In the 50-share Nifty index, NDMC, Hindalco, Vedanta, NTPC and Tata Steel gained in between 4 per cent and 8.50 per cent.
Domestic equity markets extended gains from the previous session and closed over a per cent on Wednesday on the back of buoyant global markets. Asian shares extended a global rally on Wednesday, with markets in China stabilising and Japanese stocks posting their biggest one-day gain since the height of the global financial crisis in 2008.
The BSE Sensex jumped 401.71 points, or 1.59 per cent, at 25,719.58. NSE Nifty also gained 130.35 points, or 1.70 per cent, at 7,818.60. In the 50-share Nifty index, NDMC, Hindalco, Vedanta, NTPC and Tata Steel gained between 4 per cent and 8.50 per cent. Bosch, Tech Mahindra, Sun Pharma, Power Grid and Wipro declined between 0.25 per cent and 0.66 per cent and stood at the bottom on the performance chart of the index.
Anand James, co head, technical research desk, Geojit BNP Paribas Financial Services, said, “With Nikkei surging 7.7 per cent, and Chinese stock indices continuing the rebound, Indian markets’ opened with an upside gap. Metals, auto and commodity sectors led the rise early in the day, suggesting the positive vibes largely borne out of relief from concerns over china’s slowdown. Allowing of 100 per cent FDI to white label ATMs, and cabinet approval for spectrum trading norms and gold monetisation scheme kept alive the positive theme during the day.”
Among the sectoral indices on the Bombay Stock Exchange, the BSE Metal index gained the most — 3.54 per cent at 7,366.15, it was followed by BSE Auto index (up 2.92 per cent), BSE Realty index (up 2.76 per cent) and BSE Power index (up 2.31 per cent). Rest all other sectoral indices also ended in green on BSE.
Later there were some key policy announcements that boosted the morale of the markets. Government approved the Sovereign Gold Bond scheme; RBI will be issuing gold bonds on behalf of the government. The Cabinet also approved the Gold Monetisation Scheme, which will enable depositors to earn interest on their gold accounts. There was also sudden surge in the telecom stocks after the cabinet approved the spectrum trading guidelines.
Telecommunications stocks such as Bharti Airtel rose 2.44 per cent and Idea Cellular gained 2.12 per cent. Reliance Communication advanced 11.57 per cent to Rs 62.20.
Overall market breadth of the market remained positive as advances to declines ratio for Nifty stocks stood at 42:8 for the day. Volumes for Nifty stocks stood at 2,147 lakh, higher than volumes of 1,774 lakh logged in Tuesday’s trading session.
Asian Markets Performance (September 9, 2015)
Gaurav Jain, director, Hem Securities, said, “A blockbuster performance by the equities globally drives Indian markets higher. Key decisions taken by the Cabinet to boost the economy like spectrum trading norms, gold monetisation schemes, stable rupee, improving commodity prices and short covering boosted the sentiment.”
Asian peers, Nikkei, Hang Seng and Shanghai gained 7.71 per cent, 4.10 per cent and 2.29 per cent, respectively.
Markets through the day
3.30 pm: The BSE Sensex closed 401.71 points higher at 25719.58.
2.54 pm: Domestic equity markets were also looking for cues from the Cabinet meeting that took place on Wednesday where the government approved proposals of gold monetisation, offshore wind energy and telecom spectrum trading rules. Sensex was up 459.36 points at 25,777.
2.29 pm: The Cabinet cleared spectrum trading guidelines under which telecom operators will be able to sell radiowaves to other service providers, a move that will help address the problem of spectrum shortage. Cheering the announcement, share price of Bharti Airtel and Idea Cellular jumped 2.55 per cent and 3.01 per cent at Rs 355.60 and Rs 150.50. Share price of Reliance Communication surged 12.47 per cent to Rs 62.70.
2.17 pm: Yes Bank was trading 2.51 per cent higher at Rs 713.45. Rana Kapoor, MD & CEO of Yes Bank announced the planned launch of the bank’s single largest centralised operations management and services delivery facility at Ambattur in Chennai. The facility will house more than 12,000 employees in two phases. The phase one of the facility is expected to become operational by Q1 FY 2017. Kapoor who is also the President of industry body Assocham made the announcement at the time of addressing the inaugural session of the Tamil Nadu Global Investors Meet 2015. Sensex was up 377.72 points at 25,696.
2.11 pm: Sensex was up 292 points at 25,610. Meanwhile, the government approved spectrum trading guidelines and gold monetisation scheme. The Gold Bond scheme will have an annual cap of 500 grams
per person and such bonds would be issued for a period of 5-7 years. FM Arun Jaitley said around 1,000 tonnes of gold is imported annually and people hold such quantum of idle gold just for investment purpose every year.
1.29 pm: In the 30-share pack, Vedanta, Hindalco and Tata Steel were trading up over 5 per cent in the afternoon trade. Sensex was up 470 points at 25,788.
1.15 pm: Shares in Cummins India rise nearly 6 per cent to Rs 1,120, taking their gains in 2015 to 28 per cent. The 50-share Nifty index was up 146 points at 7,835. Sensex climbed over 500 points at 25,820.56. Some analysts felt the rally has been fueled by bargain-hunting as investors bought beaten down stocks.
