Indusind Bank was up 2.03%. The bank announced that its board pf directors passed issuance of senior unsecured redeemable non-convertible long term bonds in the nature of debentures of face value of Rs 10 lakh each aggregating Rs 1500 crore on private placement basis. The announcement was made after market hours yesterday, 7 December 2016.
Auto stocks edged higher. Bajaj Auto (up 2.77%), Hero MotoCorp (up 2.53%), Maruti Suzuki India (up 2.4%), Ashok Leyland (up 1.76%), Mahindra & Mahindra (up 1.87%), TVS Motor Company (up 1.13%) and Eicher Motors (up 0.1%) edged higher.
Tata Motors rose 3.6% after the company said that Jaguar Land Rover (JLR), the UK's leading manufacturer of premium luxury vehicles, reported its best ever November retail sales. JLR reported 2% rise in total sales to 47,588 vehicles in November 2016 over November 2015. The announcement was made during market hours today, 8 December 2016.
Jaguar recorded its best November ever, with retail sales reaching 14,613 vehicles, up 83% compared to November last year, and driven by continuing strong sales of the new XF and the F-PACE. Calendar year-to-date sales for Jaguar were 132,381, up 75% year-on-year.
Land Rover recorded November sales of 32,975 vehicles, down 14% over November 2015, as continuing solid sales of the Land Rover Discovery Sport and Range Rover Sport were offset by lower volumes of the discontinued Land Rover Defender and outgoing Discovery. Calendar year-to-date sales for Land Rover reached 395,556 vehicles, 9% up on the prior year.
Escorts rose 1.64% after the company announced the completion of the divestment of its auto products business to Badve Engineering, Pune. The announcement was made after market hours yesterday, 7 December 2016.
Escorts had in August 2016, announced the divestment of its original equipment manufacturing (OEM) & export business of auto product division to Badve Engineering, Pune, in an all cash deal, as part of the planned strategic reorientation of the business to focus on core verticals in the agri machinery, construction equipment and railway equipment.
Metal shares were in demand. Vedanta (up 5.15%), NMDC (up 4.13%), Steel Authority of India (up 2.89%), Jindal Steel & Power (up 2.38%), Hindalco Industries (up 2.32%), Hindustan Zinc (up 2.01%), Hindustan Copper (up 1.11%) and JSW Steel (up 0.55%), edged higher. National Aluminium Company fell 2.96%.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2017 delivery was currently up 0.23% at $2.65 per pound on the COMEX.
Tata Steel rose 4.62%. Tata Steel UK yesterday, 7 December 2016, reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business. The company will next week start consultation with its employees on a proposal to close the British Steel pension scheme to future accrual. Employees would be offered a competitive defined contribution scheme. The proposal on pensions and other changes in the employment terms are part of the ongoing transformation plan that the business is undertaking. As part of agreement all parties will work towards making Tata Steel UK a sustainable business.
The company and trade unions have also agreed on the principle that subject to the structural de-risking and de-linking of the British Steel Pension Scheme fund from the business, Tata Steel UK will continue the existing blast furnace configuration in Port Talbot until 2021. Further, based on achieving the necessary financial performance and cash flows as per the transformation plan of the UK business, the company will continue to invest across the UK sites to enhance the competitive position of Tata Steel UK in the European steel industry. The company has also offered an employment pact until 2021 which supports employees through future changes by investing in their skills to support further plant upgrades, automation and other digital initiatives.
Tata Steel is the UK's largest steel manufacturer. It supplies almost 50% of UK carmakers' steel requirements, including body panels and chassis, and a range of advanced steels for the UK construction industry which help to reduce buildings' energy use.
Separately, Tata Steel also announced that its subsidiary, TM International Logistics (TMILL) has divested entire stake in its wholly owned step down subsidiary TM Harbour Services (TMHSPL) to Adani Ports and Special Economic Zone (APSEZ) for a total consideration of Rs 106 crore in an all cash deal. TKM Global GmbH, Germany and International Shipping and Logistics FZE, Dubai, subsidiaries of TMILL, hold 74.18% and 25.82% equity shares in TMHSPL respectively. TMHSPL with an annual turnover of about Rs 29 crore is engaged in the business of providing Tug Services at Dhamra Port and owns 3 tug boats.
Tata Power Company was up 1.55%. The company announced that post Central Electricity Regulatory Commission's (CERC) order dated 21 February 2014 wherein CERC granted compensatory tariff to Coastal Gujarat Power (CGPL), the procurers had approached Appellate Tribunal for Electricity (APTEL) against the same.
APTEL, while setting aside the order of CERC, ruled that the promulgation of Indonesian regulation is a Force Majeure Event and remanded the matter to CERC to assess the impact of Force Majeure Event on Mundra UMPP of CGPL and give such relief as may be admissible under the PPA.
CERC, in its order dated 6 December 2016 has given a mechanism for assessing the relief under Force Majeure. The arrears for the past period shall be paid in six equal monthly instalments by the procurers in proportion to their share in the contracted capacity, from the date the CERC order is permitted to be implemented by the Supreme Court.
CGPL shall accordingly work out the relief for the past as well as the future period based on the mechanism specified by the CERC and shall bill the same on a monthly basis, which shall be trued up annually.
Further, adjustments for mining profits corresponding to the quantity of coal supplied to Mundra UMPP from the mines in which Tata Power has a stake shall be carried out at the time of annual reconciliation as the principles specified in the order. The order is being studied and the exact benefit would be worked out after detailed reading of the order. The announcement was made after market hours yesterday, 7 December 2016.
Bharti Airtel was up 0.85% after the company today, 8 December 2016, launched two new bundled packs for its prepaid customers with free voice calling and substantial data benefits. These two packs add to Airtel's wide bouquet of innovative packs and plans for customers, offering them more flexibility. The announcement was made during market hours today, 8 December 2016.
Cipla was up 2% after the company said it received final approval for its abbreviated new drug application (ANDA) for Entecavir Tablets USP 0.5 mg and 1 mg, from the United States Food and Drug Administration (USFDA).
Entecavir Tablets, USP 0.5 mg and 1 mg, are AB-rated generic equivalents of Bristol-Myers Squibb's Baraclude tablets 0.5 mg and 1 mg and are a Hepatitis B virus nucleoside analog reverse transcriptase inhibitor indicated for the treatment of chronic Hepatitis B virus infection.
Baraclude Tablets and generic equivalents had US sales of approximately $206 million for the 12 month period ended October 2016, according to IMS Health. The product will cater to the US market and will be commercially available in the coming weeks. The announcement was made during market hours today, 8 December 2016.
The Sensex has risen 41.47 points or 0.15% in calendar year 2016 so far (till 8 December 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,199.67 points or 18.66%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,383 points or 8.19%. The Sensex is off 3,330.46 points or 11.09% from a record high of 30,024.74 hit on 4 March 2015.
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