Volatility struck bourses in morning trade as the key benchmark indices reversed initial gains. At 10:20 IST, the barometer index, the S&P BSE Sensex, was off 19.63 points or 0.07% at 28,958.39. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently off 16.05 points or 0.18% at 8,926.95. The Sensex was currently trading below the psychological 29,000 mark after hitting an intraday high above that level in early trade.
The Sensex fell 49.92 points or 0.17% at the day's low of 28,928.10 in morning trade. The barometer index gained 89.82 points or 0.31% at the day's high of 29,067.84 in early trade, its highest level since 15 April 2015. The Nifty fell 23.40 points or 0.26% at the day's low of 8,919.60 in morning trade. The index rose 25.70 points or 0.29% at the day's high of 8,968.70 in early trade, its highest level since 4 March 2015.
Meanwhile, data released by the stock exchanges showed that foreign funds made substantial purchases of Indian stocks yesterday, 6 September 2016. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1438.72 crore yesterday, 6 September 2016, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian stocks were trading on a mixed note. US stocks closed higher yesterday, 6 September 2016, after surprisingly weak US services sector activity data lowered the chances the Federal Reserve will hike rates this month. Data released yesterday, 6 September 2016 showed the US Institute for Supply Management (ISM) non-manufacturing purchasers manager index (PMI) index fell to 51.4 in August from 55.5 in July. While levels above 50 still indicate expansion, it was the lowest reading since February 2010.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,100 shares rose and 899 shares declined. A total of 85 shares were unchanged. The BSE Mid-Cap index was currently up 0.03%. The BSE Small-Cap index was currently up 0.4%. Both these indices outperformed the Sensex.
Wipro rose 0.88% to Rs 487.05 after the company announced that it has won an IT contract from Norway's NSB Group, one of Norway's largest transportation groups. Headquartered in Oslo, NSB has extensive passenger transportation operations by way of the rail and bus, freight by rail, property management and development and train maintenance segments. As part of the three-year agreement, Wipro will implement its Boundaryless Datacenter (BLDC) and LiVE Workspace solutions and utilize its next-generation delivery framework ServiceNXT to deliver services which will help NSB variablise their IT operations. The proposed government-backed reforms in the Norwegian railway sector are expected to provide a fillip to the efficiency of the railways. The Wipro-enabled back-bone of IT infrastructure services will enable NSB to achieve greater flexibility, scalability, cost efficiency and offer an enhanced end-user experience.
Metal and mining stocks rose as copper prices rose in global commodity markets. Vedanta (up 2.41%), JSW Steel (up 0.12%), Tata Steel (up 1.92%), Steel Authority of India (Sail) (up 1.65%), National Aluminium Company (up 0.21%), Jindal Steel & Power (up 2.72%), Hindalco Industries (up 1.29%), NMDC (up 0.75%) and Hindustan Copper (up 0.38%) edged higher. Hindustan Zinc fell 0.51%.
Copper edged higher in the global commodities market. High Grade Copper for December 2016 delivery was currently up 0.86% at $2.107 per pound on the COMEX.
Cement stocks fell. Ambuja Cements (down 0.11%), ACC (down 0.28%) and Shree Cement (down 1.23%) declined. UltraTech Cement rose 0.2%.
Grasim Industries was off 0.8% at Rs 4,670 as the stock turned ex-dividend today, 7 September 2016, for dividend of Rs 22.50 per share for FY 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.47% based on its closing price of Rs 4,707.50 on the BSE yesterday, 6 September 2016. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
