Positive lead from global markets aided rally on the domestic bourses, with the barometer index, the S&P BSE Sensex, piercing the psychological 26,000 mark. The Sensex jumped 376.17 points or 1.46% to settle at 26,154.83. The 50-unit CNX Nifty rose 105.60 points or 1.35% to settle at 7,948.90. The Sensex and Nifty, both, attained their highest closing level in more than a week. Telecom, oil and power sector stocks led rally for key benchmark indices which remained in positive zone throughout the trading session.
The rally on the domestic bourses materialized a day after the Reserve Bank of India (RBI) surprised financial markets by announcing a steeper-than-expected 50 basis points reduction in its benchmark lending rate viz. the repo rate after a regular monetary policy review yesterday, 29 September 2015. The Sensex and the Nifty registered modest gains after witnessing high intraday volatility yesterday, 29 September 2015, in the wake of the RBI decision.
In overseas markets, European shares edged higher, with shares of automakers boosted by a Chinese tax cut on small cars while miner Glencore rallied after saying it had no solvency issues. Trading in US index futures indicated that the Dow could jump 181 points at the opening bell today, 30 September 2015. US stocks finished mostly higher yesterday, 29 September 2015, as a stronger-than-expected reading on consumer confidence and rising house prices pointed to a stronger US economy.
In Asia, Japanese stocks surged on expectations for more monetary and fiscal stimulus after the latest data showed that Japanese industrial output fell unexpectedly for the second straight month in August. Chinese stocks nudged higher after a private consumer sentiment index reached its highest level in over a year in September 2015.
The Sensex rose 376.17 points or 1.46% to settle at 26,154.83, its highest closing level since 21 September 2015. The Sensex jumped 401.04 points or 1.55% to 26,179.70 in late trade. The Sensex rose 139.55 points or 0.54% at the day's low of 25,918.21 in morning trade.
The Nifty rose 105.60 points or 1.35% to settle at 7,948.90, its highest closing level since 21 September 2015. The Nifty jumped 114.40 points or 1.45% at the day's high of 7,957.70 in late trade. The Nifty rose 31.20 points or 0.39% at the day's low of 7,874.50 in morning trade.
The BSE Mid-Cap index rose 1.71%, outperforming the Sensex. The BSE Small-Cap index rose 1.07%, underperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,683 shares gained and 979 shares declined. A total of 112 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE FMCG index (up 2.36%), BSE Healthcare index (up 1.71%), BSE IT index (up 1.81%), BSE Metal index (up 3.36%), BSE Oil & Gas index (up 1.86%), BSE Power index (up 1.88%), BSE Realty index (up 2.05%) and BSE Teck index (up 2.07%) outperformed the Sensex. The S&P BSE Auto index (up 1.44%), BSE Bankex index (down 0.44%), BSE Capital Goods index (up 1.45%) and BSE Consumer Durables index (up 0.46%) underperformed the Sensex.
The total turnover on BSE amounted to Rs 4334 crore, higher than turnover of Rs 3053.09 crore registered during the previous trading session.
Index heavyweight and IT major Infosys rose 3.51% to Rs 1,160.45. The stock hit a high of Rs 1165.35 and a low of Rs 1127.55 in intraday trade.
Index heavyweight and engineering and construction major L&T advanced 1.27% to Rs 1,466.70. The stock hit a high of Rs 1,469 and a low of Rs 1,449 in intraday trade. L&T during market hours today, 30 September 2015 said that the power transmission and distribution business has won orders worth Rs 1376 crore in both domestic and international markets in September 2015.
State-run coal mining giant Coal India gained 3.78% to Rs 326.50 on high volume of 56.43 lakh shares. A bulk deal of 51.16 lakh shares was executed on the stock at Rs 318.30 per share at 09:25 IST on BSE today, 30 September 2015.
Shares of index heavyweight and cigarette major ITC gained 2.67% to Rs 328.90 on high volume of 84.24 lakh shares. A bulk deal of 78.27 lakh shares was executed on the stock at Rs 326.85 per share at 09:57 IST on BSE today, 30 September 2015.
