Auto, IT and banking stocks and index heavyweights HDFC and ITC led strong gains for key benchmark indices. The barometer index, the S&P BSE Sensex, jumped 440.35 points or 1.58% to settle at 28,343.01. The Nifty 50 index rose 136.90 points or 1.59% to settle at 8,744.35. The Sensex settled above the psychological 28,000 mark after reclaiming that level in the opening trade. Barring the S&P BSE Telecom index, all the remaining 18 sectoral indices on BSE registered gains.
Gains in global stocks aided the upmove on the domestic bourses. Key indices hovered in positive zone throughout the trading session after a positive start. The Sensex hit its highest closing level in more than 13 months. The Nifty hit its highest closing level in more than 16 months. The Sensex and the Nifty rose for the second straight trading session.
Wipro rose after the company announced a partnership with Stibo Systems, a global leader in multi-domain Master Data Management (MDM) solutions. Oracle Financial Services Software dropped on turning ex-dividend. Maruti Suzuki India nudged higher after the company announced the launch of sporty Swift Deca, a limited edition model of its most popular hatchback. Bharti Airtel extended recent losses triggered by the company slashing rates for prepaid internet data plan. Coal India rose after the company announced that it has fixed 9 September 2016 as the record date for the purpose of buyback of equity shares.
In overseas stock markets, Asian and European stocks edged higher tracking overnight gains in US market. Bank stocks led gains in US stocks yesterday, 29 August 2016, on increased prospects for interest rate hike from the Federal Reserve in 2016. Investors continued to weigh remarks by Federal Reserve Chairwoman Janet Yellen, who said late last week in Jackson Hole, Wyo., that an improving US economy had strengthened the case for a rate increase. The Fed last December delivered its first rate increase in nearly a decade. The focus is now on US nonfarm-payroll data for August due on Friday, 2 September 2016.
The Sensex jumped 440.35 points or 1.58% to settle at 28,343.01, its highest closing level since 23 July 2015. The index surged 575.36 points or 2.06% at the day's high of 28,478.02. The index gained 108 points or 0.38% at the day's low of 28,010.66.
The Nifty rose 136.90 points or 1.59% to settle at 8,744.35, its highest closing level since 15 April 2015. The index rose 143.15 points or 1.66% at the day's high of 8,750.60. The index gained 34.80 points or 0.4% at the day's low of 8,642.25.
The BSE Mid-Cap index rose 0.8%. The BSE Small-Cap index rose 1.02%. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,638 shares rose and 1,073 shares declined. A total of 216 shares were unchanged.
The total turnover on BSE amounted to Rs 3442 crore, higher than turnover of Rs 2920.54 crore registered during the previous trading session.
Barring the S&P BSE Telecom index, all the remaining 18 sectoral indices on BSE registered gains. The S&P BSE IT index (up 1.77%) and the BSE Auto index (up 1.81%) outperformed the Sensex. The BSE Healthcare index (up 1.39%), the BSE Telecom index (down 1.2%), the BSE Bankex index (up 1.49%), the BSE Capital Goods index (up 1.05%), the BSE Metal index (up 1.05%), the BSE Oil & Gas index (up 1.14%) and the BSE Power index (up 1.03%) underperformed the Sensex.
Bank stocks edged higher on renewed buying. Among public sector banks, Union Bank of India (up 5.33%), Bank of India (up 4.67%), Canara Bank (up 2.9%), Punjab National Bank (up 3.25%), IDBI Bank (up 2.62%), Bank of Baroda (up 2.4%), Indian Bank (up 0.98%) and State Bank of India (up 1.39%) gained.
Among private sector banks, ICICI Bank (up 2.3%), Yes Bank (up 1.33%), Kotak Mahindra Bank (up 0.64%), IndusInd Bank (up 0.16%) and Axis Bank (up 0.39%) edged higher.
Index heavyweight HDFC Bank was up 2.35% at Rs 1,267.50. The stock hit a high of Rs 1,285 and a low of Rs 1,225 in intraday trade.
Index heavyweight and housing finance major HDFC was up 1.25% at Rs 1,392.30. The stock hit a high of Rs 1,410 and a low of Rs 1,368.45 in intraday trade.
IT stocks gained. Tech Mahindra (up 2.96%), HCL Technologies (up 2.27%) and TCS (up 1.88%) rose.
Index heavyweight and software major Infosys was up 1.83% at Rs 1,041. The stock hit a high of Rs 1,055.10 and a low of Rs 1,024.80 in intraday trade.
