Benchmarks hit day's high; most Asian stocks rise

The benchmark indices firmed up further and hit fresh intraday high in mid-morning trade. The Nifty crossed 10,900 mark. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 496.65 points or 1.36% at 37,050.25. The Nifty 50 index was up 123.80 points or 1.15% at 10,929.35.

In the broader market, the S&P BSE Mid-Cap index gained 1.28% while the S&P BSE Small-Cap index rose 1.25%.

The market breadth was strong. On the BSE, 1592 shares rose and 638 shares fell. A total of 165 shares were unchanged.

Buzzing Index:

The Nifty FMCG index added 2.22% to 29,688.80. The index had shed 0.95% yesterday.

Tata Consumer Products (up 4.48%), Marico (up 3.91%), Godrej Consumer (up 3.33%), United Spirits (up 3.02%), Colgate-Palmolive India (up 2.72%), Nestle India (up 2.67%), United Breweries (up 2.52%), Varun Beverages (up 2.62%) and Hindustan Unilever (up 2.33%) edged higher.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) rose 2.05% to Rs 585.50. M&M after market hours on Thursday announced that it converted 480 compulsorily convertible preference shares of Sampo Rosenlew Oy, Finland, into 1,440 equity shares and exercised a call option to acquire 633 equity shares from the owners of Sampo. Accordingly, the voting rights of the company in Sampo would increased from 49.14% to upto 74.97%, and Sampo would become a subsidiary of M&M.

GMR Infrastructure surged 8.02% to Rs 22.90. The company announced signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding (GSPHL) of its entire 51% stake in Kakinada SEZ (KSEZ) to Aurobindo Realty and Infrastructure (ARIPL). As part of the proposed transfer of stake of KSEZ, the 100% equity stake of Kakinada Gateway Port (KGPL) held by KSEZ would also be transferred to Aurobindo Realty. Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2610 crore.

Cadila Healthcare rose 1.05% to Rs 380. Zydus Cadila has received final approval from the US Food and Drug Administration (USFDA) to market Dimethyl Fumarate delayed-release capsules, (US RLD: Tecfidera) in the strengths of 120 mg and 240 mg. The USFDA granted approval following entry of judgment in favor of Zydus Cadila and other ANDA applicants by the United States District Court for the District of Delaware, holding that the only unexpired patent covering Tecfidera is invalid. Dimethyl Fumarate delayed-release capsules are indicated for the treatment of patients with relapsing forms of multiple sclerosis and will be manufactured at the group's manufacturing facility at the SEZ, Matoda.

Global Markets:

Most Asian markets advanced on Friday buoyed by robust U.S. housing data supported a late tech-driven rally on Wall Street.

U.S. stocks ended positive in choppy trade on Thursday, led by a dogged comeback in the technology sector, having initially sold off on higher-than-expected unemployment claims.

Investors remained uncertain about Washington's ability to pass a stimulus package after Fed officials indicated they expected more fiscal support. Consequently, the fears of a delayed global economic recovery from the novel coronavirus pandemic resurfaced.

Jobless claims in the US rose 4,000 to 870,000 (from 866000 last week), the Labor Department said Thursday, reflecting that slightly more Americans applied for state unemployment benefits in the week ended Sept. 19 than in the prior week.

Sales in US of new single-family homes in August exceeded an annual rate of 1 million for the first time since 2006. New home sales occurred at a seasonally adjusted, annual rate of 1.011 million (vs 0.965 mn in July and up 43% YoY)

As per reports, US lawmakers, which include Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi are looking to iron out differences on a fresh round of stimulus to boost the economy. The Democrats could announce a $2.4 trillion stimulus package as early as next week.

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