Telecom shares rallied. Bharti Airtel (up 4.50%), Tata Teleservices (Maharashtra) (up 1.31%) and MTNL (up 0.63%), edged higher.
Idea Cellular surged 7.21% to Rs 149.35 after the company's shareholders approved raising of up to Rs 10000 crore through issue of non-convertible securities on private placement basis in one or more tranches. The company announced the voting results of AGM during market hours yesterday, 29 September 2015. The stock had fallen 2.35% to settle at Rs 139.30 yesterday, 29 September 2015.
Reliance Communictions (RCom) jumped 6.26% to Rs 67.90. RCom, controlled by Anil Dhirubhai Ambani, will partner with Reliance Industries' (RIL) telecom subsidiary to launch fourth-generation (4G) mobile phone services by year-end, RCom's chairman was quoted as saying today, 30 September 2015. RIL is controlled by Anil Ambani's elder brother Mukesh Ambani. RCom will enter into a strategic partnership with Reliance Jio, allowing for trading and sharing of 4G airwaves, chairman Anil Ambani said at the telecom company's annual general meeting (AGM), according to reports. 4G services typically offer customers faster browsing speeds than 3G services while surfing the web through mobile phones, tablets or laptops.
RCom is also at an advanced stage of merger talks with the India telecom operations of Russian billionaire Vladimir Yevtushenkov's Sistema conglomerate, Ambani added.
Shares of PSU OMCs edged higher. Indian Oil Corporation (up 1.78%), HPCL (up 1.32%) and BPCL (up 0.17%), edged higher.
Shares of oil exploration firms edged higher. Cairn India (up 5.65%), Essar Oil (up 1.51%) and ONGC (up 1.35%), edged higher. Oil India fell 0.88%.
Reliance Industries rose 2.54% to Rs 860.50. The stock hit a high of Rs 863 and a low of Rs 838.60 in intraday trade.
Petroleum Planning and Analysis Cell (PPAC), a statistical body under the oil ministry, announced that the price of domestic natural gas for the period 1 October 2015 to 31 March 2016 was reduced to $3.82 per million metric British thermal units (mmBtu) on gross calorific value (GCV) basis from $4.66 per mmBtu for the six month period 1 April 2015 to 30 September 2015. The government revises gas price every six months.
The gas price cut, reflecting a fall in global prices, will bring down the price of piped natural gas (PNG) for cooking purposes and of compressed natural gas (CNG) used in automobiles. It will also lead to a reduction in input costs for gas based power and fertiliser companies in India.
Among power sector stocks, shares of state-run power generation major NTPC rose 2.27% to settle at Rs 123.75. Shares of power equipment major Bharat Heavy Electricals jumped 4.1% at Rs 205.55. Shares of power transmission major Power Grid Corporation of India rose 2.92% at Rs 132.15.
Shares of private sector banks were mixed. Axis Bank (down 1.68%), Yes Bank (down 1.17%), Federal Bank (down 0.7%) and Kotak Mahindra Bank (down 0.43%), edged lower. IndusInd Bank (up 0.09%), HDFC Bank (up 0.42%), ICICI Bank (up 0.52%) and City Union Bank (up 1.16%) edged higher.
Most PSU bank stocks declined. IDBI Bank (down 3.2%), Union Bank of India (down 2.78%), Punjab National Bank (down 1.37%), UCO Bank (down 1.07%), Andhra Bank (down 0.96%), Syndicate Bank (down 0.96%), Corporation Bank (down 0.9%), Allahabad Bank (down 0.71%), Punjab and Sind Bank (down 0.67%), Canara Bank (down 0.66%), United Bank of India (down 0.45%), Bank of Maharashtra (down 0.15%) and Dena Bank (down 0.13%), edged lower. Indian Bank (up 0.11%), Central Bank of India (up 0.12%) and Vijaya Bank (up 0.29%), edged higher.
State Bank of India (SBI) fell 1.96% to Rs 237.25. The bank said that the committee of directors for capital raising in its meeting held yesterday, 29 September 2015 considered and accorded approval to allot 19.65 crore equity shares on preferential basis to Government of India, at an issue price of Rs 274.37 per share for a consideration of Rs 5392.99 crore.
