Key equity benchmarks ended the volatile session with strong gains on Friday. Rate sensitive realty and auto stocks were in demand. Investors' sentiment got a boost as improving US-China trade relations and a rate cut from the European Central Bank eased fears of a global economic slowdown.
The barometer index, the S&P BSE Sensex, rose 303.08 points or 0.82% to 37,407.36, as per the provisional closing data. The Nifty 50 index rose 97.95 points or 0.89% to 11,080.75, as per the provisional closing data.
The 50-unit Nifty opened lower and dropped below 11,000 level in morning session. Buying resumed in afternoon trade, which pushed the index above 11,000. The index faced its psychological resistance at 11,100.
The market breadth was strong. On the BSE, 1506 shares rose and 966 shares fell. A total of 166 shares remain unchanged. The S&P BSE Small-Cap index rose 0.82%. The S&P BSE Mid-Cap index rose 0.41%.
Bharat Petroleum Corporation was up 6.19% on reports the government is planning to sell stake in the state-run oil marketing firm to a global oil company.
Indian Oil Corporation (up 4.1%), Titan Company (up 2.94%) and ICICI Bank (up 1.91%) advanced.
Bharti Airtel (down 1.6%), Dr. Reddy's Laboratories (down 1.42%), Sun Pharmaceuticals (down 1.01%) and Grasim Industries (down 0.84%) declined.
On domestic macro front, India's industrial production accelerated to 4.3% in July 2019, from four-month low of 1.2% in June 2019. The all-India general CPI inflation was nearly steady at 3.21% in August 2019, compared with 3.15% in July 2019. The core CPI inflation eased to 4.20% in August 2019 compared with 4.25% in July 2019.
Realty stocks witnessed buying. DLF (up 4.17%), Oberoi Realty (up 4.01%), Anant Raj (up 1.71%), Godrej Properties (up 1.37%), Prestige Estates Projects (up 1.23%), and Mahindra Lifespace Developers (up 1.07%) advanced.
The S&P BSE Realty index was up 1.95% at 2,070.35.
Auto stocks were in demand. Ashok Leyland (up 1.92%), Mahindra and Mahindra (up 1.77%), Hero MotoCorp (up 1.67%), Tata Motors (up 1.45%), Bajaj Auto (up 1.04%) and Maruti Suzuki India (up 1.02%) advanced.
The S&P BSE Auto was up 1.23% at 16,545.73.
Biocon was up 0.34%. The biotech firm said it has signed a license and supply agreement with a subsidiary of China Medical System Holdings for three generic formulation products in Greater China. As part of the agreement, Biocon will be responsible for the development, manufacturing and supply of the products, while CMS will be responsible for registration and commercialisation of the products in China. The announcement was made after market hours yesterday, 12 September 2019.
Dr Reddy's Laboratories fell 1.3% to Rs 2729.35. The company said it has received an EIR from the US FDA indicating closure of this audit of its formulations manufacturing plants at Duvvada, Visakhapatnam, which was completed on 21 June 2019. The announcement was made after market hours yesterday, 12 September 2019.
Gravita India jumped 9.51% to Rs 49.50. The company said that Recyclers Ghana, its step down subsidiary situated in Ghana, West Africa has enhanced the production capacity of its existing Lead Recycling Plant from 6,000 MTPA to 12,000 MTPA. The announcement was made after market hours yesterday, 12 September 2019.
Zee Entertainment Enterprises was up 1.37% after promoter Cyquator Media Services decreased its stake in the company from 20.399% to 12.143% as of 9 September 2019. While another promoter of the company, Essel Corporate LLP reduced its stake from 2.948% to 1.1818% as of 9 September 2019.
PI Industries gained 3.42% to Rs 1284.75 after the company acquired Isagro S.p.A for Rs 345 crore. Isagro Asia is engaged in contract manufacturing, local distribution and exports of agrochemicals. The proposed acquisition will provide PI Industries with access to additional manufacturing capacities. The company intends to meet growing demand of global customers and synergy benefits of adjacent manufacturing site while de-risking the supply chain of few products.
Unichem Laboratories surged 5.15% after United States Food and Drug Administration (USFDA) successfully concluded inspection without any FDA form 483 issued. The inspection was conducted at company's Active Pharmaceutical Ingredients (APls) facility at Roha from 9 September 2019 to 12 September 2019.
J. Kumar Infraprojects rose 1.11% higher to Rs 132 after the company won an order from Mumbai Metropolitan Region Development Authority (MMRDA) for constructing and designing elevated viaducts and nine elevated stations for Mumbai Metro line 9. The order is worth Rs 1998 crore .
Indoco Remedies gained 4.27% after the company acquired Good Manufacturing Practice (GMP) status from Inspection Action Group (lAG) of the United Kingdom for Goa Plant I. The inspection conducted by Medicines and Healthcare Products Regulatory Agency of the United Kingdom (MHRA) on the Goa Plant I in March 2018, resulted in issuance of a restricted GMP certificate for medicinally critical products and a statement of non- compliance was published. Subsequently UK-MHRA conducted a 'Focused Audit' in October 2018 and GMP audit in May 2019. These audits were completed with no Critical Observations and Indoco has now received a full GMP status for its Goa Plant I.
Overseas, European markets were trading higher. The European Central Bank (ECB) approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations. The ECB cut its deposit rate to a record low -0.5% from -0.4% and will restart bond purchases of 20 billion euros a month from November, it said in a statement.
The ECB also confirmed that the interest rates would remain at "present or lower levels" until the inflation meets the bank's target inflation rate, wiz, near and just below 2%. The 10 bps rate cut aims to boost the long-term refinancing operations to stimulate the lending programs and introduce a tiered system that would ensure the exemption of a chunk of excess reserves parked by banks with the ECB from the negative interest rate.
Asian markets closed higher on Friday as hints of progress in the US-China trade dispute and aggressive stimulus from ECB helped to counter worries about a global economic slowdown.
US stocks rose on Thursday, buoyed by positive developments on the US-China trade front and a promise of continued stimulus from ECB.
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