Stocks of pharma companies, two-wheeler makers and index heavyweights ITC and Reliance Industries (RIL) led the latest upmove on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 118.92 points or 0.41% to settle at 29,045.28. The Nifty 50 index rose 34.55 points or 0.39% to settle at 8,952.50. The Sensex settled above the psychologically important 29,000 level. The barometer index alternately moved above and below the mark since early afternoon trade. The Sensex hit its highest closing level in almost 17 months. The Nifty hit its highest closing level in more than 18 months.
The Sensex rose 118.92 points or 0.41% to settle at 29,045.28, its highest closing level since 13 April 2015. The index jumped 150.92 points or 0.52% at the day's high of 29,077.28. The index lost 71.80 points or 0.25% at the day's low of 28,854.56, its lowest level since 6 September 2016.
The Nifty 50 index rose 34.55 points or 0.39% to settle at 8,952.50, its highest closing level since 3 March 2015. The index rose 42.40 points or 0.48% at the day's high of 8,960.35. The index lost 21.95 points or 0.25% at the day's low of 8,896, its lowest level since 6 September 2016.
Among sectoral indices on BSE, the S&P BSE Industrials index (up 0.5%), the S&P BSE Auto index (up 0.91%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.19%), the S&P BSE Realty index (up 3.03%), the S&P BSE Capital Goods index (up 0.76%), the S&P BSE Healthcare index (up 2.2%), the S&P BSE Energy index (up 0.71%), the S&P BSE Telecom index (up 1.13%), the S&P BSE Metal index (up 0.92%), the S&P BSE Basic Materials index (up 0.72%), the S&P BSE Consumer Durables index (up 1.19%), and the S&P BSE FMCG index (up 1%) outperformed the Sensex. The S&P BSE Power index (up 0.24%), the S&P BSE Teck index (down 1.81%), the S&P BSE IT index (down 2.49%), the S&P BSE Bankex (down 0.04%), the S&P BSE Finance index (up 0.31%), the S&P BSE Utilities index (down 0.05%), and the S&P BSE Oil & Gas index (up 0.18%) underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,606 shares rose and 1,151 shares declined. A total of 194 shares were unchanged. The BSE Mid-Cap index rose 0.15%, underperforming the Sensex. The BSE Small-Cap index gained 0.83%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 3963 crore, lower than turnover of Rs 4178.26 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC gained 1.64% to Rs 266. The stock hit a high of Rs 266 and low of Rs 262.90 in intraday trade.
Index heavyweight Reliance Industries (RIL) advanced 1.34% to Rs 1,031.10. The stock hit a high of Rs 1,035.50 and low of Rs 1,020 in intraday trade.
Pharma stocks gained on renewed buying. Sun Pharmaceutical Industries (up 3.84%), Cipla (up 2.14%), Cadila Healthcare (up 3.03%), Dr Reddy's Laboratories (up 1.31%), Glenmark Pharmaceuticals (up 2.95%), Lupin (up 2.15%), Alkem Laboratories (up 1.79%), Aurobindo Pharma (up 3.62%) and Wockhardt (up 5.51%) rose. GlaxoSmithKline Pharmaceuticals fell 0.72%.
Shares of TCS dropped 4.9% to Rs 2,327 after the company warned of a slowdown in discretionary spending in banking, financial services and insurance (BFSI) vertical by its US clients. TCS announced after market hours yesterday, 7 September 2016, that it intends to update investors on business trends in Q2 September 2016. Based on data at the end of August 2016, the company has characterized customer outlook as one marked by abundant caution, with some holding back of discretionary spending - particularly in the BFSI vertical in the United States - resulting in a sequential loss of momentum.
Shares of two-wheeler makers gained. Bajaj Auto (up 3.55%), Hero MotoCorp (up 2.43%), and TVS Motor Company (up 2.29%) gained.
Shares of other auto companies were mixed. Eicher Motors rose 1.64%. Tata Motors dropped 0.54%.
Maruti Suzuki India rose 2.71% to Rs 5,482.40 on reports a foreign brokerage has maintained "buy" rating on the stock. The stock hit a high of Rs 5,499 in intraday trade, which is a record high for the counter. The stock hit a low of Rs 5,316.05 in intraday trade. The brokerage reportedly stated that potential for discounts on the company's vehicles will narrow sharply going ahead. The company's improved positive free cash flow outlook is positive for the stock, it reportedly said.
