Domestic stocks logged gains for third consecutive session of trade on steady buying demand in index pivotals. Gains were led by index heavyweights Reliance Industries, ICICI Bank and HDFC. The Nifty ended above the psychologically important 11,000 mark.
The barometer index, the S&P BSE Sensex, rose 193.56 points or 0.53% to settle at 36,636.10. The index hit high of 36,666.47 and low of 36,456.82 in intraday trade.
The Nifty 50 index rose 65.55 points or 0.60% to settle at 11,053. The index hit high of 11,062.30 and low of 10,998.85 in intraday trade.
After opening higher, indices pared gains in morning trade. Benchmarks firmed up once again in mid-morning trade and were trading near the day's high in early afternoon trade. Indices turned range bound at higher levels in afternoon trade. Barometers hit fresh intraday high in late trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1673 shares rose and 1026 shares fell. A total of 151 shares were unchanged.
Among secondary barometers, the BSE Mid-Cap index rose 0.49%. The BSE Small-Cap index rose 0.97%.
Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.36%), the S&P BSE Energy index (up 1.73%), the S&P BSE Telecom index (up 1.09%) outperformed the Sensex. The S&P BSE Auto index (down 0.24%), the S&P BSE Bankex (up 0.26%), the S&P BSE Teck index (up 0.26%) underperformed the Sensex.
Bajaj Finance (up 2.6%), ICICI Bank (up 2.55%), Reliance Industries (up 2.15%), Vedanta (up 2%) and HDFC (up 1.32%) were the major Sensex gainers.
Tata Motors (down 2.81%), Axis Bank (down 1.72%), Hindustan Unilever (down 1.38%), HCL Technologies (down 1.24%), and Hero MotoCorp (down 1.1%) were the major Sensex losers.
Grasim Industries rose 1.44%. The company signed a definitive agreement, to acquire 100% equity shareholding of Soktas India (SIPL), from its current promoters, for an enterprise value of Rs 165 crore, subject to net debt and working capital adjustments, as of the closing date. The transaction will be funded by the company primarily out of internal accruals. SIPL will become a wholly owned subsidiary of Grasim upon completion of the transaction. The announcement was made after market hours yesterday, 5 March 2019.
Larsen & Toubro rose 0.64%. The company announced during trading hours today, 6 March 2019, that heavy civil infrastructure business of L&T Construction has secured orders from Bangalore Metro Rail Corporation for the design and construction of the phase - 2 works.
Bharti Airtel rose 0.42% after the company announced collaboration with Zoom Video Communications, Inc., a modern enterprise video-first unified communications service, to launch India's first high quality Unified Communications service offering, an integrated and secure platform for High Definition (HD) audio, video and web conferencing. The announcement was made after market hours yesterday, 5 March 2019.
Cipla fell 0.46%. Cipla before trading hours today, 6 March 2019, announced a phased launch of generic cinacalcet hydrochloride tablets (30mg, 60mg and 90mg) in the USA. The launch is a subject of ongoing litigation.
Cipla's cinacalcet hydrochloride tablets (30mg, 60mg and 90mg) is AB-rated generic therapeutic equivalent version of Sensipar, a branded drug marketed by Amgen, Inc. Cinacalcet tablets are indicated for the treatment of secondary hyperparathyroidism (HPT) in adult patients with chronic kidney disease (CKD) on dialysis, for the treatment of hypercalcemia in adult patients with Parathyroid Carcinoma, and for treatment of severe hypercalcemia in adult patients with primary HPT who are unable to undergo parathyroidectomy.
Dewan Housing Finance Corporation (DHFL) surged 11.04%. The company announced that an independent chartered accountant firm placed its report to the audit committee members saying that DHFL did not create shell companies to divert funds, but deviated from internal lending practices which exposes a significant amount of loans to the risk of turning sour. The announcement was made after market hours yesterday, 5 March 2019.
Quick Heal Technologies rose 4.04% to Rs 233.25. The board of directors of Quick Heal Technologies approved buy-back of up to 63.63 lakh equity shares aggregating up to 9.02% of fully paid-up equity share capital of the company, at Rs 275 per share on a proportionate basis. The announcement was made after market hours yesterday, 5 March 2019.
On the economic front, the unemployment rate in February 2019 was 7.2%. This was higher than the 7.1% unemployment rate in January 2019 and much higher than the 5.9% unemployment rate in February 2018 or the 5% in February 2017, according to data compiled by the Centre for Monitoring Indian Economy (CMIE) that was released on Tuesday.
The World Bank and the Government of India on 5 March 2019 signed a $250 million agreement for the National Rural Economic Transformation Project (NRETP) which will help women in rural households shift to a new generation of economic initiatives by developing viable enterprises for farm and non-farm products. A key focus of the project will be to promote women-owned and women-led farm and non-farm enterprises across value chains; enable them to build businesses that help them access finance, markets and networks; and generate employment. The $250 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a final maturity of 20 years.
Overseas, shares in Europe and Asia were mixed, following an overnight slip on Wall Street as investors watched developments on the US-China trade front.
US stocks finished lower Monday, as investors turned cautious after initially cheering reports that the US and China were close to completing a landmark trade deal. Profit booking on the back of a two-month rally from December lows also weighed on sentiment.
On the US data front, the Institute for Supply Management's survey of senior executives at banks, retailers, restaurants and the like rose to 59.7% last month from 56.7% in January.
Meanwhile, the US plans to end preferential trade status for India, under a scheme which allows certain products to enter the US duty-free. President Donald Trump reportedly said India had failed to assure the US it would provide reasonable access to its markets. India said the US move would have a "minimal economic impact".
United States of America on 5 March 2019 gave a 60-day withdrawal notice to India on the Generalized System of Preferences (GSP) benefits extended by US. GSP benefits are envisaged to be non-reciprocal and non-discriminatory benefits extended by developed countries to developing countries. In India's case the GSP concessions extended by the US amounted to duty reduction of only $190 million per annum.
The issue of Indian tariffs being high has been raised from time to time. It is pertinent that India's tariffs are within its bound rates under WTO commitments, and are on the average well below these bound rates. India's trade weighted average tariffs are 7.6%, which is comparable with the most open developing economies, and some developed economies. On developmental considerations there may be a few tariff peaks, which is true for almost all economies. India was agreeable to a very meaningful mutually acceptable package on the above lines to be agreed to at this time, while keeping remaining issues under discussion in the future, Ministry of Commerce & Industry said in a statement on 5 March 2019.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
