Key benchmark indices extended gains and hit fresh intraday high in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 436.53 points or 1.84% at 24,215.88. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently up 153.15 points or 2.12% at 7,375.45. The Sensex was currently trading above the psychologically important 24,000 level after surpassing that level when it opened with an upward gap. The Sensex and Nifty, both, hit their highest level in more than three weeks. Gains in Asian markets aided the upmove on the domestic bourses.
The Sensex rose 472.01 points or 1.98% at the day's high of 24,251.36 in afternoon trade, its highest level since 8 February 2016. The barometer index rose 264.54 points or 1.11% at the day's low of 24,043.89 in early trade. The Nifty rose 155.45 points or 2.15% at the day's high of 7,377.75 in afternoon trade, its highest level since 8 February 2016. The index rose 85.85 points or 1.18% at the day's low of 7,308.15 in early trade.
Data showing heavy buying from foreign portfolio investors (FPIs) during the previous trading session boosted sentiment on the bourses. FPIs bought shares worth a net Rs 1760.98 crore yesterday, 1 March 2016, as per provisional data released by the stock exchanges. The Sensex had surged 3.38% yesterday, 1 March 2016, a day after the announcement of the Union Budget 2016-17, as investors heaved a sigh of relief with no adverse changes in long-term capital gains tax on sale of shares in the Budget.
In overseas stock markets, Japan and China led upmove in Asian markets triggered by overnight rally on the Wall Street. In Japan, the Nikkei 225 Average closed 4.11% higher. In mainland China, the Shanghai Composite closed 4.26% higher. In Hong Kong, the Hang Seng index was currently up 2.96%. US stocks closed sharply higher yesterday, 1 March 2016, helped by a rise in oil prices and a better-than-expected ISM manufacturing report.
Closer home, the broad market depicted strength. There were more than three gainers against every loser on BSE. 1,907 shares rose and 536 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was currently up 2.22%. The BSE Small-Cap index was currently up 2.53%. Both these indices outperformed the Sensex.
Metal and mining stocks were in demand. Hindustan Copper jumped 4.6%.
Steel stocks moved higher. Tata Steel (up 3.87%), Steel Authority of India (Sail) (up 5.14%) and Jindal Steel & Power (up 4.56%) edged higher. JSW Steel fell 0.89%. The doubling of Clean Energy Cess from Rs 200 to 400 per tonne in the Budget would further increase the input cost for domestic steel makers and hurt margins. On the flip side, the thrust on infrastructure sector in the Budget will help generate much needed demand for steel industry which is reeling under competition from imports and poor domestic demand.
Shares of aluminium makers edged higher on renewed buying. Hindalco Industries (up 8.05%), Vedanta (up 6.2%) and National Aluminium Company (up 2.9%) edged higher. Union Budget 2016-17 addressed rising import issue of the aluminium sector by increasing the custom duty on primary aluminium to 7.5% from 5% and increasing the Basic Customs Duty on other aluminium products to 10% from 7.5%. The increase in custom duty will help to check imports of aluminium. On the flip side, the reduction in export duty on bauxite to 15% from 20% would decrease domestic ore availability.
Hindustan Zinc was up 1.04%. The government raised the Basic Customs Duty on zinc alloys to 7.5% from 5% in the Union Budget 2016-17.
NMDC was up 1.6% at Rs 83.75. The reduction of export duty on iron ore in the Budget will benefit iron ore exporters. Export duty on iron ore fines with Fe content below 58% has been reduced to nil from 10% while the export duty on iron ore lumps with Fe content below 58% has been decreased to nil from 30%.
Realty stocks registered strong gains. DLF (up 10.37%), Indiabulls Real Estate (up 7.41%), Housing Development and Infrastructure (up 6.78%), D B Realty (up 5.85%), Unitech (up 7.77%), Sobha (up 3%), Godrej Properties (up 1.33%), Oberoi Realty (up 4.65%) and Parsvnath Developers (up 3.24%) gained.
Nitesh Estates rose 1.6% after the company announced that through its wholly-owned subsidiary it has signed a joint development agreement for a residential project on a plot of land measuring around 5 acres. The project is located in North Bangalore. The new project too will be a residential development and is expected to generate revenue of Rs 175 crore over the next four year for the company, the company said. The announcement was made after market hours yesterday, 1 March 2016.
Finance minister Arun Jaitley in the Union Budget 2016-17 proposed for rationalization in case of Real Estate Investment Trusts (REITs), measures to boost affordable housing and incentive for first home buyers with additional interest deduction.
Maruti Suzuki India rose 2.33% after the company said that Alto, India's top selling model for over 10 years in a row, has crossed the 30 lakh sales milestone in the Indian market. It took about 15 years and 6 months for Alto to achieve this historic figure, Maruti Suzuki India. Alto is the only Indian auto brand to cross this milestone, the company said. Additionally, over 3.8 lakh Alto have been exported to over 70 countries with Sri Lanka, Algeria, Chile, UK and Netherlands being its top markets, it added.
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