Gains in stocks of private sector banks, cement firms and index heavyweights Infosys and Reliance Industries (RIL) led upmove for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 134.73 points or 0.55% to settle at 24,793.96. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 46.50 points or 0.62% to settle at 7,531.80. After hovering in negative zone until afternoon trade, the two key benchmark indices reversed direction later, taking cues from gains in European stocks. The Sensex and Nifty, both, hit their highest closing level in more than five weeks.
European stocks edged higher a day ahead of a widely expected move from the European Central Bank (ECB) to ease monetary policy further in its effort to boost low inflation and support economic recovery in the euro zone. Expectations are that the ECB will cut its deposit rate further into negative zone from current minus 0.3% and increase its bond-purchase program by euro 10 billion to euro 70 billion a month at a monetary policy meeting tomorrow, 10 March 2016.
Metal and mining stocks edged lower as global commodity prices fell after a recent rebound. Maruti Suzuki India rose after the company announced the launch of its first compact urban sport utility vehicle (SUV) Vitara Brezza. Container Corporation of India declined after the floor price for the offer for sale (OFS) for divestment of Government of India's (GoI) 5% stake in the company was set at a discount to previous session's closing price. Hindustan Unilever rose after the company announced that the company and Pond's HLL ex-Mercury Employees Welfare Association, representing the ex-employees of the former thermometer factory in Kodaikanal, have reached a settlement with regard to dispute over economic rehabilitation after closure of this factory.
The Sensex rose 134.73 points or 0.55% to settle at 24,793.96, its highest closing level since 1 February 2016. The index jumped 161.53 points or 0.66% at the day's high of 24,820.76. The index fell 207.63 points, or 0.84% at the day's low of 24,451.60.
The Nifty rose 46.50 points or 0.62% to settle at 7,531.80, its highest closing level since 1 February 2016. The index rose 53.70 points or 0.72% at the day's high of 7,539. The index fell 61 points, or 0.81% at the day's low of 7,424.30.
The BSE Mid-Cap index rose 0.94%, outperforming the Sensex. The BSE Small-Cap index rose 0.04%, underperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,390 shares rose and 1,204 shares fell. A total of 123 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Industrials index (up 0.99%), the BSE Utilities index (up 1.17%), the BSE Auto index (up 1.25%), the BSE Capital goods index (up 1.63%), the BSE Power index (up 1.42%) and the BSE Realty index (up 1.51%) outperformed the Sensex. The S&P BSE Consumer Durables index (down 0.78%), the BSE Metal index (down 0.8%) and the BSE IT index (up 0.47%) underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) rose 1.44% to Rs 1,041.95. The stock hit a high of Rs 1,044 and a low of Rs 1,017.35 intraday trade.
Another index heavyweight and IT major Infosys rose 1.28% at Rs 1,178.50. The stock hit a high of Rs 1,183.80 and a low of Rs 1,144 in intraday trade.
Index heavyweight and housing finance major HDFC fell 1.4% to Rs 1,130. The stock hit a high of Rs 1,147 and a low of Rs 1,107.30 in intraday trade.
Index heavyweight and cigarette major ITC fell 0.4% to Rs 319.95. The stock hit a high of Rs 320.75 and a low of Rs 313 in intraday trade.
Metal and mining stocks edged lower as global commodity prices fell after a recent rebound. Vedanta (down 2.71%), Hindalco Industries (down 2.29%), NMDC (down 1.59%), Steel Authority of India (down 2.19%), Hindustan Copper (down 1.6%), Hindustan Zinc (down 1.66%) and JSW Steel (down 0.49%) declined. Tata Steel (up 1.23%) and National Aluminium Company (up 0.13%) edged higher.
Jindal Steel & Power (JSPL) lost 1.89% at Rs 65 on reports that a group of foreign lenders of JSPL are exploring the decision of recalling loans adding up to $550 million from the company with the leveraged group failing to comply with loan covenants ahead of the repayment schedule that starts next month. Among other things, this extreme step from the lenders has been triggered by JSPL's inability to service $25 million unsecured loan from a large Japanese bank, reports added. In its clarification issued during market hours today, 9 March 2016, JSPL said that it has been working with all banks/institutions towards various options, including the 5/25 scheme to meet all obligations in the wake of weak financial performance of the company in the last four quarters. JSPL attributed the company's weak financial performance to falling steel prices.
Cement shares edged higher. UltraTech Cement (up 1.26%), Ambuja Cements (up 1.57%) and ACC (up 0.52%) edged higher. Shree Cement (down 3.09%) edged lower.
Grasim Industries was up 3.91%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Shares of public sector banks were mixed. UCO Bank (up 3.33%), Corporation Bank (up 2.51%), Indian Bank (up 2.4%), Bank of India (up 2.06%), Punjab National Bank (up 1.47%) and Bank of Baroda (up 0.78%) rose. IDBI Bank (down 1.09%), United Bank of India (down 0.76%) and State Bank of India (down 0.11%) declined.
