Metal and banking stocks led gains for key benchmark indices. At 12:18 IST, the barometer index, the S&P BSE Sensex was up 207.44 points or 0.85% at 24,545.87. The gains for 50-unit Nifty 50 index were higher in percentage terms than those for Sensex. The Nifty was currently up 69.95 points or 0.94% at 7,473.95. The Sensex rose 267.57 points or 1.09% at the day's high of 24,606 in morning trade, its highest level since 2 February 2016. The barometer index rose 7.36 points or 0.03% at the day's low of 24,345.79 at the onset of the trading session. The Nifty rose 81 points or 1.09% at the day's high of 7,485 in morning trade, its highest level since 2 February 2016. The index rose 2.65 points or 0.03% at the day's low of 7,406.65 at the onset of the trading session.
In overseas stock markets, Asian stocks edged higher amid reduced expectations for further interest rate increases from the US Federal Reserve in this calendar year. But, Japanese stocks fell as the Japanese yen strengthened against the dollar. The Nikkei Stock Average ended 1.32% lower. US stocks registered modest gains yesterday, 4 February 2016, led by advances in the materials and industrials sectors.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,327 shares rose and 889 shares declined. A total of 119 shares were unchanged. The BSE Mid-Cap index was currently up 1.39%. The BSE Small-Cap index was currently up 0.87%. Both these indices outperformed the Sensex.
Bank stocks edged higher on renewed buying. Among public sector banks, Canara Bank (up 4.23%), Union Bank of India (up 3.17%), Bank of India (up 2.2%), State Bank of India (up 1.87%), Bank of Baroda (up 2.11%), Punjab National Bank (up 2.47%) and IDBI Bank (up 1.08%) gained.
Among private sector banks, Axis Bank (up 2.98%), Kotak Mahindra Bank (up 2.11%), Yes Bank (up 2.2%), ICICI Bank (up 1.2%), HDFC Bank (up 0.73%) and IndusInd Bank (up 0.08%) edged higher.
Steel sector stocks edged higher on media reports the government may set minimum import price (MIP) on steel imports. Jindal Steel & Power (up 9.23%), Steel Authority of India (up 5.32%) and JSW Steel (up 2.43%) edged higher. The government has been considering MIP on steel in order to protect domestic steel manufacturers from cheap imports from China, according to reports.
Tata Steel edged higher in volatile trade. The stock was currently up 0.95% at Rs 228.30. The stock hit a high of Rs 231 and a low of Rs 215 so far during the day. The company reported consolidated net loss of Rs 2127 crore in Q3 December 2015 compared with net profit of Rs 157 crore in Q3 December 2014. Turnover fell 16.63% to Rs 28039 crore in Q3 December 2015 over Q3 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) excluding one-offs and profit on sale of investments declined 69.96% to Rs 838 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 4 February 2016.
T V Narendran, Managing Director of Tata Steel India and South East Asia said that steel markets in India have been affected by depressed international steel prices and predatory imports. The quarter saw a sharp decline in steel prices which has impacted the margins, Narendran said. Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel said that the current business conditions for the global steel industry are extremely challenging with confluence of elevated imports across regions, currency headwinds and depressed market sentiments affecting Tata Steel Group's profitability. The Tata Steel Group has embarked on significant cost rationalisation program including fixed cost reduction, right sizing of manpower, productivity management and enriching the product mix across all geographies, Chatterjee said. These programs are expected to enhance the sustainable profitability profile of the company, he added. The company has also undertaken significant portfolio restructuring and will continue to pursue the same in the future, Chatterjee said.
Among other metal stocks, Vedanta (up 8.49%), Hindalco Industries (up 4.3%), NMDC (up 3.82%), Hindustan Zinc (up 3.19%), National Aluminium Company (up 2.56%) and Hindustan Copper (up 2.38%) gained.
Berger Paints India rose 3.95% at Rs 278.80 after net profit rose 37.8% to Rs 101.11 crore on 10.2% growth in net sales to Rs 1074.07 crore in Q3 December 2015 over Q3 December 2014. Earnings before depreciation, interest and taxation (EBDIT) rose 28.93% to Rs 181.57 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 4 February 2016.
Hawkins Cookers rose 2.64% at Rs 2,765 after net profit jumped 115.3% to Rs 6.61 crore on 26.4% growth in total income to Rs 143.07 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 4 February 2016.
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