Banking, auto sector stocks and index heavyweights Reliance Industries and HDFC led decent gains for key benchmark indices. The barometer index, the S&P BSE Sensex rose 258.70 points or 0.91% at 28,766.12, as per the provisional closing data. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty rose 90.30 points or 1.03% at 8,867.45, as per the provisional closing data. Gains in global markets aided the upmove on the domestic bourses.
The Sensex surged 364.50 points or 1.27% at the day's high of 28,871.92 in early trade, its highest level since 9 September 2016. The barometer index rose 185.65 points or 0.65% at the day's low of 28,693.07 in early afternoon trade. The Nifty jumped 116.20 points or 1.32% at the day's high of 8,893.35 in early trade, its highest level since 9 September 2016. The index rose 60.65 points or 0.69% at the day's low of 8,837.80 in early afternoon trade.
In overseas stock markets, European and Asian stocks edged higher mirroring gains in the US market after the Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018. US stocks registered strong gains yesterday, 21 September 2016, after the Federal Reserve kept interest rates unchanged but hinted at the possibility of a rate hike later this year. Concluding a two-day meeting, the Federal Open Market Committee (FOMC) announced that the federal funds rate will remain at 0.25% to 0.5%. The Fed also said risks to the economy have diminished since its last meeting in July. The Fed last raised rates in December 2015, the first hike in almost a decade.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,674 shares rose and 1,064 shares declined. A total of 235 shares were unchanged. The BSE Mid-Cap index provisionally rose 1.39%. The BSE Small-Cap index provisionally rose 1%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3298 crore, higher than turnover of Rs 3180.94 crore registered during the previous trading session.
Index heavyweight Reliance Industries was up 1.46% at Rs 1,087. The stock hit a high of Rs 1,095.50 and a low of Rs 1,079.10 in intraday trade.
Index heavyweight HDFC Bank rose 0.96% at Rs 1,305.20 after the bank said it has allotted senior, unsecured, redeemable, long-term non-convertible bonds in the nature of debentures amounting to Rs 6700 crore on a private placement basis. The announcement was made during market hours today, 22 September 2016.
Index heavyweight and housing finance major HDFC rose 1.57% at Rs 1,414 after the company announced that it intends to raise Rs 1340 crore through issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.67% per annum and will have a tenor of 1 year 2 months. The issue will open and close on the same day tomorrow, 23 September 2016. The announcement was made after market hours yesterday, 21 September 2016.
Auto stocks rose. TVS Motor Company (up 5.06%), Hero MotoCorp (up 2.11%), Maruti Suzuki India (up 1.58%), Bajaj Auto (up 0.8%), Tata Motors (up 1.43%), Eicher Motors (up 2.83%) and Ashok Leyland (up 1.02%) edged higher.
Mahindra & Mahindra (M&M) was up 0.46% at Rs 1,413.95. The company announced the proactive inspection of a fluid hose on all New Generation Scorpio & NuvoSport vehicles, manufactured till June 2016. This is in keeping with the company's customer centric approach, the company said. The inspection and subsequent rectification will be carried out free of cost for all New Generation Scorpio & NuvoSport customers, who will be individually contacted by the company. As an endeavor to ensure a hassle free experience for its customers, the company is proactively carrying out this activity, it said. This action is also in compliance with SIAM's voluntary code on vehicle recall, M&M said. The announcement was made after market hours yesterday, 21 September 2016.
Engineering and construction major L&T rose 1.85% at Rs 1,498.50 after the company said it has signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. The announcement was made during market hours today, 22 September 2016.
On the macro front, data released by the Reserve Bank of India (RBI) after trading hours yesterday, 21 September 2016, showed that India's current account deficit (CAD) narrowed to $0.3 billion or 0.1% of GDP in Q1 June 2016, which was significantly lower than CAD of $6.1 billion or 1.2% of GDP in Q1 June 2015. The contraction in the CAD was primarily on account of a lower trade deficit.
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