Key benchmark indices extended initial gains triggered by firm Asian stocks. At 10:12 IST, the barometer index, the S&P BSE Sensex, was up 459.37 points or 1.69% at 27,586.27. The Nifty 50 index was currently up 134.35 points or 1.61% at 8,457.55. The Sensex hit its highest level in over 8 months. The Nifty hit its highest level in nearly 11 months. Asian stocks edged higher as stronger-than-expected US jobs report suggested that the US economic recovery was back on track. The US economy is the world's biggest economy.
The Sensex jumped 481.09 points or 1.77% at the day's high of 27,607.99 in morning trade, its highest level since 26 October 2015. The barometer index rose 231.33 points or 0.85% at the day's low of 27,358.23 in opening trade. The Nifty jumped 137.55 points or 1.65% at the day's high of 8,460.75 in morning trade, its highest level since 20 August 2015. The index rose 83.85 points or 1.01% at the day's low of 8,407.05 at onset of trading session.
In overseas stock markets, Asian stocks edged higher as stronger-than-expected US jobs report suggested that the US economic recovery was back on track. The US economy is the world's biggest economy. Japanese stocks surged as investors saw poll results for Japan's upper house as signaling new rounds of economic and political reforms by the coalition government led by Prime Minister Shinzo Abe. The Nikkei 225 Average was currently up 3.87%. In the upper house elections held yesterday, 10 July 2016, Abe's ruling coalition led by his Liberal Democratic Party won a landslide victory, making it far easier for Abe to push through his economic agenda dubbed Abenomics.
US stocks edged higher during the previous trading session on Friday, 8 July 2016, as strong June employment report bolstered investor sentiment on the strength of the economy. US employers in June added a seasonally adjusted 287,000 jobs, the strongest month of hiring since last October, according to the Labor Department report. That was a sharp rebound from May, when hiring sagged to 11,000, the weakest reading since the economy stopped shedding jobs in 2010. The unemployment rate rose to 4.9% from 4.7%, suggesting that more people entered the labor force, given the better-than-expected headline number.
Closer home, the broad market depicted strength. There were more than four gainers against every loser on BSE. 1,634 shares gained and 372 shares declined. A total of 74 shares were unchanged. The BSE Mid-Cap index was currently up 1.28%. The BSE Small-Cap index was currently up 1.16%. Both these indices underperformed the Sensex.
Index heavyweight and housing finance major HDFC advanced 2.2% to Rs 1,311.55. The stock hit high of Rs 1,313.90 and low of Rs 1,298 so far during the day.
Telecom stocks advanced. Idea Cellular (up 1.62%), MTNL (up 0.89%), Tata Teleservices (Maharashtra) (up 1.3%) and Reliance Communications (up 0.98%) gained.
Bharti Airtel gained 2.21% after the company yesterday, 10 July 2016, announced that the spectrum trading deal for the acquisition of 20 MHz 2300 Band 4G TD spectrum from Aircel was successfully concluded for 6 out of 8 circles barring Andhra Pradesh and Orissa. Bharti Airtel said it will update the exchanges when the transactions for the remaining circles of Andhra Pradesh and Orissa are completed.
Shares of Bharti Infratel rose 1.75%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Realty stocks gained. DLF (up 1.81%), Indiabulls Real Estate (up 3.29%), Housing Development and Infrastructure (up 2.62%), D B Realty (up 0.81%), Unitech (up 2.78%), Peninsula Land (up 2.14%), Sobha (up 0.71%), Godrej Properties (up 1.8%), Oberoi Realty (up 1.07%) and Parsvnath Developers (up 1.74%) gained.
Meanwhile, as per the monthly data released by the Association of Mutual Funds in India (AMFI), equity mutual fund schemes including tax saving equity schemes known as Equity Linked Saving Schemes (ELSS) received net inflow of Rs 320 crore in June 2016. The inflow would have been much higher if one excludes large redemption of arbitrage funds. Media reports suggest that there was redemption of Rs 3500 crore from arbitrage funds in June 2016. AMFI does not give separate data on arbitrage funds. It clubs arbitrage funds under the equity fund category. Meanwhile, balanced funds received net inflow of Rs 2402 crore in June 2016. Balanced funds typically have 65-70% of their portfolio invested in equities and 30-35% in debt.
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