Stocks of power sector firms, telecom companies and private sector banks led gains for the two key benchmark indices. The barometer index, the S&P BSE Sensex, rose 260.08 points or 0.97% at 27,000.47, as per the provisional closing data. The Nifty 50 index rose 83.75 points or 1.02% at 8,287.75, as per the provisional closing data. The Sensex provisionally settled above the psychologically important 27,000 level. A likely boost to consumption demand from increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations aided the upmove on the bourses. Gains in global markets also aided the upmove on the domestic bourses. World stocks rose as worries subsided about the fallout from the UK's decision to leave the European Union known as Brexit.
The Sensex jumped 328.84 points or 1.22% at the day's high of 27,069.23 in mid-afternoon trade, its highest level since 8 June 2016. The barometer index rose 132.20 points or 0.49% at the day's low of 26,872.59 in early afternoon trade. The Nifty rose 104.05 points or 1.26% at the day's high of 8,308.05 in mid-afternoon trade, its highest level since 26 October 2015. The index rose 38.10 points or 0.46% at the day's low of 8,242.10 in early afternoon trade.
The Union Cabinet yesterday, 29 June 2016, approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners. There will be payment of arrears as the implementation of the 7th Pay Commission recommendations will take effect from 1 January 2016. The arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the subsequent financial year.
In overseas stock markets, Asian and European stocks edged higher as worries subsided about the fallout from the UK's decision to leave the European Union known as Brexit. Stocks rose in the UK ahead of a press conference from Bank of England (BOE) Governor Mark Carney later in the day. The FTSE 100 index was currently up 0.52%. US stocks surged for the second day in a row yesterday, 29 June 2016, on speculation that the US Federal Reserve will delay interest rate increases in the wake of the Brexit.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,606 shares rose and 1,004 shares declined. A total of 220 shares were unchanged. The BSE Mid-Cap index provisionally rose 1.26%, outperforming the Sensex. The BSE Small-Cap index provisionally rose 0.94%, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3094 crore, higher than turnover of Rs 2699.45 crore registered during the previous trading session.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 4.94%), Bharti Airtel (up 2.34%) and Idea Cellular (up 1.62%) rose.
Bharti Infratel was up 0.73%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Bank stocks also moved higher. Among public sector banks, IDBI Bank (up 1.01%), State Bank of India (up 1%), Bank of India (up 1.05%), Canara Bank (up 0.23%), Punjab National Bank (up 1.29%) and Bank of Baroda (up 0.03%) edged higher. Indian Bank (down 0.04%) and Corporation Bank (down 0.73%) edged lower.
Among private sector banks, Axis Bank (up 3.23%), ICICI Bank (up 1.61%), Kotak Mahindra Bank (up 1.43%), Yes Bank (up 2.75%) and IndusInd Bank (up 1.19%) edged higher.
Index heavyweight HDFC Bank was up 0.63% at Rs 1,175.25. The stock hit a high of Rs 1,179 and a low of Rs 1,162.30 in intraday trade.
Engineering & construction major L&T rose 0.89% at Rs 1,495 after the company announced fixing the price band for divestment of a part of its stake in its subsidiary Larsen & Toubro Infotech (L&T Infotech) via initial public offer (IPO) of L&T Infotech. The price band has been fixed at Rs 705 to Rs 710 per share. A discount of Rs 10 per equity share will be offered to retail individual bidders. L&T is selling up to 1.75 crore shares of L&T Infotech via IPO of L&T Infotech. The offer will open for subscription on 11 July 2016 and close on 13 July 2016.
Powered by Capital Market - Live News
