Market extends gains

Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade as firmness in European stocks boosted sentiment. At 14:20 IST, the barometer index, the S&P BSE Sensex was up 103.21 points or 0.36% at 28,525.62. The Nifty 50 index was currently up 27.70 points or 0.32% at 8,801.60.

The Sensex rose 116.49 points or 0.4% at the day's high of 28,539.97 in mid-afternoon trade. The barometer index rose 4.15 points or 0.01% at the day's low of 28,427.63 in afternoon trade. The Nifty rose 31.25 points or 0.35% at the day's high of 8,805.90 in mid-afternoon trade. The index shed 6.45 points or 0.07% at the day's low of 8,768.20 in afternoon trade.

In overseas stock markets, European stocks edged higher with banks and industrial stocks leading the gains. Asian stocks were mixed ahead of the influential US non-farm payrolls data, which will be released later in the global day today, 2 September 2016. US stocks finished mostly higher yesterday, 1 September 2016, recovering from earlier losses, as investors braced for the much-anticipated August jobs data, which could set the stage for a near-term interest-rate increase by the Federal Reserve. A report from the Institute of Supply Management (ISM) yesterday, 1 September 2016 showed US factory activity contracted for the first time in six months in August as new orders and production tumbled.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,451 shares rose and 1,153 shares declined. A total of 163 shares were unchanged. The BSE Mid-Cap index was currently up 0.48%. The BSE Small-Cap index was currently up 0.47%. Both these indices outperformed the Sensex.

FMCG stocks were mixed. Nestle India (down 0.83%), Marico (down 0.6%), Britannia Industries (down 0.56%), and Hindustan Unilever (HUL) (down 0.87%) declined. Dabur India (up 0.8%), Tata Global Beverages (up 0.64%), Colgate Palmolive India (up 0.19%), GlaxoSmithkline Consumer Healthcare (up 0.17%), Godrej Consumer Products (up 0.49%), Jyothy Laboratories (up 0.55%), Procter & Gamble Hygiene and Health Care (up 1.01%), and Bajaj Corp (up 1.3%) gained.

Shipping Corporation of India (SCI) rose 8.73% on reports the company is planning to revive a 40-year-old joint venture with an Iranian company to beat slowdown in the shipping industry. SCI holds 49% stake of the Iranian joint venture firm, Irano Hind Shipping, while Islamic Republic of Iran Shipping Lines controls the rest. SCI and Islamic Republic of Iran Shipping Lines had in 2012 reportedly decided to dissolve the Tehran-based joint venture, after years of sanctions against Iran over its disputed nuclear program crimped trade flows. Those restrictions began easing in January 2016.

SCI's Chairman B. B. Sinha was quoted as saying that the recent easing of sanctions on Iran opened the way to resuscitating Irano Hind Shipping Company, which potentially offers access to Central Asian markets such as Kazakhstan. The other partner, Islamic Republic of Iran Shipping Lines, has got great presence in the Caspian Sea, he added.

TVS Motor Company rose 1.92% after the company reported 20% increase in total sales to 2.74 lakh units in August 2016 over August 2015. The company announced the monthly sales volume data after market hours yesterday, 1 September 2016. TVS Motor Company's total two-wheeler sales rose 23.5% to 2.67 lakh units in August 2016 over August 2015. Domestic two-wheeler sales rose 30.1% to 2.38 lakh units in August 2016 over August 2015. Scooter sales rose 5.1% to 76,572 units in August 2016 over August 2015. Motorcycle sales rose 31.2% to 1.14 lakh units in August 2016 over August 2015. Three-wheeler sales fell 38.99% to 6,633 units in August 2016 over August 2015. Total exports fell 19.9% to 34,097 units in August 2016 over August 2015. Exports of two-wheelers fell 13.41% to 28,686 units in August 2016 over August 2015.

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