Key benchmark indices snapped three-day losing streak today, 28 September 2016 to provisionally settle with small gains as firmness in European stocks boosted sentiment. The barometer index, the S&P BSE Sensex rose 69.11 points or 0.24% at 28,292.81, as per the provisional closing data. The gains for the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty gained 41.55 points or 0.48% at 8,747.95, as per the provisional closing data.
Key indices hovered within a narrow range near the flat line throughout the session. The Sensex gained 154.86 points or 0.54% at the day's high of 28,378.56 in late trade. The barometer index fell 25.40 points or 0.08% at the day's low of 28,198.30 in mid-morning trade. The Nifty gained 60.65 points or 0.69% at the day's high of 8,767.05 in late trade. The index shed 3.25 points or 0.03% at the day's low of 8,703.15 in mid-morning trade.
In overseas stock markets, European stocks rose with investor sentiment buoyed by a rally in the banking sector easing concerns over Germany's financial sector. Investors track developments ahead of a meeting of members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) today, 28 September 2016. Most Asian stocks dropped led by losses in Japanese stocks. Japan's Nikkei Average settled 1.31% lower.
US stocks rose yesterday, 27 September 2016 after the first presidential debate between Democratic candidate Hillary Clinton and Republican contender Donald Trump and a number of stronger-than-expected economic reports. Stocks are rising on the prospect of a Clinton presidency because the Democrat is viewed as a known quantity while some view Trump as being more unpredictable, a bad thing for stock investors. Additionally, US consumer confidence rose to 104.1 in September, the highest level since August 2007. The Case-Shiller home price index rose 5% for the year in July, while house prices rose 0.6%. The Markit flash services purchasing managers index for September rose to 51.9 in September from 51 in August.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,627 shares rose and 1,025 shares fell. A total of 223 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.91%. The BSE Small-Cap index provisionally gained 1.04%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2919.53 crore, higher than turnover of Rs 2890.15 crore registered during the previous trading session.
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Auto stocks gained. Ashok Leyland (up 0.92%), Maruti Suzuki India (up 0.16%), Eicher Motors (up 5.62%), Bajaj Auto (up 1.29%), Tata Motors (up 1.67%) and TVS Motor Company (up 0.93%) gained. Hero MotoCorp fell 0.22%.
Mahindra & Mahindra (M&M) gained 0.93% after the company said that it has agreed to acquire 1.49 crore shares or 100% of the share capital of Mahindra Two Wheelers Europe Holdings S.ar.l. from Mahindra Two Wheelers, a subsidiary of the company for Euro 26.3 million. The announcement was made after market hours yesterday, 27 September 2016. The indicative time period for completion of the acquisition is 30 days. MTWL-Europe is a special purpose vehicle to hold the investment in Peugeot Motorcycles S.A.S.
Separately, M&M said that Merakisan (MKPL), a wholly owned subsidiary of Mahindra Univeg (MUPL), a subsidiary of Mahindra Agri Solutions (MASL), which in turn is a wholly owned subsidiary of M&M, allotted equity shares on preferential basis to Prashanth Patil. As a result of this allotment, the holding of MUPL in MKPL has reduced from 100% to 33.17%. Hence, MKPL has ceased to be a subsidiary of MUPL and as such of MASL and in turn of M&M. MUPL, a 60:40 joint venture between MAPL and Univeg announced a minority shareholding in MKPL. Prasanth Patil from the founding family of Merakisan is now the majority stakeholder of Merakisan and will be the CEO of the company. Merakisan shall operate in sourcing fruits, vegetables and other agricultural products directly from farmers ad sell to customers. The announcement was made during market hours today, 28 September 2016.
Metal & mining stocks also gained as copper prices rose in global commodity markets. JSW Steel (up 1.02%), Bhushan Steel (up 1.71%), Hindustan Copper (up 0.62%), Vedanta (up 5.23%), Hindalco Industries (up 4.67%), Hindustan Zinc (up 0.04%), Jindal Steel & Power (up 1.62%), Tata Steel (up 3.37%), Steel Authority of India (Sail) (up 2.53%), National Aluminum Company (up 1.2%) and NMDC (up 3.15%) gained.
High Grade Copper for December 2016 delivery was currently up 0.46% at $2.181 per pound on the COMEX.
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