Key benchmark indices further extended gains in mid-afternoon trade as strong global cues boosted investors' sentiment. At 14:19 IST, the barometer index, the S&P BSE Sensex, was up 377.55 points or 1.52% at 25,278.01. The Nifty 50 index was up currently up 118.35 points or 1.56% at 7,715.35. The Sensex retained the psychologically important 25,000 mark after surpassing that mark after opening with upward gap. World stocks rose as investors welcomed the latest signal from the US Federal Reserve that it would move slowly to raise interest rates in the US.
The Sensex jumped 387.85 points, or 1.56% at the day's high of 25,288.31 in mid-afternoon trade, its highest level since 28 March 2016. The barometer index rose 154.96 points, or 0.62% at the day's low of 25,055.42 in morning trade. The Nifty rose 126.40 points, or 1.66% at the day's high of 7,723.40 in mid-afternoon trade, its highest level since 28 March 2016. The index rose 46.45 points, or 0.61% at the day's low of 7,643.45 in morning trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,744 shares rose and 718 shares fell. A total of 149 shares were unchanged. The BSE Mid-Cap index was currently up 1.56%. The BSE Small-Cap index was currently up 1.71%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian and European stocks edged higher tracking overnight gains in US shares as investors welcomed the latest signal from the US Federal Reserve that it would move slowly to raise interest rates in the US. US stocks edged higher yesterday, 29 March 2016, after Federal Reserve chairwoman Janet Yellen in a speech in New York reiterated a need to proceed cautiously in lifting interest rates in the backdrop of weaker-than-expected growth overseas and a cloudy US inflation outlook.
Index heavyweight and housing finance major HDFC dropped after the stock turned ex-dividend for interim dividend of Rs 3 per share for the year ending 31 March 2016 (FY 2016). The stock was down 1.06% to Rs 1,115.70. The stock hit a high of Rs 1,130.10 and a low of Rs 1,111.20 so far during the day. Before turning ex-dividend, the stock offered a dividend yield of 0.26% based on the closing price of Rs 1,127.70 yesterday, 29 March 2016.
Most auto stocks edged higher. Tata Motors (up 3.82%), Escorts (up 1.74%) and Eicher Motors (up 0.21%), edged higher. Maruti Suzuki (India) (down 0.43%) and Mahindra & Mahindra (down 0.84%), edged lower.
Ashok Leyland was up 0.94% to Rs 107.65 after the company said it won defence contract worth Rs 800 crore from Indian armed forces for supply of advanced-technology vehicles. The announcement was made after market hours yesterday, 29 March 2016.
Stocks of two-wheeler makers rose across the board. Bajaj Auto (up 2.78%), TVS Motor Company (up 2.51%) and Hero MotoCorp (up 2.44%), edged higher.
FMCG shares edged higher. Godrej Consumer Products (up 4.23%), Marico (up 3.73%), Nestle India (up 2.02%), Tata Global Beverages (up 1.80%), Britannia Industries (up 1.70%), Hindustan Unilever (up 1.45%), Bajaj Corp (up 1.29%), Dabur India (up 1.12%), Jyothy Laboratories (up 0.89%) and Procter & Gamble Hygiene & Health Care (up 0.32%), edged higher. GlaxoSmithKline Consumer Healthcare (down 0.09%) and Colgate Palmolive (India) (down 0.85%), edged lower.
Meanwhile, in the government securities (Gsec) market, bond prices rose after the Reserve Bank of India (RBI) increased the limits for investment by foreign portfolio investors (FPI) in both Central Government Securities and State Development Loans (SDL) for the half year ending September 2016 in two tranches. The yield on 10-year benchmark federal paper 7.59% GS 2026 was currently hovering at 7.4918%, lower than 7.5144% at close in the previous trading session. Bond yields and prices are inversely related.
The RBI said in a circular that as per the Medium Term Framework (MTF) announced in October 2015, the limit for investment by FPIs in Central Government Securities for the half year ending September 2016 will be increased in two tranches, i.e., by Rs 10500 crore from 4 April 2016 and by Rs 10000 crore from 5 July 2016. The limit for SDL will be increased in two tranches of Rs 3500 crore each from 4 April 2016 and 5 July 2016.
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