Indian shares mirrored gains in other global stock markets as the selloff stemming from recent US policy uncertainty abated. The barometer index, the S&P BSE Sensex, rose 172.37 points or 0.59% to 29,409.52, as per the provisional closing data. The Nifty 50 index rose 55.60 points or 0.61% to 9,100.80, as per the provisional closing data. Banks, automobiles and telecom shares led the rally.
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 65.20 points, or 0.72% at the day's high of 9,110.40 in late trade, its highest intraday level since 24 March 2017. The index rose 34.60 points, or 0.38% at the day's low of 9,079.80 in mid-afternoon trade.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.72%, outperforming the Sensex. The BSE Small-Cap index provisionally rose 0.58%, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,445 shares rose and 1,401 shares fell. A total of 208 shares were unchanged.
Most auto stocks rose.Eicher Motors (up 3.90%), Tata Motors (up 1.58%), Mahindra & Mahindra (up 0.84%), TVS Motor Company (up 0.72%), Ashok Leyland (up 0.70%), Bajaj Auto (up 0.68%) and Escorts (up 0.22%), edged higher
Car major Maruti Suzuki India fell 0.14% to Rs 5,978.10.
Motorcycle major Hero MotoCorp fell 0.26% to Rs 3,331.55. 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. MTNL (up 1.66%), Idea Cellular (up 0.97%) and Reliance Communications (up 0.79%), edged higher. Tata Teleservices (Maharashtra) fell 1.18%.
Telecom major Bharti Airtel rose 0.61% to Rs 340.65. Telecom tower infrastructure provider Bharti Infratel rose 1.81% to Rs 318.20.
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%.
Emmbi Industries surged 6.67% to Rs 149.55 after the company said it has inaugurated pond lining facility at Silvassa. The announcement was made during market hours today, 28 March 2017.
Emmbi Industries said it has launched "Jalasanchay Brand", the pond liners for storing water at its newly acquired & furbished manufacturing facility at Silvassa on the auspicious day of Gudhi Padva. Emmbi will produce under "Jalsanchay Brand" 4,380 ponds per year creating an extra water storage capacity of 48 million liters per day for the country. All the manufacturing equipments used are of advanced cutting edge technology giving a special pedestal to Emmbi over the global competition. The states of Maharashtra and Rajasthan where the company is presently active in the business, has a plan to produce 1.10 lakh & 50,000 ponds per year respectively for the next five years.
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, shares in Europe and Asia 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 1.14%.
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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