Domestic equity markets jumped 1.7 per cent on Tuesday with benchmark indices recovering from year-lows supported by value buying amid recovery in rupee. Prime Minister Narendra Modi’s meeting with representatives of corporate India on weathering the global economic turbulance also helped the sentiment.

The sentiments also got some support after Moody’s Investors Service stated that India’s current account deficit is likely to remain low supported by declining oil prices but added that however a slow recovery in industrial output and investment would drag economic growth to 7 per cent in the current fiscal.

The BSE Sensex and NSE Nifty gained 424.06 points and 129.45 points at 25,317.87 and 7,688.25, respectively, on Tuesday.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The government’s meeting on Tuesday with corporate leaders, acknowledging the global concerns, which is impacting India has calmed the market. Currently, all emerging markets are under high volatility led by global factors. The government signalled its intention to further support the domestic economy and highlighted this volatility as an opportunity, which has helped the market. The market will continue to be cautious and is likely to stabilise following the FOMC rate decision next week.”

Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE Bankex gained the most — 3.61 per cent at 18,702.29, it was followed by the BSE Power index (up 3.17 per cent), the BSE Capital Goods index (up 3.16 per cent) and BSE Realty index (up 2.63 per cent).

On the other hand, BSE Consumer Durables index and BSE Fast Moving Consumer Goods index slid 1.2 per cent and 0.85 per cent at 10,421.67 and 7,432.94.

In the 50-share Nifty pack, Gail, YES Bank, BHEL, Tata Steel and Axis Bank gained between 5 per cent and 7.50 per cent. Cairn, HUL, BPCL and Tech Mahindra declined between 0.10 per cent and 2.20 per cent and stood at the bottom on the performance chart of the index.

Shares of JSW Energy and Jaiprakash Power Ventures remained in news on Tuesday. JSW Energy has signed an accord to buy a power plant from Jaiprakash Power Ventures, the companies said on Tuesday, as India’s indebted corporations sell assets to repair their balance sheets. JSW Energy and Jaiprakash Power have signed a binding memorandum of understanding for the latter’s Bina power plant in the central state of Madhya Pradesh, the companies said in separate stock exchange filings. JSW Energy and Jaiprakash Power Ventures shares jumped 9.59 per cent and 5.39 per cent at Rs 74.25 and Rs 5.87 apiece.

Asian peers, Hang Seng and Shanghai jumped 3.28 per cent and 2.91 per cent while Nikkei closed down by 2.43 per cent on Tuesday.

Achin Goel, head, wealth management and financial planning, Bonanza Portfolio, said, “Rally in Chinese stocks boosted investor confidence in other Asian markets.”

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Markets through the day

3.30 pm: The BSE Sensex and NSE Nifty closed 1.70 and 1.71 per cent higher at 25,317.87 and 7,688.25.

3.13 pm: Metal stocks rose on Tuesday tracking gains in China stocks. The BSE Metal index was up 2.3 per cent at 7,113.84. SAIL jumped over 9 per cent to Rs 52.15. Tata Steel and JSW Steel were trading 5 per cent higher at Rs 229 and Rs 939, respectively.

3.05 pm: Among the 30-Sensex constituents, Tata Steel gained the most by surging 6.21 per cent to Rs 229.30, followed by GAIL rising 5.92 per cent to Rs 293.55. Other prominent gainers were BHEL, Vedanta, ICICI Bank, Axis Bank, Hindalco, SBI, M&M, NTPC, RIL and L&T.

Globally, Hong Kong’s Hang Seng index surged 3.74 per cent, while Japan’s Nikkei shed 2.43 per cent. European markets were also in positive terrain in early trade.

3.00 pm: The 30-share index flared up by 483 points or 1.94 per cent at 25,377.27 in the afternoon trade. The gauge had lost 870.97 points in the previous two trading sessions to close at 15-month low. Positive Asian cues also influenced sentiment on Tuesday, brokers said.

2.35 pm: Jaiprakash Power Ventures (JPVL) shares surged over 6 per cent in the afternoon trade on Tuesday after the company announced that it has concluded the sale of Securities of Himachal Baspa Power Company (HBPCL) to JSW Energy at an enterprise value of Rs 9,700 crore reduced by mutually agreed adjustments, including inter-alia Rs 300 crore which is payable upon receipt of certain additional consents and approvals related to the Karcham Wangtoo HEP. Sensex was trading 1.88 per cent higher at 25,363.

2.30 pm: Sensex jumped over 500 points at 25,411.

2.19 pm: Rally in Chinese stocks boosted sentiment on the domestic and global markets, with key benchmark indices surging in afternoon trade. The BSE Sensex was up 422 points at 25,316.

