Key benchmark indices traded off intraday high in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 164.09 points or 0.67% at 24,502.52. The 50-unit Nifty 50 index was currently up 51.90 points or 0.7% at 7,455.90. 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, 1,371 shares rose and 964 shares declined. A total of 141 shares were unchanged. The BSE Mid-Cap index was currently up 1.44%. The BSE Small-Cap index was currently up 0.73%. Both these indices outperformed the Sensex.
Realty stocks rose. DLF (up 1.48%), D B Realty (up 1.04%), Indiabulls Real Estate (up 3.28%), Unitech (up 2.03%), Godrej Properties (up 0.45%), Housing Development & Infrastructure (HDIL) (up 3.02%), and Oberoi Realty (up 0.95%) edged higher. Sobha (down 0.74%) and NBCC (down 0.46%) declined.
Most shares of power generation and power distribution companies gained. NTPC (up 0.36%), NHPC (up 1.51%), Tata Power Company (up 2.03%), Adani Power (up 2.38%), and Reliance Power (up 4.21%) gained. Torrent Power (down 1.35%) and Power Grid Corporation of India (down 0.58%) declined.
Reliance Infrastructure (RInfra) rose 5.4% to Rs 432 after the company said it has sold its cement manufacturing subsidiary to Birla Corporation. Shares of Birla Corporation gained 0.1% at Rs 395. The stock was volatile. The stock hit high of Rs 405 and low of Rs 386.65 so far during the day. RInfra after market hours yesterday, 4 February 2016, announced the signing of share purchase agreement with Birla Corporation in relation to 100% sale of its subsidiary Reliance Cement Company (RCCPL). RCCPL has total cement capacity of 5.08 million tonnes per annum (mtpa) at its manufacturing units located at Maihar, Madhya Pradesh and Kundanganj, Uttar Pradesh and a grinding unit of 0.5 mtpa at Butibori, Maharashtra. Under this transaction, Birla Corporation will acquire the 100% shareholding of RInfra in RCCPL.
RInfra said the deal valued its cement business at Rs 4800 crore ($140 per tonne). The proceeds from the sale will be utilised for the group's debt reduction. The deal is EPS accretive for the company's shareholders, RInfra said.
Coal India declined 0.64% to Rs 319.40. The stock hit high of Rs 324.45 and low of Rs 319 so far during the day.
JK Lakshmi Cement fell 0.2% after the company reported net loss of Rs 3.67 crore in Q3 December 2015 compared with net profit of Rs 18.48 crore in Q3 December 2014. The result was announced after market hours yesterday, 4 February 2016. JK Lakshmi Cement's net sales rose 16.6% to Rs 648.28 crore in Q3 December 2015 over Q3 December 2014. The company's profitability suffered due to additional burden of interest and depreciation on account of commissioning of first phase of company's greenfield cement plant at Durg in March 2015.
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