Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. At 11:15 IST, the S&P BSE Sensex was up 321.98 points or 1.16% at 28,187.94. The Nifty 50 index was currently up 107.95 points or 1.25% at 8,719.10. The Sensex was trading above the psychologically important 28,000 mark after regaining that level in morning trade. Positive Asian stocks underpinned sentiment on the domestic bourses.
The Sensex rose 351.67 points or 1.26% at the day's high of 28,217.63 in mid-morning trade, its highest level since 29 September 2016. The barometer index rose 53.93 points or 0.19% at the day's low of 27,919.89 in early trade. The Nifty rose 116.15 points or 1.35% at the day's high of 8,727.30 in mid-morning trade, its highest level since 29 September 2016. The index rose 23.85 points or 0.28% at the day's low of 8,635 in early trade.
In overseas stock markets, Asian stocks rose as investors weighed the prospects of a further US interest rate hike and a report on business sentiment out of Japan. Stock markets in China and South Korea were closed for holiday. In Japan, the Nikkei 225 Average was currently up 0.84%. The Bank of Japan's tankan survey released today, 3 October 2016 showed Japan's large manufacturers now expect their pretax profit to drop 14.6% in this financial year through March, compared with a previous forecast for a 11.6% fall. Meanwhile, activity in China's manufacturing sector expanded again in September, data released on 1 October 2016 showed. The official Purchasing Managers' Index (PMI) stood at 50.4 in September, identical with the previous month's level, the National Bureau of Statistics said. The non-manufacturing PMI rose to 53.7 from 53.5 in August. US stocks closed sharply higher on Friday, 30 September 2016 as Deutsche Bank shares rebounded amid a report that the German banking giant was near a settlement with the Justice Department.
Closer home, the broad market depicted strength. There were more than four gainers against every loser on BSE. 1,940 shares gained and 406 shares fell. A total of 75 shares were unchanged. The BSE Mid-Cap index was up 1.77%. The BSE Small-Cap index was up 2.1%. Both these indices outperformed the Sensex.
Metal and mining stocks rose after China's official factory gauge stayed at the highest level in almost two years for a second month and services increased in the latest evidence of continued economic stabilization. China is the world's largest consumer of steel, copper and aluminum.
Vedanta (up 1.45%), JSW Steel (up 1.73%), Tata Steel (up 2.14%), Steel Authority of India (Sail) (up 2.59%), National Aluminium Company (up 1.43%), Hindustan Zinc (up 4.42%), Jindal Steel & Power (up 3.16%), Hindalco Industries (up 0.52%), NMDC (up 3.12%) edged higher. Hindustan Copper shed 0.25%.
Activity in China's manufacturing sector expanded again in September, data released on 1 October 2016 showed. The official Purchasing Managers' Index (PMI) stood at 50.4 in September, identical with the previous month's level, the National Bureau of Statistics said. The non-manufacturing PMI rose to 53.7 from 53.5 in August.
Copper edged lower in the global commodities market. High Grade Copper for December 2016 delivery was currently off 0.14% at $2.2075 per pound on the COMEX.
Cement stocks gained on hopes demand will pick up as construction activity will be in full swing as the southwest monsoon began withdrawing. Ambuja Cements (up 1.71%), ACC (up 1.76%), UltraTech Cement (up 1.81%) and Shree Cement (up 0.69%) gained.
Grasim Industries was up 1.91% at Rs 4,924.95. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Jubilant Life Sciences rose 6.72% after the company announced that its wholly-owned subsidiary Jubilant Pharma, through one of its units Jubilant DraxImage Inc. Montreal Canada, has received US Food and Drug Administration (USFDA) approval for RUBY-FILL, for its New Drug Application (NDA) pursuant to section 505 (b)(2) filing. This approved new drug application provides for the use of RUBY-FILL for Positron Emission Tomography (PET) imaging of the myocardium under rest or pharmacologic stress conditions to evaluate regional myocardial perfusion in adult patients with suspected or existing coronary artery disease. The product is expected to be launched in the current quarter (third quarter of financial year 2017) under the company's registered brand name RUBY-FILL for which the current estimated US market size is $76 million and has a potential to grow up to $250 million annually in the next five years. The announcement was made before trading hours today, 3 October 2016.
Indian Hume Pipe Company rose 6% after the company said its board has approved exploring the possibility of monetising 14.77 acres land in Pune. Indian Hume Pipe Company said it has its erstwhile pipe manufacturing factory on land admeasuring about 14.77 acres at Vadgaon in Pune, Maharashtra was closed with effect from 1 November 2015. The company's said that its board approved to explore the possibility of monetising the land and appoint reputed property consultant for identifying a developer. The announcement was made on Saturday, 1 October 2016.
Meanwhile, India's manufacturing upturn was sustained in September, as a further increase in order books underpinned growth of output and purchasing activity, a survey showed today, 3 October 2016. That said, rates of expansion eased in all cases. One area of strength was external demand, with firms noting the strongest rise in new export orders since July 2015. Both input costs and output charges increased at quicker rates. Posting above the crucial 50 threshold for the ninth consecutive month, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 52.1 in September from 52.6 in August.
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