Key benchmark indices registered small gains in a lacklustre trading session. The barometer index, the S&P BSE Sensex, rose 61.46 points or 0.22% at 28,051.67, as per the provisional closing data. The Nifty 50 index rose 17.70 points or 0.21% at 8,650.30, as per the provisional closing data. The Sensex provisionally settled above the psychologically important 28,000 level. The index alternately swung above and below that level in intraday trade. It had settled a tad below that level during the previous trading session.
The Sensex rose 118.18 points or 0.42% at the day's high of 28,108.39 at the onset of trading session, its highest level since 22 August 2016. The barometer index fell 30.34 points or 0.11% at the day's low of 27,959.87 in afternoon trade. The Nifty rose 28.45 points or 0.32% at the day's high of 8,661.05 at the onset of trading session, its highest level since 22 August 2016. The index fell 11.70 points or 0.13% at the day's low of 8,620.90 in mid-afternoon trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,523 shares rose and 1,187 shares declined. A total of 203 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.61%. The BSE Small-Cap index provisionally rose 0.65%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3007 crore, lower than turnover of Rs 3335.38 crore registered during the previous trading session.
Oil stocks rose across the board. Among oil exploration and production (E&P) stocks, Oil India (up 4.24%), ONGC (up 1.17%) and Cairn India (up 0.44%) edged higher.
Index heavyweight Reliance Industries was up 1.12% at Rs 1,021.25. The stock hit a high of Rs 1,022.10 and a low of Rs 1,011.10 in intraday trade.
Among the state-run oil marketing companies (PSU OMCs), BPCL (up 0.63%) and HPCL (up 1.83%) edged higher.
Indian Oil Corporation surged 4.07% at Rs 565.15 after the company said that its board of directors will consider issue of bonus shares along with Q1 June 2016 results on 29 August 2016. The announcement was made during market hours today, 24 August 2016.
Crude futures edged lower in the global commodities markets after data showed increase in US stockpiles last week. Brent crude oil futures for October settlement was currently off 60 cents at $49.36 a barrel. The contract had risen 80 cents or 1.62% to settle at $49.96 a barrel during previous trading session.
Maruti Suzuki India rose 2.31% to Rs 4,945 on reports that a foreign brokerage has upgraded its rating on the stock to buy from outperform with target price of Rs 5,850 per share. The success of Baleno (a premium small car), Ciaz (a sedan) and Vitara Brezza (an urban SUV) has taken Maruti to leadership position in all segments except rural SUVs, the brokerage reportedly said. The brokerage also added that Maruti has significantly reduced its yen exposure.
Maruti pays royalty to its Japanese parent Suzuki Motor Corporation in yen terms for some of its earlier models. The car major has reportedly started paying royalty to its Japanese parent in rupee terms on all new models from 1 April 2016. Maruti also has an exposure to the yen to the extent it imports raw materials from Japan.
Aurobindo Pharma surged after the company announced strong Q1 results. The stock rose 7% at Rs 787.85. The company's consolidated net profit rose 24% to Rs 584.60 crore on 12.9% growth in total operating income to Rs 3725.90 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 23 August 2016. The company's earnings before interest, taxation, depreciation, and amortization (EBITDA) before forex rose 22.6% to Rs 889 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin improved to 23.9% in Q1 June 2016 from 22% in Q1 June 2015.
Aurobindo Pharma's Managing Director N. Govindarajan said that the quarter witnessed a double digit growth on the back of overall business performance. With focus on execution and capability enhancements, Aurobindo continues to progress on specialty generics for a sustained long term growth, he said.
Lupin was down 2.2% at Rs 1,520.50. The company during market hours today, 24 August 2016, announced that its US subsidiary, Gavis Pharmaceuticals LLC, USA has received final approval to market a generic equivalent of Pharmacia & Upjohn Company's Zyvox Tablets, 600 mg. The drug is indicated in adults and children for the treatment of certain infections caused by susceptible Gram-positive bacteria. Zyvox Tablets had annual US sales of $273.6 million, as per IMS MAT June 2016 data.
Idea Cellular lost 2.73% at Rs 98.05 after the company after market hours yesterday, 23 August 2016, denied reports that it was in merger talks with Vodafone India. The stock had surged 6.72% to settle at Rs 100.80 yesterday, 23 August 2016, after a news report suggested that the two companies had initiated exploratory talks for a possible merger.
In overseas stock markets, bank stocks aided gains in European equities. In Germany, the latest data showed that the German economy slowed in the second quarter, as investment dropped after a strong start to the year. Germany's gross domestic product grew at a quarterly rate of 0.4%, or an annualized rate of 1.7%, according to the Federal Statistical Office, Destatis. The economy expanded at a quarterly clip of 0.7% in the first quarter. Asian stocks witnessed a mixed trend ahead of Federal Reserve Chairwoman Janet Yellen's speech later this week, which could provide hints about the timing of the next rate hike from the Fed.
US stocks registered small gains yesterday, 23 August 2016, after upbeat data on US new-home sales. Yellen is due to speak on Friday 26 August 2016, at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.
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