The BSE Sensex and NSE Nifty hit their highest level in nearly three weeks on Wednesday in the absence of foreign selling pressure ahead of year-end holidays and following overnight gains on Wall Street. Market sentiment also got a boost from India’s current account deficit (CAD) data, which dropped to 1.6 per cent of GDP in the July-September quarter from 2.2 per cent reported for the same period a year ago.
Sensex closed 259.65 points up at 25,850.30, while Nifty 50 index settled 79.85 points up at 7,865.95.
Some support also came after a new growth projections presented by researchers at the Centre for International Development (CID) at Harvard University has said that India, with a projected annual growth rate of 7 per cent, has the potential to be the world’s fastest growing economy over the coming decade, surging ahead of its South Asian economic rival China that will continue to see a slowdown.
In the 50-share index, GAIL, Hindalco, Vedanta, Bhel and Sun Pharma gained between 3.75 per cent and 6.10 per cent. On the other hand, Mahindra & Mahindra, Asian Paints, Adani Ports, BPCL and Bajaj Auto slid between 0.30 per cent and 0.60 per cent.
Barring the BSE Consumer Durables index (down 0.27 per cent), rest all other sectoral indices closed in green. The BSE Metal index gained the most — 1.87 per cent, followed by BSE Oil & Gas (up 1.47 per cent), BSE Healthcare index (up 1.38 per cent) and BSE Power index (up 1.30 per cent).
“Generally FIIs have been sellers, their absence has given the market reason to be steady to high,” said Deven Choksey, managing director, KR Choksey Securities.
Dr Lal Pathlabs and Alkem Laboratories made an impressive debut on bourses. Shares of Dr Lal Pathlabs closed 52 per cent up from its issue price of Rs 550. Alkem Labs shares surged 31 per cent from its issue price of Rs 1,050.
Global cues too remained supportive with European counters trading with a gain of around one and a half per cent in early deals led by mining stocks tracking gains in copper prices. Asian markets ended mostly in green terrain, tracking gains in US markets, as investors cheered strong US data, a pause in the greenback’s rally and higher oil prices. Markets in Japan remained shut for the Emperor’s Birthday.
|Asian Indices||Last Trade||Change in Points||Change in %|
Source: Ace Equity
Markets through the day
3.30 pm: Sensex closed 259.65 points up at 25,850.30, while Nifty 50 index settled 79.85 points up at 7,865.95.
2.58 pm: Benchmark indices continued to trade firm in the afternoon session on the back of positive global cues. Sensex was up 251 points at 25,841.
2.22 pm: Bank of India shares were trading 0.77 per cent up at Rs 117.35 after the public lender said it will raise up to Rs 3,000 crore by issuing tier-II bonds. Sensex was trading 239.15 points up at 25,829.80. Nifty was trading 72.70 points up at 7,858.80.
2.10 pm: Natco Pharma share price was trading 2 per cent up at Rs 574.90 after the drug major and its US partner Allergan have settled a pending litigation with biopharmaceutical firm Celgene regarding generic Lenalidomide capsules used for treatment of multiple myeloma. Sensex was trading 276.20 points up at 25,866.85. NSE Nifty was trading 79.45 points up at 7,865.55.
1.51 pm: European shares rose on Wednesday, lifted by gains in the hard-hit mining sector which rallied on the back of stronger copper prices. In the last full trading session before the Christmas holiday break, the pan-European FTSEurofirst 300 index rose 1.3 per cent while the euro zone’s blue-chip Euro STOXX 50 index advanced 1.2 per cent. Britain’s FTSE 100 index progressed by 1.1 percent, as did Germany’s DAX. Sensex was trading 256.89 points up at 25,847.54. Nifty was trading 74.10 points up at 7,860.20.
1.26 pm: Piramal Enterprises share price was trading 1.14 per cent up at Rs 954 after the company’s Consumer Products Division on Wednesday announced acquisition of five brands from Organon India Pvt Ltd and MSD BV for Rs 92 crore to beef up its offerings in the over-the-counter (OTC) healthcare segment. Sensex was trading 240.06 points up at 25,830.71. Nifty was trading 70.80 points up at 7,856.90.
