Domestic equity indices BSE Sensex and NSE Nifty ended the session in green on Monday on account of buying by investors in the front line blue chips counters.
Domestic equity indices BSE Sensex and NSE Nifty ended the session in green on Monday on account of buying by investors in the front line blue chips counters. Sentiments also remained upbeat due to firm trend at other Asian markets, tracking weekend gains at the US markets.
Sensex closed 86.29 per cent up at 24804.26, while Nifty 50 index settled 28.55 points up at 7538.75.
In the 50-share index, ICICI Bank, Tata Motors, Cairn India, Tech Mahindra and Vedanta gained between 1.88 per cent and 3.38 per cent. On the other hand, Kotak Mahindra Bank, Mahindra & Mahindra, Idea Cellular, Sun Pharma and TCS slid between 0.80 per cent and 1.46 per cent.
Barring the BSE Metal index (down 2.04 per cent), BSE Realty index (down 0.32 per cent) and BSE Consumer Durables index (down 0.23 per cent), rest all other sectoral indices on BSE ended in green. The BSE Bankex index, BSE FMCG and BSE Auto gained 0.81 per cent, 0.69 per cent and 0.60 per cent, respectively.
In scrip specific development, Sasken Communication Technologies shares hit upper circuit after it reached a settlement with Spreadtrum Communications, Inc. and Beijing UniSpreadtrum Technology (Spreadtrum) in connection with the unauthorized use of Sasken’s Protocol Stack IP, by the said companies. Spreadtrum will pay Sasken $45 million as damages / compensation before March 31, 2016 towards this settlement. The share price of the company closed 20 per cent up at Rs 379.40.
Shares of Bhushan Steel also remained in action on Monday after the company received positive nod for over its Rs 3,000 crore plant in Odisha. The company is planning to set up a pellet unit with a production capacity of 7 mn tonnes per year in Odisha. The share price of Bhushan Steel closed 5.68 per cent up at Rs 38.15.
Shares of Tata Motors gained over 3 per cent in Monday’s trade after the auto maker reported a 17 per cent growth year on year in its global sales for the month of February. The company sold 99,842 units in Feb-16 against 85,360 units in the same month the previous year.
Overall market breadth on BSE remained negative in the ratio of 1,321:1,331, while 167 scrips remained unchanged.
For upcoming trading sessions, Vivek Gupta, CMT, director research, CapitalVia Global Research, said, “In last rading session a “doji” was formed on daily japanese candle stick charts there by suggesting market is indecisive and consolidating. A doji is said to occur that nifty opening and closing price are same. It suggest that bulls and bears are at the same power, and are at equliilibrium. As doji is formed at important resistance level of 7,600, but still confirmation is needed on Tuesday to close below Monday’s closing. All these factors are supporting bear case for next couple of trading sessions. Further weakness will be confirmed if Nifty consistently trades below 7,400 and closed below it. In such a scenario immediate target can be expected in the zone of 7,350-7,300.”
The Asian markets rallied on Monday, with major averages extending a global rally posting good gains, ahead of central banks in two of the world’s three biggest economies reviewing policy this week. The Bank of Japan, which adopted a negative interest rate in January, will conclude a policy review on Tuesday and a Federal Reserve meeting will be ending on Wednesday. Meanwhile, the Chinese market surged over two per cent, posting their biggest gain in more than a week after chairman of the China Securities Regulatory Commission, said it was too early to think about the state rescue fund leaving the market and vowed to step in “decisively” if needed to curb panic. Other markets in the region too ended higher, with Japanese Nikkei and Hang Seng posting gains in excess of a per cent.
Markets through the day
3.30 pm: Sensex closed 86.29 per cent up at 24804.26, while Nifty 50 index settled 28.55 points up at 7538.75.
3.04 pm: Shares of Coal India Ltd plunged over 8 per cent amid massive selling by investors as the stock went ex-dividend on Monday.
2.34 pm: Richa Industries has secured an order from Bharat Electronics (BEL) for the construction of Pre Engineered Building (PEB) for the assembly of Masts & Composite Structures with labs & office area at BEL-NAMU in Navi Mumbai. Shares of Richa Industries were trading 1.35 per cent up at Rs 30.10.
