Metal and banking stocks led rally as key benchmark indices surged in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex, was up 485.09 points or 1.92% at 25,802.96. The 50-unit CNX Nifty was up 146.50 points or 1.91% at 7,834.75. The Nifty hit one-week high when the index jumped 157.80 points at the day's high of 7,846.05 in intraday trade. The Sensex hit its highest level in almost a week when it jumped 502.69 points at the day's high of 25,820.56 in intraday trade. The rally on the domestic bourses was a part of the rally in global stocks.
The BSE Small-Cap and Mid-Cap indices, both, outperformed the Sensex. The BSE Mid-Cap index was up 2.39%. The BSE Small-Cap index was up 2.12%. The broad market depicted strength. On BSE, there were more than three gainers against every loser. 1,888 shares rose and 602 shares fell. A total of 79 shares were unchanged.
In overseas markets, Asian and European stocks surged after China said it would allocate additional funds to finance infrastructure projects, implement tax cuts for small businesses and accelerate the use of the public-private-partnership model to stimulate economic growth. In Japan, the Nikkei 225 Average rose a staggering 7.71% in a single trading session after reported comments from Prime Minister Shinzo Abe that the government plans to reduce the corporate tax rate by a cumulative 3.3 percentage points over two years. Trading in US index futures indicated that the Dow could jump 195 points at the opening bell.
Closer home, bank stocks were in demand. Among PSU banks, Union Bank of India (up 5.61%), Punjab National Bank (up 2.82%), Canara Bank (up 2.63%), Bank of Baroda (up 2.06%), Bank of India (up 1.99%), IDBI Bank (up 2.61%), State Bank of India (up 2.39%), United Bank of India (up 1.44%), Oriental Bank of Commerce (up 1.54%) and Andhra Bank (up 1.22%) edged higher.
Among private sector banks, Axis Bank (up 3.42%), IndusInd Bank (up 3.11%), Kotak Mahindra Bank (up 2.27%), ICICI Bank (up 2.3%) and HDFC Bank (up 1.61%) edged higher.
Yes Bank rose 3.72% at Rs 721.90. Mr. Rana Kapoor, MD & CEO of Yes Bank has announced the planned launch of the bank's single largest centralised operations management and services delivery facility at Ambattur in Chennai. The new office will house more than 12,000 employees in two phases. The phase one of the facility is expected to become operational by Q1 FY 2017. Kapoor who is also the President of industry body Assocham made the announcement at the time of addressing the inaugural session of the Tamil Nadu Global Investors Meet 2015.
Cement stocks edged higher on renewed buying. Ambuja Cements (up 3.38%), UltraTech Cement (up 3.15%), Shree Cement (up 2.63%) and ACC (up 2.65%) edged higher.
Grasim Industries was up 1.67% at Rs 3,490. Grasim has exposure to cement sector through its holding in UltraTech Cement.
NMDC was up 2.83% at Rs 98.20. NMDC during market hours today, 9 September 2015 said its production of iron ore (provisional) fell 13.05% to 10.52 million tonnes upto five months ended August 2015 over corresponing previous period. Sales of iron ore (provisional) dropped 16.94% to 11.27 million tonnes upto five months ended August 2015 over corresponing previous period.
Mahindra & Mahindra (M&M) was up 2.87% at Rs 1,179. M&M during market hours today, 9 September 2015, announced that it is signing a memorandum of understanding (MOU) with the Tamil Nadu state government for making a total investment of Rs 2000 crore in the state over the next 5 years. The capital expenditure includes investment in the company's R&D centre in Chennai, for setting up a new test track for Mahindra Research Valley (MRV) and for setting up a new automotive plant. MRV is the R&D unit of M&M. The company may increase the planned capital expenditure in the state to Rs 4000 crore by 2022. The decision regarding raising the investment will be made in due course.
Index heavyweight and housing finance firm HDFC rose 2.36% at Rs 1,199.15.
Index heavyweight and IT major Infosys gained 2.37% at Rs 1,084.45.
Index heavyweight and engineering & construction major L&T rose 1.27% at Rs 1,584.50.
Index heavyweight and crude oil refiner Reliance Industries (RIL) gained 2.03% at Rs 866.15.
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