Nifty crosses 8,000 mark

Key benchmark indices extended gains in mid-afternoon trade, with the Nifty 50 index surpassing the psychologically important 8,000 mark. At 14:15 IST, the Nifty was up 88.95 points or 1.12% at 8,023.85. The gains for the barometer index, the S&P BSE Sensex, were higher in percentage terms than those for the Nifty. The Sensex was currently up 330.02 points or 1.28% at 26,211.19. The Sensex was currently trading above the psychologically important 26,000 mark. The barometer index has alternately moved above and below that level so far during the trading session after piercing that level in early trade.

Strong Q4 March 2016 results from engineering and construction major L&T and the company's guidance of a 15% growth in order inflow during the current financial year boosted sentiment on the bourses. L&T shares surged after the company announced the results and the order inflow guidance after trading hours yesterday, 25 May 2016.

The Sensex hit its highest level in more than 25 weeks when it jumped 345.13 points, or 1.33% at the day's high of 26,226.30 in mid-afternoon trade. The index rose 60.34 points, or 0.23% at the day's low of 25,941.51 in early trade. The Nifty hit a 29-week high when it jumped 94.35 points, or 1.19% at the day's high of 8,029.25 in mid-afternoon trade. The index rose 13.60 points, or 0.17% at the day's low of 7,948.50 in early trade.

The market may remain volatile during the remaining part of the trading session as traders roll over positions in the futures & options (F&O) segment from the near month May 2016 series to June 2016 series. The near month May 2016 derivatives contracts are set to expire today, 26 May 2016.

The market breadth indicating the overall health of the market was positive. On BSE, 1,302 shares rose and 1,141 shares fell. A total of 192 shares were unchanged. The BSE Mid-Cap index was currently up 0.62%. The BSE Small-Cap index was currently up 0.73%. Both these indices underperformed the Sensex.

In overseas stock markets, most European stocks witnessed a mixed trend. Most Asian stocks edged higher as gains in crude oil prices boosted investors' risk appetite. Energy and materials shares sector stocks led gains in US stocks yesterday, 25 May 2016, following a jump in crude oil prices triggered by a weekly report showing a decline in US crude inventories.

Stocks of public sector banks witnessed a mixed trend. State Bank of India (up 2.85%), Canara Bank (up 2.69%), United Bank of India (up 2.33%), Bank of Baroda (up 2.03%), Vijaya Bank (up 1.67%), Central Bank of India (up 1.21%), Union Bank of India (up 1.10%), Bank of India (up 1.08%), Syndicate Bank (up 0.82%), Punjab and Sind Bank (up 0.50%) and Punjab National Bank (up 0.07%), edged higher. IDBI Bank (down 0.08%), Bank of Maharashtra (down 0.18%), UCO Bank (down 0.3%), Allahabad Bank (down 0.4%), Andhra Bank (down 0.43%), Dena Bank (down 0.53%) and Indian Bank (down 0.78%) edged lower.

Stocks of private sector banks edged higher. Federal Bank (up 4.85%), ICICI Bank (up 2.62%), Axis Bank (up 1.22%), City Union Bank (up 1.01%), Kotak Mahindra Bank (up 0.93%), IndusInd Bank (up 0.75%) and HDFC Bank (up 0.19%), edged higher.

Global credit rating agency Moody's Investors Service has said that India's new bankruptcy code will address several key inefficiencies in the current legal framework for asset resolution in India and is credit positive for Indian banks. Moody's said in a report that the proposed bankruptcy law will reduce the duration of insolvency resolution process (IRP) of a delinquent borrower to maximum of 270 days which in turn will strengthen the banks' bargaining power over delinquent borrowers. The bankruptcy law will give creditors overriding authority to approve terms of any restructuring package of a delinquent borrower. Moody's also said that new law may only a have a limited benefit in addressing the current asset quality issues facing Indian banks. According to Moody's, Indian banks will still have limited avenues available to dispose off distressed assets and that the bank will in general remain reluctant to make appropriate haircuts to reflect their current weak operating conditions.

Yes Bank rose 1.23% to Rs 1,008.50 after the Cabinet Committee on Economic Affairs cleared the bank's proposal for increase in foreign investment limit in the bank's equity capital to 74% from 41.87% without any sub-limits. In late April 2016, the Reserve Bank of India (RBI) had raised the ceiling on investment in the bank's equity capital by foreign institutional investors to 60% from 49% after the bank's board of directors and shareholders approved the proposal. The RBI had at time capped total foreign holding in the bank from all sources at 60%.

Sugar stocks edged higher on renewed buying. Dhampur Sugar Mills (up 7.57%), DCM Shriram Industries (up 4.22%), Dwarikesh Sugar Industries (up 4.04%), Sakthi Sugars (up 3.35%), Oudh Sugar Mills (up 2.61%), Rana Sugars (up 2.14%), Balrampur Chini Mills (up 2.06%), Upper Ganges Sugar & Industries (up 1.57%), Shree Renuka Sugar (up 1.38%), Bajaj Hindusthan Sugar (up 1.35%), Empee Sugars and Chemicals (up 1.31%), EID Parry (India) (up 0.25%) and KCP Sugar & Industries Corporation (up 0.17%), edged higher.

Adani Group shares edged higher. Adani Power (up 2.62%), Adani Transmission (up 2.50%), Adani Enterprises (up 2.39%) and Adani Ports & Special Economic Zone (up 1.64%), edged higher.

Strides Shasun rose 2.62% after the company said that it has received tentative approval from the United States Food & Drug Administration for Efavirenz Tablet USP, 600 mg. Strides Shasun said that the final approval from the United States Food & Drug Administration (USFDA) will be received after patent expiry on the drug in August 2018. According to IMS data, the total US market for Efavirenz 600 mg Tablet is approximately $150 million. The product will be manufactured at the company's oral dosage facility at Bangalore and marketed by Strides in the US market. Efavirenz Tablet is indicated for the treatment of Human immunodeficiency Virus Type 1 (HIV-1) infected adults and adolescents. The announcement was done during market hours today, 26 May 2016.

KNR Constructions rose 2.78% after the company secured order worth Rs 414.90 crore from Ministry of Road Transport and Highways for rehabilitation and up-gradation of Dindigul-Bangalore road to four lane with paved shoulder in Tamil Nadu on engineering, procurement and construction basis to be completed within a period of 24 months from the appointed date.

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