Key equity benchmarks extended gains and hit fresh intraday high in the afternoon trade. At 13:35 IST, the barometer index, the S&P BSE Sensex, rose 628.77 points or 1.71% at 37,329.93. The Nifty 50 index also advanced 177.15 points or 1.64% at 11,006.50.
The market breadth was strong. On the BSE, shares 1,440 rose and 780 shares fell. A total of 118 shares were unchanged. The S&P BSE Mid-Cap index was up 0.98%. The S&P BSE Small-Cap index rose 1.05%.
The buying was triggered by finance minister Nirmala Sitharaman announcing measures to revive the economy. Sitharaman after market hours on Friday, 23 August 2019, said the government has withdrawn the surcharge on foreign portfolio investors (FPIs), which she had unveiled in her budget for the fiscal year ending March 2020.
Meanwhile, a foreign brokerage upgraded India to 'overweight' on positive local developments amid rising global uncertainty. Reform measures and sectoral incentives could provide a much-needed booster shot, it said, adding that recovery is expected is the second half of the calendar year 2019 (H2CY19).
Yes Bank (up 4.47%), HDFC (up 4.16%), Indiabulls Housing Finance (up 4.02%), HDFC Bank (up 3.56%) and Bajaj Finance (up 3.36%) advanced.
JSW Steel (down 3.69%), Tata Steel (down 3.08%), Vedanta (down 2.47%), Hindalco Industries (down 2.08%) and Hero MotoCorp (down 2.02%) declined.
GAIL (India) rose 1.04% after the company announced the launch of compressed natural gas (CNG) stations and a de-compression Unit for piped natural gas (PNG) supply in Jharkhand. The announcement was made after trading hours on Friday, 23 August 2019.
Larsen & Toubro gained 3.31% after the company said it received a 'significant' order from NTPC. The company announced that it has bagged an engineering, procurement and construction (EPC) for setting up Flue Gas Desulphurisation (FGD) system at Vindhyachal Super Thermal Power Station for Stage 1 (6x210 MW) and Stage 2 (2x500 MW) in Madhya Pradesh.
Piramal Enterprises was up 3.40% after the company said its board will consider issuing secured non-convertible debentures (NCDs) on 28 August 2019. The company announced after trading hours on Friday, 23 August 2019, that a committee of the board will meet on Wednesday, 28 August 2019, to consider issuing secured non-convertible debentures ('NCDs') worth Rs 500 crore on private placement basis. The issue will carry an over-subscription option of Rs 2,500 crore.
Shares of drug major Cipla fell 1.13%. A global brokerage has maintained neutral call on the stock, but cut price target by nearly 14%. The research firm slashed price target to Rs 445 from Rs 515 per share earlier saying high competition in generic Voltaren gel could be a key risk in the near term. The Voltaren is used to treat joint pain in the hands, wrists, elbows, knees and feet.
Dilip Buildcon soared 3.97%. The firm has announced that the board of the company has approved the proposal for divestment either partly or wholly the equity stake of the company in 5 build, operate and transfer (BOT) (HAM or hybrid annuity model projects) namely DBL Mangloor Highways, DBL Sangli Borgaon Highways, DBL Borgaon Watambare Highways, DBL Mangalweda Solapur Highways and DBL Chandikhole Bhadrak Highways to one or more potential investors and/or dilution of shareholding percentage in the special project vehicles (SPVs) in such a manner that the company may cease to exercise control over the said SPVs including further issue of share capital/OCD to the Investor by the said SPVs, in a phased manner over a period of time.
TCS rose 1.03%. IT major TCS announced that Damen Shipyard, an international shipyard group, has selected TCS' ERP on Cloud Platform for greater scalability and agility.
Bharat Heavy Electricals (BHEL) was up by 0.52%. BHEL has secured two orders for emission control equipment for thermal power plants worth Rs 2,500 crore. The orders have been placed on BHEL by NTPC. The project involves the supply and installation of flue gas desulphurization (FGD) systems for 13 coal based units at 2,600 MW Korba (STPS Stage I, II & III) in Chhattisgarh and 2,100 MW Ramagundam (STPS Stage I & II) in Telangana.
Alkem Laboratories gained 0.53%. The pharmaceutical company has informed that United States Food and Drug Administration (USFDA) had conducted inspections at the company's manufacturing facilities located at St. Louis, Fenton Park, USA from 16 August 2019 to 22 August 2019 and Baddi, India from 19 August 2019 to 23 August 2019. At the end of the inspection, the company has received a Form 483 with four observations for the facility located at St. Louis, Fenton Park, USA and no Form 483 is received for the facility located at Baddi, India. The announcement was made after market hours on Friday, 23 August 2019.
IPCA Laboratories rose 0.65%. The firm informed that the United States Food and Drug Administration (USFDA) conducted the inspection of the company's formulations manufacturing unit situated at Piparia (Silvassa) from 19 August 2019 to 23 August 2019. At the conclusion of the inspection, the USFDA issued a Form 483 with three observations. The announcement was made after market hours on Friday, 23 August 2019.
Interglobe Aviation was up 1.53% after the media reports suggested that Rakesh Gangwal, co founder of Indigo, has flagged a truce with Airline Company. Rakesh Gangwal will be supporting company's proposals at shareholders meeting. Gangwal will also support company's move to expand to the board to 10 directors at an upcoming Annual General Meeting (AGM). The company also announced the appointment Meleveetil Damodaran as an Independent Director of the Company with effect from 23 January 2019.
On the global front, European stock market opened lower as investors reacted to the latest escalation in the US-China trade war. UK market is closed due to a bank holiday. Traders keenly waited for the outcome of G-7 summit held in France.
The US government received a major blow from the French as it plans to implement a 3% so-called "digital tax" on tech giants like Facebook, Amazon and Google. In an act of retaliation, the U.S officials have threatened to impose tariffs on French wine.
Asian shares fell across the board. China on Monday reportedly said that it opposes a trade escalation with the US and is ready to engage in a dialogue.
China's yuan hit an 11-year low and tumbled to a record low in offshore trade after a sharp re-escalation in the US-China trade war.
"China strongly opposes trade protectionism and blockade in the field of new technologies. China is making efforts to ensure the integrity of production chains, we are ready to resolve the existing problem through consultation and cooperation, we strongly oppose the escalation of the trade war," the media quoted Chinese Vice Premier Liu He as saying.
Liu made these remarks at the opening of the international exhibition Smart China Expo.
US President Donald Trump, on Friday, announced he will raise tariffs from 25% to 30% on $250 billion in goods that are already being taxed starting 1 October. He also threatened to ratchet up promised tariffs on the remaining $300 billion in Chinese imports from 10% to 15%.
Trump's announcement came after Beijing unveiled a new round of retaliatory tariffs on about $75 billion worth of US goods. China will place additional tariffs of 5% or 10% on US imports starting on 1 September, according to a statement posted by China's Finance Ministry.
Earlier Friday, Trump ordered US companies doing business in China to find an "alternative" and had promised to deliver further action after he met with his economic team at the White House.
US stocks ended sharply lower Friday. Federal Reserve Chairman Jerome Powell left the door open for another interest rate cut in September in a widely anticipated speech in Jackson Hole, Wyoming.
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