Syndicate Bank fell 0.33% at Rs 60.35 after the Central Bureau of Investigation (CBI) initiated a probe into a Rs 1000-crore fraud at two branches of the state-run bank in Jaipur and Udaipur. The Syndicate Bank stock had lost 2.02% to settle at Rs 60.55 yesterday, 8 March 2016, after media reports of CBI probe. CBI said in its statement that the accused persons in connivance with past official of the bank resorted to discounting of fake cheques and bills against fake LCs and arranging over-draft limit against non-existent LIC policies. The amount involved in individual transactions ranged from Rs 40 lakh to Rs 5 crore, with a majority of the transactions being in the range of Rs 2.50 crore to Rs 4 crore.
Stocks of private sector banks edged higher. Yes Bank (up 3.81%), Kotak Mahindra Bank (up 1.35%), Axis Bank (up 1.3%), HDFC Bank (up 0.99%) and IndusInd Bank (up 1.61%) edged higher. ICICI Bank (down 0.25%) edged lower.
Hindustan Unilever (HUL) rose 1.58% to Rs 840.65 after the company announced that the company and Pond's HLL ex-Mercury Employees Welfare Association, representing the ex-employees of the former thermometer factory in Kodaikanal, have reached a settlement with regard to dispute over economic rehabilitation after closure of this factory. The Memorandum of Settlement reached was recorded in an order passed by the Madras High Court. As part of the agreement, HUL, with an objective to ensure long term well being of its former workers, has agreed to provide ex gratia payments to 591 former workers/association members and their families towards livelihood enhancement projects and skill enhancement programs. The employees have agreed to withdraw the petition they had filed in February 2006 in the Madras High Court.
HUL said that the other key aspect on the matter relates to soil remediation within the factory site. HUL has submitted the Detailed Project Report (DPR) to Tamil Nadu Pollution Control Board (TNPCB) in August 2015 and is awaiting consent, HUL said.
Maruti Suzuki India (MSIL) rose 4% at Rs 3,600 after the company announced the launch of its first compact urban sport utility vehicle (SUV), Vitara Brezza, at a striking price point. The introductory price for the base variant of Vitara Brezza is Rs 6.99 lakh ex-showroom Delhi and Rs 7.35 lakh ex-showroom Mumbai. With Vitara Brezza, MSIL is now present across all critical segments of the passenger vehicle market, the company said in a statement. The announcement was made after market hours yesterday, 8 March 2016.
In a separate announcement, the company during trading hours today, 9 March 2016, said that after the overwhelming success of Baleno in India, Suzuki Motor Corporation, parent company of Maruti Suzuki India, launched 'Made in India' Baleno in Japan today, 9 March 2016. Baleno is manufactured only in India at Maruti Suzuki's Manesar facility in Haryana. Since its launch, Maruti Suzuki has sold over 38,000 units of Baleno cars in domestic market. Baleno will be exported to more than 100 countries.
Lupin rose 0.56% at Rs 1,826.90 after the company announced that it has completed the acquisition of privately held US based GAVIS Pharmaceuticals LLC and Novel Laboratories Inc. (GAVIS). The acquisition enhances Lupin's scale in the US generic market and also broadens the company's pipeline in dermatology, controlled substance products and other high-value and niche generics. The announcement was made during market hours today, 9 March 2016.
Tata Power Company rose 0.09% at Rs 58.85 after the company announced that its wholly owned subsidiary Tata Power Renewable Energy has signed a share purchase agreement with Indo Rama Renewables (IRRL) to acquire its wholly owned subsidiary Indo Rama Renewables Jath (IRRLJ), which owns a 30 megawatts wind farm in Sangli district in Maharashtra. IRRLJ has annual turnover of about Rs 35 crore. The acquisition will help Tata Power Renewable Energy expand its wind portfolio. The announcement was made during trading hours today, 9 March 2016.
Container Corporation of India declined 2.54% at Rs 1,195.55 after the floor price for the offer for sale (OFS) for divestment of Government of India's (GoI) 5% stake in the company was set at a discount to previous session's closing price. The OFS floor price of Rs 1,195 per share was at a discount of 2.58% to the stock's closing price of Rs 1,226.65 on BSE yesterday, 8 March 2016. Meanwhile, the bidding data on BSE showed that OFS received strong response from institutional investors. The OFS received bids for a total of 1.57 crore shares from non-retail investors at an indicative price of Rs 1,196.20 per share as against 77.98 lakh shares offered to this category.
Government of India (GoI) is selling up to 97.48 lakh equity shares, constituting 5% of the total paid up equity share capital of the company via the stock exchanges mechanism. Bidding for the shares in the OFS by non-retail investors took place in a single trading session called 'T' day today, 9 March 2016. Those non-retail investors who have placed their bids on T day and have chosen to carry forward their bids to T+1 day will be allowed to revise their bids on T+1 day. Bidding by retail investors will take place in a single trading session called T+1 day tomorrow, 10 March 2016. Retail investors will be allocated shares in OFS at a discount of 5% to the cut off price.
The Sensex rose for the sixth day in a row. The Sensex has surged 1,791.96 points or 7.79% in six trading days from its close of 23,002 on 29 February 2016. The Sensex has fallen 1,323.58 points or 5.06% in calendar year 2016 so far (till 9 March 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,299.35 points or 10.22%. The Sensex is off 5,230.78 points or 17.42% from a record high of 30,024.74 hit on 4 March 2015.
Powered by Capital Market - Live News
