Key benchmark indices continued their upward march and hit fresh intraday high in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex was up 347.87 points or 1.25% at 28,250.53. The Nifty 50 index was currently up 104.75 points or 1.22% at 8,712.20. The Sensex was currently hovering above the psychological 28,000 mark after reclaiming that level in the opening trade. It had settled below that level during the previous trading session. Gains in European and Asian stocks aided the upmove on the domestic bourses. The Sensex and the Nifty hit highest level in three weeks.
The Sensex rose 356.63 points or 1.27% at the day's high of 28,259.29 in mid-afternoon trade, its highest level since 9 August 2016. The barometer index gained 108 points or 0.38% at the day's low of 28,010.66 at the onset of the trading session. The Nifty rose 111.15 points or 1.29% at the day's high of 8,718.60 in mid-afternoon trade, its highest level since 9 August 2016. The index gained 34.80 points or 0.4% at the day's low of 8,642.25 at the onset of the trading session.
In overseas stock markets, European and Asian stocks edged higher tracking overnight gains in US market. US stocks finished higher yesterday, 29 August 2016 on increased prospects for Federal Reserve rate increases in 2016. Investors continued to weigh remarks by Federal Reserve Chairwoman Janet Yellen, who said late last week in Jackson Hole, Wyo., that an improving US economy had strengthened the case for a rate increase. The Fed last December delivered its first rate increase in nearly a decade. The focus is now on US nonfarm-payroll data for August due on Friday, 2 September 2016.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,606 shares rose and 953 shares fell. A total of 200 shares were unchanged. The BSE Mid-Cap index was currently up 0.75%. The BSE Small-Cap index was currently up 1.01%. Both these indices underperformed the Sensex.
Bharti Airtel fell 3.48% to Rs 329.85, with the stock extending recent losses triggered by the company slashing rates for prepaid internet data plan. Shares of Bharti Airtel have fallen 4.7% in three trading sessions from its close of Rs 346.15 on Thursday, 25 August 2016. Bharti Airtel cut prices of mobile data services for prepaid customers by announcing the launch of two new 4G/3G data plans recently. The move comes ahead of the commercial launch of 4G services from Reliance Jio Infocomm. As per reports, Reliance Jio Infocomm, a unit of Reliance Industries, is expected to launch commercial 4G telecom services in the coming weeks.
Bharti Airtel's Rs 1498 pack offers 1GB 4G/3G data upfront with a validity of 28 days. Post exhaustion of this data limit, the customer can enjoy 1GB 4G/3G recharges for just Rs 51 over a period of 12 months. There is no limit on the number of recharges during the period and higher the number of recharges the more value a customer gets. Similarly, the Rs 748 pack offers 1GB 4G/3G data upfront and post exhaustion of this data limit, customers can enjoy 1GB 4G/3G recharges for just Rs 99 over a period of six months. There is no limit on the number of recharges during the period.
By offering these schemes, Bharti Airtel reportedly attempted to keep its customers tied up to year-long plans and stop them from porting out.
FMCG stocks gained. Tata Global Beverages (up 0.68%), Marico (up 0.81%), Britannia Industries (up 1.46%), Jyothy Laboratories (up 1.03%), Hindustan Unilever (HUL) (up 1.67%), Dabur India (up 1.18%), Colgate Palmolive India (up 1.83%), GlaxoSmithkline Consumer Healthcare (up 0.66%), Godrej Consumer Products (up 1.03%), and Bajaj Corp (up 1.01%) gained. Nestle India fell 0.44%.
Procter & Gamble Hygiene and Health Care (P&G Hygiene) fell 2.64% at Rs 6,552, with the stock extending losses registered during the previous trading session in the wake of the announcement of Q4 June 2016 results. Shares of P&G Hygiene fell 0.62% to settle at Rs 6,730 yesterday, 29 August 2016 after the company reported flat bottom line in Q4 June 2016. The result was announced after market hours on Friday, 26 August 2016. The stock has fallen 3.24% in two trading sessions from its close of Rs 6,772 on 26 August 2016.
P&G Healthcare's net profit rose 2.16% to Rs 109.40 crore on 0.71% increase in total income to Rs 580.45 crore in Q4 June 2016 over Q4 June 2015. Net sales remained flat at Rs 557.09 crore in Q4 June 2016 over Q4 June 2015 due to overall category slowdown in health care.
Shares of power generation and power distribution companies gained. Torrent Power (up 0.29%), NHPC (up 1.84%), NTPC (up 0.44%), Tata Power Company (up 0.26%), Adani Power (up 1.47%), Power Grid Corporation of India (up 0.5%), and Reliance Power (up 0.09%) gained. Reliance Infrastructure declined 0.13%.
Coal India rose 0.16% after the company said that it has fixed 9 September 2016 as the record date for the purpose of buyback of equity shares. The announcement was made after market hours yesterday, 29 August 2016. The company's board on 11 July 2016, approved buyback of shares at a price of Rs 335 per share for an aggregate consideration not exceeding Rs 3650 crore through the tender offer route. The company's promoters would participate in the buyback.
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