Nifty attains 2-week closing high
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 265.71 points or 0.93% to settle at 28,773.13. 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% to settle at 8,867.45. Gains in global markets aided the upmove on the domestic bourses. The Sensex closed at its highest level in almost two-weeks. The Nifty attained two-week closing high.
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.
Back home, the Sensex rose 265.71 points or 0.93% to settle at 28,773.13, its highest closing level since 9 September 2016. The index surged 364.50 points or 1.28% at the day's high of 28,871.92. The index rose 185.65 points or 0.65% at the day's low of 28,693.07.
The Nifty 50 index rose 90.30 points or 1.03% to settle at 8,867.45, its highest closing level since 8 September 2016 . The index jumped 116.20 points or 1.32% at the day's high of 8,893.35. The index rose 60.65 points or 0.69% at the day's low of 8,837.80.
The market breadth indicating the overall health of the market was strong. On BSE, 1,693 shares rose and 1,045 shares declined. A total of 235 shares were unchanged. The BSE Mid-Cap index rose 1.39%. The BSE Small-Cap index 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.
Among sectoral indices on BSE, the S&P BSE Finance index (up 1.65%), the S&P BSE Oil & Gas index (up 1.51%), the S&P BSE Bankex (up 1.49%), the S&P BSE Auto index (up 1.44%), the S&P BSE Capital Goods index (up 1.37%), the S&P BSE Power index (up 1.36%), the S&P BSE Utilities index (up 1.35%), the S&P BSE Energy index (up 1.30%), the S&P BSE Industrials index (up 1.28%), the S&P BSE Basic Materials index (up 1.26%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.20%), the S&P BSE Realty index (up 1.16%), the S&P BSE Telecom index (up 1.06%), the S&P BSE Metal index (up 1.03%) and the S&P BSE Healthcare index (up 1.02%), underperformed the Sensex. The S&P BSE Consumer Durables index (up 0.89%), the S&P BSE FMCG index (up 0.42%), the S&P BSE Teck index (down 0.12%) and the S&P BSE IT index (down 0.36%), outperformed the Sensex.
Banks were in demand. Among state-run banks, Punjab National Bank (up 3.87%), Bank of India (up 3.10%), Vijaya Bank (up 3%), Central Bank of India (up 2.90%), Bank of Baroda (up 2.88%), Allahabad Bank (up 2.87%), Andhra Bank (up 2.69%), IDBI Bank (up 2.68%), State Bank of India (up 2.39%), Syndicate Bank (up 2.34%), Canara Bank (up 1.94%), Dena Bank (up 1.72%), Punjab & Sind Bank (up 1.45%), Indian Bank (up 1.15%), Corporation Bank (up 0.80%), UCO Bank (up 0.65%), Bank of Maharashtra (up 0.48%) and United Bank of India (up 0.23%), edged higher.
Union Bank of India rose 3.08% at Rs 145.75 after the bank said that it has completed the acquisition of 49% shareholding of Union KBC Asset Management Company and Union KBC Trustee Company from KBC Participations Renta S.A. and its affiliates (KBC Asset Management NV) on 20 September 2016. Accordingly, Union KBC Asset Management Company and Union KBC Trustee Company have become wholly owned subsidiaries of Union Bank of India. The announcement was made after market hours yesterday, 21 September 2016.
Last year, the board of Union Bank of India approved purchase of 49% stake in Union KBC Asset Management and Union KBC Trustee Company from KBC Participations Renta. KBC Participations Renta is a group company of Luxembourg-based KBC Asset Management NV. Union Bank of India and KBC Asset Management NV had formed two joint ventures - Union KBC Asset Management Company and Union KBC Trustee Company - in 2009 with 51% and 49% holding, respectively.
Among private sector banks, Federal Bank (up 3.10%), IndusInd Bank (up 2.98%), Yes Bank (up 2.34%), ICICI Bank (up 2.19%), Kotak Mahindra Bank (up 0.84%) and RBL Bank (up 0.67%), edged higher. City Union Bank (down 0.65%) and Axis Bank (down 1.01%), edged lower.
Index heavyweight HDFC Bank rose 1.25% at Rs 1,309 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 1.71% at Rs 1,416 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.
Index heavyweight Reliance Industries rose 1.52% at Rs 1,087.65. The stock hit a high of Rs 1,095.50 and a low of Rs 1,079.10 in intraday trade.
Aurobindo Pharma jumped 6.33% to Rs 857.15 after the company during trading hours today, 22 September 2016, said it received tentative approval of Dolutegravir 50mg from US Food & Drug Administration (USFDA) for the treatment of HIV. This important milestone marks the first FDA approval of a generic version of Dolutegravir (DTG), an integrase strand transfer inhibitor recommended for use in treatment-naïve patients by the US Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). Through an innovative collaboration with ViiV and the Clinton Health Access Initiative, Inc. (CHAI), the product is expected to be launched in sub-Saharan Africa in late 2016. The approved Abbreviated New Drug Application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Tivicay, of ViiV Healthcare. ViiV Healthcare and Aurobindo Pharma signed a licensing agreement in 2014 that allows Aurobindo Pharma to supply Dolutegravir 50mg in 92 licensed countries, following completion of required local regulatory approval processes.
Auto stocks rose. TVS Motor Company (up 4.83%), Escorts (up 3.48%), Eicher Motors (up 3.18%), Hero MotoCorp (up 2.27%), Maruti Suzuki (India) (up 1.69%), Tata Motors (up 1.52%), Ashok Leyland (up 1.14%) and Bajaj Auto (up 0.80%), edged higher.
Mahindra & Mahindra (M&M) rose 0.43% at Rs 1,413.60. 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 1.88% at Rs 1,499 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.
The Sensex bounced back today, 22 September 2016, after two-day fall. The Sensex had lost 127.08 points or 0.44% in the preceding two trading sessions to settle at 28,507.42 yesterday, 21 September 2016, from its close of 28,634.50 on 19 September 2016. The Sensex has gained 320.96 points or 1.13% in this month so far (till 22 September 2016). The Sensex has risen 2,655.59 points or 10.17% in calendar year 2016 so far (till 22 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 6,278.52 points or 27.91%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 304.15 points or 1.05%. The Sensex is off 1,251.61 points or 4.17% from a record high of 30,024.74 hit on 4 March 2015.
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.