2.07 pm: Sensex was up 98 points at 24,816. State-owned Oil and Natural Gas Corporation (ONGC) is planning to make a multi-billion dollar investment in the KG-DWN 98/2 Cluster 2 block in FY17. The pool planned capex for the next fiscal is about Rs 30,000 crore. Shares of ONGC were trading 1.24 per cent up at Rs 207.65.
1.39 pm: Sensex was up 105 points at 24,823. Meanwhile, Angel Broking in a research note said, “We are positive on consumption driven stocks like Blue Star, Radico Khaitan and Siyaram Silk Mills, TVS Motors. Further, we expect rate sensitive sectors like automobile, assets developers, real estate, and housing finance to benefit from an anticipated rate cut by the RBI. In this space, our top picks include, LIC Housing Finance, Mahindra Lifespace, and IL&FS Transportation Networks, amongst others.”
1.22 pm: The broader indices were also trading in green; the BSE Mid cap index was up by 0.30 per cent, while Small cap index up by 0.46 per cent.
1.19 pm: Glenmark Pharma has received final nod from the USFDA to manufacture and market therapeutical equivalent of Endo Pharmaceutical’s Frova tablets, used to treat migraine headaches, in the American market. Shares of Glenmark Pharma were trading 1.43 per cent up at Rs 833.65. Sensex was trading 89 points up at 24,807.
12.58 pm: Sensex was up 87.75 points at 24805.74. The 50-share index was quoting 26.75 points up at 7,536.
12.36 pm: Shares of Bhushan Steel were trading 4.57 per cent up at Rs 37.75. The company has received the environment clearance for its Rs 3,000 crore project to set up a pellet unit with a production capacity of 7 million tonnes per annum (MTPA) in Odisha. Bhushan Steel operates a 5.6 MTPA integrated steel plant in Dhenkanal, Odisha. There is a scarcity of lump iron ore in the market and only iron ore fines are available, which need suitable beneficiation and pelletisation before they can be used as feed stock. Therefore, the company has proposed to set up a pellet unit in Dhenkanal.
12.26 pm: Sasken Communication Technologies shares were trading 16 per cent up at Rs 368.40. The company has reached a settlement with Spreadtrum Communications, Inc. and Beijing UniSpreadtrum Technology (Spreadtrum) in connection with the unauthorized use of Sasken’s Protocol Stack IP, by the said companies. This settlement brings to an end the ongoing arbitration and terminates all ongoing obligations of the parties under the relevant agreements. Sensex was up 79 points at 24796.96. Nifty was trading 24.10 points up at 7,534.
12.13 pm: Sensex was up 83.79 points at 24,801. Nifty was trading 25.85 points up at 7,536. India’s main inflation gauge, based on monthly wholesale price index (WPI), stood at -0.9 per cent from -0.9 per cent in the month of January and -2.17 per cent during the corresponding month of the previous year. The February WPI remains unchanged on month on month basis.
11.40 am: Suven Life Sciences shares gained over 2 per cent after it informed BSE that the company has secured three product patents; one product patent from China, one from Eurasia and one from Hong Kong corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these Patents are valid through 2032. Sensex was trading 134.12 points up at 24,852.
11.20 am: Coal India plunged as much as 8.36 per cent on BSE as the stock turns ex-dividend on Monday. Board of directors of Coal India had approved payment of interim dividend for the financial year 2015-16 at Rs 27.40 per share.
10.49 am: YES Bank shares were trading 0.94 per cent up at Rs 807. In order to boost bilateral trade, YES Bank, the country’s fifth largest private sector bank, has signed a memorandum of understanding (MoU) with the India-Brazil Chamber of Commerce (IBCC) on March 11, 2016. This partnership will cover areas such as project consultancy, B2B opportunities, and skill and technology initiatives. The core sectors covered in the MoU will be sports, media and entertainment with special focus on IT, infrastructure, broadcast driven business opportunities. Sensex was up 184 points at 24,902.
