The BSE Sensex and NSE Nifty closed 246 points and 82.95 points up at 25,856.70 and 7,872.25, respectively, on Monday.
In the 50-share index, NTPC, Vedanta, BPCL, Hindalco and Tata Steel gained between 3.40 per cent and 5.50 per cent. On the other hand, Cairn India, Idea Cellular, Bajaj Auto, Maruti Suzuki and TCS slid between 0.50 per cent and 1.61 per cent.
Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE Metal index gained the most — 2.7 per cent at 7,392.64, it was followed by the BSE Power index (up 2.5 per cent at 1,830.47), BSE Bankex (up 1.88 per cent at 19,352.04) and BSE Realty index (up 1.62 per cent at 1,309.70). The BSE Consumer Durables index remained the only loser and declined 0.13 per cent at 10,486.82.
Alex Mathews, head research, Geojit BNP Paribas Financial Services, said, “Domestic equity markets moved up mainly because of low wholesale inflation data and expectation of a possible rate cut by RBI. Some of the investors were cutting their long and short positions ahead of US Fed meeting also helped the market.”
Investors are also keenly awaiting retail inflation data that will be released later on Monday. Slowing retail inflation would provide the Reserve Bank of India (RBI) wiggle room to cut interest rates, a move that companies say is essential to jump-start growth.
India’s wholesale prices fell for a tenth straight month in August, tumbling an annual 4.95 percent primarily on the back of a sharp cooling in fuel costs, government data showed on Monday.
Shares of Amtek Auto were in the limelight on Monday as the stock was up by 24 per cent over Friday’s closing. After rising around 80 per cent on Friday, the shares of Amtek Auto continued to rally today after market reports that the company is advanced talks to raise Rs 6,500 crores by selling assets to repay company’s debts. Satya Prakash Goel, director, Bonanza Portfolio, said, “The move, if turns out to be reality, would instill confidence in investors with respect to financial health of stock and would curb speculation in the stock.”
Foreign institutional investors (FIIs) were net sellers in the cash market segment on Friday, sold shares worth Rs 754.27 crore. But DIIs remained net buyers, bought shares worth Rs 411.43 crore in the capital markets segment.
Asian peers, Shanghai and Nikkei closed 2.67 per cent and 1.63 per cent lower at 3,114.80 and 17,965, respectively. Hang Seng closed 0.27 per cent up at 21,561.90.
Markets through the day
3.30 pm: The BSE Sensex closed 246 points up at 25856.70. Nifty settled 82.95 points up at 7,872.25.
S&P BSE Sensex
3.12 pm: Steel makers rose on reports that the government will soon notify a 20 per cent import tax on some hot-rolled steel products. National Aluminium, Hindustan Zinc, Vedanta, Hindalco and Jindal Steel were up over 3 per cent. Sensex was up 272 points at 25,882.
2.47 pm: Siemens shares gained as much as 1.88 per cent on the BSE after the company said it has won order worth Rs 81 crore from Diesel Locomotive Works. Sensex was up 261 points at 25,872.
2.35 pm: Meanwhile, Devendra Kumar Pant, chief economist, India Ratings & Research, said, “Notwithstanding higher inflation for pulses and onion, food article prices witnessed deflation for second consecutive months. Food prices has been able to withstand three adverse weather shocks in last one year – sub-par monsoon in 2014 (affecting kharif output), unseasonal rain (affecting rabi output) and sub-par monsoon in 2015 (affecting this year’s kharif and rabi output). Commodities continued their southward journey and headline WPI remained in deflationary mode for last 10 months. Ability of economy to withstand adverse weather shock will not only be good news for government but for even for RBI. Movement of WPI will have an impact on CPI also and chances of a 25bp cut in repo rate on 29 September 2015 has brightened.”
2.24 pm: Sensex was up 157 points at 25,767. Alex Mathews, head of research at Geojit BNP Paribas said, “Nobody will create big positions, either short or long ahead of the Fed event. Highly volatile movements are expected.”
2.04 pm: Greaves Cotton jumped as much as 6.31 per cent on Monday after the company informed BSE that it has launched its new range of Farm Equipment Products at manufacturing plant in Gummidipoondi near Chennai. Sensex was up 178 points at 25,788.
1.59 pm: Sensex was up 162 points at 25,773. Nifty was up 49 points at 7,838.35. Sun Pharma was trading 0.88 per cent higher at Rs 853.
1.17 pm: The broader indices were trading in green; the BSE Midcap index was up by 1.21 per cent, while Smallcap index up by 0.84 per cent. The top gaining sectoral indices on the BSE were Metal up by 2.02 per cent and Bankex up by 1.62 per cent. Sensex was up 202 points at 25816.
