Key benchmark indices eked out small gains ahead of a two-day holiday. The barometer index, the S&P BSE Sensex, rose 24.72 points or 0.09% at 28,085.86, as per the provisional closing data. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 16.95 points, or 0.19% to 8,714.55, as per the provisional closing data.
The stock market remains closed tomorrow, 11 October 2016, on account of Dussehra. The market also remains closed on Wednesday, 12 October 2016, on account of Muharram.
The Sensex rose 155.50 points, or 0.55% at the day's high of 28,216.64 at the onset of trading session, its highest level since 6 October 2016. The index rose 7.18 points, or 0.03% at the day's low of 28,068.32 in mid-afternoon trade. The Nifty rose 48.20 points, or 0.55% at the day's high of 8,745.80 at the onset of trading session, its highest level since 6 October 2016. The index rose 6.35 points, or 0.07% at the day's low of 8,703.95 in mid-afternoon trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,704 shares rose and 1,175 shares fell. A total of 137 shares were unchanged. The BSE Mid-Cap index provisionally fell 0.17%, underperforming the Sensex. The BSE Small-Cap index provisionally rose 0.28%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2487 crore, lower than turnover of Rs 3337.19 crore registered during the previous trading session.
In overseas stock markets, European stocks bounced back after a negative opening. Most Asian stock markets dropped. Markets in Hong Kong, Japan and Taiwan were shut for public holidays. US stocks fell on Friday, 7 October 2016, to end the week lower following a report on US employment that came in below expectations but was viewed as strong enough for the US central bank to consider raising interest rates by the end of the year. The US economy added 156,000 jobs last month, while the unemployment rate ticked up to 5% as more workers entered the labor market.
Most FMCG shares edged lower. Jyothy Laboratories (down 2.65%), Godrej Consumer Products (down 1.26%), Nestle India (down 1%), Britannia Industries (down 0.5%), Marico (down 0.45%), Hindustan Unilever (down 0.18%) and Colgate Palmolive (India) (down 0.08%), edged lower. Bajaj Corp (up 0.07%), Tata Global Beverages (up 0.20%), GlaxoSmithKline Consumer Healthcare (up 0.33%), Procter & Gamble Hygiene & Health Care (up 0.50%) and Dabur India (up 0.53%), edged higher.
India's largest cigarette maker by sales ITC rose 0.56% to Rs 240.50 after the corporate management committee of the company approved divestment of the company's entire shareholding (204 shares of common stock with no par value) in King Maker Marketing Inc, US, a wholly-owned subsidiary, along with assignment of certain trademarks owned by the company. The announcement was made on Sunday, 9 October 2016. The consideration to be received is estimated at around $24 million in terms of the share purchase agreement and subject to regulatory approvals and customary closing conditions, ITC said. The buyer in the transaction is Premier Manufacturing, Inc., USA, it added.
RBL Bank rose 1.12%. RBL Bank, NeoGrowth Credit and Overseas PrivateInvestment Corporation (OPIC), the US Government's development finance Institution have jointly committed to provide financing for small and medium enterprises (SMEs) in the Indian retail space. The announcement was made after market hours on Friday, 7 October 2016. RBL Bank will lend to NeoGrowth to enable it to provide loans to SMEs excluded from mainstream funding. This financing will be backed by a $5 million loan guarantee from OPIC. NeoGrowth, a non-banking finance institution, uses innovative technology to serve the funding requirements of SMEs, which do not get loans easily from commercial banks owing to their small size, inadequate credit history and lack of collateral. RBL Bank's loan will allow NeoGrowth to provide loans ranging from Rs 2 lakh to Rs 75 lakh to the retail SMEs.
Dr Reddy's Laboratories rose 0.87% after the company announced its entry into Columbia with its portfolio of high quality and affordable medicines for cancer patients. Ramana, Executive Vice President and Head, Branded Markets, Global Generics, Dr Reddy's Laboratories' (DRL) said that the company's initial focus would be to provide access to affordable cancer medicines to patients through its proven portfolio of oncology products. The announcement was made after market hours on Friday, 7 October 2016.
Tata Steel rose 2.93% on reports that a foreign brokerage has maintained its outperform rating on the stock. The brokerage reportedly said that imposition of anti-dumping duty in European Union is a big positive for the Tata Steel stock. The brokerage has reportedly increased FY 2018 earnings per share (EPS) estimates of Tata Steel by 6% on higher EBITDA/tonne in Europe. Tata Steel remains cheap on EV/EBITDA valuation, the brokerage added.
JSW Steel rose 1.99% after the company announced during trading hours today, 10 October 2016, its board will meet on 27 October 2016 to consider stock split. In a separate announcement today, the company said that its crude steel production rose 22% to 3.98 million tonnes in Q2 September 2016 over Q2 September 2015. Production of flat products rose 12% to 2.86 million tonnes in Q2 September 2016 over Q2 September 2015. Production of long products rose 24% to 0.79 million tonnes in Q2 September 2016 over Q2 September 2015.
Meanwhile, JSW Steel announced after market hours on Friday, 7 October 2016, that it has been declared a preferred bidder in 5 mines in the auctions for category C mines conducted by state government of Karnataka. The auction was conducted during the period 1 October 2016 to 6 October 2016. The estimated resources in these 5 mines as per the tender documents are around 111 million tonnes. The highest final offer price by the company to become a preferred bidder is in the range of 58.9% to 102.52% of average monthly prices of iron ore of different grades and quality published by Indian Bureau of Mines in Karnataka from time to time. The company will take all requisite steps as per the tender documents to obtain letter of intent, all statutory clearances, execute mine development & production agreement (MOPA) and start the mining operations.
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