10.28 am: Reserve Bank of India (RBI) has increased foreign institutional investors’ (FIIs) investment limit in SeQuent Scientific to 49 per cent of its paid-up capital on March 11, 2016. RBI has notified that FIIs/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid up capital of SeQuent Scientific under the Portfolio Investment Scheme (PIS). The company has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. Shares of SeQuent Scientific were trading 1.03 per cent up at Rs 176.50. Sensex was up 159 points at 24,877.
10.18 am: Share price of Pfizer and Abbott India were trading 5 per cent and 0.85 per cent down at Rs 1831.50 and Rs 4,810, respectively. Pharma companies are planning to push hard for the withdrawal of an order by the health ministry last week to ban 329 drugs marketed as fixed dose combinations, with some even looking at legal options. Fixed dose combinations are two separate drugs combined into a single dose. The concept is widely accepted in global markets due to the advantages of lower cost and patient convenience. Overall, trade estimates suggest the move may shave off at least Rs 3,800 crore from the Indian market and the jolt may be felt by most companies down to the smallest drug units. Abbott may take a hit of Rs 485 crore on account of the move while Pfizer may suffer a loss of Rs 368 crore. Others like Sun Pharma, Lupin, Wockhardt and Alkem are also among those that will be hit.
10.16 am: Sensex was up 165 points at 24,883. Brokers said a flurry of buying by investors in blue-chips supported by sustained foreign fund inflows and a firming trend at other Asian markets, tracking weekend gains at the US markets, mainly influenced the sentiment.
9.45 am: Cupid climbed 9 per cent in the early trade on Monday after it informed bourses that a non-exclusive long term agreement has been awarded to the company for manufacture and supply of Cupid Female Condoms to UNFPA for a period of 3 years.
9.31 am: Rupee strengthened by 15 paise to 66.90 against the dollar in early trade at Interbank Foreign
Exchange, extending its upward march for a fourth straight day on sustained selling of the US currency by exporters and banks amid higher opening in the domestic equity market. Sensex was trading 223 points up at 24,941.
9.22 am: Sensex was up 200.98 points, or 0.81 per cent, at 24,918.97. Nifty was trading 56.55 points up at 7,566.75. Cupid shares were trading 8.14 per cent up at Rs 340.10.
9.17 am: Sensex was trading 196.89 points up at 24914.88. Nifty was up 56.85 points at 7,567. In the 30-share index, Tata Motors, ICICI Bank, Adani Ports and Tata Steel were up between 1.60 per cent and 3.35 per cent. On the other hand, Coal India was down 7.29 per cent in the early trade.
9.15 am: The Sensex opened 83.71 points up at 24801.70, while Nifty 50 opened 32.40 points up at 7542.60.
8.51 am: The BSE Sensex and NSE Nifty are likely to open in green on Monday tracking Nifty futures on the Singapore Stock Exchanges (SGX Nifty) and firm global markets.
At 8.40 am (IST), SGX Nifty was up 59.50 points, or 0.79 per cent, at 7,573.50.
Asian shares also started the week higher on Monday, buoyed by gains on Wall Street, firmer crude prices and glimmers of strength in weekend data from China.
Wall Street rallied on Friday as steadying oil drove energy shares. Dow Jones Industrial Average index closed 1.28 per cent up at 17,213.31.
The 30-share Sensex on Friday closed higher by 94.65 points or 0.38 per cent at 24,717.99. The broader NSE Nifty recaptured the 7,500-mark and ended at 7,510.20, up 24.05 points or 0.32 per cent.
Shares of NMDC and Reliance Industries (RIL) will remain in focus on Monday. India’s largest iron ore miner NMDC has raised the lump price by a little over 8 per cent to Rs 1,950 per tonne effective March 11, its first hike for the higher grade of the ore in over one-and-a-half years.
Reliance Industries’ wholly-owned arm Model Economic Township Ltd will develop an electronics
manufacturing hub and footwear park at Jhajjar, Haryana with an investment of Rs 1,300 crore.
(With agency inputs)