After hitting fresh intraday high in mid-morning trade, the key benchmark indices trimmed some gains in early afternoon trade. At 12:18 IST, the S&P BSE Sensex was up 298.11 points or 1.07% at 28,164.07. The Nifty 50 index was currently up 100.15 points or 1.16% at 8,711.30. The Sensex was trading above the psychologically important 28,000 mark after regaining that level in morning trade. Positive Asian stocks underpinned sentiment on the domestic bourses.
The Sensex rose 351.67 points or 1.26% at the day's high of 28,217.63 in mid-morning trade, its highest level since 29 September 2016. The barometer index rose 53.93 points or 0.19% at the day's low of 27,919.89 in early trade. The Nifty rose 116.15 points or 1.35% at the day's high of 8,727.30 in mid-morning trade, its highest level since 29 September 2016. The index rose 23.85 points or 0.28% at the day's low of 8,635 in early trade.
In overseas stock markets, Asian 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.
Closer home, the broad market depicted strength. There were more than four gainers against every loser on BSE. 1,956 shares gained and 484 shares fell. A total of 86 shares were unchanged. The BSE Mid-Cap index was up 1.76%. The BSE Small-Cap index was up 1.88%. Both these indices outperformed the Sensex.
Adani Ports and Special Economic Zone rose 3.84% after the Reserve Bank of India allowed foreign investors to hike their stake in the company to upto 49% from 40% earlier. The RBI notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can under the portfolio investment scheme (PIS) now invest upto 49% of the paid up capital of Adani Ports and Special Economic Zone (APSEZ). The purchases could be made through primary market and stock exchanges. RBI stated that the company's board of directors' has passed a resolution and its shareholders have passed a special resolution agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The Reserve Bank of India (RBI) made the announcement after market hours on Friday, 30 September 2016.
Pharma stocks rose. Sun Pharmaceutical Industries (up 1.72%), Cadila Healthcare (up 1.4%), Cipla (up 0.65%), Dr Reddy's Laboratories (up 1.81%), Glenmark Pharmaceuticals (up 0.6%), Lupin (up 0.38%), Alkem Laboratories (up 1.57%), GlaxoSmithKline Pharmaceuticals (up 0.51%), Aurobindo Pharma (up 0.92%) and Wockhardt (up 2.19%) gained.
Capital goods stocks gained. Punj Lloyd (up 2.95%), Bharat Heavy Electricals (Bhel) (up 1.19%), BEML (up 1.95%), Bharat Electronics (up 2.07%), ABB India (up 1%), Crompton Greaves (up 2.46%), Siemens (up 1.16%) and Thermax (up 0.95%) rose.
L&T rose 1.46% 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.
Mahindra Holidays & Resorts India rose 3.86% after the company said it has inked a pact to acquire 12% stake in Nreach Online Services for Rs 3 crore. Nreach Online Services owns a brand 'GIFTXOXO', which offers over 4,000 categories of experiences and activities including travel and adventure, gourmet, health and wellness, art and learning. Mahindra Holidays & Resorts India said this is strategic investment by the company. Nreach will help in curating experiences for the company's 2 lakh vacation ownership (Club Mahindra Holidays) members in and around various cities in India. The announcement was made on Saturday, 1 October 2016.
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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