“This is a short-lived rally, global macro economic environment is not going to change in a day,” Alex Mathews, head of research at Geojit BNP Paribas said.
1.00 pm: Hero MotoCorp shares rose as much as 2.27 per cent intraday on Wednesday after the company informed stock exchanges that it has inaugurated its first global manufacturing facility at Villa Rica, in Colombia. Completed in a little over nine months since construction began, the Colombia plant is Hero’s 5th manufacturing facility, in addition to four assembly plants in India. This Plant will act as a hub for selling to the Andean countries. It can also be a strategic base for shipping to North American markets such as Mexico and the US. The share price of Hero MotoCorp was trading 1.84 per cent higher at Rs 2,359.95. Sensex was up 459 points at 25,776.86
12.18 pm: JSW Energy shares extended gains on Wednesday after the company on Tuesday announced that it has bought two hydro power projects of debt-ridden Jaiprakash Power Ventures (JPVL) in Himachal Pradesh for Rs 9,700 crore. JSW Energy shares were trading 5.05 per cent higher at Rs 78. It opened at Rs 76.55 and had touched a high and low of Rs 78.80 and Rs 76, respectively, in trade so far.
JPVL shares were trading 1.88 per cent higher at Rs 5.96.
12.13 pm: The 50-share NSE Nifty moved up 139.25 points or 1.81 per cent to 7,827.50. Major gainers were, Vedanta, Cairn, Hindalco, YES Bank and Infosys. While, GAIL and Power Grid Corporation of India were the only losers in the index.
12.10 pm: All the 12 BSE sectoral indices were in the green led by realty, metal, IT, teck, consumer durables, auto, oil&gas and healthcare. The market breadth indicating the overall health of the market was also strong. The BSE mid-cap and small-cap index was up 2.27 per cent and 2.02 per cent, respectively. Sensex was up 434.60 points at 25,752.
11.36 am: Sensex was up 400.14 points at 25,718. Meanwhile, foreign investors sold shares worth Rs 659.67 crore on Tuesday.
11.15 am: Asian stocks rose sharply on Wednesday after a strong finish for the US stocks overnight. Hang Seng, Nikkei and Shanghai were up 3.14 per cent, 6.25 per cent and 2.26 per cent, respectively.
11.04 am: Sensex up 305.87 points at 25,623.74. Nifty up 100.75 points at 7,789. Infosys stocks gain 3.18% per cent after it is cleared of all charges on alleged misuse of work visas by the US department of labour. Metal stocks are trading 2.30 per cent higher.
10.51 am: The BSE Metal index was up 2.21 per cent at 7,271.68. Vedanta and Hindalco was trading 8.03 per cent and 4.26 per cent higher at Rs 100.95 and Rs 75.90.
10.46 am: Navkar Corporation shares gained as much as 5.6 per cent on Wednesday in morning trade after opening around 2 per cent down than its issue price. Sensex was up 255 points, or 1 per cent, at 25,573.73. Nifty was up 83.055 points, or 1.09 per cent at 7772.15.
9.58 am: Brokers said widening of positions by participants, tracking extended gains in other Asian markets and overnight rally in the US on better-than-expected euro zone Q2 GDP data and hope for further market stimulus on Chinese markets, buoyed trading sentiments on Wednesday. Sensex was trading 329 points higher at 25,647. Nifty was up 101.40 points at 7,789.65.
9.37 am: The rupee advanced by 24 paise to 66.31 against the dollar at the Interbank Foreign Exchange in early trade on Wednesday on sustained selling of the US currency by banks and exporters. Meanwhile, the benchmark BSE Sensex climbed 388 points, or 1.53 per cent to trade at 25,706 in deals.
9.30 am: Sensex was up over 400.43 points 25,718.
9.25 am: The 30-share Sensex was up 380.95 points at 25,698.82. The 50-share NSE Nifty index was up 115.40 points at 7,803.65.
Domestic equity markets opened on a firm note on Wednesday tracking strong global cues. The sentiments also got a boost after PM Narendra Modi met India Inc on Tuesday, where he asked them to take risk and invest more as his government promised a broad range of steps including stepping up of investment in infrastructure and improving ease of doing business to attract global investment.
The BSE Sensex and NSE Nifty opened 365 points and 117.60 points higher at 25,682.87 and 7,805.85.
Navkar Corporation debuts on the BSE and NSE on Wednesday. The company had priced the initial public offer at the top end of the Rs 147 to Rs 155 per share price band for the IPO. The IPO closed on August 26. It was subscribed 2.85 times, with total bids for 8.14 crore shares, compared with 2.85 crore equity shares on offer.
The 30-share Sensex, which plunged to 15-month low in Monday’s trade, staged a strong comeback to reclaim the 25,000-level and settled 424.06 points higher at 25,317.87 on Tuesday on value-based buying in recently beaten down blue-chips and a firming trend in global markets, helped by a late rally in Chinese equities.
(With inputs from agencies)