Key benchmark indices further extended gains and hit fresh intraday high in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was up 457.53 points or 1.68% at 27,710.06. The Nifty 50 index was up 159.70 points or 1.89% at 8,591.70. Strong cues from Asian markets boosted investors' sentiment.
The Sensex and the Nifty, both, hit their highest level in more than one week in mid-morning trade. The Sensex rose 482.77 points, or 1.77% at the day's high of 27,735.30 in mid-morning trade, its highest level since 1 November 2016. The index rose 239.40 points, or 0.88% at the day's low of 27,491.93 at the onset of trading session. The Nifty rose 164.35 points, or 1.95% at the day's high of 8,596.35 in mid-morning trade, its highest level since 1 November 2016. The index rose 80.90 points, or 0.96% at the day's low of 8,512.90 at the onset of trading session.
The broad market depicted strength. There were more than six gainers against every loser on BSE. 1,995 shares rose and 318 shares fell. A total of 87 shares were unchanged. The BSE Mid-Cap index was currently up 2.28%. The BSE Small-Cap index was currently up 2.77%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks edged higher to join a global rebound on speculation Donald Trump will pursue business-friendly policies. Japan's Nikkei 225 surged 6.88%. US stocks rallied Wednesday, 9 November 2016, led by a surge in financial, health-care and industrial stocks, as investors bet on the infrastructure spending policy promised by President-elect Donald Trump. Trump was declared as the 45th President of the United States yesterday, 9 November 2016.
Pharmaceutical shares edged higher. Cadila Healthcare (up 5.41%), Wockhardt (up 3.55%), Aurobindo Pharma (up 3.34%), Piramal Enterprises (up 2.95%), Glenmark Pharmaceuticals (up 2.24%), IPCA Laboratories (up 2.10%), Strides Shasun (up 2.01%), Divi's Laboratories (up 1.76%), Dr Reddy's Laboratories (up 1.02%), Lupin (up 0.06%) and Alkem Laboratories (up 0.03%), edged higher. GlaxoSmithKline Pharmaceuticals was down 1.21%.
Drug maker Cipla gained 6.12% to Rs 560.40, with the stock shrugging off the company's announcement of weak Q2 results. Cipla said that consolidated net profit dropped 34.75% to Rs 354.34 crore on 8.39% rise in total income to Rs 3778.25 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 9 November 2016.
Cipla said that Q2 September 2016 reflected improved profitability in base business driven by better product and geography mix. The company launched 6 new products during this quarter in the US market and continues to invest in building a niche and differentiated product portfolio, Cipla said. Commenting on the results, Umang Vohra, MD and Global CEO, Cipla said that the company continues to stay focused on building operational efficiencies and strengthening presence in priority markets.
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Sun Pharmaceutical Industries rose 2.67% to Rs 678.75. The company will declare its Q2 September 2016 results today, 10 November 2016.
Cement shares were in demand. UltraTech Cement (up 2.17%), ACC (up 1.82%) and Ambuja Cements (up 1.30%), edged higher.
Grasim Industries was up 3.14%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
DCM Shriram rose 5.74% after the company said that it has on 8 November 2016 commissioned additional captive power generation capacity at its chlor-alkali unit in Bharuch, Gujarat. The announcement was made after market hours yesterday, 9 November 2016.
DCM Shriram said that the total coal based captive power generation at the Bharuch, Gujarat unit now stands at 115 megawatts (MW). The increased power generation capacity will meet the power requirements of its chloro-alkali unit at Bharuch, Gujarat wherein the expansion of chlor-alkali capacity to 1,013 tonnes per day (TPD) was completed in October 2016.
Snowman Logistics lost 1.86% to Rs 57.90 at 10:32 IST on BSE after the company reported net loss of Rs 8.32 crore in Q2 September 2016 compared with net profit of Rs 2.87 crore in Q2 September 2015. Snowman Logistics' net sales declined 15.06% to Rs 47.40 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 9 November 2016.
A significant reason for the losses reported during Q2 September 2016 was that the company decided to make a one time provision of Rs 8.79 crore towards asset refurbishment both on old transport fleet and some old warehouses, as well as customer claims due to stock losses and damages at some of its warehouses. Snowman Logistics said it has taken appropriate corrective action, in terms of improvements in the systems and process to prevent any recurrence of such incidents.
On the macro front, the figures for direct tax collections up to October 2016 show that net collections are at Rs 3.77 lakh crore which is 10.6% more than the net collections for the corresponding period last year. Till October 2016, 44.5% of the Budget estimates of direct taxes for financial year 2016-17 has been achieved.
The figures for indirect tax collections (Central Excise, Service Tax and Customs) up to October 2016 show that net revenue collections are at Rs 4.85 lakh crore which is 26.7% more than the net collections for the corresponding period last year. Till October 2016, 62.4% of the Budget estimates of indirect taxes for financial year 2016-17 has been achieved.
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