Key benchmark indices held firm after hitting fresh intraday high in mid-morning trade. At 11:18 IST, the barometer index, the S&P BSE Sensex was up 204.69 points or 0.73% at 28,107.35. The Nifty 50 index was currently up 63.80 points or 0.74% at 8,671.25. The Sensex was hovering above psychological 28,000 mark after regaining that mark in early trade. Except BSE Telecom index all the rest of the sectoral indices on BSE were in the green. Firmness in most of the Asian stocks boosted sentiment.
The Sensex rose 235.58 points or 0.84% at the day's high of 28,138.24 in mid-morning trade, its highest level since 25 August 2016. The barometer index gained 108 points or 0.38% at the day's low of 28,010.66 at the onset of the trading session. The Nifty rose 73.75 points or 0.85% at the day's high of 8,681.20 in mid-morning trade, its highest level since 25 August 2016. The index gained 34.80 points or 0.4% at the day's low of 8,642.25 at the onset of the trading session.
In overseas stock markets, most Asian stocks rose tracking overnight gains in US stocks. US stocks finished higher yesterday, 29 August 2016 on increased prospects for Federal Reserve rate increases in 2016. Investors continued to weigh remarks by Federal Reserve Chairwoman Janet Yellen, who said late last week in Jackson Hole, Wyo., that an improving US economy had strengthened the case for a rate increase. The Fed last December delivered its first rate increase in nearly a decade. The focus is now on US nonfarm-payroll data for August due on Friday, 2 September 2016.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,525 shares rose and 645 shares fell. A total of 138 shares were unchanged. The BSE Mid-Cap index was currently up 0.75%. The BSE Small-Cap index was currently up 0.93%. Both these indices outperformed the Sensex.
Realty stocks rose. D B Realty (up 0.92%), Sobha (up 1.13%), Indiabulls Real Estate (up 1.18%), Unitech (up 0.38%), NBCC (up 1.14%), Godrej Properties (up 0.15%), Housing Development & Infrastructure (HDIL) (up 1.7%), and Anant Raj (up 1.35%) edged higher.
DLF gained 1.45% after consolidated net profit rose 107.69% to Rs 261.42 crore on 21.82% decline in net sales to Rs 1867.46 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 29 August 2016. DLF's bottom line in Q1 June 2016 was boosted by one-time extraordinary gain of Rs 372 crore from the sale of DT cinemas to PVR. The company's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) fell 1% to Rs 903 crore in Q1 June 2016 over Q1 June 2015.
DLF said in a post result statement that the residential sector remains muted across all micro-markets. The company continues to implement its strategy of completing legacy projects and creating finished inventory and hence well positioned to profit when there is an uptick in the market dynamics, DLF said. Going ahead, the company expects increased momentum in the commercial space. As the company has exhausted most of its available commercial stock, it has commenced construction of office space in Chennai IT SEZ in the second quarter. Construction of Cyber Park at full pace and finishing of luxury retail mall at Chanakyapuri is underway. The company is focused on aggregating leases which are expiring to enable it to contract it to 'high value' high creditworthy tenants, it added.
The BSE Realty index had underperformed the market over the past one month till 29 August 2016, falling 4.18% compared with 0.53% slide in the Sensex. The index had, however, outperformed the market in past one quarter, gaining 8.19% as against Sensex's 4.69% rise.
Cement stocks also gained. ACC (up 0.89%), Shree Cement (up 0.16%), Ambuja Cements (up 0.91%), and UltraTech Cement (up 0.91%) gained.
Grasim Industries advanced 2.07%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
MOIL fell 2.35% after net profit declined 47.54% to Rs 47.15 crore on 0.42% rise in net sales to Rs 183.53 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 29 August 2016.
Gujarat Mineral Development Corporation surged 7.09% after net profit rose 58.94% to Rs 114.80 crore on 26.79% rise in net sales to Rs 399.30 crore in Q1 June 2016 over Q1 June 2015. The Q1 result was announced after market hours yesterday, 29 August 2016.
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