Oracle Financial Services Software was off 2.48% at Rs 3,477.70 as the stock ex-dividend today, 30 August 2016, for dividend of Rs 100 per share for the year ended 31 March 2016.
Wipro rose 2.2% at Rs 489.10 after the company announced a partnership with Stibo Systems, a global leader in multi-domain Master Data Management (MDM) solutions. As part of the partnership, the two companies will collaborate to offer MDM solutions. This partnership is aimed at building trust-worthy data foundations to help joint customers derive accurate insights as they embrace digital transformation, Wipro and Stibo Systems said in a joint press release. The announcement was made after market hours yesterday, 29 August 2016.
Index heavyweight and cigarette major ITC rose 1.78% at Rs 257.35. The stock hit a high of Rs 258 and a low of Rs 253 in intraday trade.
Auto stocks gained. Ashok Leyland (up 0.63%), Eicher Motors (up 3.29%), Hero MotoCorp (up 1.98%), Tata Motors (up 0.69%) and TVS Motor Company (up 4.54%) gained.
Bajaj Auto rose 3.09% at Rs 2,973.40. The stock hit a record high of Rs 3,011.85 in intraday trade.
Maruti Suzuki India (Maruti) rose 2.83% at Rs 5,068.90 after the company announced the launch of sporty Swift Deca, a limited edition model of its most popular hatchback. The stock hit a high of Rs 5,104.90 in intraday trade, which is also a record high for the counter. The stock hit a low of Rs 4,950 in intraday trade. Maruti Swift Deca is available in two variants viz. Swift Deca Edition VXi at Rs 5.94 lakh and Swift Deca Edition VDi at Rs 6.86 lakh. The announcement was made during market hours today, 30 August 2016.
Mahindra & Mahindra (M&M) rose 1.02% at Rs 1,436.55. The company announced incorporation of a subsidiary company in UAE viz. Bristlecone Middle East DMCC. The announcement was made after market hours yesterday, 29 August 2016. Bristlecone Middle East DMCC was incorporated as a 100% subsidiary of Bristlecone, which in turn is a subsidiary of M&M. Bristlecone Middle East DMCC was incorporated to promote business consulting, software implementation and related support services. The authorised capital of Bristlecone Middle East DMCC is 50,000 UAE Dirham.
Bharti Airtel fell 2.82% at Rs 332.10, with the stock extending recent losses triggered by the company slashing rates for prepaid internet data plan. Shares of Bharti Airtel have fallen 4.05% in three trading sessions from its close of Rs 346.15 on Thursday, 25 August 2016. Bharti Airtel cut prices of mobile data services for prepaid customers by announcing the launch of two new 4G/3G data plans recently. The move comes ahead of the commercial launch of 4G services from Reliance Jio Infocomm. As per reports, Reliance Jio Infocomm, a unit of Reliance Industries, is expected to launch commercial 4G telecom services in the coming weeks.
Bharti Airtel's Rs 1,498 pack offers 1GB 4G/3G data upfront with a validity of 28 days. Post exhaustion of this data limit, the customer can enjoy 1GB 4G/3G recharges for just Rs 51 over a period of 12 months. There is no limit on the number of recharges during the period and higher the number of recharges the more value a customer gets. Similarly, the Rs 748 pack offers 1GB 4G/3G data upfront and post exhaustion of this data limit, customers can enjoy 1GB 4G/3G recharges for just Rs 99 over a period of six months. There is no limit on the number of recharges during the period.
By offering these schemes, Bharti Airtel reportedly attempted to keep its customers tied up to year-long plans and stop them from porting out.
Coal India was up 0.31% at Rs 334.90 after the company after market hours yesterday, 29 August 2016, announced that it has fixed 9 September 2016 as the record date for the purpose of buyback of equity shares. The company's board on 11 July 2016 approved buyback of shares at a price of Rs 335 per share for an aggregate consideration not exceeding Rs 3650 crore through the tender offer route. The company's promoter viz. Government of India intends to participate in the buyback offer.
Key benchmark indices rose for the second straight trading session. The Sensex has risen 560.76 points or 2.01% in two trading sessions from its close of 27,782.25 on 26 August 2016. The Sensex has risen 291.15 points or 1.03% in this month so far (till 30 August 2016). The Sensex has risen 2,225.47 points or 8.52% in calendar year 2016 so far (till 30 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,848.40 points or 25.99%. The Sensex is off 1,681.73 points or 5.6% from a record high of 30,024.74 hit on 4 March 2015.
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