After hovering in positive zone throughout the trading session, the two key benchmark indices surged in late trade, with the barometer index, the S&P BSE Sensex, hitting 6-1/2-week high and the 50-unit Nifty 50 index hitting 10-week high. The Sensex rose 272.12 points or 1.1% at 24,949.49, as per the provisional closing data. The Nifty gained 91.80 points or 1.22% at 7,604.35, as per the provisional closing data.
The upmove on the domestic bourses was a part of upmove in Asian stocks triggered by stronger currencies relative to the US dollar on the heels of the US Federal Reserve slashing its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US.
The partially convertible rupee was currently hovering at 66.595 against the dollar, higher than its close of 66.75 during the previous trading session.
The Sensex jumped 309.57 points or 1.25% at the day's high of 24,986.94 in late trade, its highest level since 1 February 2016. The barometer index rose 4.27 points or 0.01% at the day's low of 24,681.64 at the onset of the trading session. The Nifty rose 101.05 points or 1.34% at the day's high of 7,613.60 in late trade, its highest level since 8 January 2016. The index rose 5.35 points or 0.07% at the day's low of 7,517.90 at the onset of the trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 1,315 shares fell and 1,292 shares rose. A total of 181 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.66%. The BSE Small-Cap index provisionally rose 0.61%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2740 crore, higher than turnover of Rs 2627.87 crore registered during the previous trading session.
IT stocks advanced. Tech Mahindra (up 1.4%), HCL Technologies (up 1.12%), Infosys (up 2.48%), and Wipro (up 2%) edged higher.
Shares of IT major TCS rose 3.2% to Rs 2,427 after a foreign brokerage reportedly reiterated its 'outperform' rating on the stock. According to reports, the brokerage retained its outperform rating after the TCS management demonstrated the company's capabilities and investments in the digital services business at an analyst meeting held yesterday, 17 March 2016. The foreign brokerage is convinced about the management bandwidth to steer the company at a time when technology is fast evolving, reports added.
Cement stocks extended previous session's gains. Shree Cement (up 4.85%), ACC (up 4.73%) and Ambuja Cements (up 2.15%) gained.
UltraTech Cement edged higher on media reports that a domestic brokerage has maintained its 'buy' rating on the stock. The stock was up 2.75%. The brokerage expects UltraTech Cement's revenue to grow at compounded annual growth rate of 14% for the period from FY 2016 to FY 2018. The brokerage reportedly said that UltraTech Cement stock offers the best opportunity in the cement sector in India and the stock can continue to outperform in the near term.
Grasim Industries advanced 0.48%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Reliance Power rose 1.41% after the company said that its board of directors at a meeting held today, 18 March 2016, gave in-principle approval for issue of non-convertible debentures for an aggregate amount not exceeding Rs 1000 crore in one or more tranches. The announcement was made during market hours today, 18 March 2016.
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