A bout of volatility was witnessed as key benchmark indices recovered after trimming gains in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was up 245.43 points or 0.88% at 28,105.03. The Nifty 50 index was currently up 64.70 points or 0.75% at 8,656.85. The Sensex was currently trading above the psychologically important 28,000 mark after surpassing that level in early trade. Positive cues from global markets aided the upmove on the domestic bourses. Index heavyweights Reliance Industries (RIL), ITC and HDFC led gains for the two key benchmark indices.
The Sensex jumped 291.16 points or 1.05% at the day's high of 28,150.76 in morning trade, its highest level since 9 August 2016. The barometer index up 41.31 points or 0.15% at the day's low of 27,900.91 at onset of the trading session. The Nifty surged 83.05 points or 0.97% at the day's high of 8,675.20 in morning trade, its highest level since 10 August 2016. The index rose 12.30 points or 0.14% at the day's low of 8,604.45 at onset of the trading session.
The market sentiment was positive after data showing sustained buying of Indian stocks by foreign portfolio investors (FPIs). FPIs bought shares worth a net Rs 608.35 crore yesterday, 11 August 2016, as per provisional data released by the stock exchanges. As per final data from the depositories, FPIs were net buyers of Indian equities for 24th day in a row on 10 August 2016.
In overseas stock markets, main Asia markets rose after the three main indices in the US attained record closing high overnight. Chinese stocks rose after release of a slew of economic data. In mainland China, the Shanghai Composite index was currently up 1.43%. In Hong Kong, the Hang Seng index was currently up 0.78%. In Japan, the Nikkei 225 Average closes 1.1% higher. Industrial output in China rose 6% in July from a year earlier, slowing from 6.2% in June, data from the National Bureau of Statistics showed. Retail sales grew 10.2% in July from a year earlier, slowing from a 10.6% increase in June. Fixed asset investment from January to July increased by 8.1% from a year earlier, the slowest rate in more than 16 years.
US stocks edged higher yesterday, 11 August 2016, with the Dow Jones Industrial Average, the Nasdaq Composite index and the S&P 500 index closing at record highs, amid sharp gains in crude oil prices and strong quarterly results from retailers.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,315 shares rose and 1,006 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index was currently up 0.77%. The BSE Small-Cap index was currently up 0.47%. Both these indices underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) gained 2.65% to Rs 1,039.25. The stock hit a high of Rs 1,041.75 and low of Rs 1,014.90 so far during the day.
Index heavyweight and cigarette major ITC gained 1.41% to Rs 254.70. The stock hit a high of Rs 255.50 and low of Rs 249.25 so far during the day.
Index heavyweight and housing finance major HDFC advanced 1.41% to Rs 1,367.75. The stock hit high of Rs 1,373.20 and low of Rs 1,352.80 so far during the day.
Bosch dropped after reporting uninspiring Q1 June results. The stock lost 2.23%. The company's net profit rose 0.8% to Rs 378.72 crore on 10.5% rise in total income to Rs 2698.43 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 12 August 2016.
FMCG stocks rose on above normal monsoon rains during this year's monsoon season so far. Britannia Industries (up 1.68%), Marico (up 1.34%), Nestle India (up 1.2%), GlaxoSmithkline Consumer Healthcare (up 0.56%), Dabur India (up 0.32%), Godrej Consumer Products (up 0.8%), Hindustan Unilever (up 0.17%), Tata Global Beverages (up 0.4%), Procter & Gamble Hygiene and Health Care (up 0.71%), Jyothy Laboratories (up 0.86%) and Bajaj Corp (up 0.41%) rose. Colgate-Palmolive (India) slipped 0.05%.
Good rains could boost rural sales. FMCG companies derive substantial sales from rural India. The India Meteorological Department (IMD) in its weekly monsoon update issued yesterday, 11 August 2016, said that for the country as a whole, cumulative rainfall during this year's monsoon season was 3% above the long period average (LPA) until 10 August.
Telecom stocks fell. Idea Cellular (down 1.68%), MTNL (down 0.48%), Tata Teleservices (Maharashtra) (down 0.78%) and Reliance Communications (down 0.82%) declined.
Bharti Airtel rose 0.38% after the company said that the transaction to acquire rights to use 20 megahertz (MHz) 2300 band BWA spectrum from Aircel has been successfully concluded for the Orissa circle following the receipt of all necessary approvals and satisfying all the conditions (including conditions stated in the Spectrum Trading Guidelines). With this, the company has completed the transaction to acquire right to use spectrum in 7 out of 8 circles from Aircel. The announcement was made after market hours yesterday, 11 August 2016.
Shares of Bharti Infratel rose 0.68%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
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