Auto stocks gain

Key benchmark indices hovered within a narrow range in positive terrain in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex was up 98.41 points or 0.35% at 28,441.42. The gains for the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty was currently up 41.05 points or 0.47% at 8,785.40. Earlier, key indices after opening higher had extended gains and hit multi-month highs in morning trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,260 shares rose and 952 shares declined. A total of 156 shares were unchanged. The BSE Mid-Cap index was currently up 0.56%. The BSE Small-Cap index was currently up 0.39%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks were mixed. US stocks slipped yesterday, 30 August 2016, as the dollar strengthened on expectations that the Federal Reserve was moving closer to raising interest rates. US consumer confidence rose to an 11-month high in August, with households more upbeat about the labour market, data showed overnight. The focus is now on US nonfarm-payroll data for August due on Friday, 2 September 2016.

Auto stocks gained. Mahindra & Mahindra (M&M) (up 0.25%), Ashok Leyland (up 0.4%), Bajaj Auto (up 0.77%), Hero MotoCorp (up 1.75%), Tata Motors (up 2.33%) and TVS Motor Company (up 0.91%) gained. Eicher Motors declined 0.38%.

Maruti Suzuki India rose 0.3% to Rs 5,083.90. The stock turned ex-dividend today, 31 August 2016, for final dividend of Rs 35 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.69% based on the closing price of Rs 5,068.90 yesterday, 30 August 2016.

The BSE Auto index had outperformed the market over the past one month till 30 August 2016, rising 3.98% compared with 1.04% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.91% as against Sensex's 6.05% rise.

Telecom stocks declined. Bharti Airtel (down 0.41%), Reliance Communications (RCom) (down 0.19%) and Idea Cellular (down 0.16%) declined. Tata Teleservices (Maharashtra) rose 0.94%.

Shares of Bharti Infratel gained 0.7%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

The BSE Telecom index had underperformed the market over the past one month till 30 August 2016, falling 7.98% compared with 1.04% rise in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 7.26% as against Sensex's 6.05% rise.

HDFC rose 0.73% after the company's announcement that it is aiming to raise Rs 500 crore by issuing rupee denominated bonds to overseas investors. The announcement was made after market hours yesterday, 30 August 2016. HDFC said the rupee denominated overseas bond issue will open today, 31 August 2016 and will close tomorrow, 1 September 2016. The bonds will be listed on the London Stock Exchange (LSE). This is second overseas rupee denominated bond issue from HDFC. HDFC became the first Indian company when it raised Rs 3000 crore from rupee denominated overseas bonds last month.

Indraprastha Medical Corporation rose 1.39% after net profit rose 18.7% to Rs 8.38 crore on 2.16% rise in net sales to Rs 186.69 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 30 August 2016.

Goodyear India rose 1.48% after net profit rose 11.36% to Rs 41.28 crore on 2.46% fall in net sales to Rs 415.38 crore in the quarter ended 30 June 2016 over the quarter ended 30 June 2015. The result was announced after market hours yesterday, 30 August 2016.

Cox & Kings fell 3% after consolidated net profit fell 23.67% to Rs 108.07 crore on 2.84% decline in net sales to Rs 2062.46 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 30 August 2016.

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