Mahindra & Mahindra (M&M) declined 0.21%. The company said it has signed a memorandum of understanding (MoU) to enter into a strategic alliance with the shared transportation platform firm, Ola to empower 40,000 driver partners across India by 2018. Through this strategic alliance, they aim overall vehicle sales and financing of over $400 million or Rs 2500 crore. The announcement was made during market hours today, 8 September 2016.
Ola's driver partners can now avail of an integrated and attractive 'Mahindra-Ola' package which will include Mahindra cars at special prices, attractive financing with zero down payment, and the best NBFC interest rates, subsidised insurance premiums, comprehensive maintenance packages as well as exclusive benefits at the Ola platform. The unique alliance seeks to encourage entrepreneurship amongst drivers, to address India's growing mobility needs. Mahindra and Ola will also explore other areas of joint collaboration to build the next generation of mobility solutions including those for unique transportation use cases.
Ashok Leyland declined 0.73%. The company announced a restructuring agreement with Nissan Motor Co. that will enable both companies to enter into a new phase in their business interaction. Nissan has agreed to sell to Ashok Leyland all of Nissan's shares in three joint venture (JV) companies that were formed in 2008. These JVs focus on technology development, and manufacturing of powertrains and vehicles. Under the agreement, these JVs will become wholly-owned Ashok Leyland subsidiaries, upon receipt of all necessary approvals from the regulatory authorities in India. The process is expected to be concluded later this year, Ashok Leyland said. The announcement was made after market hours yesterday, 7 September 2016.
Ashok Leyland's Managing Director, Vinod Dasari said that the company has decided to acquire Nissan's stake in the three JV companies, and this will help Ashok Leyland's efforts to concentrate on its core business initiatives and its customers. Ashok Leyland will continue its relationship with Nissan under the new arrangement, Dasari added.
Most shares of public sector banks gained. UCO Bank (up 3.97%), Syndicate Bank (up 1.14%), Punjab National Bank (up 2.33%), Corporation Bank (up 4.58%), Allahabad Bank (up 0.29%), State Bank of India (SBI) (up 0.53%), Union Bank of India (up 0.6%), Canara Bank (up 0.96%), United Bank of India (up 4.07%), and Bank of India (up 0.77%) edged higher. Bank of Baroda declined 0.03%.
Shares of private sector banks were mixed. Axis Bank (up 0.67%), HDFC Bank (up 0.13%), Kotak Mahindra Bank (up 1.99%), and IndusInd Bank (up 0.12%) edged higher. ICICI Bank (down 0.65%) and Federal Bank (down 1.01%) declined.
Yes Bank lost 5.32% to Rs 1,330.65 after the private sector bank launched a qualified institutional placement of shares to raise up to $1 billion. The announcement was made after market hours yesterday, 7 September 2016. Yes Bank announced opening of qualified institutions placement (QIP) of equity shares of face value Rs 10 each by the bank yesterday, 7 September 2016. The bank announced Rs 1,371.84 per share as the floor price. The bank may at its discretion offer a discount of up to 5% on the floor price in the QIP, Yes Bank said.
The bank said after market hours today, 8 September 2016 that it is required to keep the issue open till 9 September 2016.as the proposed meeting of the Capital Raising Committee of the bank to decide the issue price of QIP willl be held on 12 September 2016.
The Sensex has risen 593.11 points or 2.08% in this month so far (till 8 September 2016). The Sensex has risen 2,927.74 points or 11.2% in calendar year 2016 so far (till 8 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 6,550.67 points or 29.12%. The Sensex is off 979.46 points or 3.26% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks were trading on a mixed note ahead of the European Central Bank (ECB)'s monetary policy decision later in the global day. The ECB is reportedly expected to leave interest rates unchanged, but may announce an extension of its quantitative easing program. Asian stocks ended mixed following mixed lead overnight from Wall Street. US stocks ended on a mixed note yesterday, 7 September 2016, as investors digested the release of the Federal Reserve's Beige Book, a key indicator of the US economic health, which said economic activity continued to expand at a modest pace from July through late August.
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