Sensex regains 28,000

Trading for October started on a buoyant note as key benchmark indices logged strong gains led by gains in index heavyweights HDFC, L&T and Reliance Industries (RIL). The S&P BSE Sensex rose 377.33 points or 1.35% to settle at 28,243.29. The Nifty 50 index gained 126.95 points or 1.47% to settle at 8,738.10. The Sensex settled above the psychologically important 28,000 mark after regaining that level in morning trade. Positive global stocks underpinned sentiment on the domestic bourses.

The Sensex rose 377.33 points or 1.35% to settle at 28,243.29, its highest closing level since 28 September 2016. The index rose 407.06 points or 1.46% at the day's high of 28,273.02. The index rose 53.93 points or 0.19% at the day's low of 27,919.89.

The Nifty gained 126.95 points or 1.47% to settle at 8,738.10, its highest closing level since 28 September 2016. The index rose 134.05 points or 1.56% at the day's high of 8,745.20. The index rose 23.85 points or 0.28% at the day's low of 8,635.

In overseas stock markets, global stocks rose as investors weighed the prospects of a further US interest rate hike and a report on business sentiment out of Japan. Stock markets in China and South Korea were closed for holiday. In Japan, the Nikkei 225 Average ended 0.9% higher. The Bank of Japan's tankan survey released today, 3 October 2016 showed Japan's large manufacturers now expect their pretax profit to drop 14.6% in this financial year through March, compared with a previous forecast for a 11.6% fall. Meanwhile, activity in China's manufacturing sector expanded again in September, data released on 1 October 2016 showed. The official Purchasing Managers' Index (PMI) stood at 50.4 in September, identical with the previous month's level, the National Bureau of Statistics said. The non-manufacturing PMI rose to 53.7 from 53.5 in August. US stocks closed sharply higher on Friday, 30 September 2016 as Deutsche Bank shares rebounded amid a report that the German banking giant was near a settlement with the Justice Department.

Back home, the broad market depicted strength. There were more than three gainers against every loser on BSE. 2,228 shares gained and 660 shares fell. A total of 117 shares were unchanged. The BSE Mid-Cap index rose 2.4%. The BSE Small-Cap index gained 2.67%. Both these indices outperformed the Sensex.

All the nineteen sectoral indices on BSE were in the green. The S&P BSE Industrials index (up 2.21%), the S&P BSE Auto index (up 2.44%), the S&P BSE Finance index (up 2.07%), the S&P BSE Consumer Discretionary Goods & Services index (up 2.78%), the S&P BSE Bankex (up 1.59%), the S&P BSE Realty index (up 3.01%), the S&P BSE Capital Goods index (up 2.43%), the S&P BSE Power index (up 2.32%), the S&P BSE Healthcare index (up 1.82%), the S&P BSE Metal index (up 2.45%), the S&P BSE Energy index (up 1.63%), the S&P BSE Utilities index (up 2.39%), the S&P BSE Basic Materials index (up 2.65%), the S&P BSE Oil & Gas index (up 2.09%), and the S&P BSE Consumer Durables index (up 2.65%) outperformed the Sensex. The S&P BSE Telecom index (up 1.08%), the S&P BSE Teck index (up 0.59%), the S&P BSE IT index (up 0.13%), and the S&P BSE FMCG index (up 0.94%) underperformed the Sensex.

The total turnover on BSE amounted to Rs 3612.87 crore, higher than turnover of Rs 3594.73 crore registered during the previous trading session.

Hero MotoCorp rose 3.18%. The company's sales rose 11% to 6.74 lakh units in September 2016 over September 2015. The company registered highest ever sales in any month so far in September 2016. The announcement was made after market hours today, 3 October 2016. The growth momentum was backed by a series of positive factors such as the successful market launch of the Splendor iSmart 110; augmented leadership in the 125 cc segment with the 'Glamour', emerging as the largest- selling 125 cc motorcycle in the country and the positive trend maintained by the new scooter portfolio.

Index heavyweight and housing finance major HDFC advanced 2.15% to Rs 1,423. The stock hit high of Rs 1,428.90 and low of Rs 1,387 in intraday trade.

