A bout of volatility was witnessed in afternoon trade as key benchmark indices trimmed gains after extending gains and hitting fresh intraday high after European stocks edged higher in early trade there. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 63.50 points or 0.22% at 28,989.86. The Nifty 50 index was currently up 16.30 points or 0.18% at 8,933.95. The Sensex was currently trading below the psychologically important 29,000 level after alternately moving above and below the mark since early afternoon trade.
The Sensex rose 92.39 points or 0.31% at the day's high of 29,018.75 in afternoon trade. The barometer index lost 71.80 points or 0.25% at the day's low of 28,854.56 at onset of the trading session, its lowest level since 6 September 2016. The Nifty rose 22.90 points or 0.25% at the day's high of 8,940.85 in afternoon trade. The index lost 21.95 points or 0.25% at the day's low of 8,896 at onset of the trading session, its lowest level since 6 September 2016.
In overseas stock markets, European stocks gained ahead of the European Central Bank (ECB)'s monetary policy decision later in the global day. The ECB is reportedly expected to leave interest rates unchanged, but may announce an extension of its quantitative easing program. Most Asian stocks were trading lower following mixed lead overnight from Wall Street. US stocks ended on a mixed note yesterday, 7 September 2016, as investors digested the release of the Federal Reserve's Beige Book, a key indicator of the US economic health, which said economic activity continued to expand at a modest pace from July through late August.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,520 shares rose and 987 shares declined. A total of 170 shares were unchanged. The BSE Mid-Cap index was currently off 0.05%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.67%, outperforming the Sensex.
Most auto stocks gained. Eicher Motors (up 0.1%), Bajaj Auto (up 3.87%), Hero MotoCorp (up 3.36%), and TVS Motor Company (up 1.8%) gained. Tata Motors dropped 1.33%.
Maruti Suzuki India rose 1.54% to Rs 5,419.95 on reports a foreign brokerage has maintained "buy" rating on the stock. The stock hit a high of Rs 5,448.90 so far during the day, which is a record high for the counter. The stock hit a low of Rs 5,316.05 so far during the day. The brokerage reportedly stated that potential for discounts on the company's vehicles will narrow sharply going ahead. The company's improved positive free cash flow outlook is positive for the stock, it reportedly said.
Mahindra & Mahindra (M&M) rose 0.59% after the company said it has signed a memorandum of understanding (MoU) to enter into a strategic alliance with the shared transportation platform firm, Ola to empower 40,000 driver partners across India by 2018. Through this strategic alliance, they aim overall vehicle sales and financing of over $400 million or Rs 2500 crore. The announcement was made during market hours today, 8 September 2016.
Ola's driver partners can now avail of an integrated and attractive 'Mahindra-Ola' package which will include Mahindra cars at special prices, attractive financing with zero down payment, and the best NBFC interest rates, subsidised insurance premiums, comprehensive maintenance packages as well as exclusive benefits at the Ola platform. The unique alliance seeks to encourage entrepreneurship amongst drivers, to address India's growing mobility needs. Mahindra and Ola will also explore other areas of joint collaboration to build the next generation of mobility solutions including those for unique transportation use cases.
Ashok Leyland declined 0.51%. The company announced a restructuring agreement with Nissan Motor Co. that will enable both companies to enter into a new phase in their business interaction. Nissan has agreed to sell to Ashok Leyland all of Nissan's shares in three joint venture (JV) companies that were formed in 2008. These JVs focus on technology development, and manufacturing of powertrains and vehicles. Under the agreement, these JVs will become wholly-owned Ashok Leyland subsidiaries, upon receipt of all necessary approvals from the regulatory authorities in India. The process is expected to be concluded later this year, Ashok Leyland said. The announcement was made after market hours yesterday, 7 September 2016.
Ashok Leyland's Managing Director, Vinod Dasari said that the company has decided to acquire Nissan's stake in the three JV companies, and this will help Ashok Leyland's efforts to concentrate on its core business initiatives and its customers. Ashok Leyland will continue its relationship with Nissan under the new arrangement, Dasari added.
Most shares of power generation and power distribution companies gained. Tata Power Company (up 1.24%), Adani Power (up 0.73%), Power Grid Corporation of India (up 0.54%), Reliance Infrastructure (up 0.57%) and Reliance Power (up 0.66%) gained. Torrent Power (down 1.69%) and NHPC (down 1.47%) declined.
NTPC rose 0.47% to Rs 161.80. The stock turned ex-dividend today, 8 September 2016, for final dividend of Rs 1.75 per share for the year ended 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 1.08% based on the closing price of Rs 161.05 yesterday, 7 September 2016.
Shares of state run coal mining major Coal India declined 0.59% to Rs 328.90. The stock hit high of Rs 332.50 and low of Rs 328.85 so far during the day.
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