A range bound movement was witnessed as key benchmark indices traded near the flat line in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 31.67 points or 0.13% at 24,638.66. The 50-unit Nifty 50 index was currently up 3.05 points or 0.04% at 7,478.65. The market breadth indicating the overall health of the market was strong. On BSE, 1,409 shares rose and 795 shares fell. A total of 120 shares were unchanged. The BSE Mid-Cap index was currently up 1.05%. The BSE Small-Cap index was currently up 0.87%. Both these indices outperformed the Sensex.
The Sensex hit its highest level in more than four weeks when it rose 112.06 points or 0.45% at the day's high of 24,719.05 at the onset of the trading session. The barometer index lost 75.19 points or 0.3% at the day's low of 24,531.80 in early trade. The Nifty hit its highest level in more than three weeks when it rose 30.30 points or 0.4% at the day's high of 7,505.90 at the onset of the trading session. The index lost 31.50 points or 0.42% at the day's low of 7,444.10 in early trade.
In overseas stock markets, Asian markets edged higher after a batch of positive US economic data overnight. US stocks closed slightly higher yesterday, 3 March 2016, as oil prices stabilized. The latest data showed US factory orders rose in January after two straight monthly declines and the service sector index showed continued expansion.
FMCG stocks were mostly higher. Dabur India (up 1.92%), Nestle India (up 0.88%), Tata Global Beverages (up 1.14%), Colgate-Palmolive (India) (up 1.34%), Emami (up 0.61%), Marico (up 0.38%), Godrej Consumer Products (up 0.29%), and Britannia Industries (up 0.25%) edged higher. Jyothy Laboratories (down 0.05%), Hindustan Unilever (down 0.04%), Bajaj Corp (down 1.14%), Procter & Gamble Hygiene and Health Care (down 0.06%) and GlaxoSmithkline Consumer Healthcare (down 0.4%) edged lower.
The FMCG industry will benefit by way of increase in rural demand following the government's thrust on agriculture and rural sectors in the Union Budget 2016-17. The government has provided Rs 47912 crore for agriculture, farmers' welfare and irrigation for 2016-17, which is nearly twice the allocation of the current year. The allocation for the rural sector is Rs 87765 crore and a highest ever sum of Rs 38500 crore has been allocated for MGNREGS.
Capital goods stocks were mixed. Crompton Greaves (up 4.6%), Bharat Electronics (up 2.02%), Havells India (up 1.28%), ABB India (up 1.49%) and Praj Industries (up 1.22%) edged higher. Alstom T&D India (down 2.52%), Siemens (down 0.8%), BEML (down 0.73%), Thermax (down 0.49%) and L&T (down 0.2%) edged lower.
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The increased outlay in core infrastructure sectors of roads including village roads, power, ports and railways as well as incentives for affordable housing in the Union Budget 2016-17 are expected to improve the business opportunities of both domestic capital goods players as well as construction companies with increased order flow. Additionally, the rationalisation of tax structure so as to boost the domestic manufacturing under the 'Make in India' Scheme is expected to boost demand for domestic manufacturers and have cascading impact on domestic capital goods manufacturers.
Bharat Heavy Electricals (Bhel) rose 4.17% at Rs 107.40 after the company announced that it has successfully commissioned its first 700 megawatts (MW) supercritical thermal unit at Bellary Thermal Power Project (TPP) in Karnataka. Bhel is presently executing a 1,600 MW supercritical thermal power project at Yeramarus and a 370 MW gas-based Yelahanka combined cycle power project in the state. The announcement was made during market hours today, 4 March 2016.
Dr Reddy's Laboratories (DRL) rose 2.06% at Rs 3,254, with the stock extending previous trading session's gains triggered by the company receiving approval from the United States Food and Drug Administration (FDA) for Palonosetron Hydrochloride injection or Aloxi generic. The stock surged 5.77% to settle at Rs 3,188.35 yesterday, 3 March 2016. Palonosetron Hydrochloride is used to treat chemotherapy induced nausea. In October 2015, DRL had entered into a settlement agreement with Helsinn Healthcare SA, a Switzerland-based pharma company for patent litigations related to Aloxi generic in the US. With this settlement, the company is permitted to market Aloxi generic on 30 September 2018 or earlier.
Asian Paints edged lower in volatile trade. The stock lost 1.06% at Rs 870.75. The stock hit a high of Rs 890 and a low of Rs 866.50 so far during the day. Asian Paints after market hours yesterday, 3 March 2016, announced that the operations at the company's paint plant situated at Rohtak, Haryana, have restarted. The company had halted production at the unit from 19 February 2016 due to the agitation by the Jat community in the state for quota.
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