12.43 pm: NSE Nifty was up 62.10 points at 7,848. Brokers said a fresh spell of buying triggered by a firming trend at other Asian bourses following overnight gains in the US in the wake of upbeat data on growth and consumer spending buoyed sentiment. India’s current account deficit (CAD) data dropped to 1.6 per cent of GDP in the July-September quarter from 2.2 per cent reported for the same period a year ago.
12.33 pm: Sensex was up 228 points at 25,818. In the 30-share index, GAIL, Bhel, Sun Pharma, Tata Steel and Bharti Airtel were up between 2.50 per cent and 5.10 per cent.
12.24 pm: Alkem Laboratories shares which listed on bourses today were trading 32 per cent from its issue price of Rs 1,050.
12.20 pm: Piramal Enterprises Ltd’s (PEL) Consumer Products Division on Tuesday announced acquisition of five brands from Organon India Pvt Ltd and MSD BV for Rs 92 crore to beef up its offerings in the over-the-counter (OTC) healthcare segment. The share price of Piramal Enterprises was trading 1.08 per cent up at Rs 953.40. Sensex was up 237 points at 25,828.
12.08 pm: Tata Steel shares were trading 2.76 per cent up at Rs 264.30 after news reports suggested that it is in talks with investment firm Greybull Capital to sell its struggling Long Products Europe business in the UK. Sensex was trading 245.28 points at 25,835.93. NSE Nifty was trading 72.90 points down at 7,859.00.
11.50 am: Essar Oil was trading 5.83 per cent up at Rs 254.00 after its delisting on Wednesday got through as the markets regulator Sebi gave its go-ahead to the stock exchange BSE to accept nearly 2 crore shares tendered by the state-run LIC for the promoters’ buyout offer. Sensex was trdaing 251.57 points up at 25,842.22. NSE Nifty was trading 71.65 points up at 7,857.75.
11.25 am: Suven Life Sciences share price was trading 6.38 per cent up at Rs 271.90 after it secured 7 product patents for their NCE’s in ARIPO, Europe, Hong Kong, Japan, Macau and South Korea. Sensex was trading 268.20 points up at 25,858.85. NSE Nifty was trading 76.75 points up at 7,862.85.
10.58 am: Shares of Larsen and Toubro (L&T) gained nearly 1 per cent after it informed BSE that its subsidiary — L&T Construction — has won orders worth Rs 1,178 crore across various businesses in December 2015.
10.45 am: Thomas Cook (India)’s subsidiary – Quess Corp (formerly IKYA Human Capital Solutions) has acquired Styracorp Management Services and IME Consultancy (together known as ‘Styracorp’). Based out of Dubai (UAE), Styracorp provides human resources staffing solutions companies in the Middle East. The acquisition marks the entry of Quess’ People and Services business in the Middle East. Shares of Thomas Cook were trading nearly 2 per cent up in the early trade.
10.40 am: The Cabinet Committee on Economic Affairs (CCEA) on Tuesday gave its approval for investment of Rs 5,000 crore by Oil and Natural Gas Company (ONGC) into the equity share capital of ONGC Videsh by conversion of existing loan of equivalent amount into equity. The approved investment will strengthen the capital base of ONGC Videsh. It will enhance the ability of ONGC to undertake overseas Exploration and Production (E&P) business, thereby improving the energy security of the country. Shares of ONGC were trading 1.19 per cent up at Rs 233.45. The BSE Oil & Gas index was up 1.24 per cent at 9,410.86.
10.29 am: Orchid Pharma shares gained over 3 per cent in the morning trade after the company’s wholly-owned subsidiary – Orchid Europe, UK, entered into a long term financial arrangement to avail up to $800 million as loan with Line Trust International, Guernsey, UK. This funding will help the company explore new growth opportunities while enabling the current business achieve incremental value. Sensex was up 256 points at 25,847.