1.33 pm: Sensex up 324.62 points at 25,218.43. Nifty up 95.85 points at 7,654.65. JSW Energy shares up 9.45% at Rs 74.15on expectations that the company may announce to buy a power plant in from debt-burdened Jaiprakash Power Ventures Ltd.

1.15 pm: On the sectoral front, banking, power, realty and metal witnessed the maximum gain in trade, while consumer durables, fast moving consumer goods and healthcare remained the top losers on the BSE sectoral space. 

1.10 pm: Sentiment turned upbeat after Moody’s Investors Service said India’s current account deficit is likely to remain low supported by declining oil prices but a slow recovery in industrial output and investment would drag economic growth to 7 per cent in the current fiscal. Appreciation in Indian rupee too supported the sentiments.

Firm opening in European counters too supported the sentiments, CAC, DAX and FTSE all were trading with a gain of around a percent in early deals.

1.05 pm: The rupee firmed up further in the afternoon trade and was trading higher by 23 paise to quote at 66.57 following sustained selling of the greenback by banks and exporters amid weakness of dollar overseas on the back of higher equities. Sensex was up 287 points at 25,181. Nifty was trading 95 points higher 7653.

12.33 pm: Sensex was up 211 points at 25,105.

12.27 pm: Goldman Sachs downgrades Amara Raja Batteries  to ‘neutral’ from ‘buy’ citing limited upside post recent outperformance. The share price of the company was trading 1.79 per cent lower at Rs 910.

12.06 pm: Share price of Infosys was trading 1 per cent higher at Rs 1070.20. The US government has found no visa violations by IT major Infosys. The US had initiated investigation against Infosys and its rival Tata Consultancy Services for possible violations of H1-B visa rules in June 2015. The investigation came on the back of a complaint by two US Senators, who alleged that the two companies used a US visa programme to “replace hundreds of American workers” at a power company. Indian outsourcers are among the biggest recipients H-1B visas, which are intended for highly skilled workers. Angel Broking is bullish on the IT company and believes the share price can touch Rs 1,306 in the next few quarters.

Sensex was up 157.44 points at 25,051. Nifty was up 53.90 points at 7,612.70.

11.50 am: Sensex was up 103 points at 24,997. GAIL and ICICI Bank were trading over 3 per cent higher at Rs 288.05 and Rs 257.25.

11.08 am: Sensex was down 34.58 points at 24,859. Nifty was down 9.60 points at 7,549.20.

10.34 am: Brokers said emergence of buying by participants at prevailing levels and sustained buying by domestic financial institutions, supported the market. Nifty was up 25.20 points at 7,584. 

9.50 am: Sensex was up 76.83 points at 24,970.

9.22 am: Key benchmark indices edged higher amid initial volatility as bargain hunting emerged after witnessing recent sharp losses. The barometer index, the S&P BSE Sensex was up over 109.12 points at 25,002.93. The Sensex regained psychological 25,000 level. The index had settled below that mark on Monday. The 50-unit CNX Nifty was up 33.30 points at 7,588.75. In the 50-share pack, Gail and YES Bank gained over 2 per cent in the early trade. Realty and banking stocks led gains on the bourses. The market breadth was positive.

9.18 am: Sensex was down 1.52 points at 24,892.29.

Domestic equity markets opened on a positive note on Tuesday tracking mixed Asian markets.

The BSE Sensex opened 78.20 points higher at 24,972.01. NSE Nifty opened 28.90 points up at 7,587.70.

Shares of banking, realty and power were trading in green in the early trade.

Stocks that are in focus: Maruti Suzuki, Reliance Infra and more

Benchmark indices on Monday witnessed a dismal day of trade as the BSE Sensex and NSE Nifty lost over a percent, with sell-off aggravating in the final hour of trade.

Future & Option (F&O) total turnover stood at Rs 1,74,849.08 crore on September 7 and the total number of contracts traded on the day were 80,58,234.

Of the total turnover, Index Futures contributed Rs 17,559.70 crore, Stock Futures Rs 16,059.20 crore and Index Options Rs 1,33,452.55 crore, while the contribution of the Stock Options was of Rs 7,777.62 crore.

On Monday, the total F&O PutCall ratio stood 0.90 while Index Options PutCall ratio was 0.92 and that of Stock Options was 0.57.

Global Markets

London: Britain’s top share index rose on Monday, led into positive territory by Glencore after the mining and commodities trading firm announced a plan to cut billions of dollars in debt in the face of weakening metals prices.

Tokyo: Japanese stocks dropped in another choppy morning session on Tuesday as lingering worries over China’s economic health offset revised data showing Japan’s economy shrank less than expected.

Hong Kong: The Hang Seng Index was up 0.09 percent.

US: The US markets remained closed on Monday on account of Labor Day, unable to give any cues to the other global markets.

(With inputs from agencies)