Index heavyweight Reliance Industries (RIL) rose 0.96% to Rs 1,092.50. The stock hit high of Rs 1,107.35 and low of Rs 1,076.95 in intraday trade.

Capital goods stocks gained. BEML (up 3.22%), Bharat Electronics (up 2.25%), ABB India (up 3.11%), Crompton Greaves (up 4.52%), Siemens (up 1.2%) and Thermax (up 3.64%) rose.

Index heavyweight and engineering and construction major L&T advanced 2.75% after the company said that its construction arm L&T Construction has won orders worth Rs 6024 crore across various business segments. The announcement was made during market hours today, 3 October 2016.

Bharat Heavy Electricals (Bhel) rose 1.89% after the company said that it secured two renovation and modernisation (R&M) contracts worth around Rs 430 crore of hydro electric plants. The announcement was made during market hours today, 3 October 2016. Bhel's scope of work in the orders envisages design, engineering, manufacturing, supply, dismantling, erection, testing and commissioning of critical parts of turbines, generators, governors, controls & instrumentation, protection and balance of plant (BoP). Major equipment for these contracts will be manufactured and supplied by Bhel's plants at Bhopal, Jhansi and Bengaluru.

Realty stocks rose on renewed buying ahead of the Reserve Bank of India (RBI)'s monetary policy review tomorrow, 4 October 2016. DLF (up 4%), Indiabulls Real Estate (up 1.9%), Housing Development and Infrastructure (up 4.15%), D B Realty (up 3.03%), Unitech (up 2.37%), Sobha (up 2.62%), Godrej Properties (up 1.08%), Oberoi Realty (up 0.31%), Prestige Estates Projects (up 5.06%), and Parsvnath Developers (up 3.47%) gained. Purchases of both residential and commercial property are largely driven by finance.

Bank stocks gained ahead of the Reserve Bank of India (RBI)'s monetary policy review tomorrow, 4 October 2016. Among public sector banks, Punjab National Bank (up 2.1%), Bank of Baroda (up 0.87%), State Bank of India (SBI) (up 1.79%), Union Bank of India (up 4.22%), Canara Bank (up 3.57%), and Bank of India (up 3.19%) edged higher.

Among private sector banks, Axis Bank (up 1.68%), HDFC Bank (up 1.29%), ICICI Bank (up 1.49%), Yes Bank (up 1.34%), and IndusInd Bank (up 3%) edged higher.

Kotak Mahindra Bank rose 1.14% after the bank said it has executed binding share purchase agreement to acquire 99.49% of equity shares of BSS Microfinance for all-cash consideration of Rs 139.20 crore. The announcement was made after market hours on Friday, 30 September 2016. The bank announced that it has executed binding share purchase agreement to acquire 99.49% of equity shares of BSS Microfinance (BSS), a non-banking finance company (NBFC), from existing shareholders subject to regulatory and other approvals, including Reserve Bank of India. BSS has a commercially established model in the microfinance segment and this acquisition gives Kotak access to BSS' growing customer base which currently stands at over 2.17 lakh and network of 78 branches as of 30 June 2016.

As of 30 June 2016, BSS has a networth of about Rs 73 crore and microfinance loans of Rs 483 crore in its books. It will be a subsidiary of Kotak after receiving regulatory and other approvals.

The Sensex has risen 2,125.75 points or 8.13% in calendar year 2016 so far (till 3 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,748.68 points or 25.55%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 833.99 points or 2.86%. The Sensex is off 1,781.45 points or 5.93% from a record high of 30,024.74 hit on 4 March 2015.

Meanwhile, India's manufacturing upturn was sustained in September, as a further increase in order books underpinned growth of output and purchasing activity, a survey showed today, 3 October 2016. That said, rates of expansion eased in all cases. One area of strength was external demand, with firms noting the strongest rise in new export orders since July 2015. Both input costs and output charges increased at quicker rates. Posting above the crucial 50 threshold for the ninth consecutive month, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 52.1 in September from 52.6 in August.

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