Meanwhile, SBI has reportedly cut its base rate by 40 basis points to 9.3% from 9.7% effective from 5 October 2015. The bank has also announced reduction in fixed deposit rates by 25 basis points across various maturities from 5 October 2015, reports indicated.
Bank of Baroda (BoB) fell 1.93% to Rs 183.30. BoB announced after market hours today that it has decided to reduce Base Rate by 25 basis points from 9.90% per annum (p.a.) to 9.65% p.a. and also to reduce Benchmark Prime Lending Rate (BPLR) by 25 basis points from 14.15% p.a. to 13.90% p.a. The reduction in both rates will be effective from 5 October 2015.
Separately, BoB said it has allotted 9.26 crore equity shares at an issue price of Rs 192.74 per share, aggregating to Rs 1786 crore to the Government of India on preferential allotment basis. The bank made the announcement before market hours today, 30 September 2015.
Bank of India fell 1.67% to Rs 135.55. The bank said that it has decided to cut its base rate by 25 basis points to 9.7% from the earlier 9.95% effective from 5 October 2015. The bank made announcement about the reduction in base rate after market hours yesterday, 29 September 2015.
State Bank of Travancore rose 0.31% to Rs 417 after the bank said that it has reduced the base rate by 20 basis points from 10.15% to 9.95% effective from 5 October 2015. State Bank of Travancore said that the benchmark prime lending rate (BPLR) will remain at the same level at 15.15%. The bank made announcement about the reduction in base rate after market hours yesterday, 29 September 2015.
Oriental Bank of Commerce fell 2.06% to Rs 130.45. The bank has reduced base rate by 20 basis points to 9.70% from 9.90% with effect from 30 September 2015. The bank made the announcement about the reduction in base rate during market hours today, 30 September 2015.
The reduction of base rate by some of these state-run banks comes after the Reserve Bank of India (RBI) surprised financial markets by announcing a steeper-than-expected 50 basis points reduction in repo rate after a regular monetary policy review yesterday, 29 September 2015.
FMCG shares were in demand. Procter & Gamble Hygiene & Health Care (up 5.16%), Britannia Industries (up 4.01%), Hindustan Unilever (up 3.68%), Godrej Consumer Products (up 3.01%), Nestle India (up 2.98%), Jyothy Laboratories (up 2.88%), Marico (up 2.31%), Colgate Palmolive (India) (up 1.90%), Bajaj Corp (up 1.76%), Tata Global Beverages (up 1.11%), Dabur India (up 0.62%) and GlaxoSmithKline Consumer Healthcare (up 0.34%), edged higher.
Metal and mining stocks edged higher on renewed buying. Hindalco Industries (up 3.67%), Hindustan Zinc (up 2.85%), NMDC (up 1.80%), National Aluminium Company (up 0.72%) and Hindustan Copper (up 0.66%), edged lower. Vedanta fell 1.33%.
Steel stocks gained on reports that the domestic steel producers are expected to take advantage of the hike in safeguard duty and increase prices by up to Rs 1,500 per tonne. JSW Steel (up 5.71%), Tata Steel (up 5.24%), Jindal Steel & Power (up 3.86%), Steel Authority of India (up 1.98%) and Bhushan Steel (up 1.65%), edged higher. It may be recalled that the government in this month imposed a provisional safeguard duty of 20% on import of certain hot rolled flat steel products with a view to protect domestic producers from the recent surge in inward shipments from countries like China.
Key benchmark indices edged higher for the second consecutive session. The Sensex has garnered 537.99 points or 2.1% in the the preceding two trading sessions from its close of 25,616.84 on 28 September 2015. The Sensex lost 128.26 points or 0.49% in this month so far (till 30 September 2015). The Sensex has fallen 1,344.59 points or 4.89% in this calendar year so far (till 30 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,321.29 points or 5.32%. The Sensex is off 3,869.91 points or 12.89% from a record high of 30,024.74 hit on 4 March 2015.
Powered by Capital Market - Live News
