Gains in metal and mining sector stocks and index heavyweights ITC, HDFC and Infosys led gains for key benchmark indices. The barometer index, the S&P BSE Sensex, jumped 233.70 points or 0.87% to settle at 27,079.51. The 50-unit CNX Nifty index gained 60.35 points or 0.74% to settle at 8,189.70. The Sensex reclaimed the psychological 27,000 mark. The Sensex and the Nifty, both, attained 7-week closing high. Gains in global stocks underpinned sentiment on the domestic bourses. However, there was high intraday volatility on the domestic bourses. After a sharp surge during the initial part of the trading session, the Sensex and the Nifty erased a lion's portion of the gains in afternoon trade. A recovery from lower level materialized later.
Stocks rose across the globe after the minutes of the Federal Reserve's latest meeting reinforced market expectations that the US central bank will delay its first interest rate hike in a decade. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. However, emerging market investors have been worried that once the US starts raising interest rates, it will drain liquidity from global emerging markets, including India and redirect it to developed economies.
The barometer index, the S&P BSE Sensex, gained 233.70 points or 0.87% to settle at 27,079.51, its highest closing level since 21 August 2015. The Sensex jumped 354.63 points or 1.32% at the day's high of 27,200.44 in morning trade. The Sensex rose 64.78 points or 0.24% at the day's low of 26,910.59 in afternoon trade.
The 50-unit CNX Nifty gained 60.35 points or 0.74% to settle at 8,189.70, its highest closing level since 21 August 2015. The Nifty jumped 102.85 points or 1.25% at the day's high of 8,232.20 in morning trade. The index rose 10.30 points or 0.12% at the day's low of 8,139.65 in afternoon trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,471 shares rose and 1,304 shares declined. A total of 124 shares were unchanged. The BSE Mid-Cap index declined 0.06%. The BSE Small-Cap index rose 0.19%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2845 crore, lower than turnover of Rs 3092.39 crore registered during the previous trading session.
Metal & mining stocks gained on firm metal prices in the global commodity markets. Bhushan Steel (up 0.76%), Tata Steel (up 4.28%), Steel Authority of India (Sail) (up 1.74%), National Aluminum Company (up 6.47%) and NMDC (up 0.89%) gained. JSW Steel (down 0.99%) and Jindal Steel & Power (down 1.56%) declined. Hindustan Copper was flat.
High Grade Copper for December 2015 delivery was currently up 1.9% at $2.3875 per pound on the COMEX.
Hindalco Industries gained 1.58%. The company said that CARE has revised long term rating of the company's non convertible debentures from CARE AA+ to CARE AA. Hindalco Industries made the clarification after market hours yesterday, 8 October 2015 with respect to reports titled "CARE cuts rating for Hindalco debentures."
Vedanta jumped 12.6%. Vedanta said during market hours today, 9 October 2015, that in its oil exploration business, the average gross operated production and working interest production were up 6% and 4% at 205,361 barrels of oil equivalent per day (boepd) and 128,021 boepd, respectively in Q2 September 2015 over Q2 September 2014. Production at Rajasthan was up 3% y-o-y at 168,126 boepd, primarily driven by inline reservoir performance in Mangala and production from additional infill wells in the Aishwariya field. At Mangala EOR, the injection ramp up plan is on track and work on the drilling and surface facilities work is ongoing. Gross production from DA1 and DA2 averaged at 147,443 boepd and 20,683 boepd, respectively.
In Q2 September 2015, gas production from the RDG field increased to an average rate of 30 mmscfd from 19 mmscfd in Q1 June 2015, recording a peak production of 34 mmscfd. This was largely on account of optimization of existing infrastructure. Both the offshore assets registered a gross average production of 37,235 boepd, an increase of 19% y-o-y. Production at Ravva grew 27% y-o-y to 26,064 boepd due to consistently higher gas production, effective infill drilling campaign and prudent reservoir management. Cambay saw a production growth of 5% y-o-y, driven by effective reservoir management practices including well intervention campaign undertaken in the last quarter.
Mined metal production in its zinc business in India rose 13% at 240,000 tonnes in Q2 September 2015 over Q2 September 2014. The increase was driven by higher ore production across all mines.
