A reversal of trend during the latter part of the trading session helped key indices clock decent gains. The barometer index, the S&P BSE Sensex, surged 204.46 points or 0.76% to settle at 27,214.60. The 50-unit CNX Nifty rose 58.65 points or 0.72% to settle at 8,238.15. The Sensex and the Nifty witnessed a sudden surge during the latter part of the trading session after languishing in red until about 14:00 IST. The Sensex and Nifty, both, hit 8-week closing high.
Shares of private sector banks, auto companies and index heavyweights L&T, HDFC and Reliance Industries (RIL) led the upmove for the two key benchmark indices which nudged higher for the second trading session in a row. Tata Motors rose after the company reported strong growth in its global wholesales for September 2015. Shares of public sector oil marketing companies (PSU OMCs) edged higher after raising diesel prices.
Positive lead from overseas markets aided the upmove on the domestic bourses. European stocks edged higher after a lackluster reading on US consumer prices strengthened the view that the US Federal Reserve may continue to hold off on raising interest rates during the remaining part of the calendar year 2015. In Asia, Chinese and Japan stocks edged higher on stimulus hopes in those countries in the wake of recent weak economic data. US stocks surged yesterday, 15 October 2015, as falling US consumer prices added to the batch of disappointing economic data that reduces the odds of an interest-rate increase this year from the Federal Reserve.
The Sensex surged 204.46 points or 0.76% to settle at 27,214.60, its highest closing level since 21 August 2015. The index surged 229.08 points or 0.84% at the day's high of 27,239.22. The index lost 93.02 points or 0.34% at the day's low of 26,917.12.
The Nifty rose 58.65 points or 0.72% to settle at 8,238.15, its highest closing level since 21 August 2015. The index rose 66.90 points or 0.81% at the day's high of 8,246.40. The index lost 31.85 points or 0.38% at the day's low of 8,147.65.
The market breadth indicating the overall health of the market was negative. On BSE, 1,379 shares fell and 1,350 shares rose. A total of 170 shares were unchanged. The BSE Mid-Cap index rose 0.38%. The BSE Small-Cap index rose 0.05%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2564 crore, lower than turnover of Rs 2851.62 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Auto index (up 0.87%), BSE Bankex index (up 1.3%), BSE Capital Goods index (up 1.83%) and BSE Oil & Gas index (up 1.16%) outperformed the Sensex. The S&P BSE FMCG index (up 0.17%), BSE Healthcare index (up 0.25%), BSE IT index (up 0.01%), BSE Consumer Durables index (down 0.43%), BSE Metal index (down 0.43%), BSE Power index (up 0.65%), BSE Realty index (down 1.38%) and BSE Teck index (up 0.07%) underperformed the Sensex.
Index heavyweight Reliance Industries rose 0.91% at Rs 912.20. The stock hit a high of Rs 914.70 and a low of Rs 904 in intraday trade. RIL's consolidated net profit rose 12.52% to Rs 6720 crore on 33.8% decline in turnover to Rs 75117 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours today, 16 October 2015. RIL's bottom line was boosted by exceptional one-time gain of Rs 252 crore in Q2 September 2015. This was a net impact of gains of Rs 2911 crore (net of taxes) on sale of investment in EFS Midstream LLC and provision for impairment in US shale gas assets amounting to Rs 2659 crore (net of tax). It may be recalled that Reliance Holding USA, Inc, a subsidiary of RIL concluded the sale of its interest in EFS Midstream LLC to an affiliate of Enterprise Products Partners L.P. in July 2015. EFS Midstream provides natural gas gathering, treating, compression and condensate processing services in the Eagle Ford Shale.
Auto stocks edged higher on renewed buying. TVS Motor Company (up 2.04%), Maruti Suzuki India (up 1.6%), Ashok Leyland (up 1%), Hero MotoCorp (up 0.88%), Bajaj Auto (up 0.36%) and Eicher Motors (up 0.13%) gained.
Tata Motors rose 1.44% at Rs 386.20 after the company said that its global wholesales, including Jaguar Land Rover rose 21% at 97,102 units in September 2015 over September 2014. The announcement was made after market hours yesterday, 15 October 2015.
Mahindra & Mahindra (M&M) rose 1.19% at Rs 1,290.10. The company today, 16 October 2015, announced the launch of diesel passenger vehicle Supro Van and small goods carrier Supro Maxitruck. Supro Van is priced at Rs 4.38 lakhs ex-showroom Thane, Maharashtra and Supro Maxitruck is priced at Rs 4.25 lakhs ex-showroom Thane, Maharashtra.
Separately, M&M announced selling its entire 71.19% stake in its subsidiary Swaraj Automotives for Rs 24.83 crore to b4S Solutions. The stake sale will take place at Rs 145.50 per share, much above the ruling market price of the stock. No trading took place in shares of Swaraj Automotives on BSE today, 16 October 2015. The previous trading in the stock took place on 14 October 2015. On that day, the stock had surged by the maximum permissible daily level of 20% to settle at Rs 18.20. Swaraj Automotives is in the business of manufacturing seats and seat mechanism for tractors, commercial vehicles and passenger vehicles.
Steel stocks declined. Steel Authority of India (down 2.36%), JSW Steel (down 1.69%), Tata Steel (down 1.04%) and Jindal Steel & Power (down 0.27%) edged lower.
Shares of cigarette major ITC were off 0.23% at Rs 348.85. The stock hit a high of Rs 349.95 and a low of Rs 343.10 in intraday trade.
Bank stocks edged higher in volatile trade. Among private sector banks, Yes Bank (up 1.96%), HDFC Bank (up 1.41%), Axis Bank (up 1.24%), ICICI Bank (up 1.35%), Kotak Mahindra Bank (up 1.04%) and IndusInd Bank (up 0.58%) gained.
Among PSU banks, IDBI Bank (up 3.37%), State Bank of India (up 2.39%), United Bank of India (up 0.89%), Syndicate Bank (up 0.21%) and Punjab National Bank (up 0.66%) gained. Canara Bank (down 0.25%), Bank of Baroda (down 0.92%) and Union Bank of India (down 1.29%) declined.
Index heavyweight and housing finance firm HDFC rose 1.37% at Rs 1,311.85. The stock hit a high of Rs 1,316 and a low of Rs 1,285 in intraday trade.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after raising diesel prices. BPCL (up 2.03%), HPCL (up 2.4%) and Indian Oil Corporation (IOCL) (up 0.86%) gained. IOCL has announced increase in the retail selling price of diesel by 95 paise per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi stood at Rs 45.90 per litre.
Index heavyweight L&T rose 2.83% at Rs 1,604.60. The stock hit a high of Rs 1,608.50 and a low of Rs 1,553.60 in intraday trade.
Meanwhile, data released by the government after market hours yesterday, 15 October 2015, showed that India's merchandise exports declined for tenth straight month in September 2015. Merchandise exports dropped 24.3% to $21.85 billion in September 2015 over September 2014. Imports dipped 25.4% to $32.32 billion. The trade deficit narrowed 27.6% to $10.5 billion in September 2015 from $14.47 billion in September 2014.
Key indices rose for the second straight trading session. The Sensex has gained 434.94 points or 1.62% in the preceding two trading sessions from its close of 26,779.66 on 14 October 2015. The Sensex has risen 1,059.77 points or 4.05% in this month so far (till 16 October 2015). The Sensex has fallen 284.82 points or 1.03% in this calendar year so far (till 16 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,381.06 points or 9.58%. The Sensex is off 2,810.14 points or 9.35% from a record high of 30,024.74 hit on 4 March 2015.
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