Key benchmark indices held firm after extending intraday gains to hit fresh intraday high in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex was up 144.23 points or 0.51% at 28,221.41. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 34.90 points or 0.4% at 8,727.95. The Sensex hit more than two-week high in mid-afternoon trade. The Nifty hit two-week high in mid-afternoon trade. Gains in global stocks aided the upmove on the domestic bourses.
The Sensex rose 179.47 points or 0.63% at the day's high of 28,256.65 in mid-afternoon trade, its highest level since 6 October 2016. The barometer index lost 1.23 points at the day's low of 28,075.95 in early trade. The Nifty rose 43.90 points or 0.5% at the day's high of 8,736.95 in mid-afternoon trade, its highest level since 10 October 2016. The index lost 8.90 points or 0.1% at the day's low of 8,684.15 in early trade.
In overseas stock markets, European stocks edged higher as investors focused on fresh economic data and corporate earnings. Data showed that Eurozone flash services PMI for October climbed to 9-month high of 53.5 and Eurozone flash manufacturing PMI for October rose to 30-month high at 53.3.
Asian stocks gained in volatile trade led by gains in Chinese stock market. China's Shanghai Composite closed 1.21% higher. Latest data showed that the Nikkei Flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to 51.7 in October from September's 50.4, improving at the sharpest rate in nine months. Most US stocks closed slightly lower on Friday, 21 October 2016 after earnings from McDonald's helped offset a fall in energy and healthcare shares.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,727 shares rose and 1,023 shares fell. A total of 222 shares were unchanged. The BSE Mid-Cap index was currently up 0.19%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.69%, outperforming the Sensex.
Pharma stocks were mixed. Cipla (up 1.08%), Lupin (up 2.26%), Wockhardt (up 1.43%), Divi's Laboratories (up 1.35%), and Glenmark Pharmaceuticals (up 0.1%) gained. Aurobindo Pharma (down 0.57%), Dr Reddy's Laboratories (down 0.69%), and Cadila Healthcare (down 0.31%) declined.
Sun Pharmaceutical Industries rose 0.67% after the company said it completed the divestment of its seven prescription brands in India to RPG Life Sciences. The announcement was made after market hours on Friday, 21 October 2016. This has been done after receiving approval of the Competition Commission of India (CCI) and completion of all the necessary formalities for closure of the transaction, Sun Pharma said in a filing.
On 27 July 2016, Sun Pharma had informed that it had signed an pact with RPG Life Sciences to divest seven brands in India, owned by Sun Pharma and its subsidiary, for a consideration of Rs 41 crore.
Shares of power generation and power distribution companies gained. Torrent Power (up 1.37%), NHPC (up 0.58%), Tata Power Company (up 0.3%), Adani Power (up 1.26%), NTPC (up 1.64%), Reliance Infrastructure (up 1.37%) and Reliance Power (up 0.52%) gained.
Power Grid Corporation of India rose 0.09% after the company announced on Saturday, 22 October 2016 that the company's board of directors in a meeting held on 22 October 2016, accorded investment approvals for three projects totalling Rs 1184.45 crore.
Shares of state-run coal miner Coal India rose 2.01%.
ONGC rose 4.29% after the company said that the board of directors of the company will consider a proposal for declaration of bonus issue, if any, in a meeting, scheduled on 27 October 2016. The announcement was made during market hours today, 24 October 2016.
Separately, ONGC on Saturday, 22 October 2016 in its clarification with respect to news titled, Bombay high court asks ONGC to release $20 million to Swiber said that as per the current status the Bombay High Court decided on 18 October 2016 that parties are trying their best to arrive at an amicable settlement of their disputes. The parties are still trying to finalize the terms of the settlement and directed ONGC to release $11.1 million to the Judicial Manager, subject to a workable mechanism, so that this amount is utilized for the purpose of the project only and to deposit $8.44 million in the court before the next date of hearing on 26 October 2016.
The matter is in the normal execution of contract/project and the amount due and payable towards contract/project execution is to be deposited in the court and there is nothing material in the court decision. ONGC, Offshore Engineering Services had awarded three projects i.e. Daman Development Project, Pipeline Replacement Project-4 & C-26 Cluster Pipeline Project to Swiber Offshore Construction(SOC), Singapore a subsidiary of Swiber Holdings Pte Ltd Singapore.
Punj Lloyd rose 1.94% after the company said that the company's wholly owned subsidiary Punj Lloyd Infrastructure (PLIL) has executed definitive agreements with India Infrastructure Fund II (a Sebi registered category 1 alternative investment fund represented by its investment manager IDFC Alternatives) to divest three operating solar projects aggregating to 45 megawatts (MW) located in Punjab and Rajasthan subject to customary approvals and other conditions precedent. The announcement was made on Saturday, 22 October 2016.
As per the transaction, PLIL will divest its entire shareholding in its subsidiaries that hold the three projects. Punj Lloyd Solar Power (PLSPL) owns and operates a 5 MW solar power project selling power under a 25-year power purchase agreement with NTPC Vidyut Vyapar Nigam. PL Surya Urja (PLSUL) owns and operate a 20 MW solar power project selling power under a 25-year power purchase agreement with Punjab State Power Corporation and PL Sunshine (PLSL) owns and operate a 20 MW solar power project selling power under a 25-year power purchase agreement with Punjab State Power Corporation. The transaction is expected to be completed once customary closing conditions and approvals are obtained, Punj Lloyd said.
Union Bank of India gained 1.33% after the bank scheduled a board meeting on 26 October 2016 to consider raising of capital funds through various means. The announcement was made after market hours on Friday, 21 October 2016.
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