Gains in stocks of public sector firms, IT companies and index heavyweight HDFC aided the upmove as the barometer index, the S&P BSE Sensex, and the Nifty 50 index hit their highest level in almost a week. At 14:15 IST, the Sensex was up 183.12 points or 0.69% at 26,707.67. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty was currently up 61.05 points or 0.75% at 8,188.90. Gains in global stocks aided the upmove on the domestic bourses. World stocks rose on speculation that central banks in the UK, Japan and the European Central Bank will boost monetary stimulus to counter a potential drag on the global economy from the UK's vote to leave the European Union known as Brexit.
The Sensex jumped 185.57 points or 0.69% at the day's high of 26,710.12 in mid-afternoon trade, its highest level since 23 June 2016. The barometer index rose 81.76 points or 0.3% at the day's low of 26,606.31 in mid-morning trade. The Nifty rose 63.60 points or 0.78% at the day's high of 8,191.45 in mid-afternoon trade, its highest level since 23 June 2016. The index rose 29.80 points or 0.36% at the day's low of 8,157.65 in mid-morning trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,791 shares rose and 688 shares declined. A total of 163 shares were unchanged. The BSE Mid-Cap index was currently up 0.94%. The BSE Small-Cap index was currently up 1.28%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks extended gains registered during the previous trading session as worries abated over the compromises that could be made in the process the UK's departure from the European Union (EU). In the UK, the FTSE 100 index was currently up 1.67%. British citizens last week voted for Britain to leave EU in a historic referendum.
Japanese stocks led gains in Asian markets following overnight rally on Wall Street as jitters eased after the UK's vote last week to leave the European Union (EU) spurred global sell-off. The Nikkei 225 Average ended 1.59% higher. Japanese Prime Minister Shinzo Abe today, 29 June 2016, told his finance minister and the central bank chief to undertake all necessary measures to support the economy and financial markets, signaling his vigilance over the yen's resurgence following the UK vote.
US stocks registered strong gains yesterday, 28 June 2016, as investors looked for bargains after the Brexit fueled sell-off. Federal Reserve governor Jerome Powell today, 29 June 2016, said that the UK vote to leave the EU has heightened risks to an already fragile global economy and prompted the Federal Reserve to adopt a more patient posture as it considers future interest-rate moves. His remarks suggested that Fed officials are in no hurry to raise US interest rates again.
Capital goods stocks edged higher on renewed buying. Praj Industries (up 4.22%), Bharat Heavy Electricals (up 2.6%), BEML (up 1.99%), Thermax (up 1.86%), Bharat Electronics (up 1.2%), ABB India (up 0.93%), Crompton Greaves (up 0.28%) and Alstom T&D India (up 1.87%) edged higher. Siemens (down 0.28%) edged lower.
L&T was up 0.58% at Rs 1,481.70 after the company announced before market hours today, 29 June 2016, that the Red Herring Prospectus filed by the company's subsidiary L&T Infotech with the Registrar of Companies, Maharashtra was approved on 28 June 2016. L&T is selling up to 1.75 crore shares of L&T Infotech via the initial public offer of L&T Infotech. The offer will open for subscription on 11 July 2016 and close on 13 July 2016.
Havells India was up 0.24% at Rs 358.25. The stock turned ex-dividend for final dividend of Rs 3 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.83% based on the closing price of Rs 357.40 on BSE yesterday, 28 June 2016.
Stocks of oil exploration and production (E&P) companies edged higher on rise in global crude oil prices. Cairn India (up 2.61%), Oil India (up 1.3%) and ONGC (up 1.75%) rose. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries was up 0.72% at Rs 965.10. The stock hit a high of Rs 966.70 and a low of Rs 960.30 so far during the day.
Stocks of public sector oil marketing companies (PSU OMCs) also edged higher. BPCL (up 0.6%), HPCL (up 0.1%) and Indian Oil Corporation (up 1.82%) gained.
Brent crude oil futures edged higher after the American Petroleum Institute (API) report showed that US crude supplies fell by 3.9 million barrels last week. Brent for August 2016 settlement was currently up 50 cents at $49.08 a barrel. The contract had risen $1.42 a barrel or 3.01% to settle at $48.58 a barrel yesterday, 28 June 2016.
State Bank of India (SBI) was up 0.81% at Rs 218.05 after the bank said that the Executive Committee of the Central Board of the bank at its meeting held today, 29 June 2016, approved raising up to $1.5 billion in single/multiple tranches through a public offer or private placement of senior unsecured notes in US dollar or any other convertible currency during the current financial year (FY 2017). The announcement was made during market hours today, 29 June 2016.
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