Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex, was up 192.24 points or 0.66% at 29,429.39. The Nifty 50 index was currently up 62.15 points or 0.69% at 9,107.35.
The Sensex rose 205.03 points, or 0.70% at the day's high of 29,442.18 in mid-morning trade, its highest intraday level since 24 March 2017. The index rose 64.07 points, or 0.22% at the day's low of 29,301.22 in morning trade. The Nifty rose 64.55 points, or 0.71% at the day's high of 9,109.75 in mid-morning trade, its highest intraday level since 24 March 2017. The index rose 35.60 points, or 0.39% at the day's low of 9,080.80 in morning trade.
Among secondary barometers, the BSE Mid-Cap index was currently up 0.67%. The BSE Small-Cap index was currently up 0.80%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,540 shares rose and 825 shares fell. A total of 152 shares were unchanged.
Engineering and construction major L&T was up 0.70% to Rs 1,557.45 after the company announced during trading hours today, 28 March 2017, that the buildings & factories business of L&T Construction has bagged a major design & build order worth Rs 2903 crore to re-develop Mumbai's century-old BDD Chawls for Maharashtra Housing and Area Development Authority (MHADA). The prestigious contract is the largest residential project awarded to L&T Construction till date.
Motorcycle major Hero MotoCorp was down 0.28% at 3330.80. Bahadur Chand Investments (BCIPL), one of the promoters of Hero MotoCorp, raised its holding in the two-wheeler major by picking up 4.45% stake for Rs 2996 crore from another promoter firm in an open market transaction.
BCIPL bought 88.78 lakh shares, amounting to 4.45% stake, of Hero MotoCorp from Brij Mohan Lall Om Prakash (BMOP), a partnership firm of the promoter family members. Shares were purchased at an average price of Rs 3,375, valuing the transaction at Rs 2,996.32 crore. This is an inter-se transfer between the promoters. There is no change in the aggregate promoter shareholding in Hero MotoCorp. The stake of BCIPL has increased to 15.56% from 11.11% earlier. The stake of BMOP has decreased to 18.43% from 22.88% earlier. The disclosure was made during trading hours today, 28 March 2017.
Telecom shares were in demand. Idea Cellular (up 2%), Reliance Communications (up 1.18%), MTNL (up 0.83%), and Tata Teleservices (Maharashtra) (up 0.26%), edged higher.
Telecom major Bharti Airtel was up 0.75% to Rs 341.15. Telecom tower infrastructure provider Bharti Infratel was up 1.79% to Rs 318.15.
Bharti Airtel announced during trading hours today, 28 March 2017, that it has successfully completed secondary sale of over 19 crore shares of its subsidiary Bharti Infratel representing 10.3%, to a consortium of funds led by KKR and Canada Pension Plan Investment Board (CPPIB) for a total consideration of over Rs 6193.9 crore ($951.6 million), executed at a price of Rs. 325 per share. Bharti Airtel said that it will primarily use the proceeds from this sale to reduce its debt. Following the closure of this transaction, Bharti Airtel's equity holding in Bharti Infratel stands at 61.7%, and that of KKR and CPPIB at 10.3%.
Most IT shares edged higher. Hexaware Technologies (up 1.59%), HCL Technologies (up 1.51%), Oracle Financial Services Software (up 1.23%), Wipro (up 1%), TCS (up 0.91%), Infosys (up 0.72%), MphasiS (up 0.18%) and MindTree (up 0.02%), edged higher. Persistent Systems (down 0.08%) and Tech Mahindra (down 2%), edged lower.
On the economic front, Finance Minister Arun Jaitley yesterday, 27 March 2017, introduced four Goods and Services Tax (GST) bills in Lok Sabha that provide for a maximum tax rate of 40%, an anti-profiteering body and arrests for evading taxes in a bid to overhaul India's fragmented indirect tax system. All the four bills will be taken up together in Lok Sabha for discussion on Wednesday, 29 March 2017.
Overseas, most Asia stocks rose as investors looked beyond the failure of the Trump administration to replace the Affordable Care Act, aided by improving macroeconomic data out of the US and Europe. Higher oil prices and a rebound in the US dollar against the yen drove gains in Japan. Japan's Nikkei 225 rose 0.98%.
US stocks declined yesterday, 27 March 2017, as investors reassessed the prospects for President Donald Trump's ambitious economic agenda after a Republican plan to repeal and replace Obamacare was scrapped last week.
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