Vedanta in its financial update said that in light of the current market conditions, the company is focused on optimising operational expenditure and capital expenditure, increasing free cash flow and reducing net debt. During the quarter, several initiatives and programmes to generate cash savings, including a reduction of working capital, have been implemented across its businesses. These initiatives have resulted in an improved cost performance and lower net debt at the end of the quarter.
Hindustan Zinc rose 3.37%. The company said during market hours today, 9 October 2015, that mined metal production rose 13% to 2.4 lakh tonnes in Q2 September 2015 over Q2 September 2014. The cost of production of zinc excluding royalty fell 8.21% to Rs 50,236 per metric tonne in Q2 September 2015 over Q2 September 2014 which was in line with increased production volumes and cost reduction measures undertaken during the quarter.
Coal India declined 2.96% to Rs 335.95. The stock hit high of Rs 348.50 and low of Rs 335.
Index heavyweight Infosys gained 3.13% to Rs 1,167.85. The stock hit high of Rs 1,172.60 and low of Rs 1,133. Infosys announces Q2 results on Monday, 12 October 2015.
Shares of upstream oil companies were mixed. ONGC rose 2.13%. Oil India declined 1.52%.
Reliance Industries (RIL) declined 0.31% to Rs 886.35. The stock hit high of Rs 904.90 and low of Rs 992.10.
In the global commodities markets, Brent crude oil futures edged higher, driven by a weakening dollar and risks that Russia's escalating involvement in Syria could hurt oil supply from the region. Brent for November settlement was currently up 80 cents at $53.85 a barrel. The contract had risen $1.72 a barrel or 3.35% to settle at $53.05 a barrel during the previous trading session.
Shares of public sector oil marketing companies fell as global crude oil prices rose. BPCL (down 0.96%), Indian Oil Corporation (down 0.23%) and HPCL (down 2.69%) edged lower. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
IndusInd Bank edged lower in volatile trade after the private sector bank announced second quarter results. The stock fell 0.91% to Rs 937.15. The stock hit high of Rs 957.70 and low of Rs 934.20. The bank's net profit rose 30.18% to Rs 560.04 crore on 20.47% rise in total income to Rs 3581.31 crore in Q2 September 2015 over Q2 September 2014. The bank announced result during market hours today, 9 October 2015.
On absolute basis, IndusInd Bank's gross non-performing assets (NPAs) stood at Rs 602.10 crore as on 30 September 2015, compared with Rs 570.12 crore as on 30 June 2015 and Rs 654.54 crore as on 30 September 2014. The ratio of gross NPAs to gross advances stood at 0.77% as on 30 September 2015 as against 0.79% as on 30 June 2015 and 1.08% as on 30 September 2014. The ratio of net NPAs to net advances stood at 0.31% as on 30 September 2015. The ratio was unchanged from the level as 30 June 2015 and was a tad lower than 0.33% as on 30 September 2014.
Shares of housing finance companies edged higher as the National Housing Bank (NHB) which regulates housing finance companies is expected to follow suit after the Reserve Bank of India yesterday, 8 October 2015, announced rationalization of risk weights and Loan to Value (LTV) ratio on individual housing loans of commercial banks. LIC Housing Finance (up 0.75%), HDFC (up 1.01%), GIC Housing Finance (up 9.89%) and Dewan Housing Finance (up 2.88%) gained. After the modifications announced by the RBI, the lowest risk weight on individual housing loans of commercial banks has been reduced to 35% from 50% earlier. The modifications are aimed at improving the affordability of low cost housing for economically weaker sections and low income groups and giving a fillip to the government's 'Housing for All' scheme.
ITC gained 1.21% to Rs 343.25. The stock hit high of Rs 344.50 and low of Rs 338.55.
L&T gained 0.82% to Rs 1,546.10. The stock hit high of Rs 1,563.65 and low of Rs 1,539.85.
SMS Pharmaceuticals rose 4.64% after the company said its board approved 10-for-1 stock split. The announcement was made during trading hours today, 9 October 2015.
The Sensex has risen 924.68 points or 3.53% in this month so far (till 9 October 2015). The Sensex has fallen 419.91 points or 1.52% in this calendar year so far (till 9 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,245.9727 points or 9.04%. The Sensex is off 2,945.23 points or 9.8% from a record high of 30,024.74 hit on 4 March 2015.
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