12.54 pm: The CPI or retail inflation data is expected later in the day. CPI in July recorded a low of 3.78 per cent. As RBI wanted more clarity over inflation numbers in the months to come, it kept the key rate unchanged in its monetary policy review on August 4. Sensex was up 159 points at 25,769.
12.20 pm: Just Dial was trading 12.32 per cent higher at Rs 916.95. Just Dial has launched its latest Android App ‘Search Plus’ on the Google Play Store for users. The company has also submitted its new iOS App to Apple App Store and is expected to go live shortly. Sensex was up 74 points at 25,684.
12.12 pm: The y-o-y inflation for the WPI Index recorded a broad-based fall to a series-low -4.95 per cent in August 2015. Five of the six major sub-indices (except primary food inflation) recorded a deeper disinflation in August 2015 relative to the previous month. Sensex was up 104 points at 25,714.
11.52 am: Shares of Kesoram Indutries and JK Tyres are in focus on Monday after companies informed stock exchanges that JK Tyre & Industries has signed a binding term sheet with Kesoram Industries to acquire its tyre manufacturing unit at Haridwar (Cavendish Industries Ltd). Kesoram Industries shares were trading 4.20 per cent higher at Rs 106.70 apiece. JK Tyres were down 2.40 per cent at Rs 106 apiece. Sensex was up 72 points at 25,681.
11.05 am: Sensex was up 137 points at 25,747. In the 30-share index, NTPC, Tata Steel and Axis Bank were up over 1.5 per cent. Nifty was up 32 points at 7,821.
10.35 am: Meanwhile, Deutsche Bank cuts BSE Sensex target to 28,000 from 31,000 earlier citing concerns over global growth. Says combination of commodity deflation, sharp compression in global trade, deep EM currency depreciation and dollarisation of EM debt has raised the risks of an EM contagion. Sensex was up 84.87 points at 25,695.
Nitasha Shankar, vice president, research, YES Securities, said, “Global markets are cautious ahead of the US Fed meeting. Largely the expectations are that the US Fed will not hike rates.”
10.26 am: Sensex was up 106 points at 25,716. Nifty was up 26.45 points at 7,815. Brokers said buying activity picked up on positive economic data as industrial production expanded at better-than-estimated 4.2 per cent in July this year compared to the same month last year as manufacturing activity and offtake of capital goods improved.
10.01 am: The rupee recovered 14 paise to 66.40 against the dollar in early trade at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks amid positive economic data. The BSE IT index was flat at 11,031. Sensex was down 16 points at 25,594.
9.52 am: Amtek Auto shares jumped over 12 per cent in the early trade on Monday after the company informed BSE that it is considering various means to de-leverage the balance sheet. Sensex was down 7 points at 25,602.
9.34 am: Sensex was down 51.50 points at 25,558.71. Shares of Sun Pharma were trading 0.50 per cent higher at Rs 850.
9.23 am: Sensex in red, down 2.07 points at 25,608. JK Tyre was trading 2.35 per cent lower at Rs 105.90. JK Tyre & Industries (JK Tyre) and its subsidiary JK Asia Pacific Singapore have signed a binding term sheet with Kesoram Industries (KIL) to acquire 100 per cent equity in Cavendish Industries (CIL) for Rs 2,200 crore. CIL houses a tyre business undertaking in Haridwar that manufactures a range of tyres, tubes and flaps. The acquisition will provide JK Tyre with additional capacity for ready expansion in the truck and bus radials segment, where it is a market leader, as well as entry into the fast growing two and three-wheeler tyre market.
9.21 am: The BSE Sensex was up 5.23 points at 25,615. NSE Nifty was down 9.30 points at 7,780.
9.15 am: The benchmark BSE Sensex rebounded over 96 points to 25,706.87 in early trade today, reversing its two-day losing trend on the back of positive IIP numbers for July.
Besides, a firming trend at other Asian markets buoyed sentiment. The 30-share barometer recovered 96.66 points, or 0.38 per cent, to 25,706.87, with stocks of realty, power, capital goods and PSU sectors leading the recovery. The gauge had lost 109.37 points in the previous two straight sessions.
The NSE index Nifty recaptured the 7,800-level by recovering 21.80 points, or 0.27 per cent, at 7,811.10.
New York: US stocks rose on Friday and the S&P 500 posted its biggest weekly gain since July as investors weighed whether the Federal Reserve will raise interest rates this month.
London: Britain’s top share index fell on Friday, led lower by a drop in house builders after weak UK construction data for July, and by struggling supermarket operators.
Tokyo: Japanese stocks edged down on Monday morning as lower oil prices hit energy firms while telecommunication shares were sold off after the prime minister called for cheaper cellphone rates.
Hong Kong: The Hang Seng Index was up 0.10 percent.
(With inputs from agencies)