Firmness continued on the bourses as prospects of a near-term interest rate hike by the US Federal Reserve receded in the wake of a weaker-than-expected US employment data. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 373.61 points or 1.42% at 26,594.56. The 50-unit CNX Nifty was up 107.85 points or 1.36% at 8,058.75. The Nifty retained the psychological 8,000 level after crossing that level in opening trade. All the twelve sectoral indices on BSE were in the green.
The Sensex surged 428.39 points or 1.63% at the day's high of 26,649.34 in mid-morning trade, its highest level in more than five weeks. The Nifty also hit its highest level in more than five weeks when it jumped 118.30 points or 1.48% at the day's high of 8,069.20 in mid-morning trade.
In overseas stock markets, Asian stocks edged higher on expectations Beijing will take steps to accelerate growth and as prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of last week's weaker-than-expected US employment data for September 2015. The possibility of the Fed delaying the lift-off date for rates also meant its loose policy, which has helped shore up risk assets globally by providing cheap cash, would continue a little longer. US stocks closed on a positive note on Friday, 2 October 2015 thanks to a late-afternoon rally, but a weak US jobs report added to worries that the economy is slowing.
Closer home, broad market depicted strength. There were more than two gainers against every loser on BSE. 1,702 shares rose and 602 shares declined. A total of 79 shares were unchanged. The BSE Mid-Cap index was up 1.29%. The BSE Small-Cap index was up 1.22%. Both these indices underperformed the Sensex.
Telecom stocks gained. Tata Teleservices (Maharashtra) (up 2.09%) Reliance Communications (up 0.65%) and Idea Cellular (up 0.7%) gained.
Bharti Airtel rose 1.99%. With respect to news article titled "ASCI Tells Airtel to Stop Airing 'Misleading' 4G Ad", Bharti Airtel said during market hours today, 5 October 2015, that in response to the communication from Advertising Standards Council of India (ASCI), the company has engaged with ASCI to provide ASCI with the technical data in support of the advertising campaign of the company which revolves around the promise of fastest internet speeds with its 4G technology. Bharti Airtel is the only commercial provider of this world class technology in India as of now and the advertising campaign of the company revolves around the promise of fastest internet speeds and features a set of claims that are based on rigorous test conditions, the company said in a statement. The company is confident of getting a favorable response from ASCI.
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.75%), Havells India (up 0.5%), BEML (up 1.23%), ABB India (up 2.16%), Bharat Electronics (up 2.34%), L&T (up 3.14%), Thermax (up 1.51%), and Siemens (up 2.79%) gained.
Bajaj Auto gained 1.52%. The company said during market hours today, 5 October 2015, that total sales dropped 4% to 3.84 lakh units in September 2015 over September 2014. Motorcycles sales declined 5% to 3.3 lakh units in September 2015 over September 2014. Commercial vehicles sales rose 3% to 54,172 units in September 2015 over September 2014. Exports shed 0.23% to 1.73 lakh units in September 2015 over September 2014.
HDFC gained 3.91%. The company said on Saturday, 3 October 2015, that the board of directors has accorded approval to issue of 3.65 crore warrants to the qualified institutional buyers (QIBs) at an issue price of Rs 14 per warrant. Each warrant is exchangeable with one equity share of the company at a warrant exercise price of Rs 1,475 per share. The issue price of Rs 14 per warrant is neither adjustable with the warrant exercise price nor refundable by the company. The issue of warrants is attached to the issue of non convertible debentures (NCDs) aggregating Rs 5000 crore to the QIBs. The NCDs carry a coupe of 1.43% and due for maturity in March 2017.
HDFC also announced that the company's profit on sale of investments fell 53.39% to Rs 48 crore in Q2 September 2015 over Q2 September 2014. Income from dividend jumped 308.65% to Rs 425 crore in Q2 September 2015 over Q2 September 2014. The company under the loan assignment route sold loans amounting to Rs 2864 crore to HDFC Bank in Q2 September 2015, which was much higher than the figure of Rs 844 crore in Q2 September 2014.
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