10.10 am: Drug maker Alkem Laboratories and diagnostic chain Dr Lal PathLabs made a strong debut on the bourses on Wednesday with the shares of both the companies jumping over 30 per cent on listing. Alkem Laboratories shares opened 31.42 per cent up from its issue price of Rs 1,050 on BSE. Dr Lal Pathlabs opened 30.36 per cent up from its issue price of Rs 550.
9.45 am: Extending its gains for the seventh day in a row, the rupee strengthened by 9 paise to 66.24 against the US dollar in early trade on Wednesday at the Inter-bank Foreign Exchange on continued selling of the American currency by exporters and banks amid fresh foreign funds inflows.
9.29 am: Sensex surged 233 points at 25,824. Nifty was up 64 points at 7,850.15. IT major Wipro on Wednesday announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry for $130 million. Shares of Wipro were up 0.25 per cent at 557.05.
9.23 am: Welspun Enterprises has entered into a definitive agreement with India Infrastructure Fund-II, an alternate fund sponsored by IDFC. As per this agreement, the company sold 37 per cent equity stake in Dewas Bhopal Corridor (DBCL), a 50 per cent Joint Venture of the company at an enterprise value of Rs 662 crore (including a contingent deferred consideration of Rs 34 crore million and debt of Rs 317 crore). The above transaction has strengthened the company’s financial capabilities by increasing the cash and reducing net debt by nearly Rs 282 crore. The share price of Welspun Enterprises was trading 9 per cent up at Rs 56.45.
9.16 am: Sensex was up 168.11 points at 25758.76. Nifty was up 54 points at 7840.15. Realty firm Prestige Estates will buy-back the securities held by Red Fort and Varidge Ventures in its project Exora Business Park at Bengaluru for about Rs
600 crore, thereby allowing the foreign investors to exit. The share price of Prestige Estates was up over 3 per cent in the early trade.
9.15 am: Domestic equity markets opened in green on Wednesday tracking positive global markets. BSE Sensex opened 107.01 points up at 25,697.66. NSE Nifty opened 44.35 points 7,830.45.
Asia shares edged higher on Wednesday following a modest bounce on Wall Street, while the dollar drifted lower and oil found some relief from recent relentless selling.
Nymex crude oil futures showed some recovery and inched higher, brent too rebounded after slipping to the lowest in 11 years. There was heavy short covering as investors continued to grapple with near-record supply levels. Though, a global supply glut and concerns about OPEC production quotas kept weighing down the prices. Investors were awaiting the release of the American Petroleum Institute’s (API) weekly inventory report after the close of trading for further indications on demand levels.
Equity investors were encouraged by a second session of gain for Wall Street. The Dow ended Tuesday up almost 1 per cent, while the S&P 500 gained 0.88 per cent and the Nasdaq 0.65 per cent.
In a complete U-turn, the benchmark Sensex on Tuesday let go of the previous session’s gains as it lost by over 145 points to close at 25,590.65 after investors booked profit amid mixed leads overseas.
The NSE Nifty after slipping below the 7,800-level closed at 7,786.10 on Tuesday, down 48.35 points, or 0.62 per cent.
Drug maker Alkem Laboratories and diagnostic chain Dr Lal PathLabs, which recently concluded their initial public offerings successfully, would list shares
on the stock exchanges on Wednesday. The equity shares would be listed on the BSE as well as the National Stock Exchange (NSE).
Giving some respite to the government, the current account deficit (CAD) narrowed to 1.6 percent of GDP at $ 8.2 billion in the second quarter ended September, compared to $10.9 billion or 2.2 per cent of GDP reported in the same period last year, mainly due to lower trade deficit. However, the CAD was higher than the first quarter’s $6.2 billion or 1.2 per cent of GDP, due to a drop in export of goods. Earnings from export of goods dropped to $67 billion in Q2FY16 from $68 billion in Q1FY16.
(With agency inputs)