Cement stocks extend recent gains

Key benchmark indices recovered after trimming intraday gains in mid-morning trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 168.71 points or 0.68% at 25,121.45. The 50-unit Nifty 50 index was up 49.90 points or 0.66% at 7,654.25. The Sensex was currently trading above the psychological 25,000 mark after regaining that level in intraday trade.

The market sentiment was positive after the latest data showed that foreign portfolio investors (FPIs) made heavy purchases of Indian stocks during the previous trading session. FPIs bought shares worth a net Rs 1712.62 crore on Friday, 18 March 2016, as per provisional data released by the stock exchanges. The Sensex had risen 275.37 points or 1.12% to settle at 24,952.74 on that day.

The market breadth indicating the overall health of the market was positive. On BSE, 1,346 shares rose and 996 shares fell. A total of 148 shares were unchanged. The BSE Mid-Cap index was currently up 0.92%. The BSE Small-Cap index was currently up 0.99%. Both these indices outperformed the Sensex.

In overseas stock markets, Chinese stocks edged higher after authorities signaled a loosening stance toward margin trading, the practice of using borrowed money to buy shares. In mainland China, the Shanghai Composite was currently up 1.6%. In Hong Kong, the Hang Seng index was currently off 0.04%. US stocks closed higher during the previous trading session on Friday, 18 March 2016, extending the rally that followed the Federal Reserve's accommodative policy decision during the week.

Auto stocks were mixed. Tata Motors (up 2.21%), Maruti Suzuki India (up 0.26%), Eicher Motors (up 0.08%), TVS Motor Company (up 1.64%) and Ashok Leyland (up 4.42%) gained. Bajaj Auto shed 0.08%.

Mahindra & Mahindra (M&M) slipped 0.09%. M&M during market hours today, 21 March 2016 said that Mahindra Powerol, a business of newly formed Mahindra Powertrain division of the company, has launched a new range of 125 Kilovolt amperes (kVA) diesel generators.

Shares of Hero MotoCorp fell 1.27% to Rs 2,796.95 as the stock turned ex-dividend for an interim dividend of Rs 40 per share for the year ending 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 1.41% based on the closing price of Rs 2,832.90 on BSE on Friday, 18 March 2016.

Cement stocks extended their recent gains. ACC (up 2.16%), UltraTech Cement (up 3.44%) and Shree Cement (up 2.57%) gained.

Ambuja Cements edged higher on media reports that a foreign brokerage has maintained its buy rating on the stock, stating that it remains a play on cement upcycle and should be a beneficiary of better pricing in the North India. The stock was up 2.28%.

Grasim Industries was up 1.33% at Rs 3,707.95. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

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